Government of Jersey

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 4 September 2014:

Decision Reference: MD-HA-2014-0053
Decision Summary Title:	Transfer from Capital to Revenue Head of Expenditure		Date of Decision Summary:	3 September 2014
Decision Summary Author:	Finance Director Home Affairs		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title :	Transfer from Capital to Revenue Head of Expenditure		Date of Written Report:	3 September 2014
Written Report Author:	Finance Director Home Affairs		Written Report : Public or Exempt?	Public
Subject: Internal budget transfer from Home Affairs capital heads of expenditure to the Home Affairs revenue head of expenditure amounting to £47,696.78 to fund the purchase of goods and services for the States of Jersey Police, HM Prison and Jersey Fire and Rescue Service in accordance with GAAP accounting.
Decision(s): The Minister approved a non-recurring budget transfer of £47,696.78 for 2014 as set out in the accompanying report.
Reason(s) for Decision: The expenditure has already been incurred and this transfer merely regularises the bookkeeping arrangements in correctly categorising the expenditure as revenue as opposed to capital in accordance with the Jersey Financial Reporting Manual. The States of Jersey implemented Generally Accepted Accounting Principles (GAAP) in 2009. GAAP accounting requires that only expenditure meeting the GAAP definition of capital expenditure should be treated as such. All other expenditure must be accounted for as revenue. This budget transfer is the movement in budgets between capital and revenue required to align the budgeting treatment of expenditure with the GAAP accounting treatment. This does not change the total amount of expenditure approved by the States.
Resource Implications: None.
Action required: Finance Director to seek the approval of the Minister for Treasury and Resources in accordance with Financial Direction 3.6. (Treasurer’s Delegation).
Signature:		Position: Minister for Home Affairs
Date Signed:		Date of Decision (If different from Date Signed):

Budget Transfer - Internal: Purchase of goods and services for States of Jersey Police, HM Prison and Jersey Fire and Rescue Service

Home Affairs Department Report for Minister
Subject:	Transfer from Capital to Revenue Head of Expenditure
Exempt Clause:	n/a	Date:	3 September 2014

Author:	Finance Director

Introduction

The purpose of this report is to seek the Minister’s approval for an internal non-recurring budget transfer amounting to £47,696.78 from Home Affairs capital heads of expenditure (DH0MC10006, D0000C1067, D0000C0107) to the Home Affairs revenue head of expenditure to fund the purchase of goods and services for the States of Jersey Police, HM Prison and Jersey Fire and Rescue Service.

This expenditure has already been incurred and this transfer merely regularises the accounting arrangements in correctly categorising the expenditure as revenue as opposed to capital in accordance with the Jersey Financial Reporting Manual (JFReM).

Background

The States of Jersey implemented Generally Accepted Accounting Principles (GAAP) in 2009. GAAP accounting requires that expenditure should be accounted for as capital only if it meets the GAAP accounting definition of capital expenditure, and revenue otherwise. In accordance with the States of Jersey Capital Accounting Manual:

 FRS 15 defines tangible fixed assets as ‘assets that have physical substance and are held for use in the production or supply of goods or services, for rental to others, or for administrative purpose on a continuing basis in the reporting entity’s activities’.

 A tangible fixed asset will generally have a life in excess of one year.

 The States of Jersey has adopted a £10,000 capitalisation threshold for individual assets except for land.

It is therefore necessary to make an internal budget transfer from the following capital heads of expenditure in order that the expenditure is properly classified as revenue expenditure in accordance with the JFReM.

Finance Direction No.3.6 ‘Variations to Heads of Expenditure’ sets out the procedures for the transfers between revenue and capital heads of expenditure. Authority to approve and GAAP related budget transfers with no limit has been delegated to the Treasurer of the States.

Recommendation

It is recommended that the Minister approves the internal non-recurring budget transfer of £47,696.78 from Home Affairs capital heads of expenditure (DH0MC10006, D0000C1067, D0000C0107) to the Home Affairs revenue head of expenditure in order to align budgeting with accounting treatment following the move to GAAP accounting.