Budget transfer from Revenue to Capital: Jersey College Preparatory School: Minor Projects

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A decision made 13 June 2017:

Decision Reference: MD-ESC-2017-0011
Decision Summary Title:	Budget transfer from revenue to capital for minor capital projects at Jersey College Prep.	Date of Decision Summary:	31 May 2017
Decision Summary Author:	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:	Budget transfer from revenue to capital for minor capital projects at Jersey College Prep.	Date of Written Report:	31 May 2017
Written Report Author:	Head of Finance	Written Report : Public or Exempt?	Public
Subject: Budget transfer from revenue to capital for minor capital projects at Jersey College Prep (“JCP”).
Decision(s): The Minister for Education approved a budget transfer of £20,000 in 2017 from the Education revenue head of expenditure to capital head of expenditure (Minor Capital E00MC10003).
Reason(s) for Decision: The Ministerial Decision (MD-ESC-2017-0003) signed on 21 March 2017 and the letter to parents dated 28 March 2017, covering Jersey College for Girls and Jersey College Prep. fees for the academic year 2017-2018, highlighted the need for fee increases to assist with continued investment in the campus and the refurbishment of classrooms and outdoor learning areas across the college. Specifically, further building works are due to commence at JCP together with the refurbishment of the garden in the Design Centre to create an outdoor learning space. Under Generally Accepted Accounting Principles (GAAP) expenditure that meets the definition of capital expenditure only can be capitalised. This budget transfer is the movement in budget between capital and revenue required to align the budgeting treatment of expenditure with the accounting treatment, in order to comply with GAAP. Article 18(1)(c) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be transferred from a capital head of expenditure to a revenue head of expenditure, or vice versa, in order to comply with generally accepted accounting principles or an Order made under Article 32. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with GAAP or an Order made under Article 32 of the Law.

Resource Implications: The Education capital head of expenditure (Minor Capital E00MC10003) will increase by £20,000 in 2017 and the revenue head of expenditure will decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2017.
Action required: The Minister for Education to seek approval of the Treasurer of the States for the transfer.
Signature:	Position: Deputy Rod Bryans Minister for Education
Date Signed:	Date of Decision:

Budget transfer from Revenue to Capital: Jersey College Preparatory School: Minor Projects

Education Department

Ministerial Decision Report

Budget transfer from revenue to capital for minor capital projects at Jersey College Prep.

Purpose of Report

To enable the Minister for Education to request that the Minister for Treasury and Resources (T&R) approves a budget transfer of £20,000 in 2017 from the Education revenue head of expenditure to capital head of expenditure (Minor Capital E00MC10003) to fund minor capital works at Jersey College Prep. (“JCP”).

Background

The Ministerial Decision (MD-ESC-2017-0003) signed on 21 March 2017 and the letter to parents dated 28 March 2017, covering Jersey College for Girls and Jersey College Prep. fees for the academic year 2017-2018, highlighted the need for fee increases to assist with continued investment in the campus and the refurbishment of classrooms and outdoor learning areas across the college. Specifically, further building works are due to commence at JCP together with the refurbishment of the garden in the Design Centre to create an outdoor learning space.

Recommendation

The Minister for Education is recommended to request that the Minister for T&R approves a budget transfer of £20,000 in 2017 from the Education revenue head of expenditure to capital head of expenditure (Minor Capital E00MC10003) to fund minor capital works at JCP.

Reasons for Decision

Under Generally Accepted Accounting Principles (GAAP) expenditure that meets the definition of capital expenditure only can be capitalised. This budget transfer is the movement in budget between capital and revenue required to align the budgeting treatment of expenditure with the accounting treatment, in order to comply with GAAP.

Article 18(1)(c) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be transferred from a capital head of expenditure to a revenue head of expenditure, or vice versa, in order to comply with generally accepted accounting principles or an Order made under Article 32.

Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with GAAP or an Order made under Article 32 of the Law.

Resource Implications

The Education capital head of expenditure (Minor Capital E00MC10003) will increase by £20,000 in 2017 and the revenue head of expenditure will decrease by identical amount. This decision does not change the total amount of expenditure approved by the States for 2017.

Report author: Head of Finance	Document date : 31 May 2017
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