Budget Transfer: 2014 Pay Award

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A decision made 13 January 2014:

Decision Reference: MD-TR-2014-0002
Decision Summary Title:	Contingency Funding to Departments for the 2014 4% Consolidated Pay Award		Date of Decision Summary:	6th December 2014
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 the 2014 4% Consolidated Pay Award		Date of Written Report:	6th December 2013
Written Report Author:	Head of Financial Planning		Written Report : Public or Exempt?	Public
Subject: Transfer of contingency funding from the Central Contingency (Pay Provision) to departments for costs associated with the 4% consolidated pay award for 2014 and approval for a recurring transfer in 2015.
Decision(s): The Minister for Treasury and Resources approved a 2014 request for contingency funding totalling £13,331,200 from the Central Contingency (Pay Provision) to various departments for costs associated with the 2014 4% consolidated pay award as per the schedule in the attached report. The approval includes the sum of £555,000 for the 4% consolidated pay award for 2014 in respect of the Treasury and Resources Department head of expenditure. The Minister further approved the future funding of £13,331,200 to be transferred to departments 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 or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The States Employment Board has recommended 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 various departments’ revenue heads of expenditure.
Resource Implications: Departments’ revenue heads of expenditure will increase by £13,331,200 in 2014 and 2015 as per the schedule in the attached report 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. In order to fund this, a non-recurring budget transfer of £1,855,600 is required in 2014 from Central Contingency (AME) to Central Contingency (Pay Provision). This sum will be replenished with earmarked funding to be carried forward from the Central Contingency (One-off) provision in 2013. The recurring impact of these budget transfers will be reflected in the Departments’ base budgets in the next MTFP 2016-2019.
Action required: Head of Decision Support to notify the Financial Performance Reporting Manager and the Head of Financial Planning that this decision has been approved.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision: