2013 Carry forward report
Treasury & Resources Department
- Purpose of Report
To provide a final summary of carry forward requests from departments based on 2013 year end outturn near cash unspent expenditure.
2. Overview
- Departments outturn is an underspend of £22.8 million.
- Requesting £20.1 million as carry forwards.
- £16.9 million of departmental carry forwards (Section 5 page 2)
- £3.0 million of allocated restructuring carry forwards (Section 6 page 12)
- £0.2 million of Court & Case Cost carry forward to Smoothing Reserve (Section 7 page 13)
- £20.1 million represents 3% of total budget.
- £2.7 million of Department underspends not requested (Section 4 page 2)
- Central Contingency and Restructuring Provision - £20.7 million unallocated.
- £16.0 million to be carried forward into Central Contingency and £1.4 million into Restructuring in 2014. (Section 7 page 13)
- £3.3 million to be returned to the Consolidated Fund. (Section 7 page 13)
3. Background
The carry forward process was introduced to ensure that resources are used effectively to achieve value for money and to enable departments to plan further ahead than a single year. The Council of Ministers recognised that the previous system encouraged short term decision making and inefficient use of resources.
The current carry forward process allows departments the flexibility to manage budgets across financial years for continuing projects or to meet new priorities. This flexibility is a crucial part of allowing departments to meet changing spending needs, deliver longer term savings and improve services in line with the strategic priorities approved by the States in 2012.
2012 saw the approval of the States’ first Medium Term Financial Plan (MTFP) which is in place for the 2013-2015 period. The States has agreed challenging spending limits and requires departments to work effectively within them across three years.
Providing departments with certainty over the carry forward process is consistent with the expectations set in the MTFP process. The three year financial planning framework also gives certainty to external suppliers and the numerous organisations reliant on support from the States. This flexibility creates an incentive for departments to control and minimise expenditure so that plans for future initiatives can be realised and public sector services can be delivered within States approved limits.
Further, this year end budget flexibility reduces the pressure on contingencies and central growth allocations. Maintaining the three year spending envelope through effective budget management also improves transparency and provides greater certainty on the cost of public services.
4. Introduction
The 2013 year end outturn across all departments is an underspend of £22.8 million, representing 3.5% of total budget. In addition there was £20.7 million of Central Contingency and Restructuring budget unallocated at year end of which £3.3 million is to be returned to the Consolidated Fund and £16.1 million has been committed. Figure 1 below shows a summary of the 2013 outturn position.
Figure 1 – Summary of 2013 Underspend
The majority of the underspend (88%) has been requested for various carry forwards by departments. It is proposed that from the 2013 underspend not requested by departments £2,033,697 is returned to the Consolidated Fund and the balance of £716,901 is carried forward into Contingencies in 2014. Departments will then have the opportunity to request funding for spending pressures identified in 2014 if they cannot manage them within existing resources per the existing Contingency Policy. Summary information for all bids can be found in Appendices 1 - 4.
There is a balance of £20.7 million of budget remaining in Central Contingency and Restructuring at the end of 2013. However, of this, £16.1 million has been committed for specific pressures. These bids have not been through the approvals process for Contingencies but they are deemed likely to occur and their cost can be reliably estimated. Figure 2 below summarises the forecast outturn position for Central Contingency and Restructuring and the proposed allocation of budget carried forward into 2014.
Figure 2 – Central Contingency and Restructuring 2013 Underspend
5. Departmental Carry Forwards - £16,910,900
The year end underspend is summarised, by department, in Appendix 1 page 15. This table shows funds are available to fund the full amount requested by departments. A summary of requests is in Appendix 3 page 17.
All departments have an underspend this year. The largest underspends are in Education, Sport and Culture, Treasury and Resources, and Social Security. However, as a percentage of total budget the biggest underspends are in Comptroller and Auditor General, Data Protection Commission and Viscount’s Services. A chart showing total carry forwards as a percentage of total budget can be found in Appendix 2 on page 16.
The amounts being requested to be carried forward by departments are as follows:-
Chief Minister’s - £1,229,317
Cost pressures in ‘Business As Usual’ in 2014 £50,634
Cost pressures in 2014 including Workforce Planner, BST Staff contract extensions, Maternity cover, Productivity Measurement and Accommodation.
