Asbestos Cell Costs: Budget Transfer

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 3 October 2011 regarding:

Decision Reference: MD-T-2011-0098
Decision Summary Title :	Transfer from Revenue to Capital Heads of Expenditure for Asbestos Cell Costs		Date of Decision Summary:	03 October 2011
Decision Summary Author:	Capital 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 from Revenue to Capital Heads of Expenditure for Asbestos Cell Costs		Date of Written Report:	03 October 2011
Written Report Author:	Senior Management Accountant		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Internal budget transfer from revenue to capital heads of expenditure amounting to £187,722 for the capping of an asbestos storage cell, as a result of GAAP accounting.
Decision(s): The Minister for Transport and Technical Services approved a budget transfer from revenue to capital totalling £187,722 as set out in the supporting document.
Reason(s) for Decision: The original budget for the project was approved as a revenue budget only and did not take into consideration any capital expenditure. These budget transfers are required to align the budgeting treatment of expenditure with the GAAP accounting treatment.
Resource Implications: Other than those detailed in the report there are no further financial or manpower implications.
Action required: The Finance Director to request the Minister for Treasury and Resources to approve the budget transfer from revenue to capital and the creation of a new capital head of expenditure as referred to in the accompanying report.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Asbestos Cell Costs: Budget Transfer - GAAP Accounting

TRANSPORT AND TECHNICAL SERVICES DEPARTMENT

TRANSFER BETWEEN REVENUE AND CAPITAL HEADS OF EXPENDITURE

FOR ASBESTOS DISPOSAL CELL COSTS

Purpose of Report

The purpose of this report is to seek the Minister for Transport and Technical Services’ approval to an internal budget transfer amounting to £187,722 from revenue to capital head of expenditure.

Background

In 2011 MD-T-2011-0016 was approved for the disposal of waste material transferring £1,800,000 from capital to revenue. In order to dispose of this asbestos waste material within the correct environmental regulations a fixed structure (“cell”) is required to contain the waste material. This structure meets the definition of a fixed asset under GAAP and therefore must be capitalised. In order to capitalise these costs relating to this structure, funding is required within a capital vote in order to draw down upon. The total cost of this cell is now confirmed as £447,722; previously £260,000 has been transferred leaving an additional £187,722 required.

Discussion

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 £1,000,000 require the approval of the Minister for Treasury and Resources and the relevant Minister party to the transfer. Authority to approve non-contentious budget transfers under £1,000,000 has been delegated to the Treasurer of the States.

Recommendation

To approve a budget transfer totalling £187,722 from TTS revenue head of expenditure to a new TTS capital head of expenditure (“Asbestos Cell”) that will create funding for this capital expenditure.

Reason for Decision

To create a budget within a capital vote that will allow expenditure on the asbestos disposal cell to occur.

Resource Implications

There are no resource implications as a result of this decision.

Action Required

The Finance Director to request the Minister for Treasury and Resources to approve the budget transfer from revenue to capital and the creation of a new capital head of expenditure as referred to in this report

Written by:	Capital Accountant – TTS Finance
Approved by:	Acting Finance Director