Department of the Environment
Minister’s Report
TRANSFER OF UNSPENT CAPITAL BUDGETS TO CENTRAL CONTINGENCIES AND A RETURN TO THE CONSOLIDATED FUND
- Purpose of Report
To request the approval for a non-recurring budget transfer of £6,507 from the capital head of expenditure listed below to Central Contingencies.
- Background
The outturn cost of capital projects is inherently variable with many factors such as ground conditions, local market conditions and even weather contributing to the final cost. These factors are managed through an appropriate level of project contingency which is set at the start of the project to manage risk and contain the total project costs within the approved allocation.
As a result, there can be budget remaining unspent and no longer required for the purpose it was approved once projects are complete. There are also instances where budget is allocated for a specific capital project but, as work progresses to develop the project, circumstances change in a Department’s priorities or service delivery requirements which mean the budget is no longer required for that purpose.
Given the above circumstances and the significant pressure on the capital programme over the coming years, existing capital allocations have been reviewed to identify any funds that are no longer required and could be reallocated in order to manage those pressures from within existing resources. That process, overseen by the Capital Sub Group, has identified the following list of unspent balances.
The balance above is proposed to be transferred to Central Contingencies.
- Recommendation
That the Minister approves non-recurring budget transfer of £6,507 from the capital head of expenditure listed above to Central Contingencies.
- Reason for Decision
Article 18(1A) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be transferred from the head of expenditure to contingency expenditure, within or after the end of the relevant financial year.
Article 18(2)(c) of the Public Finances (Jersey) Law 2005 states that a transfer described in paragraph (1A) must also be approved by the Minister responsible to the States for the administration of the relevant States funded body.
- Resource Implications
This decision will result in the listed capital head of expenditure decreasing by £6,507 and Central Contingencies increasing by £6,507.
This decision does not change the total amount of expenditure approved by the States for 2017 in the Medium Term Financial Plan.
Finance Manager – Department of the Environment
20.07.2017