Delay in rollout of States training £217,314
There has been a delay in delivering the Ashridge training rollout.
Freedom of Information £365,845
Funding received in 2013 for the FOI Project which will continue into 2014.
Joint Safeguarding Board and Household Expenditure Survey £415,740
Funds are required in 2014 and 2015 for the Joint Safeguarding Board and the Household Expenditure survey.
Procurement Savings £125,000
Funding of part of the 2014 Procurement savings whilst work is ongoing to identify recurring savings.
Safeguarding Partnership Boards £54,784
Required to continue the setup of the Safeguarding Partnership Boards (Adult and Children).
Jersey Overseas Aid - £151,330
The majority of the under spend relates to a bequest for the Community Works Projects which will be spent in 2014, and various minor under spends across the departments.
Economic Development Department - £898,500
Aircraft Registry £115,000
Additional funding required due to Jersey working independently.
Aquaculture Strategy £18,000
Work was started on an Aquaculture Strategy in 2013 which was unfunded in the MTFP. The work is to be completed in 2014.
Channel Islands Competition Regulatory Authority £55,000
Additional grant to cover a request by the Minister regarding Ferries.
Department Contingency £15,500
Additional departmental contingency is required for potential funding pressures in 2014.
Digital Jersey £166,000
An additional grant is required and was not budgeted in the MTFP.
Financial Ombudsman £29,000
Working with Guernsey for a joint Ombudsman. The progress has been slower than anticipated.
Jersey Business £150,000
An additional grant is required and was not budgeted in the MTFP.
Retail Enhancement £100,000
New programme for Improvements to Retail Trade - working with Jersey Business Ltd and Chamber of Commerce and includes reduced or free parking which will be re-imbursed to TTS.
RJA & HS Grant £250,000
Royal Jersey Agricultural and Horticultural Society grant was not budgeted in the MTFP.
Education, Sport & Culture - £3,958,677
Culture £6,000
Collaborative project by Jersey Arts Trust (postponed from November 2013 to February 2014) to encourage artists' links with St Malo.
Delegated Financial Management – Fee Paying Provided Schools £625,077
The Fee Paying Provided Schools (Victoria College, Jersey College for Girls and Prep schools) benefit from the delegated financial management arrangement enabling the schools to minimise the impact of fee increases and to build up funds for improvement works, maintenance works and one off capital spend. Increase from Q3 due to delays in conversion of sixth form at Victoria College.
Delegated Financial Management – Schools and Colleges £965,304
Schools can carry forward up to 3% of budgets under the delegated financial management arrangement to manage the differential between the academic and financial year and specifically changing pupil numbers, future contracts and development plans. Increases from Q3 due to delays in works at some schools.
Departmental Contingency £551,638
A departmental contingency was established as a carry forward for 2013 to enable the Department to effectively manage potential funding pressures over the period of the MTFP. As anticipated the budget was not fully utilised in 2013 but will be requested as a carry forward to 2014 to address current funding pressures and unforeseen pressures. This represents less than 0.5% of ESC budget.
Further, Vocational & Tertiary - Highlands College £89,916
Highlands College has commenced the development of an online prospectus and enrolment system with the first prospectus launched in November 2013. A carry forward is requested to continue with the project in 2014 including software upgrades to enable student online payments.
Further Vocational & Tertiary – Trackers £7,000
The Trackers Apprenticeship programme has proved very successful with 3 year enrolment targets already signed up. A carry forward of £7,000 is requested to implement a marketing strategy, primarily to predict likely demand for the programme going forward.
Health and Safety £10,000
Health & Safety assessment of Highlands Campus has been delayed and will be completed in March 2014.
Higher Education £815,534
The carry forward for university tuition fees and maintenance grants has been calculated using the September 2013 cohort. Future demands on the £9.8 million annual budget depend on radical changes that are still taking place in UK universities and the outcome of future fee reviews (the current cap ends in 2015). The carry forward will assist with managing this uncertainly over the period of the MTFP.
Nursery Fees £256,500
September 2013 saw a poor take up of additional hours (i.e. over and above the free 20 hours per week for 2013/14). This has resulted in a funding pressure of £256,500 for 2014 and a carry forward is requested to address this.
