Treasury and Resources
Ministerial Decision Report
PUBLIC SECTOR REFORM – ALLOCATION FROM RESTRUCTURING PROVISION TO THE OFFICE MODERNISATION PROJECT VIA CENTRAL PLANNING VOTE
- Purpose of Report
To request that the Minister approves the 2016 allocation of £350,000 from the Restructuring Provision to the Central Planning Vote and a subsequent budget transfer to a new capital head of expenditure entitled Office Modernisation Project to enable feasibility work to be undertaken.
- Background
The OMP Strategic Business Case, setting out the Target Operating Model for the future organisation of States offices, was considered and agreed by the OMP Project Board on 16th June 2015, by the Corporate Management Board on the 25th June 2015 and by the OMP Ministerial Oversight Group on 9th July 2015.
The above was subsequently agreed by the Council of Ministers at its meeting on 22nd July 2015, along with agreement that £350,000 of funding should be earmarked from the Restructuring Provision for 2016 to enable feasibility work to be undertaken on the early stages of the project (see breakdown below).
| Study | Estimated Cost |
1 | Initial site appraisal – Central Administrative Hub | £50,000 |
2 | Feasibility Study – TTS | £100,000 |
3 | Feasibility study – Central Administration Hub | £200,000 |
| Total: | £350,000 |
The specific transfer of funds from the Restructuring Provision was endorsed by Corporate Management Board on 22nd October 2015, approved by the reform Political Oversight Group on 10th December 2015 and agreed in principle by the Council of Ministers on 9th December 2015 (on the condition that the Political Oversight Group made no amendments on 10th December).
All necessary approvals are now in place for the transfer of funds. In order to set up a new capital head of expenditure the funds have to be transferred from the Restructuring Provision to the Central Planning Vote, and then on to the Office Modernisation Project capital head of expenditure.
- Recommendation
The Minister, with reference to the Council of Ministers’ approval of this funding on 22nd July 2015 in support of the Public Sector Reform Programme, is recommended to approve the 2016 allocation of £350,000 from the Restructuring Provision to the Central Planning Vote and a subsequent budget transfer to a new capital head of expenditure entitled Office Modernisation Project to enable feasibility work to be undertaken.
- Reason for Decision
In accordance with States of Jersey policy and the Public Finances Law (Jersey) Law 2005, funding for work to scope or assess the feasibility of proposed capital projects that the States have agreed, in principle, will start in the future must be allocated from the Central Planning Vote. The £350,000 from the Restructuring Provision must therefore be transferred to the Central Planning Vote to enable an allocation to the Office Modernisation Project.
The Council of Ministers agreed on 22nd July 2015 that funding should be transferred from the Restructuring Provision to the Office Modernisation Project to enable feasibility to be undertaken on the early stages of the project in support of the Public Sector Reform Programme.
The States recognised the need to invest funds to achieve success in the PSR Programme when it approved a Restructuring Provision in the Medium Term Financial Plan. This decision will enable initial site appraisal and feasibility work to progress on the Office Modernisation Project.
Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.
Article 16 (3A) states that the approval by the States of a central planning vote authorizes the Minister to approve –
(a) capital heads of expenditure to fund work to scope or assess the feasibility of proposed capital projects that the States have agreed, in principle, will start in the future; and
(b) the transfer of amounts to such capital heads of expenditure, for such purposes, from the central planning vote.
- Resource Implications
The Restructuring Provision will decrease by £350,000 and the Central Planning Vote will increase by an identical amount. Following a subsequent budget transfer of £350,000 from the Central Planning Vote, the newly created Office Modernisation Project capital head of expenditure will increase by £350,000 and the Central Planning Vote will decrease by £350,000.
This decision does not change the total amount of expenditure approved by the States for 2016 and in the Medium Term Financial Plan.
Report author : Senior Decision Support Officer | Document date 11/08/2015 |
Quality Assurance / Review : Head of Decision Support | File name and path: L:\Treasury\Sections\Corporate Finance\Treasurer Delegated Decisions\TR-2015-DD081 use of proceeds from disposal of gas engine |
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