Transfer of Funds: 2012 Carry Forward to Central Reserves

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A decision made on 3 December 2012:

Decision Reference: MD-S-2012-0107
Decision Summary Title :	Transfer of Social Security Department 2012 Carry Forward to States Central Reserves		Date of Decision Summary:	30 November 2012
Decision Summary Author:	Director of Finance and Governance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Transfer of Social Security Department 2012 Carry Forward to States Central Reserves		Date of Written Report:	30 November 2012
Written Report Author:	Director of Finance and Governance		Written Report : Public or Exempt?	Public
Subject: : Transfer of 2011 unspent carry forward from the Social Security Department (SSD) to Central Reserves
Decision(s): The Minister approved a non-recurring budget transfer in 2012 of £5,200,000 from the SSD revenue head of expenditure to Central Reserves
Reason(s) for Decision: Article 2(6) of the Public Finance (transitional Arrangements) (Jersey) Order 2011 states that all or any of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.
Resource Implications: The SSD revenue head of expenditure to decrease by £5,200,000 and Central Reserves to increase by an identical amount in 2012.
Action required: The SSD Director of Finance and Governance to notify the Head of Financial Control and Accounting, Treasury and the SSD Finance Manager that this decision has been approved.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Transfer of Funds: 2012 Carry Forward to Central Reserves

Social Security Department Ministerial Decision Report
Subject:	Transfer of Social Security Department unspent 2011 carry forward to Central Reserves
Exempt Clause:		Date:	30 November 2012

Author:	Director of Finance & Governance

Introduction

The Social Security Department (SSD) request the transfer of £5,200,000 of unspent 2011 carry forward monies to Central Reserves.

Background

As part of the 2011 Year End Departmental Revenue carry forwards of £22,856,636 approved by the Treasury Minister, SSD received £10,482,953 (MD-TR-2012-0019 refers).

The projects submitted by SSD as part of this request consisted of the following:

Long Term Care Scheme	£580,000
Temporary Insolvency Scheme	£100,000
Income Support (increased unemployment)	£2,000,000
Cold Weather Bonus	£50,000
Back to Work Projects	£7,403,953
Discrimination Legislation	£100,000
Minimum Wage Research	£25,000
Staff Costs	£224,000
Total	£10,482,953

The request for funding was made in late 2011 at a time of uncertainty regarding future funding streams for Back to Work projects in particular and the economic circumstances effecting unemployment on the island.

Unemployment has not been as high as anticipated in Autumn 2011 reflecting the success of Back to Work initiatives, with the result that Income Support spend has not been as high as expected.

In addition, as a result of funding approved by the States within the MTFP 2013 – 2015 and a slower than expected take up the Employment Grant, a total of £5,200,000 is not required and is available for returning to Central Reserves.

Discussion

Article 2(6) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011states that all or any of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.

Recommendation

The Social Security Minister is recommended to approve a non-recurring budget transfer in 2012 of £5,200,000 from the SSD revenue head of expenditure to Central Reserves, in respect of 2011 unspent carry forward not required as a result of funding approved by the States within the MTFP 2013 - 2015.

Reason for Decision

Unemployment has not been as high as anticipated in Autumn 2011 reflecting the success of Back to Work initiatives, with the result that Income Support spend has not been as high as expected.

In addition, as a result of funding approved by the States within the MTFP 2013 – 2015 and a slower than expected take up of the Employment Grant, a total of £5,200,000 of the SSD 2011 Year End Departmental Revenue Carry Forward is not required and available for returning to Central Reserves.

Resource Implications

The SSD revenue head of expenditure for 2012 to decrease by £5,200,000. States Central Reserves will increase by a corresponding amount.

Action Required

Copy of signed decision to be submitted to Treasury and Resources, who will then reduce the SSD voted expenditure by £5,200,000.