Budget transfer from Education Department to Department for Infrastructure: Funding of new Les Quennevais School

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 15 December 2017:

Decision Reference: MD-TR-2017-0152
Decision Summary Title:	Budget transfer from Education Department to Department for Infrastructure to fund new Les Quennevais School		Date of Decision Summary:	12th December 2017
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Head of Decision Support		Date of Written Report:	12th December 2017
Written Report Author:	Budget transfer from Education Department to Department for Infrastructure to fund new Les Quennevais School		Written Report : Public or Exempt?	Public
Subject: Budget transfer of £1,500,000 in 2017 from the Education Department revenue head of expenditure to the Department for Infrastructure to assist with funding for the new Les Quennevais School.
Decision(s): The Minister approved the 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.FXA071 Les Quennevais Replacement School) to assist with funding for the new Les Quennevais School.
Reason(s) 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. 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 approved by the States Assembly at its sitting of 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. Decisions have been signed by the Ministers for Education and Infrastructure.
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 (FA0DD13132.FXA071 Les Quennevais Replacement School) to increase by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2017.
Action required: Head of Decision Support to advise the Head of Finance – Education Department and the Finance Director – Department for Infrastructure once this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Education Department to Department for Infrastructure: Funding of new Les Quennevais School

- 1 -

Treasury and Resources

Ministerial Decision Report

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

Purpose of Report

To approve a budget transfer of £1,500,000 in 2017 from the Education Department revenue head of expenditure to the Department for Infrastructure to assist with funding for the new Les Quennevais School.

Background

Construction of a new Les Quennevais School is needed to replace the existing school which is reaching the end of its useful life. The estimated completion date for the project is the end of 2020 with a total estimated cost of £45.6 million, of which £13.8 million will be required in 2018.

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 beyond the amount allocated in previous capital programmes, the 2018 budget provided for the Education Department to transfer £1,500,000 from its 2017 revenue budget, which is forecast to be underspent as at the end of 2017, to manage the pressure in 2018.

3. Recommendation

The Minister is recommended to approve the 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.FXA071 Les Quennevais Replacement School) to assist with funding for the new Les Quennevais School.

4. Reason 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.

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 approved by the States Assembly at its sitting of 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.

Decisions have been signed by the Ministers for Education and Infrastructure.

5. 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 (FA0DD13132.FXA071 Les Quennevais Replacement School) 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 Decision Support	Document date 12th December 2017
Quality Assurance / Review : Director of Financial Planning and Performance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-00xx - Budget transfer EDU revenue to DfI capital for Les Quennevais £1.5m
MD sponsor: Director of Financial Planning and Performance