Budget Transfer: Vehicle Registration System

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 4 December 2017:

Decision Reference: MD-T-2017-0099
Decision Summary Title :	Use of income, increase of budgets and subsequent transfers between Revenue and Capital Heads of Expenditure for the replacement of DVS vehicle registration system and licence system and the transfer of existing costs and budgets to DVS Systems Capital Head of Expenditure		Date of Decision Summary:	24th November 2017
Decision Summary Author:	Finance Manager		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Use of income, increase of budgets and subsequent transfers between Revenue and Capital Heads of Expenditure for the replacement of DVS vehicle registration system and licence system and the transfer of existing costs and budgets to DVS Systems Capital Head of Expenditure		Date of Written Report:	17th November 2017
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: Use of income, increase of budgets and subsequent transfer between the Department for Infrastructure (“DFI”) revenue head of expenditure and a new DFI capital head of expenditure for the DVS Vehicle Registration System totalling £250,000 for the replacement of the DVS vehicle registration system and licence system. The transfer of costs and budgets (£299,999) from the DFI Replacement Assets capital head of expenditure (Q00MC10012) to the DVS Systems capital head of expenditure (Q00MF18021). Subject to the approval of Budget 2018.
Decision(s): The Minister approved the use of additional income within DVS up to £250,000 for the purpose of funding the replacement of the DVS vehicle registration system and licence system the increase of up to £250,000 income and expenditure budgets in 2017 in the DFI revenue head of expenditure; and the subsequent internal budget transfer in 2017 of up to £250,000 from the DFI revenue head of expenditure to the new DFI capital head of expenditure for the DVS Vehicle Registration System. the transfer of costs and budgets (£299,999) from the DFI Replacement Assets capital head of expenditure (Q00MC10012) to the DVS Systems capital head of expenditure (Q00MF18021). Subject to the approval of Budget 2018.
Reason(s) for Decision: Paragraph 5.13 of Financial Direction 3.6 stipulates that the use of surplus income of over £100,000 of the estimated income notified to the States for that particular service area and of a non-contentious nature has been delegated to the Treasurer of the States Article (18)(c) 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 one head of expenditure to another head of expenditure for any purpose. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States. This transfer puts in place funding for the replacement of the DVS vehicle registration system.
Resource Implications: The DFI revenue head of expenditure will show an additional income budget of up to £250,000 and an additional expenditure budget of up to £250,000, a net nil change. This expenditure budget will subsequently be transferred to the to the new DFI capital head of expenditure for the DVS Vehicle Registration System. Costs and budgets (£299,999) for the DVS VRS system within the DFI Replacement Assets capital head of expenditure (Q00MC10012) will be transferred to the DVS Systems capital head of expenditure (Q00MF18021). Subject to the approval of Budget 2018.
Action required: The Finance Director to request the approval of the Treasury of the States to approve the creation of income and expenditure budgets, and the budget transfer from revenue to capital as referred to in the accompanying report.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Budget Transfer: Vehicle Registration System

Department for Infrastructure

Ministerial Decision Report

Use of income, increase of budgets and subsequent transfers between Revenue and Capital Heads of Expenditure for the replacement of DVS vehicle registration system AND LICENCE SYSTEM and the transfer of existing costs and budgets to DVS systems capital head of expenditure

Purpose of Report

To enable the Minister to approve the following:

the use of additional income from within DVS up to £250,000 for the purpose of funding the replacement of the DVS vehicle registration system and licence system
the increase of up to £250,000 income and expenditure budgets in 2017 in the DFI revenue head of expenditure; and
the subsequent internal budget transfer in 2017 of up to £250,000 from the DFI revenue head of expenditure to the new DFI capital head of expenditure for the DVS Vehicle Registration System.
the transfer of costs and budgets (£299,999) from the DFI Replacement Assets capital head of expenditure (Q00MC10012) to the DVS Systems capital head of expenditure (Q00MF18021).

Subject to the approval of the Budget 2018.

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 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 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 is now well past its original estimated useful life, resulting in both higher costs and higher risks of system failures.

Due to the number of interactions with the driving licence system (LICAR) and in line with developments across Europe, the project scope has expanded to include replacement of the driving licence system. 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 as well as a Mobile application. Using LEAN principles this is an excellent opportunity to streamline many services and procedures ensuring we are 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. In 2016 DVS was able to allocate £250,000 with an additional contribution of £50,000 made available from The Restructuring Provision. Now the full scope of the project is known the cost is expected to be in the region of £550,000.

As the cost of the project has grown, a new capital head of expenditure is being set up via the 2018 budget capital programme.

During 2017, the unusual licence plate sales, sold both via auction and over the counter and other DVS income streams, have generated additional income of approximately £250,000 in excess of budget, which is being requested to fund the Vehicle Registration System replacement project.

As a result of the above, and to match the intended use of the funding with the accounting treatment, it will be necessary to create income and expenditure budgets of up to £250,000 in the DFI revenue head of expenditure, before transferring up to £250,000 expenditure budget in 2017 from the DFI revenue head of expenditure to DVS Systems capital head of expenditure (Q00MF18021).

Existing costs and budgets for this project will also need to be transferred into this new capital head of expenditure totalling £299,999.

Recommendation

That the Minister approves:

the use of additional income from within DVS up to £250,000 for the purpose of funding the replacement of the DVS vehicle registration system and licence system
the increase of up to £250,000 income and expenditure budgets in 2017 in the DFI revenue head of expenditure; and
the subsequent internal budget transfer in 2017 of up to £250,000 from the DFI revenue head of expenditure to the new DFI capital head of expenditure for the DVS Vehicle Registration System.

the transfer of costs and budgets (£299,999) from the DFI Replacement Assets capital head of expenditure (Q00MC10012) to DVS Systems capital head of expenditure (Q00MF18021).

Subject to the approval of the Budget 2018.

Reason for Decision

Paragraph 5.13 of Financial Direction 3.6 stipulates that the use of surplus income of over £100,000 of the estimated income notified to the States for that particular service area and of a non-contentious nature has been delegated to the Treasurer of the States

Article (18)(c) 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 one head of expenditure to another head of expenditure for any purpose.

Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States.

This transfer puts in place funding for the replacement of the DVS vehicle registration system.

Resource Implications

The DFI revenue head of expenditure will show an additional income budget of up to £250,000 and an additional expenditure budget of up to £250,000, a net nil change. This expenditure budget will subsequently be transferred to the to the new DFI capital head of expenditure for the DVS Vehicle Registration System. Costs and budgets (£299,999) for the DVS VRS system within the DFI Replacement Assets capital head of expenditure (Q00MC10012) will be transferred to the DVS Systems capital head of expenditure (Q00MF18021). Subject to the approval of the Budget 2018.

Report author : Finance Manager	Document date : 17 November 2017
Quality Assurance / Review : Finance Director