Budget transfer from Restructuring Provision to Chief Minister's Department: Change Management

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A decision made 19 April 2017:

Decision Reference: MD-TR-2017-0041
Decision Summary Title:	Restructuring Provision Transfer for the Corporate Change Portfolio Office		Date of Decision Summary:	21st March 2017
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:	Restructuring Provision Transfer for the Corporate Change Portfolio Office		Date of Written Report:	21st March 2017
Written Report Author:	Portfolio Analyst		Written Report : Public or Exempt?	Public
Subject: A budget transfer of £345,500 in 2017 and £697,000 in each of the years 2018 and 2019 from the Restructuring Provision within Contingency to the Chief Minister’s Department (CMD) revenue head of expenditure together with an additional 1.0 temporary FTE in order to support the Change Management provision.
Decision(s): The Minister approved the budget transfer of £345,500 in 2017 and £697,000 in each of the years 2018 and 2019 from the Restructuring Provision within Contingency to the Chief Minister’s Department (CMD) revenue head of expenditure together with an additional 1.0 temporary FTE in order to support the Change Management provision.
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 or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The Council of Ministers acknowledged that investment will be required to ensure Public Sector Reform is successful, and approved a funding request of £760,000 in 2016 for Portfolio Office at a meeting on 27th January 2016 together with indicative funding for the years 2017 -2019. The Minister for Treasury and Resources has previously signed a decision MD-TR-2016-0015 on 18th April 2016 allocating funding of £1,377,978 in 2016 from the Restructuring Provision within Contingency to the Public Sector Reform Programme– including PSR Portfolio Office, Workforce Modernisation, Engagement, Leadership Development and Lean. Within this amount was a sum of £874,488 for the Portfolio Office. The Contingency Allocation Policy published by the Minister for Treasury and Resources (R.10/2012) states that all requests for Allocation from Contingency will be considered by the Council of Ministers. A Restructuring Provision bid was represented to the Council of Ministers on 9th March 2017 seeking funding to support the Portfolio Office for the years 2017 to 2019, in the sum of £345,500.00 in 2017 and £697,000.00 in the years 2018 and 2019. The Council of Ministers approved the re-profiled funding request for £2,091,000 (£697,000 for each of the years 2018 and 2019). The reduced amount of £345,500 in 2017 is due to a carry forward amount in 2016 of £351,500, which together total £697,000. To comply with P67/1999 which charges the Minister for Treasury and Resources to regulate the number of persons that may be employed by the States.
Resource Implications: The CMD revenue head of expenditure to increase by £345,500 in 2017 and by £697,000 in each of the years 2018 and 2019. The Restructuring Provision within Contingency to decrease by identical amounts and the temporary FTE within CMD to increase by one for the period 2017 to 2019. The £1,739,500.00 in total is proposed to be drawn down in 2017, 2018 and 2019 but the amount for each year may be varied without exceeding the total amount for the three years This decision does not change the total amount of expenditure approved by the States for 2017-2019 in the Medium Term Financial Plan.
Action required: Head of Decision Support to advise the Portfolio Manager – Chief Minister’s Department once this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Restructuring Provision to Chief Minister's Department: Change Management

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Treasury and Resources

Ministerial Decision Report

Restructuring Provision Transfer for the Corporate Change Portfolio Office

Purpose of Report

To approve a budget transfer of £345,500.00 in 2017 and £697,000.00 in each of the years 2018 and 2019 from the Restructuring Provision within Contingency to the Chief Minister’s Department (CMD) revenue head of expenditure together with an additional 1.0 temporary FTE in order to support the Change Management provision.

Background

A Restructuring Provision bid was presented to the Council of Ministers on 27th January 2016 seeking funding to support the Portfolio Office during the 2016-2019 MTFP2 period. At that time, the Council of Ministers agreed the 2016 funding and agreed in principle, the request for funding for 2017.

The Minister for Treasury and Resources has previously signed a decision MD-TR-2016-0015 on 18th April 2016 allocating funding of £1,377,978 in 2016 from the Restructuring Provision within Contingency to the Public Sector Reform Programme– including PSR Portfolio Office, Workforce Modernisation, Engagement, Leadership Development and Lean. Within this amount was a sum of £874,488 for the Portfolio Office.

A Restructuring Provision bid was represented to the Council of Ministers on 9th March 2017 seeking funding to support the Portfolio Office for the years 2017 to 2019, in the sum of £345,500.00 in 2017 and £697,000.00 in the years 2018 and 2019. The Council of Ministers approved the re-profiled funding request for £2,091,000 (£697,000 for each of the years 2018 and 2019).

The Corporate Portfolio Office is the governance and assurance support function for the Chief Executive, covering:

the £19m Restructuring Provision Fund (2017-2019);
Public Sector Reform change programmes and projects;
the savings programme as set out in the Medium Term Financial Plan 2 (MTFP2);
Management of Audit and scrutiny (Public Accounts Committee, Comptroller and Auditor General, internal audit);
Forensic financial reviews.

3. Recommendation

The Minister approved the budget transfer of £345,500 in 2017 and £697,000 in each of the years 2018 and 2019 from the Restructuring Provision within Contingency to the Chief Minister’s Department (CMD) revenue head of expenditure together with an additional 1.0 temporary FTE in order to support the Change Management provision.

4. 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 or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

The Council of Ministers acknowledged that investment will be required to ensure Public Sector Reform is successful, and approved a funding request of £760,000 for Portfolio Office at a meeting on 27th January 2016 together with indicative funding for the years 2017 -2019.

The Contingency Allocation Policy published by the Minister for Treasury and Resources (R.10/2012) states that all requests for Allocation from Contingency will be considered by the Council of Ministers.

To comply with P67/1999 which charges the Minister for Treasury and Resources to regulate the number of persons that may be employed by the States.

5. Resource Implications

The CMD revenue head of expenditure to increase by £345,500 in 2017 and by £697,000 in each of the years 2018 and 2019. The Restructuring Provision within Contingency to decrease by identical amounts and the temporary FTE within CMD to increase by one for the period 2017 to 2019.

The £1,739,500.00 in total is proposed to be drawn down in 2017, 2018 and 2019 but the amount for each year may be varied without exceeding the total amount for the three years

This decision does not change the total amount of expenditure approved by the States for 2017-2019 in the Medium Term Financial Plan.

Report author : Head of Decision Support	Document date 21st March 2017
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-0041 - Restructuring Provision Corporate Change Portfolio Office
MD sponsor :