DEPARTMENT FOR INFRASTRUCTURE
RESTRUCTURING PROVISION BID – MUNICIPAL SERVICES
REORGANISATION
- Purpose of Report
To enable the Minister for Infrastructure to approve a revenue budget transfer totalling £308,000 in 2016 from the Restructuring Provision to the Department for Infrastructure and to note indicative funding of £122,000 in 2017, £122,000 in 2018 and £67,000 in 2019. The funding for which was agreed by the Council of Ministers on 27th January 2016 in support of the Public Sector Reform Programme.
- Background
On 27th January 2016 the Council of Minister’s considered a report outlining the funding requirements in 2016 for the Municipal Services Reorganisation within the Public Sector Reform Programme together with funding for the complete Public Sector Reform Programme.
The Council agreed funding as proposed for 2016 and approved “in principal” the requests for funding in 2017 to 2019.
- Recommendation
The Minister, with reference to the Council of Ministers approval of this funding on 27th January 2016 in support of the Public Sector Reform Programme – specifically Municipal Services Reorganisation, is recommended to approve a revenue budget transfer totalling £308,000 in 2016 from the Restructuring Provision to the Department for Infrastructure and to note indicative funding of £122,000in 2017, £122,000 in 2018 and £67,000 in 2019.
- Reason for Decision
Article 18 of the Public Finances (Jersey) Law 2005 (the Law) and Finance Direction No.3.6 ‘Variations to Heads of Expenditure’ (the FD) set out the procedures for transfers between heads of expenditure. Paragraph 5.1 of the FD and Article 18(2) (c) of the Law require departments wanting to transfer funds between heads of expenditure to obtain the approval of the Minister responsible for their administration. Article 18(1) (c) of the Law requires the approval of the Minister for Treasury and Resources for any budget transfers between heads of expenditure. Paragraph 5.2 of the FD delegates non-contentious transfers between heads of expenditure up to £1,000,000 to the Treasurer of the States. Paragraph 5.3 of the FD states that, in all other instances, the approval of the Minister for Treasury and Resources must be obtained.
On 27th January 2016 the Council of Minister’s considered a report outlining the funding requirements in 2016 for the Workforce Modernisation, Engagement and Leadership Development within the Public Sector Reform Programme together with funding for the complete Public Sector Reform Programme. The Council of Ministers has acknowledged that investment will be needed to ensure Public Sector Reform is successful. Furthermore, funds have been identified and approved in the Medium Term Financial Plan and the Council of Ministers approved these requests at its meeting.
- Resource Implications
The Department for Infrastructure revenue head of expenditure will increase by £308,000 in 2016 and the Restructuring Provision revenue head of expenditure will decrease by the same amount. This decision does not change the total amount of expenditure approved by the States for 2016 in the Medium Term Financial Plan.
6. Action required
The Finance Director to request the approval of the Treasurer for this budget transfer.
Written by: | Finance Manager |
Approved by: | Director of Finance |