REPORT TO THE MINISTER FOR TREASURY AND RESOURCES
BUDGET TRANSFER
Purpose of Report
To seek the approval of the Minister for Treasury and Resources to transfer to the Property Holdings Department from the Chief Minister’s Department, the unspent balance of the Visioning Funds allocated for the development of the Property Holdings Department (PHD).
Background
In June 2005 the States agreed to the creation of a new department to be responsible for the administration of all States Property. The Director of the Department was appointed in September 2005 with a small project team. In January 2006 the Property Holdings Department was set up with the transfer of the Property Services Division of the Transport and Technical Services Department, and the Public Buildings followed on 1st August. On the same date Housing transferred the responsibility for the non social rented land and property from their portfolio.
Property Holdings plan to take on the responsibility for the Education maintenance and capital divisions on 1st October 2006 and Health non general and acute maintenance on 1st January 2007. It is intended that the remainder of the Health Department maintenance will follow a few months later.
Each transfer of responsibility has been accompanied by its associated budgets, however the States also agreed that it would provided £1.53 million from the Visioning Fund to support the development of this new Department.
CMB, at its meeting of 19 April 2006, approved proposals for the implementation of Property Holdings, subject to finalisation of some aspects with the Chief Executive. The approved proposals determined that funds held in the Visioning Budget for Property Holdings would be used as shown
Item | 2005 | 2006 | 2007 | 2008 | Total |
KPMG Report | 106,000 | | | | 106,000 |
Allocated Operating Costs - 2005 | 68,000 | | | | 68,000 |
Allocated Operating Costs - 2006 | | 65,000 | | | 65,000 |
Change Management Support (2 years) | | 28,000 | 55,000 | 28,000 | 111,000 |
Accommodation - Interim Arrangements | | 15,000 | 10,000 | | 25,000 |
Accommodation - Co-location (net costs) | | | | 250,000 | 250,000 |
Review of H&SS Maintenance | | 10,000 | 5,000 | | 15,000 |
Valuation and Condition Surveys | | 200,000 | 200,000 | | 400,000 |
Integrated Property System | | 45,000 | 300,000 | 30,000 | 360,000 |
Development of Filing/Records Mgmt. | | | 75,000 | | 75,000 |
Web Development | | | 10,000 | | 10,000 |
Development of Asset Recharging system | | | 30,000 | | 30,000 |
Totals | 174,000 | 363,000 | 685,000 | 308,000 | 1,530,000 |
To date the following funds have been called off
| 2005 | 2006 |
Total Available & Balance b/fwd | 1,530,000 | 1,359,000 |
KPMG Report | (106,000) | |
Interim Staff Costs | (25,000) | |
Consultant's costs | (30,000) | (50,000) |
Ancillary set up costs | (10,000) | |
Change Manager | | (52,500) |
Computer software | | (50,000) |
Total called in Year | (171,000) | (152,500) |
Balance carry forward | 1,359,000 | 1,206,500 |
A further £200,000 is now required to commence work on the 2006 property condition survey.
To date all calls on the fund have been for individual smaller amounts, each transfer requiring a Ministerial Decision from both the issuing and receiving Departments.
It is proposed therefore to ask the Chief Minister’s Department to transfer to the Property Holdings Department £1,206,500 this being the remainder of the funds set aside for PHD development. To ensure control of the fund it is proposed that they be transferred into a Property Holding’s balance sheet suspense account from which they will be allocated to the various revenue projects as and when required, and with the approval of the Director of Property Holdings.
Recommendation
That the Minister agrees to the transfer of the £1,206,500 from the Visioning Fund to the Property Holdings Department balance sheet, to be used as planned for the development of the Department.
Frances Ferris
Advisory Unit Accountant.
17th August 2006.
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