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

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A decision made 15 January 2013:

Decision Reference: MD-ESC-2013-0002
Decision Summary Title:	Contingency Funding to ESC for 2013 1% Non Consolidated Pay Award and 1% Consolidated Pay Award		Date of Decision Summary:	15th January 2013
Decision Summary Author:	Dennis Rainbow Head of Finance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	N/A		Date of Written Report:	15th January 2013
Written Report Author:	Dennis Rainbow Head of Finance		Written Report : Public or Exempt?	Public
Subject: Transfer of contingency funding from the Central Contingency (Pay Provision) to the Education, Sport and Culture Department for costs associated with the 1% Non Consolidated Pay Award and 1% Consolidated Pay Award for 2013.
Decision(s): The Minister for Education, Sport and Culture accepted a budget transfer for non-recurring contingency funding totalling £1,664,380 from the Central Contingency (Pay Provision) for costs associated with the 1% Non Consolidated Pay Award (£752,270) and 1% Consolidated Pay Award (£912,110) 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 authorized 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 Education, Sport and Culture Department’s head of expenditure.
Resource Implications: The Education, Sport and Culture Department’s revenue head of expenditure will increase in total by £1,664,380. This decision does not change the total amount of expenditure approved by the States for 2013.
Action required: Director Finance Education, Sport and Culture to liaise with Treasury and Resources Department to effect the necessary budget transfer.
Signature:		Position: Deputy P.J.D. Ryan Minister for Education, Sport and Culture
Date Signed:		Date of Decision:

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

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Education, Sport and Culture

Ministerial Decision Report

Contingency Funding to DEPARTMENTS for

1% CONSOLIDATED AND 1% NON CONSOLIDATED PAY AWARD FOR 2013

Purpose of Report

To enable the Minister for Education, Sport and Culture to approve a 2013 request for contingency funding of £1,664,380 from the Central Contingency (Pay Provision) for the Education, Sport and Culture Department for costs associated with the 1% Consolidated and 1% Non Consolidated Award for 2013.

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 2013, the Council of Ministers has made provision in Central Contingency (Pay Provision) for the 1% Consolidated and 1% Non Consolidated Award for 2013.and the implementation of the pay offer requires a transfer of funding to those departments affected by the pay offer.

The required transfers from Central Contingency (Pay Provision) to the Education, Sport and Culture Department’s head of expenditure represents £912,110 for the cost of the 1% Consolidated and £752,270 for the cost of the 1% Non Consolidated Award for 2013. The total cost of the 2013 pay awards for the Education, Sport and Culture Department is £1,664,380.

3. Recommendation

The Minister for Education, Sport and Culture is recommended to approve a 2013 request for contingency funding totalling £1,664,380 from the Central Contingency (Pay Provision) for the Education, Sport and Culture Department of £1,664,380 for costs associated with the 1% Consolidated and 1% Non Consolidated Award for 2013.

4. Reason 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 of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

5. Resource Implications

Education, Sport and Culture Department’s revenue head of expenditure to increase by £1,664,380 and the Central Contingency (Pay Provision) to decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2013.

Written by: Head of Finance