Pay Award 2013: 1% Non-Consolidated and 1% Consolidated: Contingency Funding: Transfer

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A decision made 28 December 2012:

Decision Reference: MD-HA-2012-0092
Decision Summary Title:	Contingency Funding for the 2013 1% Non Consolidated Pay Award and 1% Consolidated Pay Award		Date of Decision Summary:	19 December 2012
Decision Summary Author:	Finance Director Home Affairs		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	2013 Pay Award Funding		Date of Written Report:	19 December 2012
Written Report Author:	Finance Director 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 1% Non Consolidated Pay Award and 1% Consolidated Pay Award for 2013.
Decision(s): The Minister accepted a budget transfer for non-recurring contingency funding totalling £627,000 from the Central Contingency (Pay Provision) for costs associated with the 1% Non Consolidated Pay Award and 1% Consolidated Pay Award for 2013.
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 to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The SEB have offered a 1% non-consolidated pay award and 1% Consolidated Pay Award for 2013 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 revenue head of expenditure will increase in total by £627,000 for 2013 This decision does not change the total amount of expenditure approved by the States for 2013.
Action required: Finance Director to liaise with Treasury and Resources Department to effect the necessary budget transfer.
Signature:		Position: Minister for Home Affairs
Date Signed:		Date of Decision:

Pay Award 2013: 1% Non-Consolidated and 1% Consolidated: Contingency Funding: Transfer

2013 Pay Award Funding

Home Affairs Department Report for Minister
Subject:	2013 Pay Award Funding
Exempt Clause:	n/a	Date:	19 December 2012

Author:	Finance Director

Introduction

The purpose of this report is to ask the Minister to accept a budget transfer of £627,000 for non-recurring contingency funding from the Central Contingency (Pay Provision) for costs associated with the 1% Non Consolidated Pay Award and 1% Consolidated Pay Award for 2013 for the Home Affairs Department.

Background

As the Minister is aware, 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.

The final pay offer made initially 12th July 2012 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.

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, except for a few pay groups where discussions are continuing. The exceptions include the Jersey Fire Service Association.

Although payment has not been made to members of the Jersey Fire Service Association funding is still required from the Provision for Central Reserves.

The total cost of the 2013 1% non consolidated pay award and 1% consolidated pay award for the Home Affairs Department is £627,000.

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 to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The SEB have offered a 1% non-consolidated pay award and 1% Consolidated Pay Award for 2013 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 head of expenditure.

Recommendation

It is recommended that the Minister accepts a budget transfer for non-recurring contingency funding totalling £627,000 from the Central Contingency (Pay Provision) for costs associated with the 1% Non Consolidated Pay Award and 1% Consolidated Pay Award for 2013 for the Home Affairs Department.