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Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Budget Transfer relating to Asbestos Reception works

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A decision made 27 April 2015:

Decision Reference:  MD-T-2015-0028

 

Decision Summary Title :

Transfer between the TTS Revenue and the TTS Capital Head of Expenditure for Asbestos Reception Cell works

Date of Decision Summary:

21 April 2015

 

Decision Summary Author:

Operations and Contracts Manager

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title :

Transfer between the TTS Revenue and the TTS Capital Head of Expenditure for Asbestos Reception Cell works

Date of Written Report:

21 April 2015

Written Report Author:

Operations and Contracts Manager

Written Report :

Public or Exempt?

Public

Subject: Transfer between the TTS Revenue and the TTS Capital Head of Expenditure for Asbestos Reception works.

 

Decision(s): The Minister approved an internal budget transfer of up to £200,000 from the Transport and Technical Services (TTS) revenue head of expenditure to the capital head of expenditure (Q00MD11091).

 

Reason(s) for Decision: To enable TTS to achieve the requirement to provide a new asbestos transfer station away from major hazards by allowing expenditure to be incurred on both revenue and capital programmes.

 

Resource Implications: Other than those detailed in the report there are no further financial or manpower implications.

 

Action required: The Minister for Transport and Technical Services to seek approval from the Minister for Treasury and Resources for the budget transfer highlighted above. The Finance Director for Transport and Technical Services will then action the budget transfers in conjunction with the Head of Financial Performance Reporting.

 

Signature:

 

 

Position:

Minister for Transport and Technical Services

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

Budget Transfer relating to Asbestos Reception works

TRANSPORT AND TECHNICAL SERVICES DEPARTMENT

 

BUDGET TRANSFER BETWEEN REVENUE AND CAPITAL HEADS OF

 

EXPENDITURE FOR ASBESTOS RECEPTION

 

WORKS

 

 

Purpose of Report

To request the Minister to approve an internal budget transfer of up to £200,000 from the Transport and Technical Services (TTS) revenue head of expenditure to the capital head of expenditure (Q00MD11091).

 

 

Background

The original allocation of capital funding for a new asbestos waste transfer station and associated works was based on an estimate in 2011. Since this date firm design solutions and costs have been established. These take into account inflation and other factors including the deterioration of the proposed asbestos cell.

 

Under MD-TR-2015-0045 the Treasury and Resources Minister approved departmental carry forwards, including the sum of £1,180,640 relating to disposal of asbestos waste.  In order for TTS to construct the new asbestos reception and transfer station some of this funding needs to be allocated to capital.  The asbestos disposal carry forward into 2015 originally came from the same funding source as this capital head of expenditure in 2011.

 

 

Discussion

The States of Jersey implemented Generally Accepted Accounting Principles (GAAP) in 2009 and subsequently moved to IFRS accounting in 2012. IFRS accounting requires that expenditure should be accounted for as capital if it meets the IFRS accounting definition of capital expenditure, and revenue otherwise.

 

These budget transfers move budgets between revenue and capital so as to align the budgeting treatment of 2015 expenditure with the IFRS accounting treatment.

 

 

Recommendation

That the Minister approves the budget transfer of up to £200,000 from the TTS revenue head of expenditure to the TTS capital head of expenditure (Q00MD11091) to enable TTS to achieve the urgent asbestos reception infrastructure works.

 

 

Reason for Decision

Under Financial Direction 3.6 and the Public Finances (Jersey) Law 2005, the approval of the Minister for Treasury and Resources is required for any variations to heads of expenditure. Authority to approve non-contentious budget transfers under £1,000,000 has been delegated to the Treasurer of the States.

 

Resource Implications

The TTS revenue head of expenditure will decrease by up to £200,000 throughout 2015 and the TTS capital head of expenditure will increase by the identical amount.

 

 

Action Required

 

The Minister for Transport and Technical Services to seek approval from the Minister for Treasury and Resources for the budget transfer highlighted above. The Finance Director for Transport and Technical Services will then action the budget transfers in conjunction with the Head of Financial Performance Reporting.

 

 

 

 

 

 

Written by

Operations and Contracts Manager

Approved by

Director of Finance

 

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