Voluntary Redundancies: 2011 Unanticipated Departmental Savings: Budget transfers to Treasury and Resources

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A decision made 21 June 2011 regarding:

Decision Reference: MD-TR-2011-0071
Decision Summary Title:	Budget Transfers for the return of 2011 Voluntary Redundancy (VR) Unanticipated Departmental Savings to the Treasury and Resources Department		Date of Decision Summary:	19th June 2011
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:	Budget Transfers for the return of 2011 Voluntary Redundancy (VR) Unanticipated Departmental Savings to the Treasury and Resources Department		Date of Written Report:	19th June 2011
Written Report Author:	Head of Decision Support		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 £1,374,003 from the following departments’ revenue heads of expenditure to the Treasury and Resources contingency head of expenditure as detailed below: Chief Minister’s £59,426 Judicial Greffe £78,588 Education, Sport and Culture £194,521 Treasury and Resources £268,030 Environment £223,947 Home Affairs £55,234 Health and Social Services £28,848 Housing £220,990 Transport and Technical Services £244,419 £1,374,003
Reason(s) for Decision: Article 15(1)(a) of 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.
Resource Implications: There will be no increase to total approved States net revenue expenditure as a result of this decision. Revenue heads of expenditure for a number of departments will reduce by the amounts shown in the decision. The T&R contingency head of expenditure will increase by £1,374,003.
Action required: Head of Decision Support to inform the Head of Financial Performance Reporting and Departmental Finance Directors that the transfers have been approved.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Voluntary Redundancies: 2011 Unanticipated Departmental Savings: Budget transfers to Treasury and Resources

Treasury and Resources

Ministerial Decision Report

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

Purpose of Report

To enable the Minister for Treasury and Resources to approve budget transfers totalling £1,374,003 from various departments to the Treasury and Resources (T&R) 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.

Following various approvals (MD-TR-2010-0159, MD-TR-2010-0186 and MD-TR-2010-0189), a total of £6,459,291 (including a transfer of funding from the Social Security Department) was transferred to departments to pay for successful VR applications. Further funds totalling £318,536 were returned from departments in 2011 for VR applications no longer going ahead (£307,926) and to correct one original calculation error (£10,610). After taking these into account, total funding used by departments for VR was £6,140,755. In addition, a sum of £11,550 was used to fund actuarial valuations.

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. This decision effects those returns of savings agreed by Chief Officers.

~~(a)~~

~~(b)~~

~~(c)~~

Recommendation

The Minister is recommended to approve budget transfers totalling £1,374,003 from the following departments’ revenue heads of expenditure to the Treasury and Resources contingency head of expenditure as detailed below:

Chief Minister's	£59,426
Judicial Greffe	£78,588
Education, Sport and Culture	£194,521
Treasury and Resources	£268,030
Environment	£223,947
Home Affairs	£55,234
Health and Social Services	£28,848
Housing	£220,990
Transport and Technical Services	£244,419

	£1,374,003

Reasons for Decision

Article 15(1)(a) of 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.

Resource Implications

There will be no increase to total approved States net revenue expenditure as a result of this decision. Revenue heads of expenditure for a number of departments will reduce by the amounts shown in the decision. The T&R contingency head of expenditure will increase by £1,374,003.

Report author : Decision Support Officer	Document date : 19th June 2011
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2011-0071 - VR Clawbacks - KH\WR - Transfer funding for VR payments - KH.doc
MD sponsor : Treasurer of the States