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A decision made (15/06/2009) regarding: Skills Executive - Consolidation of Funding.

Decision Reference: MD-TR-2009-0086
Decision Summary Title :	Skills Executive – consolidation of funding		Date of Decision Summary:	4 June 2009
Decision Summary Author:	Karen Plowright Assistant Accountant Financial Planning		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Skills Executive – consolidation of funding		Date of Written Report:	1 January 2009
Written Report Author:	Peter Robinson (Assistant Director – Finance. Education, Sport and Culture)		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Transfer of budgets to the Education, Sport and Culture Department from the Social Security and Economic Development Departments due to a reorganisation following the establishment of the Skills Executive.
Decision(s): The Minister approved a transfer of funds to the Education, Sport and Culture Department amounting to: £203,250 from the Social Security Department and £127,140 from the Economic Development Department, having noted that the Ministers of Economic Development, Social Security and Education, Sport and Culture had previously agreed the same (MD-E-2009-0003, MD-S-2009-0024, MD-ESC-2009-0004 refer).
Reason(s) for Decision: To ensure compliance with Financial Direction 3.6 and to ensure that the cash limits of Education, Sport and Culture, Social Security and Economic Development are accurate following the internal reorganisation since the relocation of the Careers Service to Huguenot House and the establishment of the Skills Executive.
Resource Implications: Education, Sport and Culture cash limit to increase by £330,390 and Social Security and Economic Development to decrease by £203,250 and £127,140 respectively in 2009.
Action required: Treasury to advise Finance Directors of each Department of Minister’s approval.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision (If different from Date Signed):

Skills Executive - Consolidation of Funding.

Education, Sport and Culture Department Report
Subject:	Skills Executive – consolidation of funding
Exempt Clause:	[click here to insert text]	Date:	1st January 2009

Author:	David Greenwood/Peter Robinson

Introduction

Following on from the collaboration between the Education, Sport and Culture, Social Security and Economic Development Departments in establishing a Skills Executive, an exercise has been carried out to identify the full extent of funding which will be available to the Executive. It is also necessary to formalise the transfer of resources between those Departments in accordance with Financial Direction 3.6, which stipulates that non-contentious transfers exceeding £100,000 require the approval of the Minister for Treasury and Resources.

Background

In 2008 the Council of Ministers approved arrangements for the formation of a Skills Executive charged with improving the skills of adults in the workplace and those about to enter it.

The Skills Executive comprises the three Ministers of Education, Sport and Culture, Social Security and Economic Development and it is advised and supported by an employer led skills board chaired by Richard Plaster (JEC). The functioning of the Skills Executive and procedures for ensuring close co-operation between Ministers and Departments is described in a Partnership Agreement signed by the three Ministers in 2008.

One important function of the Skills Executive is to draw together the skills development functions of the three departments to ensure a cohesive service to employers, training providers and the public, ensuring there are no gaps or duplication of provision. Early actions to support this endeavour included the relocation of the DfESC Careers Service to Huguenot House to create an all-age service located within the town area. In addition, a new funding methodology has been developed for Highlands College to ensure that new curriculum initiatives are ‘planned’ rather than piecemeal in their development.

In view of the need for close-co-operation between departments it is also important that the resources available for skill development within the three departments are identified and ‘ring-fenced’ for skill development purposes.

The attached table highlights the proposed ‘budget’ for the Skills Executive for 2009 based on expenditure by the three departments on skills related activity during 2008. It is intended that the application of these resources will be governed by the spirit of the partnership agreement between the three ministers – in particular:-

‘the Ministers within the Skills Executive will undertake to seek and obtain a ‘collective agreement’ on strategy and the deployment of those resources allocated to Skills Jersey as a means of fulfilling their Ministerial duties in this respect.’

Next Step

The budget transfers required are as follows:-

3.1 From the Social Security Department, a sum of £197,000 in respect of the cost of the Workwise and Employment Services staff transferred from that Department, which includes an allowance for staff related costs such as training; and £6,250 being a one-third contribution to the annual service charge;

3.2 From the Economic Development Department, a sum of £50,000 being the annual rental charge, £6,250 being a one-third contribution to the annual service charge and £70,890 to meet the cost of additional staff.

4. Recommendation

To note the total funds that falls within the remit of the Skills Executive and to agree an appropriate transfer of resources between departments in 2009.