Budget Transfer from Central Contingencies to Economy, Non-Ministerial support and Modernisation

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A decision made on 21 December 2018

Decision Reference: MD-TR-2018-0151
Decision Summary Title:	Allocations from Contingency to various departments – Economy, Non-Ministerial support and Modernisation		Date of Decision Summary:	20th December 2018
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Allocations from Contingency to various departments – Economy, Non-Ministerial support and Modernisation		Date of Written Report:	20th December 2018
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: The allocation of up to £1,880,000 in 2018 and up to £2,205,000 in 2019 from Central Contingencies to various departments as detailed in the attached report.
Decision(s): The Minister approved the allocation of up to £1,880,000 in 2018 and up to £2,205,000 in 2019 from Central Contingencies to various departments as detailed in the attached report.
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 current Contingency Allocation Policy (published as R.112/2018) sets the requirement for all allocations from contingency over £50,000 to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval. The Board has recommended these requests for approval. The requests have also been recommended for approval by the Principal Accountable Officer and States Treasurer.
Resource Implications: The revenue heads of expenditure of various departments as detailed in the attached report to increase by a total of up to £1,880,000 in 2018 and up to £2,205,000 in 2019 and Central Contingencies to decrease by the same amount. Any unspent amounts from 2018 will be available to be drawn down in 2019 for the purposes for which the funding was allocated. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016 to 2019.
Action required: The Head of Decision Support to advise the Finance Directors of the receiving departments that this decision is approved.
Signature:		Position: Deputy Susie Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget Transfer from Central Contingencies to Economy, Non-Ministeral support and Modernisation

States Treasury and Exchequer

Ministerial Decision Report

Allocations from Contingency to various departments – Economy, Non-Ministerial support and Modernisation

Purpose of Report

To enable the Minister to approve the allocation of up to £1,880,000 in 2018 and up to £2,205,000 in 2019 from Central Contingencies to various departments as detailed below.

Background

In August 2018, all States departments were asked to submit requests for funding for the remainder of 2018 and 2019. The Investment Appraisal Board (IAB) has been established to review all funding requests and support the development of best practice in project development and evaluation, enabling better prioritisation and value for money across the States. This is an important step in the development of a new investment framework across the States underpinned by leading best practice.

All funding requests require a business case which has been designed using principles of HM Treasury’s Five Case Model to ensure that a proportional and risk-focused approach can be applied across the States. A single business case template now replaces several funding application routes that previously existed across the States, providing a simpler, more efficient and more transparent approach.

The IAB is not a decision-making body. It considers evidence to support a funding request and makes a recommendation for funding to the Chief Executive Officer (CEO) and States Treasurer before the Minister for Treasury and Resources makes a funding decision and approval.

Business as usual activities continue and there is a requirement to ensure that urgent matters can be escalated for funding as required. All funding requests have been subject to a review to identify high priority cases that could be considered by the IAB as part of its first phase of meetings. Following the review of high priority cases, the IAB recommended eight projects for funding to the CEO and the States Treasurer.

Based upon the evaluation of business cases and responses to further questions, the IAB recommends funding of £1.88 million in 2018 and £2.2 million in 2019 (£4.08 million for 2018 and 2019). The table below summarises the funding recommendations from the IAB on a project-by-project basis. Funding will be made available from Unallocated Reserves (Contingency). These are, in part, dependent on forecast underspends in departments which are considered to be robust. All individual elements of Contingency have been pooled in order to make these allocations.

Funding is available for these decisions based on the assumption that 2018 departmental underspends and unallocated contingencies are transferred into general contingencies.

Recommendation

The Minister is recommended to approve the allocation of up to £1,880,000 in 2018 and up to £2,205,000 in 2019 from Central Contingencies to various departments as detailed above.

Reasons 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 current Contingency Allocation Policy (published as R.112/2018) sets the requirement for all allocations from contingency over £50,000 to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval. The Board has recommended these requests for approval. The requests have also been recommended for approval by the Principal Accountable Officer and States Treasurer.

5. Resource Implications

The revenue heads of expenditure of various departments as detailed above to increase by a total of up to £1,880,000 in 2018 and up to £2,205,000 in 2019 and Central Contingencies to decrease by the same amount.

Any unspent amounts from 2018 will be available to be drawn down in 2019 for the purposes for which the funding was allocated.

This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016 to 2019.

Report author : Head of Decision Support	Document date : 20th December 2018
Quality Assurance / Review: Director of Financial Planning and Performance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2018-0151 - Allocations from Contingency December 2018 - Economy and Non-Mins
MD sponsor : Treasurer of the States