Budget Transfer from Treasury and Resources: Energy Reduction Programme Project Costs: Health and Social Services

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A decision made 16 September 2013:

Decision Reference: MD-HSS-2013-0030
Decision Summary Title :	Energy Reduction Programme Project Costs		Date of Decision Summary:	19th July 2013
Decision Summary Author:	Programme Management Office - Senior Management Accountant		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Energy Reduction Programme Project Costs		Date of Written Report:	19th July 2013
Written Report Author:	Programme Management Office - Senior Management Accountant		Written Report : Public or Exempt?	Public
Subject: Energy Reduction Programme Project Costs. Transfer of funds from Corporate Procurement in Treasury and Resources Department (T&R) to Health and Social Services Department (HSSD)
Decision(s): The Minister for HSSD accepts a non-recurring budget transfer of £110,000 in 2013 from T&R revenue head of expenditure to the HSSD revenue head of expenditure for project costs associated with the Energy Reduction programme.
Reason(s) for decision: Article 2 (6) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011 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 used for the purpose of another head of expenditure. This decision agrees to the transfer of funds needed to complete the Energy Reduction programme and realise the associated recurrent Comprehensive Spending Review savings.
Resource Implications: The T&R revenue head of expenditure to decrease by £110,000 in 2013 and the HSSD revenue head of expenditure to increase by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2013.
Action required: For the Minister of the Treasury and Resources Department to sign a Ministerial Decision to authorise the transfer of funds to the HSSD head of expenditure.
Signature:		Position: Minister for Health and Social Services
Date Signed:		Date of Decision (If different from Date Signed):

Budget Transfer from Treasury and Resources: Energy Reduction Programme Project Costs: Health and Social Services

Health and Social Services Department

Ministerial Decision Report

Energy Reduction Programme Project Costs

Purpose of Report

The purpose of this report is to recommend that the Minister for Health and Social Services (HSSD) accepts the transfer of £110,000 non-recurrent funding in 2013 from Corporate Procurement in Treasury and Resources Department (T&R), in respect of the project costs to support the Energy Reduction programme.

Background

HSSD have been targeted with achieving recurrent Comprehensive Spending Review (CSR) savings of £260,000 from their annual spend on energy by the end of 2013. A report was commissioned by the Transformation Programme Energy Project (dated 9th January 2012) which identified a number of invest-to-save projects that would yield the targeted savings. This resulted in an agreed total investment of £523,000 from the CSR Restructuring Provision. Of this, £413,000 was allocated to HSSD in 2012 (reference MD-HSS-2012-0006) and the balance (£110,000) was allocated to Corporate Procurement.

Below is a table that summarises the financial position for the Energy Reduction programme for 2012:-

Department	Allocation	2012 Spend *	Balance
Health and Social Services	£413,000	£309,750	£103,250
Corporate Procurement	£110,000	£0	£110,000
TOTAL	£523,000	£309,750	£213,250

* see appendix I for more details (spend for each project)

The underspend of £213,250 was approved by the Minister for Treasury and Resources to be carried forward into 2013 to fund the following projects:-

Heating in Peter Crill House (re-zoning of building)	£106,850
Boiler House (new controls and burners at General Hospital)	£89,400
Employment of ‘Energy Manager’ to end of 2013	£17,000
	£213,250

To enable these projects to be completed in 2013, the £110,000 allocated to Corporate Procurement needs to be transferred to HSSD.

Recommendation

The Health Minister is recommended to accept a non-recurring budget transfer of £110,000 in 2013 from T&R revenue head of expenditure to the HSSD revenue head of expenditure for project costs associated with the Energy Reduction programme.

Reason for Decision

Article 2 (6) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011 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 used for the purpose of another head of expenditure.

This decision agrees to the transfer of funds without which HSSD will not be able to complete the Energy Reduction programme and realise the associated recurrent CSR savings.

Resource Implications

The T&R revenue head of expenditure to decrease by £110,000 in 2013 and the HSSD revenue head of expenditure to increase by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2013.

Report author :

Senior Management Accountant (Programme Management Office)

Document date :

19th July 2013

Quality Assurance / Review :

Assistant Director of Finance (Planning) for HSSD

File name and path :

L:\CPPM\PMO HSSD\Finance\KCL310 – Energy Project\Ministerial Decision – Energy Reduction Programme Project Costs.doc

MD Sponsor :

Director of Finance for HSSD

Appendix I – 2012 Actual Project Costs and Savings