Budget transfer from Restructuring Provision to Chief Minister's Department: Change Management

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A decision made 26 May 2017:

Decision Reference: MD-TR-2017-0072
Decision Summary Title:	Restructuring Provision Funding for Change Management		Date of Decision Summary:	24th May 2017
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Restructuring Provision Funding for Change Management		Date of Written Report:	24th May 2017
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Non-recurring budget transfer of £665,227 with indicative funding of £3,431 in 2017 and £330,898 in each of the years 2018 and 2019 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to fund the Change Management provision. In addition, the temporary FTE within CMD to increase by 3.5 for the duration of the funding.
Decision(s): The Minister approved a non-recurring budget transfer of £665,227 with indicative funding of £3,431 in 2017 and £330,898 in each of the years 2018 and 2019 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to fund the Change Management provision. The Minister further approved an increase in the temporary FTE within CMD of 3.5 for the duration of the funding.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The current Contingency Allocation Policy (published as R.10/2012) sets the requirement for all allocations from Contingency to be considered by the Council of Ministers prior to submission to the Minister for approval. To comply with P67/1999 which charges the Minister for Treasury and Resources to regulate the number of persons that may be employed by the States. A Restructuring Provision bid was represented to the Council of Ministers on 9th March 2017 seeking funding to support the Change Management in the sum of £665,227 across the years 2017 to 2019 (£330,000 for 2017 had previously been agreed in principle on 27th January 2016). The Council agreed the request for the re-profiling and increased request as set out in the report of an additional £335,227 above that previously agreed in principle. MD-C-2017-0055 was signed by the Deputy Chief Minister on 12th May 2017.
Resource Implications: The CMD revenue head of expenditure to increase by £665,227 across the years 2017 to 2019. The Restructuring Provision to decrease by an identical amount and the temporary FTE in CMD to increase by 3.5. The £665,227 in total is proposed to be drawn down in 2017, 2018 and 2019 but the amount for each year may be varied without exceeding the total amount for the three years. This decision does not change the total amount of expenditure approved by the States for 2017 - 2019 in the Medium Term Financial Plan.
Action required: Head of Decision Support to advise the Finance Manager – Corporate Group once this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Restructing Provision to Chief Minister's Department: Change Management

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Treasury and Resources

Ministerial Decision Report

Restructuring Provision Funding for Change Management

Purpose of Report

To approve a non-recurring budget transfer of £665,227 with indicative funding of £3,431 in 2017 and £330,898 in each of the years 2018 and 2019 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to fund the Change Management provision. In addition, the temporary FTE within CMD to increase by 3.5 for the duration of the funding.

Background

A Restructuring Provision bid was presented to the Council of Ministers on 27th January 2016 seeking funding to support Change Management during the 2016-2019 MTFP2 period. At that time, the Council agreed the 2016 funding of £330,000 and agreed in principle, the request for funding of £330,000 for 2017.

A Restructuring Provision bid was represented to the Council of Ministers on 9th March 2017 seeking funding to support the Change Management in the sum of £665,227 across the years 2017 to 2019. The Council agreed the request, as set out in the table below, for the re-profiling, and the increased request of an additional £335,227 for the years 2017 to 2019.

The table below sets out both the original and revised requests.

Business Case: Finances	Change Management
MTFP2 Period	2016	2017	2018	2019	Total
COM Approved and In-Principal Approval	£330,000	£330,000			£660,000
Requested	£330,000	£3,431	£330,898	£330,898	£995,227
Carry forward	-£306,195	£306,195			£0
				Variance	£335,227

Funding will be used to develop an internal team to offer change management support to departments which would otherwise need to be delivered by external consultants at significantly higher cost. It is the intention that internal change management capability will be built both within the internal change team itself and, as importantly, across the organisation.

The change management team will fulfil an advisory change management support role; developing and delivering tools that will assist departments to enhance their ability to deliver change. Support will cover HR aspects of organisational design and communication; learning, coaching and service reviews required by departments to transition from a historic to new way of working; and embedding new processes and working behaviours.

Organisational principles will also be indoctrinated across all departments, with the team ensuring joined up thinking and the delivery of support that links to an agreed vision and organisational design for the Public sector.

3. Recommendation

The Minister is recommended to approve a non-recurring budget transfer of £665,227 with indicative funding of £3,431 in 2017 and £330,898 in each of the years 2018 and 2019 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to fund the Change Management provision. In addition, the temporary FTE within CMD to increase by 3.5 for the duration of the funding.

4. Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

The current Contingency Allocation Policy (published as R.10/2012) sets the requirement for all allocations from Contingency to be considered by the Council of Ministers prior to submission to the Minister for approval.

To comply with P67/1999 which charges the Minister for Treasury and Resources to regulate the number of persons that may be employed by the States.

A Restructuring Provision bid was represented to the Council of Ministers on 9th March 2017 seeking funding to support the Change Management in the sum of £665,227 across the years 2017 to 2019 (£330,000 for 2017 had previously been agreed in principle on 27th January 2016). The Council agreed the request for the re-profiling and increased request as set out in the report of an additional £335,227 above that previously agreed in principle.

MD-C-2017-0055 was signed by the Deputy Chief Minister on 12th May 2017.

5. Resource Implications

The CMD revenue head of expenditure to increase by £665,227 across the years 2017 to 2019. The Restructuring Provision to decrease by an identical amount and the temporary FTE in CMD to increase by 3.5.

The £665,227 in total is proposed to be drawn down in 2017, 2018 and 2019 but the amount for each year may be varied without exceeding the total amount for the three years.

This decision does not change the total amount of expenditure approved by the States for 2017 - 2019 in the Medium Term Financial Plan.

Report author : Head of Decision Support	Document date 24th May 2017
Quality Assurance / Review : Treasurer of the States	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-00xx - PSR Change Management
MD sponsor : Treasurer of the States