Budget Transfer: Road Safety Improvements

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A decision made on 4 December 2017:

Decision Reference: MD-T-2017-0098
Decision Summary Title:	Transfer of Concessionary Bus Pass and Road Safety funding from Jersey Car Parking to DFI Revenue and Road Safety Improvements Capital Head of Expenditure		Date of Decision Summary:	24 November 2017
Decision Summary Author:	Finance Manager		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Transfer of Concessionary Bus Pass and Road Safety funding from Jersey Car Parking to DFI Revenue and Road Safety Improvements Capital Head of Expenditure		Date of Written Report:	09 October 2017
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: To approve the budget transfers of up to £600,000 in 2017, up to £1,200,000 2018, and up to £1,672,000 in 2019 from the DfI revenue head of expenditure to the DfI Road Safety Improvements Capital Head of Expenditure (Q00MF15037) being the remaining balance from the redirection of part of the Jersey Car Parking (JCP) financial return to the States, after the funding of concessionary bus passes. To reduce the capital allocations previously agreed in MD-T-2017-0016 from JCP to DfI Sustainable Transport in 2018 to £300,000 and to nil in 2019.
Decision(s): The Minister approved - the budget transfers of up to £600,000 in 2017, up to £1,200,000 2018, and up to £1,672,000 in 2019 from the DfI revenue head of expenditure to the DfI Road Safety Improvements Capital Head of Expenditure (Q00MF15037) being the remaining balance from the redirection of part of the Jersey Car Parking financial return to the States, after the funding of concessionary bus passes. - the reduction of capital allocations previously agreed in MD-T-2017-0016 from JCP to DfI Sustainable Transport in 2018 to £300,000 and to nil in 2019.
Reason(s) for Decision: In the MTFP debate the States agreed to pass an increasing proportion of the Financial Return from the Jersey Car Parking trading operation to the revenue budget of the Department for Infrastructure. This would fund the proposed Disabled Person’s travel scheme, and also the impact of non-staff inflation on contracts like the bus service and Sustainable Transport Initiatives. It is envisaged that in the first year of operation of the new scheme, up to £600,000 will be transferred in this way. This will mean that the £1.672m financial return to the States would reduce to £1.072k in 2017, £472k in 2018 and zero in 2019. The balance of the return would be used by DfI to fund the concessionary bus pass scheme, offset non staff inflation on contracts like the bus service and Sustainable Transport initiatives. Under International Financial Reporting Standards (IFRS) expenditure that meets the definition of capital expenditure must be capitalised. This budget transfer is the movement in budget between capital and revenue required to align the budgeting treatment of expenditure with the accounting treatment, in order to comply with IFRS. Article 19 (1) (a) of the Public Finances (Jersey) Law 2005 states that if, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure – (a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income 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: After the Jersey Car Parking financial return to the States and the funding concessionary bus passes from the DfI Revenue Head of Expenditure, the remaining budget from the JCP Financial Return will be transferred to the DfI Road Safety Improvements capital head of expenditure (Q00MF15037) increasing it by up to £600,000 in 2017, up to £1,200,000 2018, and up to £1,672,000 in 2019. A previous Ministerial Decision (MD-T-2017-0016) agreed the use of additional income by DfI previously approved for the Jersey Car Parking Sustainable Transport & Road Safety capital head of expenditure of £1,250,000 in 2017; £1,500,000 in 2018 and £1,500,000 in 2019. As a result of the current decision that approval reduces to £300,000 in 2018 and nil in 2019.
Action required: The Finance Director to request the approval of the Minister for Treasury and Resources Department for these budget transfers.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):