Policy and Planning Administration £20,700
Carry forward requested to enable essential refurbishment works to the department buildings including the Committee Room and Board Room in order to ensure it is suitable for major incidents in future.
Public Libraries £83,500
Carry forward requested to enable the Library to complete essential changes such as stock control (replace library reception desk and introduction of self service points) and the conversion of the music area on the first floor to a meeting room (for reading groups, arts and heritage groups).
Replacement of School PCs £134,148
Replacement of school PCs was delayed pending the launch of the Vision for IT in schools and likely changing requirements of schools through school business plans in 2014. A carry forward is requested to fund purchases in 2014 in line with the new strategy.
Schools Development & Evaluation – Curriculum £174,000
Following the appointment of a new Head of SD&E in August the 2013, underspend will be requested as a carry forward and utilised in 2014 to fund delayed major project work including: the introduction of a new national / Jersey curriculum, early years review, implementation of the Maths and English reviews and a leadership programme for heads and deputies.
Schools Development & Evaluation - Language Assistants £50,000
A budget of £75,000 was agreed by the States in the MTFP Amendment 3 (but funded from carry forwards) to provide language assistants in schools for 3 academic years. This carry forward represents the balance for 2014 and 2015.
Special Education Needs – UK Placement 2014 £100,000
The SEN budget for UK placements of £70,000 is insufficient to meet the number of children presently in the UK (1 @ 100% of total cost and 2 @ 40% shared with Health). A carry forward of £100,000 is requested to meet the educational needs of these 3 children not presently available in the Island.
Sports - SEN Inclusion Project £54,360
A physical educational pilot for social inclusion was due to start in January but was delayed until August due to confirmation of carry forward and recruitment delays. Carry forward requested to enable the pilot to continue in 2014.
Youth Service £15,000
Carry forward of £15,000 requested for St.James. Although major redevelopment work for St.James is covered by capital funding, revenue funding is required to replace equipment and fittings at the site in 2014.
Department of the Environment - £276,895
Departmental Contingency £95,206
Due to the current economic climate the Department plans to carry forward any unspent balances to supplement the departmental contingency and to act as income smoothing for Planning and Building Fee income.
Loss of abattoir grant £30,109
Previously a grant had been awarded from EDD to cover the veterinary costs incurred at the abattoir. In 2014 this grant will cease, therefore any savings within the veterinary area will be used to ease this transition in 2014.
Water Framework Directive £151,580
Funding was awarded in 2013, from Central Contingencies, for the completion and integration of the Water Framework Directive. This programme was designed to span three years, and this funding will cover the costs in the remaining years.
Health & Social Services - £2,280,000
Additional Theatre capacity to meet increasing demand £150,000
H&SS have funded the refurbishment of the Minor Operations Suite in 2013 in order to transfer some minor procedures into a more appropriate setting and free up theatre lists in main theatres. This funding allows the additional activity to commence in mid-2014 and which will be funded recurrently from the H&SS budget in 2015.
Adult’s UK placements £200,000
This represents the non-recurrent costs of overseas mental health placements. There are increasing numbers of these placements, including 2 assessments commencing in January 2014 which were not known about at the end of 2013.
Children’s high cost placements £480,000
High cost UK placements for children with high levels of need have increased rapidly over the past two years. The current level of placements will result in a cost pressure for 2014. White Paper proposals to develop Children's Services should have a long term impact on the need for off-island provision but this is still in its early stages and will not yield benefits immediately. This funding will allow the continuation of a small number of packages in the UK until the planned capital works can deliver on-island provision. It also provides funding for the recent unplanned increase in on-island packages. Long term funding for this, if required, will be managed out of the H&SS budget from 2015.
Increased surgical procedures to reduce waiting lists £400,000
Due to the increasing pressure of demographic changes additional investment is required to contain and reduce the length of waits for patients. A number of schemes have been identified to reduce waiting times including increasing capacity in Radiology, running additional outpatient clinics in a number of specialities and increasing specialist capacity to perform procedures. Most costs are identified as non-recurring - where it is proposed to invest recurrently, H&SS will earmark funds from within the 2015 budget to support these initiatives.
Infection control measures £100,000
Funding to allow additional infection control measures to be undertaken to ensure the effective management of hospital capacity and infection control.
