Treasury and Resources
Ministerial Decision Report
Transfers of funding from Social Security Department for Voluntary Redundancy (VR) payments
- Purpose of Report
To enable the Minister for Treasury and Resources to make a number of transfers of funding between the Social Security Department revenue head of expenditure and other departments for VR payments.
- Background – previous transfers
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 Following States approval on 7th July 2010 £6 million was withdrawn from the consolidated fund and held temporarily in a Treasury and Resources contingency fund.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 approved an initial tranche of voluntary redundancies costing a total of £5,760,373 from this funding. This amount was transferred to CMD in MD-TR-2010-0159 for transfer, in turn, to departments to make 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 over £3 million in a full year.
MD-TR-2010-0186 approved the transfer of the balance of the States approved funding (£239,627) from the Treasury and Resources contingency fund to the Chief Minister’s Department revenue head of expenditure to comply fully with P64/2010. That decision also approved other transfers:
As a result of a number of successful VR applications not going ahead, it was necessary to transfer some of the funding approved by MD-TR-2010-0159 (see above) back to CMD. The transfers approved were from the following departments:
| | | £ |
Planning and Environment | 113,734 |
Health and Social Services | 82,188 |
CMD - Human Resources | 70,490 |
| | | |
Total for return | | 266,412 |
In addition, when the initial VR applications were considered, some leaving dates were unclear. Where applicants were leaving after 31st December 2010 they are entitled to receive their VR payment at the 2011 rate i.e. including the agreed 2% pay award. Some departments included this element in their original submissions, some did not. As a result the following transfers were necessary from CMD to ensure that departments are fully funded from the P64/2010 approval to meet their VR payments:
| | | | £ |
| Judicial Greffe | | 3,100 |
| CMD - Information Services | 2,085 |
| Planning and Environment | 9,841 |
| T&R - Jersey Property Holdings | 2,702 |
| Home Affairs | | 2,416 |
| Health and Social Services | 27,668 |
| Transport and Technical Services | 10,282 |
| | | | |
Total additional 2% allocations | | 58,093 |
Finally, the transfer was approved of the remaining balance of the States approved funding (£239,627) that was held in the Treasury and Resources contingency fund to the Chief Minister’s Department revenue head of expenditure to comply fully with P64/2010
The net effect of the above transfers is that a balance of £447,946 remains from the approved £6 million P64/2010 funding within the Chief Minister’s Department:
| £ |
Transfers back from depts | 266,412 |
Transfers to Depts for 2% | -58,093 |
Transfer of Balance from T&R | 239,627 |
| |
Balance remaining in CMD | 447,946 |
Of the above balance, the T&R Minister has been notified that £11,550 will be spent on actuarial valuations relating to VR applications. Therefore the total unallocated balance of P64/1010 funding remaining was £436,396.
- Background – final transfers for 2010 approved VR applications
The Minister for Treasury and Resources has now made a decision on a second tranche of VR applications approved by the States Employment Board. The total cost of this second tranche is £907,237. Departments with VR applications approved in this tranche are as follows:
| | £ |
Chief Minister's Department | 247,488 |
Education, Sport and Culture | 84,846 |
CMD - Information Services | 285,280 |
Treasury and Resources | 177,725 |
Home Affairs | | 111,898 |
| | |
| | 907,237 |
The Chief Minister’s and Information Services Departments’ VRs are proposed to be funded from the £436,396 balance described in paragraph 3 above. This leaves a shortfall of £96,372 required to fund the Chief Minister’s Department VRs. It is proposed to fund this, and the other departments listed in the table above, from the 2010 underspend of the Social Security Department. As at the end of October 2010 this was forecast to be £6.7 million. Transfers will therefore be as follows:
Social Security Department to: | |
| | | £ |
| Chief Minister's Department | 96,372 |
| Education, Sport and Culture | 84,846 |
| Treasury and Resources | 177,725 |
| Home Affairs | | 111,898 |
| | | |
| | | 470,841 |
- Recommendation
That the Minister approves the transfer of a total of £470,841 from the Social Security Department to the revenue heads of expenditure of the departments listed in the table below for the second tranche of approved VR applications:
| | £ |
Chief Minister's Department | 96,372 |
Education, Sport and Culture | 84,846 |
Treasury and Resources | 177,725 |
Home Affairs | | 111,898 |
| | |
| | 470,841 |
- Reason 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 is no increase to total approved States net revenue expenditure as a result of this decision.
Report author : Head of Decision Support | Document date : 15/12/10 |
Quality Assurance / Review : Head of Financial Performance Reporting | File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2010-0189 - y2 vr - kh\wr - vr dec 2010 kh no. 2.doc |
MD sponsor : Deputy Treasurer |