Budget Transfer: Central Contingency (Pay Provision) to Housing Department: 2014 Pay Award

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A decision made 21 November 2013:

Decision Reference: MD-H-2013-0089
Decision Summary Title:	Contingency Funding for the 2014 4% Consolidated Pay Award		Date of Decision Summary:	19th November 2013
Decision Summary Author:	Finance Director		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Contingency Funding for the 2014 4% Consolidated Pay Award		Date of Written Report:	19th November 2013
Written Report Author:	Senior Management Accountant		Written Report : Public or Exempt?	Public
Subject: Transfer of contingency funding from the Central Contingency (Pay Provision) to the Housing Department for costs associated with the 4% Consolidated Pay Award for 2014 and approval for an identical transfer in 2015 for the recurring effect of the pay award.
Decision(s): The Minister accepted a budget transfer for contingency funding totalling £108,700 from the Central Contingency (Pay Provision) for costs associated with the 2014 4% Consolidated Pay Award and an identical transfer 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 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 States Employment Board has offered 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 Housing Department’s revenue head of expenditure.
Resource Implications: The Housing Department’s revenue head of expenditure will increase by £108,700 in 2014 and 2015 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. The recurring impact of these budget transfers will be reflected in the Housing Department’s base budget in the next Medium Term Financial Plan 2016-2019.
Action required: Finance Director to liaise with Treasury and Resources Department to effect the necessary budget transfer.
Signature:		Position: Minister for Housing
Date Signed:		Date of Decision:

Budget Transfer: Central Contingency (Pay Provision) to Housing Department: 2014 Pay Award

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Housing Department

Ministerial Decision Report

CENTRAL Contingency Funding for the 2014 4% Consolidated Pay Award

Purpose of Report

To request that the Minister approve a 2014 allocation of contingency funding of £108,700 from the Central Contingency (Pay Provision) to the Housing Department for costs associated with the 4% consolidated pay award for 2014, and to approve an identical transfer in 2015 for the recurring effect of the pay award.

Background

The 4% award is the final segment of a three year award which, whilst not reached for all pay groups, has had de facto acceptance and has led to significant CSR savings which flow through into future years.

The first two parts of the three year pay offer were made in 2012 and 2013 following an announcement by the Chief Minister in the States in December 2012. This represented:

• 2012, 1% non-consolidated award paid as a one off lump sum, with effect 1st January 2012; and

• 2013, 1% consolidated pay award plus 1% non-consolidated award paid as a one off lump sum, with effect 1st January 2013.

The offer for 2014 was for a 4% consolidated pay award with effect 1st January 2014, in return for a modernisation agreement and a guarantee of no compulsory redundancies until the end of 2014.

Following a meeting 7th November 2013, the States Employment Board recommended the payment of the 4% award for ALL pay groups, to be paid in January 2014. In addition, a budget transfer from Central Contingency (Pay Provision) to fund the award was approved by the Council of Ministers on 13th November 2013.

3. Recommendation

That the Minister accept a budget transfer for contingency funding totalling £108,700 from the Central Contingency (Pay Provision) for costs associated with the 2014 4% consolidated pay award and an identical transfer in 2015 for the recurring effect of the pay award.

4. 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 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 Housing Department’s revenue head of expenditure.

5. Resource Implications

The Housing Department’s revenue head of expenditure will increase by £108,700 in 2014 and 2015 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.

The recurring impact of these budget transfers will be reflected in the Housing Department’s base budget in the next MTFP 2016-2019.

Housing Department

Report Prepared By: -

Jason English

Senior Management Accountant

……………………………… Date: 2013

Report Checked By: -

J C Hamon

Finance Director

……..………………………. Date: 2013

Authorised By: -

Ian Gallichan

Chief Officer

………………………………. Date 2013