Budget transfer (Treasury and Resources to Chief Ministers Department) relating to establishment of Resources Department

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[THIS DECISION HAS BEEN RESCINDED BY MD-TR-2010-0094] A decision made 4 March 2010 regarding: Budget transfer (Treasury and Resources to Chief Ministers Department) relating to establishment of Resources Department.

Decision Reference: MD-TR-2010-0037
Decision Summary Title:	Budget transfer to Resources Department		Date of Decision Summary:	23 February 2010
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Transfer of Budget to Resources Department		Date of Written Report:	N/A
Written Report Author:	Acting Finance Director – Corporate Group		Written Report : Public or Exempt?	Public
Subject: Transfer of budgets from the Treasury and Resources Department to the Chief Minister’s Department to reflect the transfer of responsibilities for Financial Systems and the Procurement function to the Chief Officer - Resources. This is an interim step in the full establishment of the Resources Department which is likely to transfer to Treasury and Resources in 2011.
Decision(s): The Minister approved the revenue budget transfer of £1,713,312 and 24.0 manpower (FTE) in 2010 with a recurring effect of £1,693,580 and 24.0 manpower (FTE) in subsequent years from Treasury and Resources to Chief Minister’s Department. The Minister approved the transfer of capital budgets in the sum of £1,379,074 from Treasury and Resources to Chief Minister’s as detailed in the accompanying report.
Reason(s) for Decision: Under Financial Direction 3.6 “Variations to Heads of Expenditure”, all transfers between heads of expenditure above £100,000 have to be approved by the Minister of Treasury and Resources.
Resource Implications: The Treasury and Resources 2010 Cash Limit will decrease by £1,713,312 in 2010, (£1,693,580 recurringly from 2011) and manpower will decrease by 24 FTEs. The Chief Minister’s cash limits and manpower will increase by the equivalent amount.
Action required: The Acting Finance Director, Corporate Group and Head of Financial Planning to action the necessary budget adjustments to reflect the decision.
Signature:		Position: Senator Terry Le Sueur, Chief Minister
Date Signed:		Date of Decision:

Budget transfer (Treasury and Resources to Chief Ministers Department) relating to establishment of Resources Department

Treasury and Resources

Ministerial/Treasurer’s Decision Report

budget transfer to resources directorate

1. Purpose of Report

To request that the Minister for Treasury and Resources approves the transfer of £1,713,312 revenue budget from 1 January 2010 with a recurring effect of £1,693,580 from 1 January 2011 and 24 manpower (FTE) from 1 April 2010 from the Treasury and Resources Department to the Chief Minister’s Department. The proposed transfer is an interim step towards the full establishment of the Resources Department which is likely to come under the Treasury and Resources Department from 2011. This interim step reflects the change in management accountability for JDE Financial Systems (Systems) and Procurement to the Chief Officer – Resources.

The transfer of the associated capital budgets is also requested. These are:

· 2010 £750,000 capital vote for the upgrade of the JDE Financial Systems

· 2009 £472,475 balance brought forward for JDE Financial Systems

· 2009 £156,598.64 budget for the Payroll system

All balance sheet entries associated with these business units will also be transferred in order to comply with Generally Accepted Accounting Principles (GAAP).

2. Background

The Resources Directorate was created on 1st November 2009 and consists of:

a. Jersey Property Holdings

b. Human Resources – under the Chief Minister

c. Information Services Department

d. Financial Systems - which was brought under the management of the Director of Information Services from 1 September 2009

e. Procurement

The Accounting Officer for the Resources Directorate is the Deputy Chief Executive/Chief Officer Resources.

3. Main Content / Subject matter

In order to establish the Directorate budgets and reflect the political and management accountability for its constituent services, the capital and revenue budgets and associated balance sheet items for the Financial Systems team and the Procurement function need to be transferred to the Resources Directorate which lies within the Chief Minister’s Department. Political responsibility for Jersey Property Holdings will remain with the Treasury and Resources Minister for 2010.

As a result of this proposal to transfer these budgets and manpower to the Resources Directorate, Ministerial responsibility for Systems and Procurement will also transfer from the Minister for Treasury and Resources to the Chief Minister.

One post within the Systems team will not transfer from Treasury and this has a part year effect on the overall sums to be transferred to the Resources Department. This post represents the accounting and financial support to the Resources Department and reverts to the Treasury and Resources Department recurringly from 1 April 2010.

The proposed revenue and capital budget transfers are shown in detail in the table below:

Transfer of budgets for Systems and Procurement from Treasury and Resources Cash Limit to Chief Minister's Department

	Budget	Manpower
	£	FTE
2010 revenue budget
Systems
Systems budget - 2010 Business Plan	1,490,200	19.30
Less allocation of Treasury overheads	-231,700	-2.30
Direct Systems budget	1,258,500	17.00
Less 1 post from 1.4.10	-57,788	-1.00
Systems budget for transfer 2010	1,200,712	16.00

Procurement
Procurement budget - 2010 Business Plan	575,300	9.60
Less allocation of Treasury overheads	-62700	-1.6
Procurement budget for transfer 2010	512,600	8.00
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2010 Total Revenue Budget Transfer	1,713,312	24.00
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Recurring revenue budget transfer from 2011
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Direct Systems budget	1,258,500	17.00
Less 1 post from 1.1.11	-77,520	-1.00
Recurring Systems budget 2011	1,180,980	16.00
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Recurring Procurement budget 2011	512,600	8.00
<><><>
2011 Recurring Revenue Budget Transfer	1,693,580	24.00
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2010 capital budget
JDE (Systems) upgrade	750,000
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Capital budgets brought forward from 2009
JDE (Systems) upgrade	472,475
Payroll	156,599
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Total capital budget transfer	1,379,074

4. Recommendation

To establish budgets which follow lines of accountability for the Resources Directorate, it is recommended that the Minister for Treasury and Resources approves the budget and manpower transfers as detailed above and asks the Head of Financial Planning and Acting Finance Director, Corporate Group to action them.

5. Reason for Decision

6. Resource Implications

There is no overall increase to States spending or manpower as a result of this decision.

Report author : Acting Finance Director – Corporate Group	Document date : 25/2/10
Quality Assurance / Review : Head of Decision Support	File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2010-0037 - budget transfer to resources department - ah\wr - transfer of budget to resources department - ah.doc
MD sponsor : Deputy Treasure

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