Pandemic Flu £25,000
The new Pandemic Flu strategy was agreed by Council of Ministers in September 2013. This sets out a comprehensive plan for responding in the event of a flu pandemic. This funding will allow the implementation of this strategy.
Primary Care £300,000
£300,000 was carried forward in 2012 in order to fund the Primary Care review. Commissioning the review is not yet completed and therefore no funds have been used in 2013. Costs will be incurred in 2014.
Special Needs £230,000
H&SS is now commissioning more personalised services for special needs clients. This includes additional hours from Les Amis for high need clients. In addition services are seeing an increasing number of special needs clients. These costs are an unfunded pressure to the Department. This funding will allow a more stable footing to be established in 2014 for this activity prior to the introduction of the Long Term Care benefit.
Vaccination Programmes £150,000
A number of new vaccines and vaccination programmes have recently been recommended in the UK. Jersey's policy is to follow UK guidelines for vaccinations. This funding is required to allow the introduction of these vaccines in 2014. These would be continued in 2015, subject to an assessment of effectiveness.
Winter Pressures and Transitional Capacity £245,000
This funding will allow the department to develop additional strategies to manage bed pressures particularly over the Winter Period in both early and late 2014 which will support the Hospital until the Future Hospital project is completed.
Home Affairs - £1,450,061
Delay in Pensions Work £12,200
Additional costs associated with changes to PECRS required for the introduction of a new Prison Officer grade.
Disaster Recovery/Business continuity £100,000
Costs associated with providing offsite storage for States of Jersey Police (SoJP) network.
Jersey Customs & Immigration Services operations £20,000
Pilot project for two years.
Police operations £185,000
A number of the CSR savings have impacted on Police operations including the reduction in Police overtime and reduction in travel and subsistence. Whilst budgets have been reduced and procedures reviewed, there is a risk that if a major operation was to occur in 2014 (such as Operation Prudent, Artery or Pollen) the SoJP would not have sufficient resources to manage the operation. This carry forward would allow the SoJP to consider compensatory savings and review priorities depending on the timing of any major operation.
Slippage/Delay in CSR projects £652,861
Slippage/Delay in CSR projects managed by the Home Affairs and States of Jersey Police Accounting Officers.
Staff recruitment £298,000
The underspend is required to allow for the recruitment of Police Constables in 2014 which will take the numbers over the budgeted FTE until existing Police Officers are able to retire. It is essential that there is structured succession planning in place.
Vehicle/Equipment replacement costs £182,000
It was agreed in the MTFP that growth for vehicle/equipment replacement costs was slipped until 2014. The Department agreed that this proposal was manageable as long as it was able to carry forward funds from 2012 to manage the gap. The review of minor capital allocations and equipment replacement programme has been delayed due to the uncertainty of the funding required for the New Generation Passport project.
Housing - £788,190
Backlog maintenance £788,190
The Department has a backlog of maintenance currently estimated to be £48 million. The carry forward of this money will enable the Department to continue to reduce this backlog.
Social Security - £ 756,997
Employment & Training of a Trainee Health & Safety Inspector £67,497
Short term funding required for a Trainee Health & Safety Inspector as part of succession planning and LEAN project support.
Grants for Employment Projects £649,200
Employment Grants and Community Job Club Grants which have been approved but which the remaining balance will become due and payable in 2014.
Temporary staffing costs £40,300
Resource for consolidation of Social Security and Health Insurance Fund accounts.
Transport and Technical Services - £1,610,415
Asbestos disposal £1,234,800
A planning application, to bury circa 220 container loads pending the identification of a suitable treatment solution, has now been approved. It is intended that disposal will commence in early 2014, and these monies will go towards the eventual disposal costs.
Departmental Contingency £152,892
Funds are set aside each year to deal with unforeseen spending pressures and requirements for additional funding. The balance on the Departmental Contingency allocation is requested to be carried forward to 2014 to supplement the budget allocated in that year.
Liquid Waste Strategy £122,723
The Liquid Waste Strategy has commenced but will require further development and funding prior to lodgement of the Report and Proposition in April 2014. This is the remaining balance of the £500,000 carried forward from 2012 for this purpose and will be required in 2014.
