Budget Transfer: 2014 Pay Award

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A decision made 20 December 2013:

Decision Reference: MD-T-2013-0109
Decision Summary Title:	Contingency Funding to Departments for the 2014 4% Consolidated Pay Award		Date of Decision Summary:	17 December 2013
Decision Summary Author:	Finance Director		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Contingency Funding to Departments for the 2014 4% Consolidated Pay Award		Date of Written Report:	17 December 2013
Written Report Author:	Finance Director		Written Report : Public or Exempt?	Public
Subject: Budget transfer – 4% Consolidated Pay Award for 2014.
Decision(s): The Minister approved a budget transfer for contingency funding totalling £804,600 from the Central Contingency (Pay Provision) for costs associated with the 2014 4% Consolidated Pay Award and an identical transfer in 2015 for the recurring effect of the pay award.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorized to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The SEB have offered a 4% Consolidated Pay Award for 2014 for which contingency funding is held in the States of Jersey Central Contingency (Pay Provision). In order to make the payments associated with this award it is necessary to have the budget transferred to the Transport and Technical Services Department’s revenue head of expenditure.
Resource Implications: The Transport and Technical Services Department’s revenue head of expenditure will increase by £804,600 in 2014 and 2015 and the Central Contingency (Pay Provision) will decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States. The recurring impact of these budget transfers will be reflected in the Transport and Technical Services Department’s base budget in the next MTFP 2016-2019.
Action required: Finance Director to liaise with Treasury and Resources Department to effect the necessary budget transfer.
Signature:		Position:
Date Signed:		Date of Decision:

Budget Transfer: 2014 Pay Award

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TRANSPORT AND TECHNICAL SERVICES DEPARTMENT

CENTRAL Contingency Funding for the 2014 4% Consolidated Pay

Award

Purpose of Report

To enable the Minister to approve a 2014 request for recurring contingency funding of £804,600 from the Central Contingency (Pay Provision) to the Transport and Technical Services Department for costs associated with the 4% consolidated pay award for 2014, and to approve an identical transfer in 2015 for the recurring effect of the pay award.

Background

The 4% award is the final segment of a three year award which, whilst not reached for all pay groups, has had de facto acceptance and has led to significant CSR savings which flow through into future years.

The first two parts of the three year pay offer were made in 2012 and 2013 following an announcement by the Chief Minister in the States in December 2012. This represented:

• 2012, 1% non-consolidated award paid as a one off lump sum, with effect 1st January 2012; and

• 2013, 1% consolidated pay award plus 1% non-consolidated award paid as a one off lump sum, with effect 1st January 2013.

The offer for 2014 was for a 4% consolidated pay award with effect from 01January 2014, in return for a modernisation agreement and a guarantee of no compulsory redundancies until the end of 2014.

Following a meeting on 07 November 2013, the States Employment Board recommended the payment of the 4% award for ALL pay groups, to be paid in January 2014. In addition, a budget transfer from Central Contingency (Pay Provision) to fund the award was approved by the Council of Ministers on 13 November 2013.

3. Recommendation

The Minister accepted a budget transfer for contingency funding totalling £804,600 from the Central Contingency (Pay Provision) for costs associated with the 2014 4% consolidated pay award and an identical transfer in 2015 for the recurring effect of the pay award.

4. Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorized to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

5. Resource Implications

The Transport and Technical Services Department’s revenue head of expenditure will increase by £804,600 in 2014 and 2015 and the Central Contingency (Pay Provision) will decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States.

The recurring impact of these budget transfers will be reflected in the Transport and Technical Services Department’s base budget in the next MTFP 2016-2019.

6. Action Required

Finance Director to liaise with Treasury and Resources Department to effect the necessary budget transfer.

Written by:	Finance Director
Approved by :	Chief Officer