Budget Transfer: Education Department to Infrastructure Department (Les Quennevais School)

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A decision made on 16 December 2017:

Decision Reference: MD-T-2017-0106
Decision Summary Title:	Budget transfer from Education Department to Department for Infrastructure to fund new Les Quennevais School	Date of Decision Summary:	30th November 2017
Decision Summary Author:	Finance Manager	Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written	Person Giving Oral Report:	N/A
Written Report Title:	Budget transfer from Education Department to Department for Infrastructure to fund new Les Quennevais School	Date of Written Report:	30th November 2017
Written Report Author:	Finance Manager	Written Report : Public or Exempt?	Public
Subject: A budget transfer from the Education Department to the Department for Infrastructure to assist with funding for the new Les Quennevais School.
Decision(s): The Minister for Infrastructure approved the acceptance of a budget transfer of £1,500,000 in 2017 from the Education revenue head of expenditure to the Department for Infrastructure capital head of expenditure (FA0DD13132 Les Quennevais Replacement School).
Reason(s) for Decision: Construction of a new Les Quennevais School is needed to replace the existing school which is reaching the end of its useful life. A planning application was submitted on 23 June 2016 and on 28 July 2016 the Minister for the Environment announced that a public enquiry into the planning application would be held as the land is in the green zone on the 2014 Island Plan. The outcome of the inquiry resulted in some design alterations and further planning and design consultation which has added cost and time to the project. Combining these factors at a time when the construction industry is experiencing above average cost increases has added further cost to the project. The estimated completion date for the project is the end of 2020 with a total estimated cost now of £45.6 million, an increase of £5.6 million from the MTFP indicative capital programme. The 2018 budget presented to the States Assembly on 28th November 2017 highlighted a number of projects, including Les Quennevais School, where capital expenditure is required but where funding already exists within departmental revenue budgets to fund the projects. The 2018 budget stressed the importance of departments having the ability to look across all available resources under its control to manage funding pressures before seeking additional funding. In the case of the Les Quennevais School project, where the estimated cost has increased by £5.6 million beyond the amount allocated in previous capital programmes, the 2018 budget allocated an additional £4.1 million to the project from the 2018 capital programme allocation and provided for the Education Department to transfer £1.5 million from its 2017 revenue budget, which is forecast to be underspent as at the end of 2017, to manage the pressure in 2018. Article 18(1)(c) of the Public Finances (Jersey) 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 used for the purposes of another head of expenditure.

Resource Implications: The Education Department revenue head of expenditure to decrease by £1,500,000 in 2017 and the Department for Infrastructure capital head of expenditure to increase by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2017.
Action required: The Minister for Infrastructure to seek approval of the Minister for Treasury for the transfer.
Signature:	Position:
Date Signed:	Date of Decision:

Budget Transfer: Education Department to Infrastructure Department (Les Quennevais School)

Department for Infrastructure

Ministerial Decision Report

Budget transfer from Education Department to Department for Infrastructure to fund new Les Quennevais School

Purpose of Report

To enable the Minister for Infrastructure to request that the Minister for Treasury and Resources approves a budget transfer of £1,500,000 in 2017 from the Education revenue head of expenditure to the Department for Infrastructure Les Quennevais Replacement School (Fa0DD13132) capital head of expenditure.

Background

Construction of a new Les Quennevais School is needed to replace the existing school which is reaching the end of its useful life. A planning application was submitted on 23 June 2016 and on 28 July 2016 the Minister for the Environment announced that a public enquiry into the planning application would be held as the land is in the green zone on the 2014 Island Plan. The outcome of the inquiry resulted in some design alterations and further planning and design consultation which has added cost and time to the project. Combining these factors at a time when the construction industry is experiencing above average cost increases has added further cost to the project. The estimated completion date for the project is the end of 2020 with a total estimated cost now of £45.6 million, an increase of £5.6 million from the MTFP indicative capital programme.

The 2018 budget presented to the States Assembly on 28th November 2017 highlighted a number of projects, including Les Quennevais School, where capital expenditure is required but where funding already exists within departmental revenue budgets to fund the projects. The 2018 budget stressed the importance of departments having the ability to look across all available resources under its control to manage funding pressures before seeking additional funding.

In the case of the Les Quennevais School project, where the estimated cost has increased by £5.6 million beyond the amount allocated in previous capital programmes, the 2018 budget allocated an additional £4.1 million to the project from the 2018 capital programme allocation and provided for the Education Department to transfer £1.5 million from its 2017 revenue budget, which is forecast to be underspent as at the end of 2017, to manage the pressure in 2018.

Recommendation

The Minister for Infrastructure is recommended to request that the Minister for Treasury and Resources approves a budget transfer of £1,500,000 in 2017 from the Education Department revenue head of expenditure to the Department for Infrastructure capital head of expenditure (FA0DD13132) Les Quennevais Replacement School to assist with the funding for the new Les Quennevais School.

Reasons for Decision

Article 18(1)(c) of the Public Finances (Jersey) 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 used for the purposes of another head of expenditure.

Resource Implications

The Education Department revenue head of expenditure to decrease by £1,500,000 in 2017 and the Department for Infrastructure capital head of expenditure to increase by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2017.

Report author: Head of Finance	Document date : 30th November 2017
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