Budget transfer of Contingency Funding: 2017 Pay Awards

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A decision made 19 January 2018:

Decision Reference: MD-TR-2018-0012
Decision Summary Title:	Contingency Funding for 2017 Pay Award		Date of Decision Summary:	16th January 2018
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Contingency Funding for 2017 Pay Award		Date of Written Report:	16th January 2018
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Transfer of contingency funding from the Central Contingency (Pay Provision) to various departments for costs associated with the pay award for 2017.
Decision(s): The Minister approved the following allocations from the Central Contingency (Pay Provision): A non-recurring allocation of £621,000 to the Education department and £278,600 to Community and Constitutional Affairs to fund the 1% element of the 2017 pay award which is out of scope of Workforce Modernisation with effect from 1st January 2017.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised 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 current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from Contingency over £100,000 to be considered by the Council of Ministers prior to submission to the Minister for approval. This allocation was agreed at their meetings of 21st September 2017 and 4th October 2017
Resource Implications: Central Contingency (Pay Provision) to decrease by £899,600 in 2017 and departmental revenue heads of expenditure to increase by an identical amount, detailed in the written report.
Action required: Head of Decision Support to inform the Financial Performance Reporting Manager and the department Finance Directors that this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget Transfer of Contingency Funding: 2017 Pay Awards

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Treasury & Resourses

Ministerial Decision Report

Central Contingency Funding for 2017 Pay Award

Purpose of Report

To request approval for a non-recurring allocation of £899,600 in 2017 from the Central Contingency (Pay Provision) to fund the 1% element of the 2017 pay award which is out of scope of Workforce Modernisation with effect from 1st January 2017.

Background

Non-recurrent provisions were made in the Central Contingency (Pay Provision) for anticipated pay awards across all pay groups in 2017.

An offer of 1% for 2017 with effect from 1st January 2017 was proposed by the States Employment Board (SEB) for pay groups within Workforce Modernisation (WFM) and 2% for pay groups outside of scope of WFM. The 1% element has been self-funded by departments, however, the extra 1% for “out of scope” pay groups for £899,600 is requested from Central Contingency (Pay Provision).

Recommendation

The Minister is recommended to approve allocations from the Central Contingency (Pay Provision) to the following departments for costs associated with the 2017 pay award as per the table below:

Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised 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 current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from Contingency over £100,000 to be considered by the Council of Ministers prior to submission to the Minister for approval. This allocation was agreed at their meetings of 21st September 2017 and 4th October 2017.

Resource Implications

Central Contingency (Pay Provision) to decrease by £899,600 in 2017 and departmental revenue heads of expenditure to increase by an identical amount, detailed in the table above.

Report author : Head of Decision Support

Document date : 16th January 2018

Quality Assurance / Review : Head of Decision Support

File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2018-0012 - Contingency Funding for 2017 Pay Award

MD sponsor : Director of Financial Planning and Performance