Budget Transfer: Central Contingency (Pay Provision) to Home Affairs Department: 2014 Pay Award

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 20 November 2013:

Decision Reference: MD-HA-2013-0067
Decision Summary Title:	Contingency Funding to Departments for the 2014 4% Consolidated Pay Award		Date of Decision Summary:	18 November 2013
Decision Summary Author:	Finance Manager Home Affairs		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:	18 November 2013
Written Report Author:	Finance Manager Home Affairs		Written Report : Public or Exempt?	Public
Subject: Transfer of contingency funding from the Central Contingency (Pay Provision) to the Home Affairs 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 £1,397,100 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 States Employment Board has 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 Home Affairs Department’s revenue head of expenditure.
Resource Implications: The Home Affairs Department’s revenue head of expenditure will increase by £1,397,100 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 Home Affairs Department’s base budget in the next Medium Term Financial Plan 2016-2019.
Action required: Finance Director, Home Affairs to liaise with Treasury and Resources Department to effect the necessary budget transfer.
Signature:		Position: Minister for Home Affairs
Date Signed:		Date of Decision:

Budget Transfer: Central Contingency (Pay Provision) to Home Affairs Department: 2014 Pay Award

- 1 -

Home Affairs 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 £1,397,100 from the Central Contingency (Pay Provision) to the Home Affairs Department for costs associated with the 4% consolidated pay award for 2014, and to approve an identical transfer in 2015 for the recurring effect of the pay award.

Background

The 4% award is the final segment of a three year award which, whilst not reached for all pay groups, has had de facto acceptance and has led to significant CSR savings which flow through into future years.

The first two parts of the three year pay offer were made in 2012 and 2013 following an announcement by the Chief Minister in the States in December 2012. This represented:

• 2012, 1% non-consolidated award paid as a one off lump sum, with effect 1st January 2012; and

• 2013, 1% consolidated pay award plus 1% non-consolidated award paid as a one off lump sum, with effect 1st January 2013.

The offer for 2014 was for a 4% consolidated pay award with effect 1st January 2014, in return for a modernisation agreement and a guarantee of no compulsory redundancies until the end of 2014.

Following a meeting 7th November 2013, the States Employment Board (SEB) recommended the payment of the 4% award for ALL pay groups, to be paid in January 2014. In addition, a budget transfer from Central Contingency (Pay Provision) to fund the award was approved by the Council of Ministers on 13th November 2013.

The funding proposed for the 4% consolidated pay award for 2014 and 2015 includes adjustments for the arrangements agreed by SEB with Firefighters outside of the standard 1% consolidated offer in 2013.

In addition, certain groups are not provided for in this pay award. Prison Officers have existing arrangements in place.

3. Recommendation

The Minister accepted a budget transfer for contingency funding totalling £1,397,100 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 Home Affairs Department’s revenue head of expenditure will increase by £1,397,100 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 Home Affairs Department’s base budget in the next MTFP 2016-2019.

Report author : Finance Manager, Home Affairs	Document date : 18 November 2013
Quality Assurance / Review : EO, Home Affairs	File name and path :
MD sponsor :Chief Officer, Home Affairs	File name and path :

APPENDIX 1: SCHEDULE OF COSTS TO DEPARTMENTS OF THE 4% CONSOLIDATED PAY AWARD FOR 2014 TO BE FUNDED BY A TRANSFER FROM THE CENTRAL CONTINGENCY (PAY PROVISION)