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Voluntary Redundancy: Unanticipated Savings: Budget Transfer

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 27 June 2011:

Decision Reference:       MD-H-2011-0068 

Decision Summary Title:

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

Date of Decision Summary:

23rd June 2011

Decision Summary Author:

Finance Director

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

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

Date of Written Report:

23rd June 2011

Written Report Author:

Senior Management Accountant

Written Report :

Public or Exempt?

 

Public

Subject: Budget transfer for the return of 2011 Voluntary Redundancy (VR) unanticipated departmental savings to Treasury and Resources (T&R).

Decision(s): The Minister approved a budget transfer of £220,990 from the Housing Department to the Treasury and Resources Department.

Reason(s) 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.

Resource Implications: The Housing Department revenue head of expenditure to decrease by £220,990 and the T&R contingency head of expenditure to increase by an identical amount.

Action required: Housing Department Finance Director to inform the T&R Head of Financial Performance Reporting that this decision has been approved.

Signature:

 

Position:

Minister for Housing

 

 

Date Signed:

 

Date of Decision: (If different from Date Signed):

Voluntary Redundancy: Unanticipated Savings: Budget Transfer

Housing Department

Ministerial Decision Report

 

 

BUDGET TRANSFER FOR THE RETURN OF 2011 VOLUNTARY REDUNDANCY (VR) UNANTICIPATED DEPARTMENTAL SAVINGS TO THE TREASURY AND RESOURCES DEPARTMENT

 

  1. Purpose of Report

 

To enable the Minister for Housing to approve a budget transfer of £220,990 for the return of 2011 Voluntary Redundancy (VR) unanticipated departmental savings to Treasury and Resources (T&R).

 

  1. 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.

 

  1. 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.

 

  1. Recommendation

 

The Minister is recommended to approve a budget transfer of £220,990 from the Housing Department to T&R.

 

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 Housing Department revenue head of expenditure to decrease by £220,990 and the T&R contingency head of expenditure to increase by an identical amount.

 

 

 

23rd June 2011.

 

Housing Department

 

Report Prepared By: -

 

Jason English

Senior Management Accountant

 

………………………………                   Date:                                          2011

 

 

Report Checked By: -

 

J C Hamon

Finance Director

 

……..……………………….                   Date:                                         2011

 

 

Authorised By: -

 

Ian Gallichan

Chief Officer

 

……………………………….                  Date                                          2011 

 

 

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