SoJ Corporate Health & Safety £100,000
An allocation of growth was made in the MTFP to create a Corporate Health and Safety function. The budget has now been moved to TTS and subsequent work to scope the requirements of the role has identified a shortfall in funding of £50,000 per annum. TTS do not have sufficient budget to meet this funding requirement so it is requested that underspends not requested by other departments are used to fund this corporate role. £100,000 will fund the additional amount required in 2014 and 2015.
Treasury and Resources - £1,813,604
Back Log Maintenance - Fort Regent Signal Masts £180,000
Planning permission has been obtained to replace the masts. JPH have commenced the procurement process to enable work to commence in 2014.
Delays in Personal Tax, Business Tax, IS and Postage Spend £95,500
Due to additional work undertaken by the Taxes Office in 2013 this carry forward is to enable work to be performed in 2014 and ensure department targets are met, for example online company returns and tax assessing.
GST - temporary resource to generate additional revenues £40,000
To enable GST to recruit a temporary resource to complete the high yield accounts exercise work started and partially performed in 2013.
IFRS Property Valuation £100,000
Contribution to the 2015 interim valuation fees, this will be requested to be carried forward from 2014 to 2015.
Internal Audit £27,000
This carry forward is required for training for Professional qualifications within the Internal Audit Team of £15,000. In addition some planned Internal Audit reviews in 2013 have been deferred to 2014, therefore the carry forward of £12,000 has been requested to complete the reviews. This amount represents budgeted costs for BDO.
Lean Initiatives £17,229
Staff are currently being trained on Lean and identifying Lean projects. There is no central funding available for Taxes Office specific projects. This funding would enable projects approved by Senior Management Team to have necessary resources (both manpower and IS) to be able to be successful.
Long Term Care (LTC) funding for Year 2 of implementation £358,049
Funding received from Social Security was to fund the implementation of LTC over a 2 year timescale taking place in 2013 and 2014. This carry forward is to fund the second year of the project in 2014.
Move on Café £300,000
Refurbishment and fit out is required for the chosen site for the Youth Service's Move on Café. Due to delays obtaining a lease agreement for the chosen site, work will commence in Quarter 1 2014.
Office Rationalisation £65,466
Work has commenced on the States of Jersey Office Rationalisation strategy, including tendering for a chosen consultancy firm to develop the strategy. Preliminary work commenced in December 2013 and will run to Quarter 2 2014. The total cost of the project will be greater than £65,466 and the balance will be found from the Jersey Property Holdings 2014 revenue budget.
PECRS Pre-1987 Debt £382,360
2013 underspend includes £225,780 from 2011/2012. This is required to protect against the variability of future years debt. The number is calculated by the actuaries and is influenced by changes in pay scales and other factors.
Procurement Training £10,000
Professional procurement training for States staff within the department.
Project Shortfall £10,000
Known shortfall in Directorate budget for project work required during the year.
Relocation of staff within Taxes Office £16,000
Physical relocation of staff within the Taxes Office in order to improve efficiency and will also increase the number of desks available.
Taxes Office Training £43,000
Develop two staff to enable them to be used where vacancies exist across all areas of the department. This meets a Deloitte recommendation to promote more flexibility and cross-working within the Taxes Office. This carry forward also includes an increase in the training budget to fund professional qualifications and HMRC (Jersey tailored).
Taxes Transformation Programme £148,000
The Taxes Transformation Programme has incurred a lower spend than anticipated in 2013 – some of the planned work has been delayed due to the new work stream of Long Term Care charge.
XP Replacements £21,000
71 computers in Taxes Office currently run an operating system which will not be supported after April 2014 by Microsoft. The new system isn't compatible with the current machines therefore new machines are required.
Non Ministerial Departments - £1,696,914 made up of:
Bailiff’s Chambers - £59,700
Conference and art work commissioning £29,700
Commonwealth Magistrates and Judges Association Conference and art work commissioning.
New Crown Dependency Book £30,000
Law Officers’ Department - £224,550
Cost pressures relating to training, capital software licences, staff increment profile, relocation costs and temporary staffing £78,000
Owing to the introduction of a new case management system additional training costs will be incurred in 2014. Additional funds are required to support a non-recurring shift in the increment profile as a result of increased responsibilities to support other States Departments and to meet relocation costs once vacancies are filled. A review of service requirements has revealed that further case management software licenses (capital) will be required and funds will be needed to meet a shortfall in the budget for temporary staff.
