Budget transfer from Restructuring Provision to Chief Minister's Department: Leadership Development

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A decision made 18 April 2017:

Decision Reference: MD-TR-2017-0049
Decision Summary Title:	Restructuring Provision Bid – Leadership Development		Date of Decision Summary:	30th March 2017
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Restructuring Provision Bid – Leadership Development		Date of Written Report:	30th March 2017
Written Report Author:	Finance Manager - Corporate Group		Written Report : Public or Exempt?	Public
Subject: Non-recurring budget transfer of £1,540,000 from the Restructuring Provision to the Chief Minister’s Department revenue head of expenditure to fund Leadership Development within the Public Sector Reform Programme, with indicative funding being £560,000 for 2017, £490,000 for 2018 and £490,000 for 2019. In addition, the temporary FTE within CMD to increase by one for the duration of the funding.
Decision(s): The Minister approved a non-recurring budget transfer of £1,540,000 from the Restructuring Provision to the Chief Minister’s Department revenue head of expenditure to fund Leadership Development within the Public Sector Reform Programme with indicative funding being £560,000 for 2017, £490,000 for 2018 and £490,000 for 2019. In addition, the temporary FTE within CMD to increase by one for the duration of the funding.
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 or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The current Contingency Allocation Policy (published as R.10/2012) sets the requirement for all allocations from Contingency to be considered by the Council of Ministers prior to submission to the Minister for approval. To comply with P67/1999 which charges the Minister for Treasury and Resources to regulate the number of persons that may be employed by the States. The Council of Ministers has acknowledged that investment will be needed to ensure Public Sector Reform is successful. Furthermore, funds have been identified and approved in the Medium Term Financial Plan and the Council of Ministers approved these requests at its meeting on 8th February 2017. Executive leadership development has now been delivered to CMB and next in-line for development are senior managers. The next phase of leadership development is required to address practical leadership skills for senior and middle managers to specifically drive performance and initiate, drive and sustain change. Ministerial decision MD-C-2017-0019 was signed by the Chief Minister on 10th March 2017
Resource Implications: The CMD revenue head of expenditure will increase by up to a total of £1,540,000 in the years 2017 - 2019 and the temporary FTE within CMD to increase by one. The Restructuring Provision revenue head of expenditure to decrease by an identical amount. The £1,540,000 in total is proposed to be drawn down as £560,000 for 2017, £490,000 for 2018 and £490,000 for 2019 but the amount for each year may be varied without exceeding the total amount for the three years. This decision does not change the total amount of expenditure approved by the States for 2017 - 2019 in the Medium Term Financial Plan.
Action required: Head of Decision Support to advise the Finance Manager – Corporate Group once this decision has been approved.
Signature:		Position: Connetable John Refault Assistant Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Restructuring Provision to Chief Minister's Department: Leadership Development

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Treasury and Resources

Ministerial Decision Report

RESTRUCTURING PROVISION BID - LEADERSHIP DEVELOPMENT

Purpose of Report

To approve a non-recurring budget transfer of £1,540,000 from the Restructuring Provision to the Chief Minister’s Department revenue head of expenditure to fund Leadership Development within the Public Sector Reform Programme with indicative funding being £560,000 for 2017, £490,000 for 2018 and £490,000 for 2019. In addition, the temporary FTE within CMD to increase by one for the duration of the funding.

Background

At the beginning of the Reform programme, the requirement for the Corporate Management Board (CMB) and Council of Ministers (COM) to work closer together as a leadership team was acknowledged. To support this approach CMB and COM have had regular strategic sessions and workshops during 2015 and 2016.

The first phase of Public Sector reform focused on preparing the organisation for the challenges that significant reform required. A business case was prepared in October 2015 to secure funding for transformational leadership for 2016. The next phase of reform has been accelerated by the changing financial climate in the period 2015 to 2019.

The leadership development project will support and develop the behaviours and skills required of leaders and managers to lead the change and deliver on the following key PSR objectives:

Reducing Government expenditure
Providing a modern workplace
Digital service delivery for both customers and internally within government
A modern and flexible workforce
And service delivery which is smaller, simpler and more efficient

Following a discussion with the States of Jersey Leadership Board, it was suggested by the board members that a bid be submitted to the Restructuring Provision to secure additional funding for the remaining MTFP2 period (2017 – 2019).

On the 8th February 2016 the Council of Ministers considered a report outlining the funding requirements in 2017 - 2019 for Leadership Development within the Public Sector Reform Programme. The Council of Ministers agreed the funding as proposed for 2016 - 2019 with indicative funding being agreed for each of the years 2017 to 2019. The Council of Ministers approved the 2017-2019 requests at its meeting on 8th February 2017

3. Recommendation

The Minister is recommended to approve a non-recurring budget transfer of £1,540,000 from the Restructuring Provision to the Chief Minister’s Department revenue head of expenditure to fund Leadership Development within the Public Sector Reform Programme with indicative funding being £560,000 for 2017, £490,000 for 2018 and £490,000 for 2019. In addition, the temporary FTE within CMD to increase by one for the duration of the funding.

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 or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

The current Contingency Allocation Policy (published as R.10/2012) sets the requirement for all allocations from Contingency to be considered by the Council of Ministers prior to submission to the Minister for approval.

To comply with P67/1999 which charges the Minister for Treasury and Resources to regulate the number of persons that may be employed by the States.

The Council of Ministers has acknowledged that investment will be needed to ensure Public Sector Reform is successful. Furthermore, funds have been identified and approved in the Medium Term Financial Plan and the Council of Ministers approved these requests at its meeting on 8th February 2017.

Executive leadership development has now been delivered to CMB and next in-line for development are senior managers.

The next phase of leadership development is required to address practical leadership skills for senior and middle managers to specifically drive performance and initiate, drive and sustain change.

Ministerial decision MD-C-2017-0019 was signed by the Chief Minister on 10th March 2017.

5. Resource Implications

The CMD revenue head of expenditure will increase by up to a total of £1,540,000 in the years 2017 - 2019 and the temporary FTE within CMD to increase by one. The Restructuring Provision revenue head of expenditure to decrease by an identical amount.

The £1,540,000 in total is proposed to be drawn down as £560,000 for 2017, £490,000 for 2018 and £490,000 for 2019 but the amount for each year may be varied without exceeding the total amount for the three years.

This decision does not change the total amount of expenditure approved by the States for 2017 - 2019 in the Medium Term Financial Plan.

Report author : Head of Decision Support	Document date 30th February 2017
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-0047 - Restructuring - Leadership Development
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