Purchase of minibuses: Revenue to Capital Budget Transfers

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 on 1 February 2010 to approve the transfer of Revenue funds to Capital for purchase of two minibuses.

Decision Reference: MD-ESC-2010-0003
Decision Summary Title:	Revenue to Capital Budget transfer for VC minibus trade in values		Date of Decision Summary:	27 January 2010
Decision Summary Author:	John Littlewood Head of Finance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Revenue to Capital Transfer – Victoria College Minibuses.		Date of Written Report:	27 January 2010
Written Report Author:	John Littlewood Head of Finance		Written Report : Public or Exempt?	Public
Subject: For the Minister for Education, Sport and Culture to authorise the balance of a 2009 budget transfer from revenue to capital required in order to meet GAAP requirements for the purchase of two minibuses.
Decision(s): The Minister for Education, Sport and Culture approved the transfer of Revenue funds amounting to £3,106.10 to Capital.
Reason(s) for Decision: The revenue income received as a trade-in value of an existing minibus needs to be moved to capital in order to completely reflect the funding provided for the purchase of two replacement minibuses.
Resource Implications: There are no other financial or manpower resource implications.
Action required: For officers of the Department to request the approval of the Treasurer of the States to the transfer in accordance with Financial Direction 3.6
Signature:		Position:
Date Signed:		Date of Decision:

Purchase of minibuses: Revenue to Capital Budget Transfers

Education, Sport and Culture Department Report
Subject:	revenue TO CAPITAL transfer
Exempt Clause:	N/A	Date:	27th January 2010

Author:	John Littlewood : Head of Finance

Purpose of Report

For the Minister for Education, Sport and Culture to approve the following revenue to capital transfer in order to comply with GAAP requirements for 2009:

£3,106.10, representing the trade-in value of a vehicle and is required to part-finance the purchase of a replacement minibus for Victoria College.

Background

Victoria College bought two replacement minibuses for the school in early 2009. Part of this purchase was funded by a revenue to capital transfer of £40,000 in June 2009. Under the States accounting policy (which changed in Jan 2009) the residual value of the two minibuses that were sold had to be accounted for as income. The gross cost of the two replacements (£46,606.10) was accounted for as fixed assets.

Advice was sought from the States Treasury as to the best method of correctly budgeting for the trade-in.

One of the minibuses was held on the asset register and trade in value from the sale of that vehicle were credited to “Proceeds on sale of disposal” – a transfer in respect of the budget for this item was approved under delegated power by the Director of Education, Sport and Culture on 12 January 2010 in the sum of £3,500.

The other minibus was a much smaller vehicle and was not held on the asset register. As such, the proceeds were credited to an income account and it is the remaining balance of this which needs to be transferred from revenue to capital to ensure the budget against the assets fully cover the gross purchase cost.

Under Financial Direction 3.6 para 5.7, the approval of the Treasurer of the States is required for transfers up to £100,000.

Recommendation

That the Minister for Education, Sport & Culture approves the transfer of £3,106.10 budget from revenue to capital to complete the funding of the Victoria College minibus, with effect for 2009.