Le Dicq Pumping Station: Upgrade: Budget Transfer

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A decision made 4 May 2012:

Decision Reference: MD-T-2012-0038
Decision Summary Title :	Transfers between Different Heads of Expenditure for Le Dicq Pumping Station Upgrade		Date of Decision Summary:	25 April 2012
Decision Summary Author:	Capital Accountant		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Transfers between Different Heads of Expenditure for Le Dicq Pumping Station Upgrade		Date of Written Report:	25 April 2012
Written Report Author:	Capital Accountant		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Approval for use of additional income of £25,000 in 2012 and an internal budget transfer from revenue to capital heads of expenditure of that amount for the upgrade of Le Dicq Pumping Station.
Decision(s): The Minister for Transport and Technical Services approved a budget transfer from revenue to capital totalling £25,000 as set out in the supporting document, and agreed to seek the approval of the Minister for Treasury and Resources to use additional income of £25,000 in 2012 for the upgrade of Le Dicq Pumping Station.
Reason(s) for Decision: Antler Homes paid this money to TTS on the basis that it was used for the upgrade of Le Dicq Pumping Station. The upgrade of this station is now required.
Resource Implications: Other than those detailed in the report there are no further financial or manpower implications.
Action required: The Finance Director to request the Minister for Treasury and Resources to approve the use of additional income of £25,000 in 2012, and the budget transfers as referred to above.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Le Dicq Pumping Station: Upgrade: Budget Transfer

TRANSPORT AND TECHNICAL SERVICES DEPARTMENT

Transfers Between Different Heads of Expenditure FOR Le DICQ

PUMPING STATION UPGRADE

Purpose of Report

The purpose of this report is to seek approval from the Minister for Transport and Technical Services (TTS) for an internal budget transfer of £25,000 from the Revenue head of expenditure to the Infrastructure capital head of expenditure.

Background

Antler Homes paid TTS a lump sum of £25,000 for the upgrade of Le Dicq Pumping Station as a result of the development they are undertaking. The amount is currently sitting on the TTS balance sheet as a prepayment.

In order to use this extra income to upgrade the asset and comply with GAAP accounting principles the following process needs to occur:

a) The prepayment needs to be realised as income in the TTS income statement. This will occur in business unit QBP000 – Pumping Stations – General.

b) The TTS income target budget and the revenue expenditure budget will need to be increased by £25,000.

c) The Minister for TTS will seek the approval of the Minister for Treasury and Resources for a budget transfer of £25,000 from the TTS Revenue head of expenditure to the Infrastructure capital head of expenditure.

Discussion

Finance Direction No 3.6 ‘Variations to Heads of Expenditure’ sets out the procedures for the transfers between revenue and capital heads of expenditure and states that budget transfers in excess of £1,000,000 require the approval of the Minister for Treasury and Resources and the relevant Minister party to the transfer. Approval for non-contentious budget transfers of less than £1,000,000 has been delegated to the Treasurer of the States.

Recommendation

The Minister for TTS approve a budget transfer totalling £25,000, from TTS Revenue to TTS Capital head of Infrastructure that will enable the correct GAAP accounting principles to be followed.

Reason for Decision

To enable TTS to correctly account for the project in line with GAAP accounting principles.

Resource Implications

Once the TTS income target budget and revenue expenditure budget have been increased by £25,000, this sum is subsequently to be transferred from the Revenue head of expenditure to the Infrastructure capital head of expenditure.

Action Required

The Finance Director to request the Minister for Treasury and Resources to approve the use of £25,000 of additional income in 2012 and to approve the transfers between revenue and capital as referred to in this report.

Written by:	Capital Accountant
Approved by:	Acting Director of Finance