Contingency Funding: 1% Non-consolidated Pay Award

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A decision made on 18 December 2012:

Decision Reference: MD-TR-2012-0119
Decision Summary Title:	Contingency Funding to Departments for 2012 Non Consolidated Pay Award		Date of Decision Summary:	11th December 2012
Decision Summary Author:	Head of Financial Planning		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 2012 Non Consolidated Award		Date of Written Report:	11th December 2012
Written Report Author:	Head of Financial Planning		Written Report : Public or Exempt?	Public
Subject: Request for contingency funding from the Provision for Central Reserves (one-off funding) to Departments for costs associated with the 1% Non Consolidated Pay Awards for 2012.
Decision(s): The Minister for Treasury and Resources approved a 2012 request for non-recurring contingency funding of £2,443,554 from the Provision for Central Reserves (one-off funding) to various Departments as per the schedule in the attached report for costs associated with the 1% Non Consolidated Pay Awards for 2012. The approval includes the sum of £106,500 for the Treasury and Resources department head of expenditure.
Reason(s) for Decision: Article 2(6) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011 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.
Resource Implications: Departments’ revenue heads of expenditure to increase as per the schedule in the attached report by £2,443,554 and the T&R Provision for Central Reserves (one-off funding) to decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2012.
Action required: Head of Financial Planning to notify the Assistant Accountant, Financial Accounting and Control and, the Finance Manager, Financial Performance Reporting that this decision has been approved.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Contingency Funding: 1% Non-consolidated Pay Award

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Treasury and Resources

Ministerial Decision Report

Contingency Funding to DEPARTMENTS for 1% NON CONSOLIDATED PAY AWARD FOR 2012

Purpose of Report

To enable the Minister for Treasury and Resources to approve a 2012 request for non-recurring contingency funding of £2,443,554 from the Provision for Central Reserves (one-off funding) to various Departments as per the schedule at Appendix 1 for costs associated with the 1% Non Consolidated Award for 2012.

Background

On 4th December 2012, the Chief Minister announced in the States that the employer would be implementing the final pay offer made initially on 12th July 2012.

The final offer provides for;-

2012, 1% non-consolidated award paid as a one off lump sum, with effect 1st January 2012;
2013, 1% consolidated pay award plus 1% non-consolidated award paid as a one off lump sum, with effect 1st January 2013;
2014, 4% consolidated pay award with effect 1st January 2014 in return for a modernisation agreement;
A guarantee of no compulsory redundancies until the end of 2014.

In 2012, the Council of Ministers has made provision in Central Reserves for the one-off non consolidated award and the implementation of the pay offer requires a transfer of funding to those departments affected by the pay offer.

Appendix 1 provides a schedule of the transfers currently requested from Central Reserves to individual departments’ heads of expenditure representing the costs associated with the 2012 non consolidated pay offer.

The provision in the Central Reserves amounts to £2.6 million for 2012 and the requests to date amount to £2.4 million.

3. Recommendation

The Minister for Treasury and Resources is recommended to approve a 2012 request for non-recurring contingency funding totalling £2,443,554 from the Provision for Central Reserves (one-off funding) to various departments as set out in Appendix 1 for costs associated with the non consolidated pay award for 2012.

4. Reason for Decision

Article 2(6) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011 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.

5. Resource Implications

Departments’ revenue heads of expenditure to increase by £2,443,554 as set out in Appendix 1 and the T&R Provision for Central Reserves (one-off funding) to decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2012.

Report author : Head of Financial Planning	Document date : 11th December 2012
Quality Assurance / Review : Director of Financial Planning and Performance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2012-0119 - Pay awards to departments\WR - Central Reserve Funding for Departments for 1% Non Consolidated Pay Award for 2012.doc
MD sponsor :Treasurer of the States

APPENDIX 1 SCHEDULE OF COSTS TO DEPARTMENTS OF THE 1% NON CONSOLIDATED PAY OFFER FOR 2012 TO BE FUNDED BY A TRANSFER FROM CENTRAL RESERVES