Audit of Pay Determination for University Teachers

February 2026

1259-3-0115 (ADM(RS))

Reviewed by ADM(RS) in accordance with the Access to Information Act. Information UNCLASSIFIED.

Back to Table of Contents

Background

RMC Kingston and RMC Saint-Jean are unique national military universities that deliver undergraduate and graduate programs in social sciences, humanities, science and engineering. While RMC delivers core military training programs, such as the Regular Officer Training Plan, it also relies on civilian academic staff to support its mission.

The academic staff comprises military members; approximately 260 civilian public servant employees of the UT classification; and federal contractors. Public service pay rates, including UTs, are set through the TB collective bargaining process. Most UTs receive an annual salary, plus certain allowances. Pay for UTs is governed by the Salary Administration Plan, which is a TB manual. This plan outlines a performance-based approach to pay specific to UTs.

In addition to full-time indeterminate UTs, RMCs hire temporary employees under part-time, casual and term employment contracts. These UTs are used to backfill faculty members on leave and to offer administrative course relief.

Back to Table of Contents

Key Findings

To meet operational needs, all UTs are offered competitive salaries and hired at a pay step higher than the first one on the pay scale (Annex C). This means a “pay above the minimum” action is needed every time a UT is hired. This pay action is compliant with the Directive on Terms and Conditions of Employment.

At RMC Kingston, term UTs are usually hired from August to May each academic year. Due to their break in service, a “pay above the minimum” action is needed each time the term UTs return. The principal holds sub-delegated authority and approves these pay actions for RMC UTs.

According to the Salary Administration Plan, UTs are compensated based on their performance rating over an academic year (July 1 to June 30). If a UT employee receives an annual rating of “satisfactory,” they move up one step in their pay scale until they reach the top step. The Salary Administration Plan allows up to 40 percent of UTs to receive a rating higher than satisfactory, which moves the UT up two steps in their pay scale.

These ratings are tracked by RMC to ensure compliance with the 40 percent limit. UTs who are at or near the top of their pay scale will receive a lump-sum performance award, which can be up to twice the amount between the last two steps of the pay scale. UTs at the top step of the UT-04 pay scale can receive up to three times that amount. On average, each step on the pay scale is worth $3,400.

In accordance with the Performance Evaluation Process for UTs, the performance of each UT is evaluated at the end of the academic year. The performance ratings are confirmed at a Performance Evaluation Committee meeting, chaired by the principal, and then sent to the RMC Commandant and the Canadian Defence Academy Commander for approval. The final step in the performance evaluation process is the completion of FAR, which is the permanent record of this review.

A FAR is created at the end of the academic year for UTs, highlighting employees’ achievements over the year. The report provides a complete record to justify the performance ratings that are used to action increases in UT pay. According to the Department’s 2014 Career Progression Management Framework document, which explains the annual evaluation process for UTs, FARs are required for all full-time civilian faculty (including terms) employed for six months or more. Currently, FARs are only completed for UTs employed on July 1, the effective date of the increment.

The audit team reviewed 56 sample indeterminate employee files. In all 56 files, letters communicating the performance rating were created and signed by the principal. Twelve FARs were completed and signed as per the guidelines. The remaining FARs were unsigned or missing from the employee files.

The audit team also reviewed letters of offer for nine term employees. Four term employees returned on an annual basis, two of whom were eligible and received a one-step pay increase upon their return. The other two employees were at the maximum rate of the pay scale. The RMC principal approved the pay rates for all nine term employees. FARs were not created for employees with contracts ending prior to the end of the academic year.

The Salary Administration Plan states that “annually, prior to the beginning of the academic year on July 1, the principal of the college shall conduct a review of the performance of each employee over the current academic year. The review should take into account such elements as teaching ability, professional standing and creative activity.” This phrasing has been interpreted at the RMC to assess on strength as of June 30 and has created implementation ambiguity. The process will need to be clarified when the Salary Administration Plan is updated.

Complete documentation, including clear explanations, concrete evidence of the rationale behind performance ratings and the consistent application of policy, support a transparent pay determination process.

Management Response:

See Annex A for management’s response to Recommendation 1.

The Salary Administration Plan does not describe the rate at which term UTs should be paid when their contracts are renewed. The practice is to automatically grant term employees who return a one-step pay increase with each new employment contract until the maximum allowable pay rate is reached. FARs are not maintained with performance ratings for these employees as they are not employed at the end of the academic year.

The Salary Administration Plan does not include sufficient guidance for determining ratings higher than “satisfactory.” The ratings distribution is described in letters from the principal, written in 2007 and 2008. The 2007 letter says that UTs within three years of retirement automatically get a higher rating if they qualify for a satisfactory rating. The 2008 letter says that term UTs are included in the total population to determine the 40 percent limit but are not eligible for a higher rating. The rating criteria found in these letters are not reflected in the Salary Administration Plan document.

Deans and vice principals may receive administrative allowances as UTs performing administrative tasks similar to those of a department head. The rates for these allowances have not been provided within the Salary Administration Plan; however, a rate of $4,500 was documented in a 1990 TB Minute (an agreement between RMC and TB).

From April 2021 to October 2024, administrative allowances were approved by the principal and issued to eligible RMC Kingston deans and vice principals in the amounts of $8,000 and $10,000 respectively. The source of the current rates used for deans and vice principals is unclear. Rates and rationale should be clearly defined and available to justify issuing administrative allowances to unrepresented individuals.

Management Response:

See Annex A for management’s response to Recommendation 2.

Pay rates for part-time excluded and part-time casual UTs were identified as a risk due to uncertainty surrounding pay determination at RMC Kingston. Letters of offer issued by RMC Kingston state the work period, rate of pay and number of work hours per week. For part-time excluded UTs, a minimum and maximum hourly rate of pay is posted on the TB website. The rate of pay is found in the collective agreement for part-time casual UTs.

Ten letters of offer for RMC Kingston part-time excluded UTs, as well as their associated pay records, were reviewed. All 10 letters stipulated an hourly rate that was in accordance with the rates of pay specified on the TB website. Ten letters of offer were also reviewed to determine if the stipulated rate was in accordance with the collective agreement for part-time casual UTs. All 10 letters for casual RMC Kingston UTs complied.

Back to Table of Contents

Conclusion

The existing pay determination process for UTs at RMCs aims to ensure fair and competitive salaries based on performance. Ensuring complete and accurate records of employee performance and pay, along with guidelines that support effective pay determination and administration for UTs, is crucial for transparency and consistency across the RMCs.

Back to Table of Contents

Annex A: Management Action Plan

Back to Table of Contents

Annex B: About the Engagement

This engagement conforms with the Internal Auditing Standards for the Government of Canada, as supported by the results of the Quality Assurance and Improvement Program.

Objective

The objective of the engagement was to provide assurance that salary, allowances and awards for UTs are determined and issued in accordance with the UT collective agreement, the UT Salary Administration Plan and the Directive on Terms and Conditions of Employment.

Scope

The scope of the engagement covered:

• UTs of all tenures: indeterminate, term and part-time (i.e., sessional instructors or unrepresented groups); and
• pay above the minimum, pay increments, administrative allowances, retention allowances and performance awards.

The scope of the audit excluded:

• payment processes;
• other teaching personnel; and 
• other components of the appointment and performance management processes.

Period Covered

The engagement covered the period from April 2021 to October 2024. This is the period to which the engagement conclusion applies. The audit work was conducted between November 2024 and April 2025.

Back to Table of Contents

Annex C: UT Rates of Pay (effective July 1, 2021)

Back to Table of Contents