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Consolidation of Capital Votes to further split into revenue in order to comply with GAAP.

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A decision made (15/01/2009) regarding: Consolidation of Capital Votes to further split into revenue in order to comply with GAAP.

Decision Reference:  MD-TR-2009-0006

Decision Summary Title:

Consolidation of Capital Votes to further split into revenue in order to comply with GAAP

Date of Decision Summary:

14 January 2009

Decision Summary Author:

Nick Collins,  Finance Manager, Decision Support

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

Consolidation of Capital Votes.

Date of Written Report:

14 January 2009

Written Report Author:

Nick Collins,  Finance Manager, Decision Support

Written Report :

Public or Exempt?

Public

Subject: For the Minister for Treasury and Resources to authorise the consolidation of capital votes so that they may be further split into revenue to meet GAAP requirements.

Decision(s): The Minister agreed to approve the consolidation and transfer of Minor Capital Projects, totalling £797,446, to 2008 equipment and IT Projects, totalling £166,117, to ICR Project Office as requested in MD-HSS-2008-0057.

Reason(s) for Decision: Under Financial Direction 3.6 and the Public Finance (Jersey) Law 2005 the approval of the Minister is required for variations to heads of expenditure above £100,000.

Resource Implications: There are no financial or manpower resource implications.

Action required: Treasury to action the budget transfers and to inform the Health and Social Services Department.

Signature: 
 
 

Position: Senator P F C Ozouf, Minister for Treasury and Resources 

                 

Date Signed: 15 January 2009

Date of Decision: 15 January 2009

Consolidation of Capital Votes to further split into revenue in order to comply with GAAP.

TREASURY & Resources  ITEM NO:          

 

TREASURY AND RESOURCES MINISTER  

Consolidation of capital votes

 

  1. Purpose of Report

The Minister for Health and Social Services has requested the Minister for Treasury and Resources to approve the consolidation of several Minor Capital votes, totalling £797,446, by transferring their balances to a single capital vote ‘Equipment’ and the approval to consolidate several IT capital votes, totalling £166,117, to a single capital vote, ‘ICR Project Office’ in order to comply with GAAP. 

  1. Background

Under Financial Direction 3.6 and the Public Finance (Jersey) Law 2005 the approval of the Minister is required for any variations to heads of expenditure above £100,000.

In preparation for GAAP accounting in 2009 departments must identify whether their Minor Capital votes qualify as revenue or capital expenditure.  The Health and Social Services department has identified a number of Minor Capital votes which need to be consolidated to one vote in order to be transferred to revenue at a later date.  The following transfers are requested:-

                    1. Minor Capital Projects:

To comply with GAAP the balance on JZ0106 – 2008 Equipment will be transferred to revenue at a later date.  

                     2. IT Projects:

To comply with GAAP the balance on JZ0073 - ICR Project Office will be assessed and transferred to revenue accordingly as part of the ICR Project at a later date. 

  1. Recommendation

That the Minister for Treasury and Resources approves the two consolidation requests of the capital votes. 

  1. Reason for Decision

To ensure compliance with financial direction 3.6 and the Public Finance (Jersey) Law 2005 and enabling the Health and Social Services Department to split the consolidated amounts into revenue in order to comply with GAAP. 

States Treasury Nick Collins, Finance Manager Decision Support

14 January, 2009 for decision 15 January 2009

 

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