FPN A.01

Summary

The requester asked if the Department of Infrastructure obtained approval for an exemption to use the 2% pay budget elsewhere in the 2019/20 financial year. The Treasury confirmed one exemption was granted for a virement between pay and non-pay costs, but clarified it did not specifically relate to the 2% pay budget limit.

Key Facts

• The Treasury granted one exemption to the Department of Infrastructure (DOI) during the 2019/20 year under Financial Direction B 3.4.
• The exemption allowed a virement between pay and non-pay cost centres but did not specifically relate to the 'pay budget of 2%'.
• The DOI requested a £119,999 increase to its payroll budget, described as the net effect of re-applying a previous virement offset by a reduction to the Bus payroll budget.
• The approved virement of £119,999 represents 0.26% of the DOI's total employee cost budget.
• The DOI's total employee costs budget approved by Tynwald for 2019/20 was £45,181,244.

Data Disclosed

• 2019/20
• June 2018
• 10 February 2020
• 18 February 2020
• £119,999
• £350,000
• £230,000
• £1
• 2%
• 0.26%
• £45,181,244
• Financial Direction B 3.4
• 1174049

Original Request

Could you please provide information in this financial year if the Department of Infrastructure obtained approval for n exemption

Data Tables (1)

Full Response Text

Freedom of Information Seyrsnys Fysseree

The Treasury Government Office, Douglas Isle of Man, IM1 3PU

Telephone: (01624) 685605 Email: FOI.Treasury@gov.im

Government Website: www.gov.im

Our ref: 1174049 18 February 2020

Dear ###,

I write further to your request which was received on 10 February 2020 and which states:

"Could you please provide information in this financial year if the Department of Infrastructure obtained approval for n exemption"

Thank you for subsequently clarifying that the exemption to which you refer relates to the ability to “use the pay budget of 2% elsewhere”.
As background, in June 2018, Treasury implemented a completely restructured and revised set of Financial Regulations and a Financial Operating Policy with the overall aim of improving the effectiveness of internal financial control across all Designated Bodies and form a clear and solid foundation for the regulations’ ongoing maintenance and future improvement.
These can be viewed on line at: https://www.gov.im/media/1366335/isle-of-man-government-financial-regulations- july-2019.pdf To improve awareness of, and accountability for, the ‘Financial Regulations’ across all Officers within all of the Designated Bodies they introduced the new role of ‘Budget Holder’ as being key to managing financial operating risks within Designated Bodies and introduced a foundation requirement for all Officers to ‘do the right thing’ in respect of the three core financial values of regularity, propriety and value for money. Financial Practice Notes were issued to identify the responsibilities of the different financial roles within Designated Bodies. A new exemptions procedure was introduced to ensure that all Officers either comply with the requirements or register an approved exemption from them. Any part of the Financial Regulations may be exempted by an appropriately authorised person or the Treasury.

In respect of your request therefore, I can advise you that during the 2019/20 year, the Treasury granted one exemption to the DOI under Financial Direction B 3.4 in respect of a virement between pay and non-pay cost centres/general ledger codes, however, the exemption did not specifically relate “to the pay budget of 2%”. I can advise you that the DOI requested a £119,999 increase to the Department's payroll budget which it said was “the net effect a request to re-apply the approved 2018/19 Transport Services payroll Virement of £350,000 offset in part by a £230,000 reduction to the Bus payroll budget as per the Financial Business Plan for Integrated Public Transport. £1 variance due to rounding differences when budget upload document prepared.” As shown at paragraph 6.3 on page 21 of the Isle of Man Budget 2019/20 the 2019/20 budget process provided uplifts in respect of the Government wide policy of a budgetary limit of 2% growth per annum in pay costs. The Department’s total employee costs budget approved by Tynwald was £45,181,244. (See Table 14b on page 22 of the Isle of Man Budget 2019/20). The approved virement of £119,999 represents 0.26% of the employee cost budget.
Please quote the reference number 1174049 in any future communications.

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I will now close your request as of this date.

Yours sincerely