2005 Carry Forward Balances

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A decision made (24.04.06) to approve Carry Forward submissions

Subject:	2005 Carry Forward Balances
Decision Reference:	MD-ESC-2006-0027	Exempt clause(s):		None
Type of Report (oral or written):	Written	Person Giving Report (if oral):		n/a
Telephone or e-mail Meeting?	n/a	Report File ref:		Livelink: ESC/Finance/Accounts/2005 Carry Forward
Written Report – Title:	As title	Written report – Author:		Assistant Director, Resources
Decision(s): (i) accepted the amount of £140,448 to be carried forward from 2005 to 2006 from the former Education, Sport and Culture Committee’s 2005 budget; (ii) accepted the amount of £1,273,000 to be carried forward from 2005 as approved by the Council of Ministers on 23 March 2006 to fund the Opera House loan (£273,000) and part of the 2005 shortfall on Student Awards (£1,000,000); (iii) noted that a provision will be held against the unforeseen contingency balance of £1.6 million for the estimated over spend on student grants in 2006
Reason(s) for decision: (i) On 9 February 2006 the Minister approved the submissions to the 2005 Annual Financial Report and Accounts and advised the Treasury and Resources Minister that the full amount of the former Education, Sport and Culture Committee’s unspent balance of 2005 (£140,448) should be carried forward from 2005 to 2006 in accordance with the Treasury Code of Direction No 9 – Carry Forward of Revenue Balances. This final year balance constituted 0.15% of the former Committee’s 2005 final cash limit. Details of how the carry forward balance will be allocated were agreed by the Minister on 9 February 2006. (ii) On 23 March 2006 the Council of Ministers reviewed the balance of Committees carry forward balances which were in excess of the 3% limit set in the Treasury Code of Direction and agreed that one off funding would be made available for the Department as follows: £273,000 for the Jersey Opera House Loan, £1,000,000 to meet part of the overspend on student grants in 2005. In addition a provision will be held against the unforeseen contingency balance of £1.6 million for the estimated over spend on student grants in 2006. The allocation of funding to meet part of the overspend for 2005 and the holding of a provision against the unforeseen contingency balance of £1.6 million for the estimated over spend on student grants in 2006 is made on the condition that the Minister develops a Higher Education Funding Strategy for consideration by the Council of Ministers later in 2006.
Action required:  Provide Treasury Officers with the appropriate JD Edwards codes for the allocation of the balance of £1,273.000.
Signature:			Date of Decision:

2005 Carry Forward Balances

Department for Education, Sport and Culture Report for Minister
Subject:	2005 Carry Forward Balances
Exempt Clause:	None	Date:	19 April 2006

Authors:	Liz Middleton – Assistant Director, Resources

1. Introduction

The purpose of this report is to ask the Minister to:

(i) accept the amount of £140,448 to be carried forward from 2005 to 2006 from the former Education, Sport and Culture Committee’s 2005 budget;

(ii) accept the amount of £1,273,000 to be carried forward from 2005 as approved by the Council of Ministers on 23 March 2006 to fund the Opera House loan (£273,000) and part of the 2005 shortfall on Student Awards (£1,000,000).

2. Background

The Minister will recall that on 9 February 2006 he approved the submissions to the 2005 Annual Financial Report and Accounts and advised the Treasury and Resources Minister that the full amount of the former Education, Sport and Culture Committee’s unspent balance of 2005 (£140,448) should be carried forward from 2005 to 2006 in accordance with the Treasury Code of Direction No 9 – Carry Forward of Revenue Balances.

On 23 March 2006 the Council of Ministers reviewed the balance of Committees carry forward balances which were in excess of the 3% limit set in the Treasury Code of Direction and agreed that one off funding would be made available for the Department as follows:

£273,000 for the Jersey Opera House Loan,

£1,000,000 to meet part of the overspend on student grants in 2005.

In addition a provision will be held against the unforeseen contingency balance of £1.6 million for the estimated over spend on student grants in 2006.

3. 2005 Carry Forward Balance

The final year end balances for 2005 showed an underspend of £140,448 which constituted 0.15% of the former Committee’s 2005 final cash limit. Details of how the carry forward balance will be allocated were agreed by the Minister on 9 February 2006.

4. Additional Carry Forward Balances

Jersey Opera House Loan

The first capital repayment on the loan for the redevelopment of the Jersey Opera House was paid in September 2005. The Finance an Economics Committee was advised of the need to provide additional resources to the Jersey Arts Trust to meet the repayment and agreed that the Treasury would identify funds in 2006 to fund the 2005 and 2006 capital repayments for the Jersey Opera House.

Provision has been made in the Department’s 2007 cash limit for the funding of future capital repayments.

Student Grants

The Treasury, and more recently the Council of Ministers, have been made aware of the financial pressures in respect of student awards. The allocation of funding to meet part of the overspend for 2005 and the holding of a provision against the unforeseen contingency balance of £1.6 million for the estimated over spend on student grants in 2006 is made on the condition that the Minister develops a Higher Education Funding Strategy for consideration by the Council of Ministers later in 2006.

5. Recommendations

It is recommended that the Minister:

(i) accepts the amount of £140,448 to be carried forward from 2005 to 2006 from the former Education, Sport and Culture Committee’s 2005 budget;

(ii) accepts the amount of £1,273,000 to be carried forward from 2005 as approved by the Council of Ministers on 23 March 2006 to fund the Opera House loan (£273,000) and part of the 2005 shortfall on Student Awards (£1,000,000);

(iii) notes that a provision will be held against the unforeseen contingency balance of £1.6 million for the estimated over spend on student grants in 2006.