Jubilee Wharf: Transfer of Budgets for Occupation Costs

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A decision made (03.08.2009) to approve a budget transfer from the Housing Department to the Economic Development Department for occupation costs of Jubilee Wharf.

Decision Reference: MD-H-2009-0072
Decision Summary Title :	DS - Proposal for Transfer of Budgets For Jubilee Wharf		Date of Decision Summary:	24th July 2009
Decision Summary Author:	John Hamon		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 :	Proposal for Transfer of Budgets For Jubilee Wharf		Date of Written Report:	24th July 2009
Written Report Author:	Jason English		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: To agree the transfer of budget from the Housing Department to the Economic Development and Population Office for occupation costs of Jubilee Wharf.
Decision(s): The Minister approved the transfer of £174,200 from the Housing Department’s 2009 revenue budget to the Economic Development Department and Population Office in relation to the rent and service charges for Jubilee Wharf. The Minister approved the transfer of £6,700 from the Housing Department’s 2009 revenue budget to the Population Office in relation to postal charges. The Minister approved the transfer of £14,000 from the Housing Department’s 2009 revenue budget to the Economic Development Department and Population Office in relation to electricity costs at Jubilee Wharf.
Reason(s) for Decision: Jubilee Wharf is now occupied by 3 different Departments. In pursuit of proper accountability each Department will be responsible for its own costs in relation to occupation of the premises. In addition, in 2006 the Population Office assumed responsibility for various functions previously performed by the Housing Department. Since that time postal services for both Housing and Population have continued to be managed by the Housing Department. In 2009 the costs for postage were separated and a proportionate budget is needed by the Population Office to service that cost. As the head-leaseholder the Housing Department paid utility costs associated with the building direct to suppliers. Those costs will now be met by the landlord Jersey Property Holdings.
Resource Implications: Financial: Total transfer of £194,900 budget to the Economic Development Department and Population Office. Reduction of expenditure of £194,900.
Action required: Finance Director to seek approval from the Treasury and Resources Minister to the transfer and arrange for the transfer then to be effected.
Signature:		Position: MINISTER
Date Signed:		Date of Decision (If different from Date Signed):

Jubilee Wharf: Transfer of Budgets for Occupation Costs

Date of Report: 24th July 2009

REPORT FOR THE HOUSING MINISTER

PROPOSAL FOR THE TRANSFER OF BUDGETS FOR JUBILEE WHARF

Purpose of the Report

To request approval for the following:

The Housing Department transfer £174,200 budget to the Economic Development Department and Chief Minister’s Department - Population Office in relation to the costs of occupying Jubilee Wharf;

The Housing Department transfer £11,000 and £3,000 to the Economic Development Department and Chief Minster’s Department - Population Office respectively in relation to electricity costs at Jubilee Wharf.

The Housing Department transfer £6,700 budget to the Chief Minster’s Department - Population Office in relation to postage charges;

Jubilee Wharf

In 2002 the Housing Department moved in to Jubilee Wharf and occupied the whole building. Since that time the structure of the States of Jersey has undergone re-organisation in the move to Ministerial Government. This has meant that the occupation of Jubilee Wharf has been reorganized and departments in addition to the scaled-down Housing Department now occupy the building. The administration of the building now falls to Jersey Property Holdings.

Costs

The following costs currently apply to Jubilee Wharf on an annual basis, for which the Housing Department holds the budget:

	Annual Rental	Service Charges	Total
Housing Department	£126,100	£36,000	£162,100
Economic Development Department.	£105,800	£30,200	£136,000
Chief Minster’s Department - Population Office	£29,700	£8,500	£38,200
	£261,600	£74,700	£336,300

The following transfer of budget should therefore be made in relation to the occupation of the premises:

Economic Development Department.	£105,800	£30,200	£136,000
Chief Minster’s Department - Population Office	£29,700	£8,500	£38,200
	£135,500	£38,700	£174,200

In addition to the costs of occupation the Housing Department has also paid the cost of electricity consumed. In this regard the costs estimated for 2009 are £27,200. These costs are to be taken over by Jersey Property Holdings and recharged to the occupying departments based on floor area. As a result a budget equivalent to the proportionate costs should be transferred to the other departments occupying the building.

Economic Development Department.			£11,000
Chief Minster’s Department - Population Office			£3,000
			£14,000

In 2006 the Chief Minster’s Department - Population Office assumed responsibility for various functions previously performed by the Housing Department. Since that time postal services for the departments have continued to be managed by the Housing Department. In 2009 the costs for postage were separated and a proportionate budget is needed by the Population Office to service that cost.

Chief Minster’s Department - Population Office

£6,700

Recommendation

That the Minister approves the transfer of budget totaling £194,900 detailed above for 2009 and thereafter in perpetuity to the Economic Development, Population and Property Holdings Departments in order that the costs of Jubilee Wharf are properly apportioned across the user Departments thus facilitating proper accountability.

Report prepared by:
	Jason English – Senior Management Accountant

Report approved by:
	John Hamon – Finance Director

Date of Report	24th July 2009