Budget transfer from Economic Development Department: Trackers Apprentice Programme and approval of 2 additional posts from 1 January 2016

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A decision made 22 May 2015:

Decision Reference: MD-ESC-2015-0010
Decision Summary Title:	Transfer of Funding for Trackers Apprentice Programme from Economic Development to Education, Sport and Culture, and approval for two additional FTEs			Date of Decision Summary:	22nd May 2015
Decision Summary Author:	Finance Manager Department for ESC			Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:		N/A
Written Report Title:	Transfer of Funding for Trackers Apprentice Programme from Economic Development to Education, Sport and Culture, and approval for two additional FTEs		Date of Written Report:		22nd May 2015
Written Report Author:	Finance Manager Department for ESC		Written Report : Public or Exempt?		Public
Subject: Recurring budget transfer of £600,000 from 1st January 2016 onwards from the Economic Development Department (EDD) to Education, Sport and Culture (ESC) to fund the Trackers Apprentice Programme and approval for 2 additional FTEs within ESC from 1st January 2016.
Decision(s): The Minister for ESC approved a recurring budget transfer of £600,000 from 1st January 2016 onwards from the Economic Development Department to Education, Sport and Culture, and an additional 2.0 FTEs in ESC from 1st January 2016.
Reason(s) for Decision: Article 18(1)(c) of the Public Finances (Jersey) 2005 states that all or any part 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. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States.
Resource Implications: The ESC revenue head of expenditure to increase by £600,000 from 1st January 2016 and the EDD revenue head of expenditure to decrease by an identical amount on the same date. The ESC establishment FTE to increase by 2.0 from 1st January 2016. This budget transfer will be included in the next MTFP (2016-2019).
Action required: The Minister for ESC to seek approval of the Treasurer of the States for the transfer.
Signature:		Position: Minister for Education, Sport and Culture
Date Signed:		Date of Decision:

Budget transfer from Economic Development Department: Trackers Apprentice Programme and approval of 2 additional posts from 1 January 2016

Transfer of Funding for Trackers Apprentice Programme from Economic Development to Education, Sport and Culture

Purpose of Report

To enable the Minister for Education, Sport and Culture to request that the Minister for Treasury and Resources (T&R) approves a recurring budget transfer of £600,000 from 1st January 2016 onwards from the Economic Development Department (EDD) to Education, Sport and Culture (ESC) to fund the Trackers Apprentice Programme and approval for 2 additional FTEs within ESC from 1st January 2016.

Background

The Trackers programme was formally launched in December 2012 although the enrolment of apprentices had started in September 2012. In the business case presented prior to launch the forecast intake was 40-50 apprentices by December 2012, up to 80 by December 2013 and a full capacity of 120 by December 2014. The money to support the programme was included in the Medium Term Financial Plan 2013/15, £380,000 per year for the new Apprentice Scheme supplemented by an additional £120,000 from Economic Development. In addition Trackers was provided with £90,000 to train 90 Health Care Assistants over the three year period.

58 apprentices were enrolled by the beginning of 2013. The current number on role is 128. Within the Health Care area, by February 2014, three cohorts of Health Care training will have started with 45 apprentices enrolled. The projected numbers going forward show 231 apprentices by the end of 2015, nearly double the original target. This is due to a number of factors:

The introduction of a health care apprentice programme
The higher retention rate; currently in excess of 95%
The expansion in to other industrial sectors e.g. dental nursing with possible future developments in to financial services, IT and the rural sector

A major factor in this success has been the introduction of a mentoring process, however as the programme grows so does the requirement for mentors. Therefore additional funds are required to cover:

The increase in staff costs associated with an increase in the number of mentors
The removal of the £120 000 transfer from Economic Development (reference TR-2013-DD106)

By 2017 it is intended that 350 people will be on an apprenticeship training programme. This will mean that young people will have an alternative learning route other than full time education. This will have some impact on the numbers of young people who are unemployed and also, in the longer term, will mean an increase in the numbers of those who are locally qualified and able to take up skilled positions.

MTFP 2016 – 2019

In discussions on Growth bids and Savings proposals during the preparation phase of MTFP 2016-2019, ESC had submitted a Growth bid to fund the Trackers Apprentice Programme, and EDD had offered up £600,000 as a Savings proposal.

It was suggested that in order to achieve both of these objectives, a recurring budget transfer would take place of £600,000 from EDD to ESC from 1st January 2016 onwards and this was agreed by both parties.

It was also confirmed that the sum of £600,000 has been removed from EDD’s Savings proposals.

3. Recommendation

The Minister for ESC is recommended to request the Minister for T&R to approve a recurring budget transfer of £600,000 from 1st January 2016 onwards from the Economic Development Department to Education, Sport and Culture to fund the Trackers Apprentice Programme, and an additional 2.0 FTEs in ESC from 1st January 2016.

4. Reason for Decision

Article 18(1)(c) of the Public Finances (Jersey) 2005 states that all or any part 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. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States.

Resource Implications

The ESC revenue head of expenditure to increase by £600,000 from 1st January 2016 and the EDD revenue head of expenditure to decrease by an identical amount on the same date. The ESC establishment FTE to increase by 2.0 from 1st January 2016. This budget transfer will be included in the next MTFP (2016-2019).

Report author : Finance Manager	Document date : 22nd May 2015
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