Jersey Airport: Budget Transfer

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 8 August 2012:

Decision Reference: MD-E-2012-0085
Decision Summary Title:	DS – Jersey Airport – Transfer of Capital costs to Revenue Expenditure		Date of Decision Summary:	19 July 2012
Decision Summary Author:	Deputy Group Finance Director		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	WR – Jersey Airport – Transfer of Capital costs to Revenue Expenditure		Date of Written Report:	19 July 2012
Written Report Author:	Deputy Group Finance Director		Written Report : Public or Exempt?	Public
Subject Transfer of £310,622 from Capital (VY0704 and VY0811) to Revenue Expenditure
Decision(s): The Assistant Minister approved a request to the Minister for Treasury and Resources to transfer the sum of £310,622 from capital to revenue expenditure.
Reason(s) for Decision: The States of Jersey previously approved 2010 capital heads of expenditure in the 2010 Business Plan. This included VY0704 – Aviation Service Building and VY0811 – Arrivals/Pier/Forecourt. This work has subsequently been reclassified as revenue expenditure, in accordance with GAAP accounting principles. In accordance with Article 2(6)(a) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011, the Minister for Treasury and Resources is requested to authorise the transfer.
Resource Implications: N/A
Action required: For the Assistant Minister to approve the reclassification of the capital items for VY0704 and VY0811 to revenue expenditure, for the accounting Officer to instruct Group Finance Director to submit the request to the Minister for Treasury and Resources.
Signature:		Position: Assistant Minister Economic Development
Date Signed:		Date of Decision:

Jersey Airport: Budget Transfer

Report

Report Name: VY0704 – Aviation Service Building & VY0811 Arrivals/Pier/Forecourt

Support for Ministerial Decision – MD-E_2012-0085

Date: 28/07/2012

Purpose of Report

To transfer the costs on VY0704 and VY0811 from Capital to Revenue.

Background

The States of Jersey previously approved Capital Heads of Expenditure in the 2007 and 2008 Annual Business Plans, including VY0704 – Aviation Service Building and VY0811 – Arrivals/Pier/Forecourt Construction capital projects. These works have subsequently been reclassified as Revenue Expenditure, in accordance with the Generally Accepted Accounting Principals (GAAP). This will result in the Jersey Airports NRE forecast changing from (£1,765,200) to (£2,075,200), broken down as follows:


Trading Forecast	(716,100)
Removal of Arrivals top two floors	(1,049,100)
Subtotal	(1,765,200)

Capital to Revenue Transfer	(310,622)

Revised Trading Forecast	(2,075,822)

Recommendations

For the Assistant Minister to approve the reclassification of capital items for VY0704 & VY0811 to revenue expenditure.