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Budget transfer: In-Vessel Waste Composting Site - GAAP Accounting

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.

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A decision made 14 October 2011 regarding:

Decision Reference: MD-T-2011-0104

Decision Summary Title :

Transfer From Capital To Revenue Heads of Expenditure for In-Vessel Composting Costs

Date of Decision Summary:

07 October 2011

Decision Summary Author:

 

Capital Accountant

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

 

Written Report

Title :

Transfer From Capital To Revenue Heads of Expenditure for In-Vessel Composting Costs

Date of Written Report:

07 October 2011

Written Report Author:

Capital Accountant

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:  Internal budget transfer from capital to revenue heads of expenditure amounting to £86,993.51 to allow for expenditure on the IVC project to be reclassified, as a result of GAAP accounting.

Decision(s):  The Minister for Transport and Technical Services approved a budget transfer from capital to revenue totalling £86,993.51 as set out in the supporting document.

Reason(s) for Decision:  In 2006 a capital vote was approved for the assessment and implementation of an in-vessel waste composting site. The design of the original project for which this budget was voted was significantly changed to reflect current best practice in other jurisdictions. As a result, the initial feasibility and design costs are no longer directly attributable to the completed asset. Under GAAP, expenditure can only be capitalised if it were “directly attributable” to the asset. Therefore, the work performed and expenditure incurred cannot now be included as part of the cost of the current in-vessel composting green waste slab. It needs to be reclassified as an expenditure under revenue. As a result, both budget and spend need to be transferred from capital to revenue.

Resource Implications:  Other than those detailed in the report there are no further financial or manpower implications.

Action required:  The Finance Director to request the Minister for Treasury and Resources to approve the budget transfer from capital to revenue as referred to in the accompanying report.

Signature:

 

Position:

Date Signed:

Date of Decision (If different from Date Signed):

 

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