Treasury & Resourses
Ministerial Decision Report
Reallocation of Central Contingency Funding from T&R to departmental revenue heads of expenditure for the 2015/2016 Pay Award
- Purpose of Report
To reallocate the non-recurring allocation of £2,406,708 in 2016 from the Central Contingency (Pay Provision) to fund the 2016 element of the 2015 / 2016 pay award with effect from 1st January 2016 to departmental revenue heads of expenditure.
- Background
Non-recurrent provisions were made in Central Contingency (Pay Provision) for anticipated pay awards across all pay groups in 2016.
These sums form part of the pay provisions made in the Central Contingency and a one-off allocation is required to meet departments’ 2016 costs of the 1% award. The recurring impact of a 1% pay award across all pay groups has been included in departments’ base budgets from 2017 as part of the MTFP Addition (MTFP Addition Annex, ‘Reconciliation of Net Revenue Expenditure’ section for each department). This pay award was not agreed in time to include by department in 2016, so the decision was made to transfer the costs and budget all to T&R. This pay award was paid to employees in 2017. As such, the costs have been removed from departments in 2017 with their agreement. This decision will allow the budget to match the actuals which will be posted retrospectively from T&R to each department to reflect the correct costs, by department, in 2016.
- Recommendation
The Minister is recommended to approve allocations from the Central Contingency (Pay Provision) to the following departments for costs associated with the 2015/2016 pay award as per the table below:
- 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 of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.
The current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from Contingency over £100,000 to be considered by the Council of Ministers prior to submission to the Minister for approval.
A T&R decision, MD-TR-2017-0087, was signed by the Minister for Treasury and Resources on 19th June 2017.
It is necessary to adjust part of the T&R decision MD-TR-2017-0087, specifically the first part of the decision requesting:
- A non-recurring allocation of £2,406,708 in 2016 to the Treasury and Resources Department to fund the 2016 element of the 2015/2016 pay award with effect from 1st January 2016.
This should now say:
- A non-recurring allocation of £2,406,708 in 2016 to the Departments listed in the table below to fund the 2016 element of the 2015/2016 pay award with effect from 1st January 2016.
Chief Minister's Department | 135,386 |
Non Min SFB-Overseas Aid | 424 |
External Relations | 5,825 |
Comm and Const Affairs (CCA) | 146,826 |
Economic Development, Tourism, Sport & Culture | 61,798 |
Education | 287,953 |
Department of the Environment | 70,133 |
Health & Social Services | 1,123,789 |
Department for Infrastructure | 209,780 |
Social Security | 111,068 |
Treasury and Resources | 104,814 |
Non Ministerial States Funded | 134,738 |
States Assembly | 14,174 |
Total funded from Contingency | 2,406,708 |
This pay award was not agreed in time to include by department in 2016, so the decision was made to transfer the costs and budget all to T&R. This pay award was paid to employees in 2017. As such, the costs have been removed from departments in 2017 with their agreement. This decision will allow the budget to match the actuals which will be posted retrospectively from T&R to each department to reflect the correct costs, by department, in 2016.
- Resource Implications
Central Contingency (Pay Provision) to decrease by £2,406,708 in 2016 and departmental revenue heads of expenditure to increase by a total identical amount, detailed in the table above.
The balance of £104,814 will remain in T&R to cover the cost of the department’s pay award.
This decision does not change the total amount of expenditure approved by the States for 2017 and 2018 in the Medium Term Financial Plan.
Report author : Financial Performance Reporting Manager | Document date : 15th November 2017 |
Quality Assurance / Review : Director of Financial Planning and Performance | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-0139 - Reallocation of Contingency fr T&R to dept rev HOE for 20152016 Pay Award |
MD sponsor : Director of Financial Planning and Performance |