Budget Transfers: Return of Health and Social Services 2011 Voluntary Redundancy Unanticipated Savings

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A decision made 9 December 2011:

Decision Reference: MD-HSS-2011-0053
Decision Summary Title:	Budget Transfers for the return of 2011 Voluntary Redundancy (VR) Unanticipated HSSD Savings to the Treasury and Resources Department		Date of Decision Summary:	05/12/11
Decision Summary Author:	Director of Finance & Information Systems		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Budget Transfers for the return of 2011 Voluntary Redundancy (VR) Unanticipated HSSD Savings to the Treasury and Resources Department		Date of Written Report:	05/12/11
Written Report Author:	Head of Financial Accounting and Control		Written Report : Public or Exempt?	Public
Subject: Budget transfers for the return of 2011 Voluntary Redundancy (VR) unanticipated departmental savings to the Treasury and Resources Department (T&R).
Decision(s): The Minister approved the transfer of £194,884 from the Health & Social Services Department’s revenue head of expenditure budget to the Treasury and Resources contingency head of expenditure budget.
Reason(s) for Decision: Article 15(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.
Resource Implications: There will be no increase to total approved States net revenue expenditure as a result of this decision. Health & Social Services Department revenue head of expenditure budget will decrease non-recurrently by £194,884. Treasury & Resources Contingency Fund will increase by the same amount in 2011.
Action required: Treasury & Resources transfer £194,884 in 2011 from Health & Social Services current year budget to Treasury & Resources Contingency Fund.
Signature:		Position: Minister for Health & Social Services
Date Signed:		Date of Decision:

Budget Transfers: Return of Health and Social Services 2011 Voluntary Redundancy Unanticipated Savings

Health and Social Services

Department:

Ministerial Decision Report

Budget Transfers for the return of 2011 Voluntary Redundancy (VR) Unanticipated HSSD Savings to the Treasury and Resources Department

Purpose of Report

To enable the Minister for Health & Social Services Department to approve a budget transfer of £194,884 from revenue head of expenditure to the Treasury & Resources Contingency head of expenditure as detailed below.

Background

In P64/2010: “Public Finances (Jersey) Law 2005: Funding Requests under Article 11(8)” the States approved funding of up to an additional £6,000,000 from the consolidated fund for the Chief Minister’s Department for a Voluntary Redundancy (VR) scheme. Following States approval on 7th July 2010, £6 million was withdrawn from the consolidated fund and held temporarily in a Treasury and Resources contingency fund.

In November 2010 the Treasury & Resources department transferred budget totalling £1,761,212 from its Contingency Fund under MD-TR-2010-0159 to the Health & Social Services Department to cover Voluntary Redundancies for staff in 2011.

Unanticipated departmental Savings

Funding allocated to departments as a result of P64/2010 permitted, in some cases, voluntary redundancies to take place earlier than anticipated. Where departments had not included savings in their CSR submissions for 2011 it was agreed by the Chief Officers concerned that any unanticipated savings in 2011 would be returned for reallocation by the Minister for Treasury and Resources.

The Health & Social Services Department made an over recovery on 1 planned VR totalling £28,848 and achieved recurrent savings on another post without incurring an anticipated VR payment of £166,036.

Recommendation

The Minister is recommended to approve a budget transfer of £194,884 from the Health & Social Services revenue head of expenditure to the Treasury and Resources contingency head of expenditure.

Reason for Decision

Article 15(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.

Resource Implications

There will be no increase to total approved States net revenue expenditure as a result of this decision. The Treasury &Resources contingency head of expenditure will increase by £194,884 and Health & Social Services Department revenue head of expenditure budget will decrease non-recurrently by the same amount.

Tim Zeale

Head of Financial Accounting and Control

5th December, 2011