Budget transfer from Restructuring Provision to Department for Infrastructure: Vehicle Registration System

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A decision made 22 December 2016:

Decision Reference: MD-TR-2016-0118
Decision Summary Title:	Restructuring Provision Bid - DVS replacement Vehicle Registration System project		Date of Decision Summary:	21st December 2016
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Restructuring Provision Bid - DVS replacement Vehicle Registration System project		Date of Written Report:	21st December 2016
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: A non-recurring budget transfer of £49,999 in 2017 from the Restructuring Provision to the Department for Infrastructure (DFI) capital head of expenditure for Replacement Assets (Q00MC10012) to fund the DVS replacement Vehicle Registration System project.
Decision(s): The Minister decided to approve the non-recurring budget transfer of £49,999 in 2017 from the Restructuring Provision to the Department for Infrastructure capital head of expenditure for Replacement Assets (Q00MC10012).
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The Council of Ministers approved funding of £49,999 toward the cost of the DVS replacement vehicle registration system at their meeting on 7th December 2016. This funding will enable DVS to complete a project to replace the existing Vehicle Registration System.
Resource Implications: The DFI capital head of expenditure for Replacement Assets (Q00MC10012) will increase by £49,999 in 2017 and the Restructuring Provision will decrease by the same amount. This decision does not change the total amount of expenditure approved by the States for 2017 in the Medium Term Financial Plan.
Action required: Head of Decision Support to advise the Finance Manager – Department for Infrastructure once this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Restructuring Provision to Department for Infrastructure: Vehicle Registration System - Replacement Project

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Treasury and Resources

Ministerial Decision Report

restructuring provision bid – dvs replacement vehicle registration system project

Purpose of Report

To approve a non-recurring budget transfer of £49,999 in 2017 from the Restructuring Provision to the Department for Infrastructure (DFI) capital head of expenditure for Replacement Assets (Q00MC10012).

Background

The Driver & Vehicle Standards department (“DVS”) provides an extensive and comprehensive range of services to all members of the Public, Educational Bodies, the Motor Industry, Enforcement Agencies, the Judiciary & States Departments.

The primary purpose of the DVS department is to ensure that safety and technical provisions, and associated documentation for drivers and vehicles in Jersey, are improved to, and maintained at, internationally recognised standards.

As part of the DVS Department’s statutory requirements and as set out in the Motor Vehicle Registration (Jersey) Law 1993, the Inspector of Motor Traffic is required to compile and maintain a register of motor vehicles. Registration of all motor vehicles is compulsory and is essential to the department’s function of regulating drivers and their vehicles.

The existing Vehicle Registration System (VRS) was installed in 2001 and has performed well for longer than its original estimated useful life. However it is becoming increasingly costly to maintain resulting in a false economy. As part of the Department’s commitment to online services, the new system will be scoped to include as many of these services as possible. Using LEAN principles this is an excellent opportunity to streamline many services and procedures ensuring the department is able to offer the best customer experience as possible whilst working as efficiently as possible. In addition, there is a need to accommodate Vehicle Operator Licencing within the VRS, a function that is not catered for within the current system.

Though identified on the DFI replacement asset programme as needing replacement in 2016, no funding was available to be allocated from the existing Replacement Assets capital allocation, with the expectation that DVS would find additional funding as necessary to fund the replacement. This is expected to be in the region of £300,000.

On the 15th September 2016 the use of £250,000 of additional income from vehicle registrations was approved and was transferred to the DFI Replacement Assets capital head of expenditure (Q00MC10012).

The Council of Ministers approved funding of £49,999 toward the cost of the DVS replacement vehicle registration system at their meeting on 7th December 2016. These funds need to be added to the budget already approved in the DFI Replacement Assets capital head of expenditure (Q00MC10012).

3. Recommendation

The Minister is recommended to approve a non-recurring budget transfer of £49,999 in 2017 from the Restructuring Provision to the Department for Infrastructure capital head of expenditure for Replacement Assets (Q00MC10012).

4. Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

The Council of Ministers approved funding of £49,999 toward the cost of the DVS replacement vehicle registration system at their meeting on 7th December 2016.

This funding will enable DVS to complete a project to replace the existing Vehicle Registration System.

5. Resource Implications

The DFI capital head of expenditure for Replacement Assets (Q00MC10012) will increase by £49,999 in 2017 and the Restructuring Provision will decrease by the same amount. This decision does not change the total amount of expenditure approved by the States for 2017 in the Medium Term Financial Plan.

Report author : Head of Decision Support	Document date 21st December 2016
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2016-0118 - DVS Replacement of Vehicle Registration System
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