Budget Transfer: 2014 Pay Award: Central Contingency to Education, Sport and Culture

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 18 November 2013:

Decision Reference: MD-ESC-2013-0025
Decision Summary Title:	Contingency Funding to Departments for the 2014 4% Consolidated Pay Award		Date of Decision Summary:	18th November 2013
Decision Summary Author:	Finance Manager		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:	18th November 2013
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: Transfer of contingency funding from the Central Contingency (Pay Provision) to the Education, Sport and Culture Department for costs associated with the 4% Consolidated Pay Award for 2014 and approval for an identical transfer in 2015 for the recurring effect of the pay award.
Decision(s): The Minister accepted a budget transfer for contingency funding totalling £3,684,900 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 Education, Sport and Culture Department’s revenue head of expenditure.
Resource Implications: The Education, Sport and Culture Department’s revenue head of expenditure will increase by £3,684,900 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 Education, Sport and Culture 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: Minister for Education, Sport and Culture
Date Signed:		Date of Decision: 18th November 2013

Budget Transfer: 2014 Pay Award: Central Contingency to Education, Sport and Culture

- 1 -

Education, Sport and Culture Department

Ministerial Decision Report

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 £3,684,900 from the Central Contingency (Pay Provision) to the Education, Sport and Culture Department for costs associated with the 4% Non-Consolidated Pay Award for 2014, and to approve an identical transfer in 2015 for the recurring effect of the pay award.

Background

On 4th December 2012, the Chief Minister announced in the States that the employer would be implementing the final pay offer made initially on 12th July 2012.

The final offer provides for;-

2012, 1% non-consolidated pay award paid as a one off lump sum, with effect 1st January 2012;
2013, 1% consolidated pay award plus 1% non-consolidated pay award paid as a one off lump sum, with effect 1st January 2013;
2014, 4% consolidated pay award with effect 1st January 2014 in return for a modernisation agreement;
A guarantee of no compulsory redundancies until the end of 2014.

In 2013, the Council of Ministers has made provision in the Medium Term Financial Plan (MTFP) for a Central Contingency (Pay Provision) for the 4% Consolidated Pay Award for 2014. The implementation of the pay offer requires a transfer of funding to those departments affected by the pay offer.

3. Recommendation

The Minister accepted a budget transfer for contingency funding totalling £3,684,900 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 Education, Sport and Culture Department’s revenue head of expenditure will increase by £3,684,900 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 Education, Sport and Culture Department’s base budget in the next MTFP 2016-2019.

Report author : Finance Manager	Document date : 18th November 2013
Quality Assurance / Review :	File name and path :
MD sponsor :	File name and path :