Ministerial Decision Report
BUDGET TRANSFER FOR THE RETURN OF 2011 VOLUNTARY REDUNDANCY (VR) UNANTICIPATED DEPARTMENTAL SAVINGS TO THE TREASURY AND RESOURCES DEPARTMENT
- Purpose of Report
To enable the Chief Minister to approve a budget transfer of £59,426 for the return of 2011 Voluntary Redundancy (VR) unanticipated departmental savings to Treasury and Resources (T&R).
- 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 Following States approval on 7th July 2010, £6 million was withdrawn from the consolidated fund and held temporarily in a Treasury and Resources contingency fund.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.
- Recommendation
The Minister is recommended to approve a budget transfer of £59,426 from the Chief Minister’s Department to the Treasury and Resources Department.
5. Reasons for Decision
Financial Direction 3.6 states that Departments wanting to transfer funds between heads of expenditure must obtain the approval of their Minister or of their accounting officer where a scheme of delegation exists.
6. Resource Implications
The Chief Minister’s revenue head of expenditure to decrease by £59,426 and the T&R contingency head of expenditure to increase by an identical amount.
Finance Director – Corporate Group
29th June 2011