Refurbishment costs £146,550
As part of a programme, managed by JPH, to rationalise the use of office space by the various departments located in Morier House, the Law Officers' Department will incur refurbishment costs. The programme was originally scheduled to take place in 2013 but has been postponed by JPH until 2014.This delay means that further rental costs for temporary accommodation will also be incurred.
Judicial Greffe - £87,988
Software Upgrade £87,988
Pride is the registry system for properties used by the department and will require an upgrade in 2015. The cost for this is currently being under review.
Viscount’s Department - £318,334
Software Upgrade £68,334
DAISY is a case management system that is currently used in various different formats by some of the Judicial Departments. A project is currently underway to form a Justice IT System, and is expected to require funding from 2015 onwards. This will be financed by creating a contingency from the relevant departments.
Software Upgrade £250,000
Phoenix is the software used to record all details relating to third party assets that are held by the departments and will require a complete upgrade in 2014, costing approximately £250,000. The department is funding this by the creation of a contingency from carry forwards from more than one year.
Official Analyst - £83,275
Purchase of Laboratory Equipment £83,275
Sizeable equipment purchase planned for 2014.
Office of the Lieutenant Governor - £118,667
Architectural Drawings £20,000
Architectural drawing relating to the refurbishment of the Jersey Field Squadron headquarters.
Government House £87,667
To create a contingency for the refurbishment of the house when a new Governor is appointed in 2016.
Recruitment and Accrued Leave £11,000
Recruitment of new Chief of Staff.
Dean of Jersey - £2,000
Delay in payments due to the change of Diocese.
Data Protection - £75,000
Office Move/Upgrade £25,000
Software Upgrade £50,000
Upgrade of website platform and integration with Guernsey Office.
Probation - £187,400
Software Upgrade £187,400
DAISY is a case management system that is currently used in various different formats by some of the Judicial Departments. A project is currently underway to form a Justice IT System, and is expected to require funding from 2015 onwards. This will be financed by creating a contingency from the relevant departments.
Comptroller and Auditor General - £500,000
Various reviews £500,000
The Comptroller and Auditor General commenced employment in February 2013, and had to apportion a large amount of time towards establishing a new website, document management systems and undertaking an audit of all manual records that were held in storage. The team, including a deputy, a professional assistant and contracts for affiliates were finalised during the latter part of the year, and therefore, a backlog of work has to be addressed. It is likely that the majority of the carry forward request will be utilised in undertaking various reviews during 2014. The budget will be reviewed by the C&AG and consideration of its return if necessary.
States Assembly - £40,000
Audio system and cabling States Chamber £40,000
Refurbishment of audio system and installation of new A/V cabling in States Chamber.
6. Restructuring Provision Carry Forwards Allocated to Departments - £2,961,431
Departments have drawn on the Restructuring Provision throughout the year, and due to timing, some of this budget remains unspent. The request is to carry forward these amounts to 2014 within departments where it is still required for the original purpose. A summary of requests is shown in Appendix 4 on page 19.
The amounts being requested to be carried forward by departments are as follows:-
Chief Minister’s - £767,962
Public Sector Reform Project £767,962
Funding received in 2013 for PSR projects which will continue into 2014.
Department of the Environment - £120,000
File Thinning £120,000
This funding will be used to progress an invest to save programme for the thinning and storage of a large volume of old paper planning files. Due to issues surrounding the Department's office move from South Hill it has been agreed with Treasury that this funding will be used in 2014 to review the Departments data archive.
Home Affairs - £12,800
Delay in Pensions Work £12,800
Balance of funds agreed from the Restructuring Provision in 2011 topped up from the HA Department for the costs associated with changes to PECRS required for the introduction of a new Prison Officer grade. This proposal is being managed by the Pensions Section of the Treasury and Resources Department.
Housing - £275,420
Housing Transformation Programme £275,420
The department was allocated £425,000 in 2013 to fund the implementation of the transformation. The late allocation of the budget has forced some work streams to roll over into 2014.
