Voluntary Redundancy Payments: Transfer of Funding

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A decision made on 12 November 2010 regarding the transfer of funding for voluntary redundancy payments

Decision Reference: MD-TR-2010-0159

Decision Summary Title:

Transfer of funding for Voluntary Redundancy (VR) payments

Date of Decision Summary:

4th November 2010

Decision Summary Author:

Head of Decision Support

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

Transfer of funding for Voluntary Redundancy (VR) payments

Date of Written Report:

4th November 2010

Written Report Author:

Head of Decision Support

Written Report :

Public or Exempt?

Public

Subject:

Transfer of funding for Voluntary Redundancy (VR) payments

Decision(s):

The Minister approved:

the transfer of £5,760,373 from the Treasury and Resources contingency fund to the Chief Minister’s Department; and
the transfers of the following sums to the following departments from the Chief Minister’s Department:

Judicial Greffe	£155,018
Education, Sport and Culture	£712,844
Lieutenant Governor's	£96,673
Resources - Information Services	£364,888
Planning and Environment	£605,774
Property Holdings	£135,081
Economic Development	£43,610
Home Affairs	£385,684
Health and Social Services	£1,761,212
Housing	£360,048
Human Resources	£179,087
Transport and Technical Services	£960,454

Total	£5,760,373

Reason(s) for Decision:

Article 15(1)(a) the Public Finances (Jersey) Law 2005 permits the Minister for Treasury and Resources to approve that a head of expenditure may be used for the purposes of another head of expenditure. This decision implements the States’ approval of P64/2010

Resource Implications:

There will be no increase to total approved States net revenue expenditure as a result of this decision.

Action required:

Head of Decision Support to inform the Head of Financial Performance Reporting that the transfers have been approved.

Signature:

Position: Senator P F C Ozouf, Minister for Treasury and Resources

Date Signed:

Date of Decision:

Voluntary Redundancy Payments: Transfer of Funding

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Treasury and Resources

Ministerial Decision Report

Transfer of funding for Voluntary Redundancy (VR) payments

Purpose of Report

To enable the Minister for Treasury and Resources to transfer a total of £5,760,373 from the Treasury and Resources contingency fund to the Chief Minister’s Department (CMD), and subsequently from CMD to a number of States departments as set out in section 2 below to fund VR payments.

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 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. The States Employment Board has now approved voluntary redundancies costing a total of £5,760,373 from this funding and CMD has requested transfer of this amount to transfer, in turn, to departments making the VR payments as detailed below:

Judicial Greffe	£155,018
Education, Sport and Culture	£712,844
Lieutenant Governor's	£96,673
Resources - Information Services	£364,888
Planning and Environment	£605,774
Property Holdings	£135,081
Economic Development	£43,610
Home Affairs	£385,684
Health and Social Services	£1,761,212
Housing	£360,048
Human Resources	£179,087
Transport and Technical Services	£960,454

Total	£5,760,373

These redundancies will deliver savings of approximately £3.2 million in a full year.

The balance of the States approved funding (£239,627) will continue to be held in the Treasury and Resources contingency fund pending further approvals or confirmation that this sum will not be needed, in which case it will be returned to the consolidated fund.

Approval process and accountability

At the request of Treasury Officers all aspects of all VR applications, including financial calculations, have been signed off by departmental Chief Officers and Finance Directors. Payments will be made to individuals by the departments currently bearing their costs – therefore the individual Chief Officers, as accounting officers, will be accountable for demonstrating that value for money has been achieved by making the payments.

Recommendation

That the Minister approves:

the transfer of £5,760,373 from the Treasury and Resources contingency fund to the Chief Minister’s Department; and
the transfers of the following sums to the following departments from the Chief Minister’s Department:

Judicial Greffe	£155,018
Education, Sport and Culture	£712,844
Lieutenant Governor's	£96,673
Resources - Information Services	£364,888
Planning and Environment	£605,774
Property Holdings	£135,081
Economic Development	£43,610
Home Affairs	£385,684
Health and Social Services	£1,761,212
Housing	£360,048
Human Resources	£179,087
Transport and Technical Services	£960,454

Total	£5,760,373

Reason for Decision

Article 15(1)(a) the Public Finance (Jersey) Law 2005 permits the Minister for Treasury and Resources to approve that a head of expenditure may be used for the purposes of another head of expenditure.

Resource Implications

This Decision will require transfers totalling £5,760,373 from the Treasury and Resources contingency fund to the Chief Minister’s Department revenue head of expenditure, and onwards to the revenue heads of expenditure of a number of departments as listed in section 4 above. There is no increase to total approved States net revenue expenditure as a result of this decision.

Report author : Head of Decision Support Officer	Document date : 04/11/10
Quality Assurance / Review : Head of Financial Performance Reporting	File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2010-0128 - hcae funds lod ha q2 2010 - lr\wr - hcae funds lod ha q2 2010 - lr.doc
MD sponsor : Deputy Treasurer