Transfer of Capital Budgets from the Organisational Development Fund
- Purpose of the Report
- The Treasury and Resources Minister is asked to approve the transfer of capital budget in 2008 from the Organisational Development Fund to capital budgets appropriate to the spending plans, as outlined in Table 1.
Table 1
Description | Transferred to | Amount |
Web, Process and Customer Development - contract bidding currently in progress | ISD | £342,158 |
Training & Development, Have our Say - Modern Manager programme (£540k)
- Senior Manager training programme (£170k)
- Future Leaders Development (£143k)
- Customer Services Training (£56k)
- Other projects (£19k)
| HR | £928,187 |
Project Management and Customer Services Centre - Management costs (£159k)
- Training (£25k)
- Improving facilities (£32k)
- Hardware replacement (£42k)
| ISD | £257,918 |
Organisation Development | CMD | £8,457 |
Budgets to be transferred to budget holders from the Organisational Development Fund | | £1,536,720 |
CMD projects - Administration and Organisational reviews (£95k)
- Process and Performance training (£27.5k)
| CMD | £122,500 |
Balance | | £1,659,220 |
- That the Finance Director be requested to action the capital budget transfers.
- Background
- At its January 2008 meeting the Organisational Development Board agreed that, where appropriate, budgets should be transferred to the business areas responsible for delivery.
- There are two reasons why these transfers are important:
- Move to UK GAAP compliance
This requires budgets to be correctly classified as Capital or Revenue and the result reflected in the shadow 2009 Business Plan and subsequent years’ Business Plans.
To do this it is necessary to agree how and when the funds are to be spent and allocate the resulting budgets to the correct Service heads and financial years.
The deadline for the shadow 2009 Chief Minister’s Department Business Plan is December 2008.
To facilitate robust financial governance by transferring the project funds to the budget holder’s area, thus simplifying and strengthening reporting and expenditure approval processes.
- At its meeting on 24th September 2008 the Organisational Development Board approved the transfers outlined in Table 1.
- Comments
- Table 1 allocates budgets for the Change and Organisational Development projects under each Programme to the departments responsible for delivering them.
- Once the transfers in Table 1 have been actioned there will be no budget remaining in the Organisational Development Fund.
- The remaining projects funded by the £1,659,220 will not create any further cost savings but it should create service efficiencies, e.g. the CMD administration and organisation reviews, which should lead to more efficient processes and a better use of resources.
- Recommendation
- That the Treasury and Resources Minister approves the capital budget transfers, as outlined in Table 1 and requests that the Finance Director actions the transfer.
- Reason for the Decision
- To transfer the funding to the budget holders responsible for delivering the Programme and therefore best placed to control its finances.
Loretta Outhwaite
Finance Director
Treasury & Resources Department
25.11.08
Appendix I
Item 2
States of Jersey OD Programme Board Minutes - Extract
Held at 2.00 pm 24th September 2008, 4th Floor Concord Room,
Cyril Le Marquand House
Meeting number 11
Present: | Bill Ogley (WO) | Project Sponsor |
| Ian Crich (IC) | HR |
| Mike King (MK) | EDD |
| Mike Pollard | HSS |
| John Richardson (JR) | TTS |
| Neil Wells | ISD |
| Kim Wilkinson | Programme Manager |
cc: | Mario Lundy | ESC |
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- Apologies: ML
- Minutes : The minutes from meeting 10 were approved.
- Actions : The actions were noted.
- Budget
- The meeting considered a paper and spreadsheet proposing the transfer of budgets to the appropriate areas in order to meet GAAP and financial governance requirements (see Appendix II). The meeting approved the proposal and agreed that any remaining funds be diverted to the ISD web development and process improvement initiative. KW was actionned to request Treasury and Resources to implement the transfers as detailed.
Appendix II
Organisation Development Board
Budget Transfers
At its January meeting the OD Board agreed that, where appropriate, budgets should be transferred into ‘business as usual’ and that any remaining funds be diverted to the ISD web development and process improvement initiative.
There are two reasons why this is important:
- Move to UK GAAP compliance
This requires budgets to be correctly classified as Capital or Revenue and the result reflected in the shadow 2009 Business Plan and subsequent years’ Business Plans.
To do this it is necessary to agree how and when the funds are to be spent and allocate the resulting budgets to the correct Service heads and financial years.
The deadline for the shadow 2009 Business Plan is December 2008.
- Financial Governance
To facilitate robust financial governance by transferring the project funds to the budget holder’s area, thus simplifying and strengthening reporting and expenditure approval processes.
The following table is a proposal to allocate budgets for the Change and Organisational Development projects under each Programme to the departments responsible for delivering them.
The detail of this proposal is attached at appendix 1. In summary the proposals will result in the following transfers.
Description | Transferred to | Amount |
Web, Process and Customer Development | ISD | £342,158 |
Training & Development, Have our Say | HR | £928,187 |
CMD projects | CMD | £122,500 |
Project Management and Customer Services Centre | ISD | £257,918 |
Organisation Development | CMD | £8,457 |
Balance | | £1,659,220 |
The OD Board is asked to approve these proposals and request that the budget transfers are actioned by Treasury and Resources.
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