Treasury and Resources - £1,785,249
Procurement transformation project £1,480,420
Required for the Procurement Transformation and has been funded from the Restructuring Provision. The carry forward is required to fund the Procure-to-Pay project (Supply Jersey) and also covers the cost of three procurement category managers for the period of the MTFP. A review is currently underway on future expenditure within this project requiring budget movement between revenue and capital to ensure compliance with GAAP accounting.
Restructuring Provision early draw down £154,829
The remaining balance of restructuring provision funding for the Taxes Transformation Programme. A further carry forward has been requested to provide part funding for future expenditure, to reduce funding required from Treasury, as the programme has been delayed due to LTC implementation.
Taxes Transformation Programme £150,000
The Taxes Transformation Programme has incurred a lower spend than anticipated in 2013 - some of the planned work has now been delayed due to the new work stream of Long Term Care charge.
7. Central Contingency and Restructuring - £20,728,389
The balance of the provision for Restructuring Costs and Central Contingency, after returning £3.3 million to the Consolidated Fund, is requested for carry forward to 2014.
Of the £20,728,389 budget available to carry forward, it is proposed that £1,403,550 is allocated to the Restructuring Provision and £16,024,839 is allocated to Central Contingency. The balance of £3.3 million from Central Contingency (One-Off) will be transferred to the Consolidated Fund to compensate for the MTFP funding commitment to the Consolidated Fund in 2013 and the shortfall of General Revenues Income against MTFP budget. Details can be found below and can also be seen in Appendix 5 and 6 on pages 20 and 21.
Provision for Restructuring Costs - £1,403,550
It is proposed that the full remaining balance in the Restructuring Provision in 2013 is ring-fenced and carried forward into the Restructuring Provision in 2014 to supplement the £6,540,000 budget allocated in the MTFP.
Provision for Central Contingency - £16,024,839
A balance of £16,024,839 will remain in the Central Contingency after the proposed carry forward allocation to Restructuring Provision and the return of £3.3 million to the Consolidated Fund and it is proposed that this balance is carried forward in 2014 to supplement that year’s budget allocation.
The carry forward will be allocated to Central Contingencies in 2014 in the following way:
Insurance - £2,691,114
One-Off Contingency - £4,081,579 (plus £716,901 not requested by departments)
It is proposed that the balance of the Central Contingency, not identified above, is carried forward to the One-Off element of Central Contingencies for 2014.
It is also proposed that the balance of underspends from 2013 of £716,901 not requested by departments is carried forward into One-Off Contingency in 2014.
Pay Provision - £1,855,627
The carry forward for the pay provision is in respect of pay awards for nurses, firefighters, doctors and consultants that have been agreed and exceed the provisions made in the original MTFP Pay Provision.
Emerging Items - £4,000,000
This will add to the £4,000,000 provision already in 2014 for a number of emerging items such as Freedom of Information, Historic Child Abuse Enquiry and Legal Aid for which the exact cost and timing is uncertain. The Council of Ministers has already approved sums which can be drawn down as required by these two projects in 2014 and 2015.
Court and Case Costs Smoothing Reserve - £3,396,519 (plus £199,746 unspent base budget by departments during 2013)
It is proposed that the balance of the Court and Case Costs Smoothing Reserve of £3,396,519 is carried forward to 2014 along with the balance unspent by departments on Court and Case Costs during 2013 of £199,746.
8. Recommendations
To consider the carry forward requests identified in the report, summarised as follows:-
- Departmental carry forward of £16,910,900 as detailed in Section 5 and Appendix 3,
- Restructuring Provision carry forward of £2,961,431 as detailed in Section 6 and Appendix 4,
- Central Contingency and Restructuring Provision carry forward of £17,428,389 as detailed in Section 7 and Appendix 5,
- Transfer of £3,300,000 from Central Contingency (One-Off) to the Consolidated Fund to compensate for the MTFP funding commitment to the Consolidated Fund in 2013 and the shortfall of General Revenues Income against MTFP Budget Section 7 and Appendix 5,
- Departmental underspends not requested by departments:
- £716,901 carry forward to Central Contingency as detailed in Section 7 and Appendix 1.
- £2,033,697 return to the Consolidated Fund as detailed in Section 4 and Appendix 1; and
- Court and Case Costs underspends not requested by departments of £199,746 carry forward to the Smoothing Reserve as detailed in Section 7 and Appendix 1
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