Grainville Phase 5 and Orchard House: Budget transfer

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A decision made on 28th September 2020

Decision Reference: MD-TR-2020-0124
Decision Summary Title:	Budget transfer between Grainville Phase 5 and Orchard House		Date of Decision Summary:	23rd September 2020
Decision Summary Author:	Specialist – Business Cases		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Budget transfer between Grainville Phase 5 and Orchard House		Date of Written Report:	23rd September 2020
Written Report Author:	Specialist – Business Cases		Written Report: Public or Exempt?	Public
Subject: Budget transfer between Grainville Phase 5 and Orchard House heads of expenditure.
Decision(s): The Minister approved the non-recurring transfer of up to £600,000 from Grainville Phase 5 head of expenditure (FA0MD16054) to the Orchard House head of expenditure (FA0MF18017).
Reason(s) for Decision: Article 18(1)(a) of the Public Finances (Jersey) Law 2019 states that a specified amount appropriated for one head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure that is set out in the government plan. Article 18(5) of the Public Finances (Jersey) Law 2019 states that if a direction under this Article would affect a head of expenditure that relates to the responsibilities of any Minister, that Minister must be consulted before the direction is made. The Ministers have been consulted and agree the transfer. P.28/2020 Draft Public Finances (Amendment of Law) (Jersey) Regulations 202-, approved by the States Assembly on 24th March 2020, temporarily removed the requirement for the Minister to give the States at least 4 weeks’ notice of the day on which the Minister proposes to give a direction under Article 18.
Resource Implications: The Grainville Phase 5 head of expenditure to decrease by up to £600,000 and the Orchard House head of expenditure to increase by the identical amount. This decision does not change the total amount of expenditure approved by the States in the Government Plan for 2020-23.
Action required: The Head of Financial Governance to notify the Specialist – Business Cases once the decision has been signed.
Signature:		Position: Deputy Susie Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision:

Grainville Phase 5 and Orchard House: Budget transfer

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Treasury and Exchequer

Ministerial Decision Report

Budget transfer between Grainville Phase 5 and Orchard House

Purpose of Report

To enable the Minister to approve the non-recurring transfer of up to £600,000 from the Grainville Phase 5 head of expenditure (FA0MD16054) to the Orchard House head of expenditure (FA0MF18017).

Background

The Orchard House project has now completed the costing process and as a result of which additional costs of £1.5 million have been identified.

A report titled “Capital Programme Re-start” was presented to the Executive Leadership Team on 23rd June 2020. The purpose was to review and to release some funding from the capital programme to allocate towards expenditure pressures elsewhere. The review of Grainville Phase 5 identified that up to £600,000 of the underspend is available to transfer to Orchard House in 2020.

Other funding sources identified are an underspend on Child Health IT System of £200,000. This budget is being transferred to General Reserve as part of MD-TR-2020-0118 and will be ring-fenced for this purpose.

As part of the end of year process underspends from capital projects will be returned to General Reserves. At that point both the £200,000 from Child Health IT System and a further £700,000 will be allocated to the Orchard House head of expenditure.

3. Recommendation

The Minister is recommended to approve the non-recurring transfer of up to £600,000 from Grainville Phase 5 head of expenditure (FA0MD16054) to the Orchard House head of expenditure (FA0MF18017).

4. Reason for Decision

Article 18(1)(a) of the Public Finances (Jersey) Law 2019 states that a specified amount appropriated for one head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure that is set out in the government plan.

Article 18(5) of the Public Finances (Jersey) Law 2019 states that if a direction under this Article would affect a head of expenditure that relates to the responsibilities of any Minister, that Minister must be consulted before the direction is made. The Ministers have been consulted and agree the transfer.

P.28/2020 Draft Public Finances (Amendment of Law) (Jersey) Regulations 202-, approved by the States Assembly on 24th March 2020, temporarily removed the requirement for the Minister to give the States at least 4 weeks’ notice of the day on which the Minister proposes to give a direction under Article 18.

5. Resource Implications

The Grainville Phase 5 head of expenditure to decrease by up to £600,000 and the Orchard House head of expenditure to increase by the identical amount.

This decision does not change the total amount of expenditure approved by the States in the Government Plan for 2020-23.

Report author: Specialist – Business Cases	Document date: 23rd September 2020
Quality Assurance / Review: Group Director, Strategic Finance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2020-0124 - Budget transfer between Grainville Ph 5 and Orchard House
MD sponsor: Treasurer of the States