Budget Transfer: Unspent Capital Budgets to Central Contingencies and Orchard House

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A decision made on 21 September 2018

Decision Reference: MD-T-2018-0048

Decision Summary Title :

Transfer of Unspent Capital Budgets to Central Contingencies

Date of Decision Summary:

18 September 2018

Decision Summary Author:

Finance Manager

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title :

Transfer of Unspent Capital Budgets to Central Contingencies

Date of Written Report:

18 September 2018

Written Report Author:

Finance Manager

Written Report :

Public or Exempt?

Public

Subject: A non-recurring budget transfer of £2,975,683.24 from the capital heads of expenditure listed below; £2,475,683.24 will be transferred to Central Contingencies and the remaining £500,000 will be transferred to the Orchard House Capital Head of Expenditure (FA0MF18017).

Project	Head of Expenditure	Unspent Capital £
St Martin	F0000C3315	183.50
Prison Improvement Phase 4	FA0BP11006	42,091.23
Children's Homes	FA0MF13023	1,080,358.79
Autism Support Unit	FA0MF14008	179,668.24
Refurb of Sandybrook	FA0MF14024	1,669,743.50
South La Collette Reclamation	Q0000C0393	2,020.79
Sludge Thickener Project	Q00BP11004	1,617.19
Total		2,975,683.24

Decision(s): The Minister approved a non-recurring transfer of £2,975,683.24 from the capital heads of expenditure listed above to Central Contingencies; £2,475,683.24 will be transferred to Central Contingencies and the remaining £500,000 will be transferred to the Orchard House Capital Head of Expenditure (FA0MF18017).

Reason(s) for Decision: Article 18(1A) 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 the head of expenditure to contingency expenditure, within or after the end of the relevant financial year.

As per Article 18(1C) of the Public Finances (Jersey) Law 2005 the Minister for Treasury and Resources shall consult the Minister responsible for the Heads of Expenditure listed above.

Resource Implications: This decision will result in the listed capital heads of expenditure decreasing by £2,975,683.24 with Central Contingencies increasing by £2,475,683.24 and the Orchard House Capital Head of Expenditure (FA0MF18017) increasing by £500,000.

Action required: Department for Infrastructure Finance Manager to let Treasury and Resources Business Support team know that the decision has been signed.

Signature:

Position:

Date Signed:

Date of Decision (If different from Date Signed):

Budget Transfer: Unspent Capital Budgets to Central Contingencies and Orchard House

DEPARTMENT FOR INFRASTRUCTURE

TRANSFER OF UNSPENT CAPITAL BUDGETS TO CENTRAL CONTINGENCIES AND

RETURN TO THE CONSOLIDATED FUND

Purpose of Report

To request approval for a non-recurring budget transfer of £2,975,683.24 from the capital heads of expenditure listed below; £2,475,683.24 will be transferred to Central Contingencies and £500,000 will be transferred to the Orchard House Capital Head of Expenditure (FA0MF18017).

Background

The outturn cost of capital projects is inherently variable with many factors such as ground conditions, local market conditions and even weather contributing to the final cost. These factors are managed through an appropriate level of project contingency which is set at the start of the project to manage risk and contain the total project costs within the approved allocation.

As a result, there can be budget remaining unspent and no longer required for the purpose it was approved once projects are complete. There are also instances where budget is allocated for a specific capital project but, as work progresses to develop the project, circumstances change in a Department’s priorities or service delivery requirements which mean the budget is no longer required for that purpose.

Given the above circumstances and the significant pressure on the capital programme over the coming years, existing capital allocations have been reviewed to identify any funds that are no longer required and could be reallocated in order to manage those pressures from within existing resources. That process, overseen by the Capital Sub Group, has identified the following list of unspent balances.

Project	Head of Expenditure	Unspent Capital £
St Martin	F0000C3315	183.50
Prison Improvement Phase 4	FA0BP11006	42,091.23
Children's Homes	FA0MF13023	1,080,358.79
Autism Support Unit	FA0MF14008	179,668.24
Refurb of Sandybrook	FA0MF14024	1,669,743.50
South La Collette Reclamation	Q0000C0393	2,020.79
Sludge Thickener Project	Q00BP11004	1,617.19
Total		2,975,683.24

Recommendation

That the Minister approves a non-recurring budget transfer of £2,975,683.24 from the capital heads of expenditure listed above; £2,475,683.24 will be transferred to Central Contingencies and £500,000 will be transferred to the Orchard House Capital Head of Expenditure (FA0MF18017).

Reason for Decision

Article 18(1A) 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 the head of expenditure to contingency expenditure, within or after the end of the relevant financial year.

As per Article 18(1C) of the Public Finances (Jersey) Law 2005 the Minister for Treasury and Resources shall consult the Minister responsible for the Heads of Expenditure listed above.

5. Resource Implications

This decision will result in the listed capital heads of expenditure decreasing by £2,975,683.24 with Central Contingencies increasing by £2,475,683.24 and the Orchard House Capital Head of Expenditure (FA0MF18017) increasing by £500,000.

6. Action Required

Department for Infrastructure Finance Manager to let Treasury and Resources Business Support team know that the decision has been signed.

Written by:	Finance Manager
Approved by:	Director of Finance