Jersey Harbours Repayment 2010: Internal budget transfer

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A decision made on 30 July 2010 regarding an internal budget transfer between revenue and capital heads of expenditure

Decision Reference: MD-T-2010-0073
Decision Summary Title :	Transfer Between Revenue and Capital Heads of Expenditure for 2010 Jersey Harbours Repayment		Date of Decision Summary:	12 July 2010
Decision Summary Author:	Senior Management Accountant		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 :	Transfer Between Revenue and Capital Heads of Expenditure for 2010 Jersey Harbours Repayment		Date of Written Report:	12 July 2010
Written Report Author:	Senior Management Accountant		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Internal budget transfer between revenue and capital heads of expenditure amounting to £450,000 for the 2010 repayment of the Jersey Harbours temporary loan.
Decision(s): The Minister for Transport and Technical Services approved a budget transfer between revenue and capital totalling £450,000 as set out in the supporting document.
Reason(s) for Decision: To payback the monies temporarily loaned to Jersey Harbours for the building works required at La Collette and Bellozanne.
Resource Implications: Other than those detailed in the report there are no further financial or manpower implications.
Action required: The Acting Finance Director to request the Minister for Treasury and Resources to approve the virement between revenue and capital as referred to in this report.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Jersey Harbours Repayment 2010: Internal budget transfer

TRANSPORT AND TECHNICAL SERVICES

TRANSFER BETWEEN REVENUE AND CAPITAL HEADS OF EXPENDITURE

FOR 2010 JERSEY HARBOURS REPAYMENT

Purpose of the Report

The purpose of this report is to seek approval from the Minister for Transport and Technical Services to an internal budget transfer amounting to £450,000 between revenue and capital head of expenditure.

Background

The previous Minister approved a business case supporting the transfer of responsibilities for engineering and municipal services from Jersey Harbours to Transport and Technical Services.

In order to facilitate the service transfer it was agreed that building works totalling £1.8 million would be required at La Collette and Bellozanne. The funding was to be taken from existing unspent TTS Capital Votes and paid back from future rental income generated from the letting of the vacated Harbours building. The agreed funding solution was as follows:

1. Create a new capital head of expenditure in TTS called ‘Harbours Transfer.’

2. Transfer a total of £1.8 million into this new head of expenditure from the following capital votes:

La Collette Phase II	£ 600,000
Sludge Phase 1 Thickener	£1,200,000
Total	£1,800,000

3. Require Jersey Harbours to make a capital repayment to TTS on 01 January each year for the following amounts.

2008 - £450,000

2009 - £450,000

2010 - £450,000

2011 - £450,000

4. Transfer the capital repayments to the La Collette Phase II and Sludge Phase 1 Thickener over the four year period 2008 – 2011.

Discussion

As at 31 December 2009 a total of £900,000 had been repaid by Jersey Harbours. The Department has requested the 2010 repayment from Jersey Harbours and now requires the Minister to approve a budget virement between revenue and capital amounting to £450,000.

Finance Direction No.3.6 ‘Variations to Heads of Expenditure’ sets out the procedures for the transfers between revenue and capital heads of expenditure and states that budget transfers in excess of £100,000 require the approval of the Minister for Treasury and Resources and the relevant Minister party to the transfer.

Recommendation

To approve a budget virement totalling £450,000 from TTS revenue to TTS capital (Sludge Phase 1 Thickener - £450,000) to facilitate the 2010 repayment by Jersey Harbours for the temporary loan which was made to accommodate the Jersey Harbours transfer.

Reasons for Decision

To payback the monies ‘temporarily’ loaned to Jersey Harbours for the building works required at La Collette and Bellozanne.

Action Required

The Acting Finance Director to request the Minister for Treasury and Resources to approve the virement between revenue and capital as referred to in this report.

Written by:	Senior Management Accountant

Approved by:	Finance Director