Treasury and Resources
Ministerial Decision Report
Budget Transfers for the return of 2011 Voluntary Redundancy (VR) Unanticipated Departmental Savings to the Treasury and Resources Department
- Purpose of Report
To enable the Minister for Treasury and Resources to approve budget transfers totalling £1,374,003 from various departments to the Treasury and Resources (T&R) contingency head of expenditure as detailed below.
- Background
In P64/2010: “Public Finances (Jersey) Law 2005: Funding Requests under Article 11(8)” the States approved funding of up to an additional £6,000,000 from the consolidated fund for the Chief Minister’s Department for a Voluntary Redundancy (VR) scheme. Following States approval on 7th July 2010, £6 million was withdrawn from the consolidated fund and held temporarily in a Treasury and Resources contingency fund.
Following various approvals (MD-TR-2010-0159, MD-TR-2010-0186 and MD-TR-2010-0189), a total of £6,459,291 (including a transfer of funding from the Social Security Department) was transferred to departments to pay for successful VR applications. Further funds totalling £318,536 were returned from departments in 2011 for VR applications no longer going ahead (£307,926) and to correct one original calculation error (£10,610). After taking these into account, total funding used by departments for VR was £6,140,755. In addition, a sum of £11,550 was used to fund actuarial valuations.
- Unanticipated departmental Savings
Funding allocated to departments as a result of P64/2010 permitted, in some cases, voluntary redundancies to take place earlier than anticipated. Where departments had not included savings in their CSR submissions for 2011 it was agreed by the Chief Officers concerned that any unanticipated savings in 2011 would be returned for reallocation by the Minister for Treasury and Resources. This decision effects those returns of savings agreed by Chief Officers.
(a)
(b)
(c)
- Recommendation
The Minister is recommended to approve budget transfers totalling £1,374,003 from the following departments’ revenue heads of expenditure to the Treasury and Resources contingency head of expenditure as detailed below:
Chief Minister's | £59,426 |
Judicial Greffe | £78,588 |
Education, Sport and Culture | £194,521 |
Treasury and Resources | £268,030 |
Environment | £223,947 |
Home Affairs | £55,234 |
Health and Social Services | £28,848 |
Housing | £220,990 |
Transport and Technical Services | £244,419 |
| |
| £1,374,003 |
- Reasons for Decision
Article 15(1)(a) of the Public Finances (Jersey) Law 2005 permits the Minister for Treasury and Resources to approve that a head of expenditure may be used for the purposes of another head of expenditure.
- Resource Implications
There will be no increase to total approved States net revenue expenditure as a result of this decision. Revenue heads of expenditure for a number of departments will reduce by the amounts shown in the decision. The T&R contingency head of expenditure will increase by £1,374,003.
Report author : Decision Support Officer | Document date : 19th June 2011 |
Quality Assurance / Review : Head of Decision Support | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2011-0071 - VR Clawbacks - KH\WR - Transfer funding for VR payments - KH.doc |
MD sponsor : Treasurer of the States |