Consolidated Fund: Re-allocation of unspent capital budget approvals in 2014, to 2015 and 2016

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A decision made 15 December 2014:

Decision Reference: MD-TR-2014-0144
Decision Summary Title:	Re-phasing of unspent Capital Budgets		Date of Decision Summary:	3 December 2014
Decision Summary Author:	Capital Accountant, Financial Performance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Re-phasing of unspent Capital Budgets		Date of Written Report:	3 December 2014
Written Report Author:	Capital Accountant, Financial Performance		Written Report : Public or Exempt?	Public
Subject: Measures to manage the Consolidated Fund unallocated balance by the reallocation of unspent capital budget approvals in 2014 to 2015 and 2016.
Decision(s): The Minister for Treasury and Resources approved the re-phasing of the capital heads of expenditure (as shown in the table in the attached report) showing a decrease of £7,120,000 in 2014 as identified in the Budget Statement 2015.
Reason(s) for Decision: Article 18(1)(c) of the Public Finances (Jersey) 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 used for the purposes of another head of expenditure. Of the £7,120,000 re-phasing, £3,220,000 has been reallocated in the 2015 Capital Programme as part of the Budget 2015 debate and it is anticipated that £3,899,000 will be requested in the 2016 Capital Programme to be approved by the States as part of the 2016 Budget debate in order to more appropriately reflect the timing of the project expenditure required to progress to completion.
Resource Implications: The capital heads of expenditure to decrease by £7,120,000 in 2014 (as detailed in the table in the attached report) and the Consolidated Fund to increase by an identical amount.
Action required: Treasury and Resources Minister to approve the transfers as set out above.
Signature:		Position: Senator Alan Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Consolidated Fund: Re-allocation of unspent capital budget approvals in 2014, to 2015 and 2016

Treasury and Resources Department

Ministerial Decision Report

REPHASING OF CAPITAL BUDGETS

Purpose of Report

To enable the Minister for Treasury and Resources to approve the proposed measures to manage the Consolidated Fund by re-phasing unspent capital budget approvals in 2014 to 2015 and 2016.

Background

Article 10(8) of the Public Finances (Jersey) Law 2005 requires the Minister for Treasury and Resources to lodge a Budget where the Consolidated Fund is balanced. The forecast of States income in 2014 and 2015 necessitated measures to be proposed to maintain a positive balance on the Consolidated Fund.

One of the proposed measures was the re-phasing of capital heads of expenditure that have budgets allocated and unspent which are not required until 2015 or 2016 as detailed in the table below. The Chief Minister’s Department capital heads of expenditure to decrease by £3,758,000 and The Treasury and Resources capital heads of expenditure to decrease by £3,362,000 in 2014 to reflect the amounts not required in the current year. £3,220,000 has been reallocated as part of the Budget 2015 Capital Programme and £3,900,000 is expected to be requested in the 2016 Budget Capital Programme in order to more appropriately reflect the timing of the project expenditure required to progress to completion.

Recommendation

The Minister for Treasury and Resources is recommended to approve a rephasing request for the Chief Minister’s capital heads of expenditure and Treasury and Resources capital heads of expenditure (as detailed in the table above) to decrease by £7,120,000 in 2014 to reflect the amount not required in the current year. The same amount will be reallocated into future years budgets (2015 and 2016) by the States as part of the Capital Programme in order to more appropriately reflect the timing of the project expenditure required to progress to completion.

Reason(s) for Decision

Article 18(1)(c) of the Public Finances (Jersey) 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 used for the purposes of another head of expenditure.

Resource Implications

The Chief Minister’s Department capital heads of expenditure to decrease by £3,758,000 and the Treasury and Resources capital heads of expenditure to decrease by £3,362,000 in 2014 (as detailed in the table above) and the Consolidated Fund to increase by an identical amount.

Report author : Capital Accountant, Financial Performance	Document date : 3 December 2014
Quality Assurance: Business Manager	File name and path : L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2014-0144 -\WR - Rephasing of Capital Budgets v2.doc