Supplementary note from The Children's
141 AND 142
The calculation (based on the 2001-02 budget)
is as follows:
Gross budgeted expenditure for England
and Wales £46 million;
Gross budgeted expenditure for Wales
£3.8 million; and
Wales expenditure as a percentage
of the total 8.3 per cent.
147 AND 148
In the North East of England the Children's
and Young People's Division is budgeted to spend a gross amount
of £1,020,000 which, after deducting projected income from
local authority partners and central government of £380,000,
leaves the Society making a contribution of £640,000 from
its own voluntary income.
The net income from the North East from all
fundraising activity including shops is projected to be £440,000
leaving a balance of £200,000 to be funded from central fundraising
activities and other regions in England.
The document referred to in the discussion prior
to paragraph 204 is attached and the relevant section is headed
"2.1 Implementing the Reward Strategy and Cost of Living
increases (£1.3 million)".
In the previous six months there had been a
thorough examination of what human resources specialists calls
a reward package ie the combination of salary, pension provision,
annual leave, sickness provision and other benefits offered to
staff. This took place because we needed to modernise our present
pay systems with which there was much staff dissatisfaction. We
also needed to be more sensitive to the employment markets as
we were losing key managers to new government initiatives and
other organisations, both voluntary and statutory, which were
able to offer higher salaries.
The paper shows that £705,000 had been
set aside for inflation in line with the expected settlement for
local authorities which the Society follows.
The sums totalling £617,000 under the heading
"reward" were separated out to show the costs for staff
additional to cost of living increases. This total amount breaks
down roughly into two equal halves.
The first half is for increments, which as stated
at the Committee hearing, are a contractual obligation for all
staff who are paid on incremental scales (see note about Directors
The second half is for increases for those posts
where it is clear that salaries have to be increased if we are
not to lose key staff to other organisations.
For the record, the Chief Executive and the
Directors of the Society are not entitled to increments, automatic
cost of living increases or London Weighting. They are paid a
fixed sum which is reviewed each year by the Finance Committee
which acts as the Society's Remuneration Committee. The past practice
has been to follow the cost of living increase which has been
agreed for all other staff and which is in line with that paid
by local authorities. As with all other staff, the Directors do
not receive bonuses in any form whatsoever.
2. A breakdown of the £3.7 million
in voluntary income based investments is:
2.1. Implementing the Reward Strategy and
Cost of Living increases (£1.3 million).
2.1.1. Children and Young People (£547,000
Cost of Living; £409,000 Reward).
2.1.2. Fundraising (already incorporated
2.1.3. Human Resources (£36,000
Cost of Living; £39,000 Reward).
2.1.4. Finance and Administration (£105,000
Cost of Living; £162,000 Reward).
2.1.5. Directorate (£17,000 Cost
of Living; £7,000 Reward).
2.2. Re-instating the pension contribution
2.2.1. Children and Young People (£885,000).
2.2.2. Fundraising (already incorporated
2.2.3. Human Resources (£55,000).
2.2.4. Finance and Administration (£162,000).
2.2.5. Directorate (£26,000).
2.3. Other direct investments in the Children
and Young People's division (£1.2 million).
2.3.1. Seedbed funding for new initiatives
2.3.2. Support to managers and projects
in order to enhance capacity at regional and project level (£250,000).
2.3.3. Additional funding for training and development
2.3.4. Additional funding to compensate
for carry forward provision (£460,000).
2.4. Other investments (£80,000).
2.4.1. Additional funding for training and
development for other divisions (£30,000).
2.4.2. Funding needed to finance lease obligations
post project closures (£50,000).
The Society's Human Resources Consultant in
Wales (Lynn Williams) reports that the last advertisement in the
press for a staff vacancy was on 4 October from which no appointments
were made. The Trustees' decision about Wales was made on 18 October.
She can find no evidence of any cases where anyone being offered
employment with TCS had given notice to a former employer within
the period in question.
At the time of the announcement Ms Williams
asked Managers to provide information on posts where offers of
employment had been made but staff had not yet taken up post.
No-one was identified. Offers of employment that had been made
in September and October were mainly in respect of sessional contracts
where the person concerned was not in employment or was continuing
in a current part-time post in addition to doing sessional hours
for the Society. The only withdrawals Ms Williams is aware of
are cases where someone had decided to take up another offer of
employment and one case where the person had not yet given in
9 January 2002