Pay Award 2012: 1% Non-Consolidated: Contingency Funding: Transfer

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A decision made 11 December 2012:

Decision Reference: MD-S-2012-0108
Decision Summary Title:	Contingency Funding from Treasury for 2012 Non Consolidated Award		Date of Decision Summary:	10th December 2012
Decision Summary Author:	Director of Finance & Governance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Contingency Funding from Treasury for 2012 Non Consolidated Award		Date of Written Report:	10th December 2012
Written Report Author:	Director of Finance & Governance		Written Report : Public or Exempt?	Public
Subject: Contingency funding from Treasury for Central Reserves (one-off funding) to meet the costs associated with the 1% Non Consolidated Pay Awards for 2012.
Decision(s): The Minister for Social Security approved contingency funding from Treasury for 2012 totalling £31,124 from the Provision for Central Reserves (one-off funding) as per the schedule in the attached report for costs associated with the 1% Non Consolidated Pay Awards for 2012
Reason(s) for Decision: Article 2(6) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011 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: The Social Security Department’s revenue heads of expenditure to increase as per the schedule in the attached report by £31,124 and the T&R Provision for Central Reserves (one-off funding) to decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2012.
Action required: Director of Finance & Governance to notify the Finance Manager, that this decision has been approved.
Signature:		Position: Senator F Le Gresley, Minister for Social Security
Date Signed:		Date of Decision:

Pay Award 2012: 1% Non-Consolidated: Contingency Funding: Transfer

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Social Security Department

Ministerial Decision Report

Contingency Funding FROM TREASURY FOR 2012 NON CONSOLIDATED PAY AWARD

Purpose of Report

To enable the Social Security Minister to accept a 2012 non-recurring contingency funding totalling £31,124 from the Provision for Central Reserves (one-off funding) as per the schedule at Appendix 1 for costs associated with the 1% Non Consolidated Award for 2012.

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 2012, the Council of Ministers has made provision in Central Reserves for the one-off non consolidated award and the implementation of the pay offer requires a transfer of funding to those departments affected by the pay offer.

The cost of the 2012 non consolidated pay award for the Social Security Department is £58,676 but the amount requiring transfer from Treasury is £31,124 as the Social Security Fund and Health Insurance Fund element of the pay award amounts to £27,552.

3. Recommendation

The Social Security Minister is recommended to approve a 2012 request for non-recurring contingency funding totalling £31,124 from the Provision for Central Reserves (one-off funding) as set out in Appendix 1 for costs associated with the non consolidated pay award for 2012.

4. Reason for Decision

Article 2(6) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011 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.

5. Resource Implications

The Social Security Department’s revenue head of expenditure to increase by a net £31,124 as set out in Appendix 1 and the T&R Provision for Central Reserves (one-off funding) to decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2012.