Treasury and Exchequer and Chief Operating Office Departments: Revenue Management System Project Revenue to Capital Budget Transfers 2020

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A decision made on 28 August 2020

Delegated decision reference: MD-TR-2020-0104
Decision Summary Title:	Treasury and Exchequer and Chief Operating Office Departments: RMS project Revenue to Capital Budget Transfers 2020	Date of Decision Summary:		27th August 2020
Decision Summary Author:	Finance Business Partner – T&E/ COO	Decision Summary: Public or Exempt?			Public
Type of Report: Oral or Written?	Written	Person Giving Oral Report:			N/A
Written Report Title:	Treasury and Exchequer and Chief Operating Office Departments: RMS project Revenue to Capital Budget Transfers 2020	Date of Written Report:			27th August 2020
Written Report Author:	Finance Business Partner – T&E	Written Report: Public or Exempt?			Public
Subject: Transfers of budget from: Treasury and Exchequer (T&E) Head of Expenditure (D35GP20010); and Chief Operating Office (COO) Head of Expenditure (D05GP20001) to the Taxes Office System Renewal Capital head of expenditure (C00MF16014).
Decision(s): The Minister for Treasury and Resources approved the following budget transfers in 2020: up to £587,000 from T&E Head of Expenditure (D35GP20010); and up to £750,000 from COO Head of Expenditure (D05GP20001) to the Taxes Office System Renewal Capital Head of Expenditure (C00MF16014) to fund the Revenue Management System build in Revenue Jersey.
Reason(s) for Decision: Article 18(1)(a) of the Public Finances (Jersey) Law 2019 states that a specified amount appropriated for one head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure that is set out in the government plan. Article 18(5) of the Public Finances (Jersey) Law 2019 states that if a direction under this Article would affect a head of expenditure that relates to the responsibilities of any Minister, that Minister must be consulted before the direction is made. The Ministers have been consulted and agree the transfer. P.28/2020 Draft Public Finances (Amendment of Law) (Jersey) Regulations 202-, approved by the States Assembly on 24th March 2020, temporarily removed the requirement for the Minister to give the States at least 4 weeks’ notice of the day on which the Minister proposes to give a direction under Article 18.
Resource Implications: The Taxes Office System Renewal Capital Head of Expenditure will increase by up to £1,337,000. The T&E Head of Expenditure (D35GP20010) will decrease by up to £587,000 in 2020 and the COO Head of Expenditure (D05GP20001) will decrease by up to £750,000 in 2020. This decision does not change the total amount of expenditure approved by the States in the Government Plan for 2020-23. Changes to current indicative allocations for 2021 onwards will be reflected in the Government Plan 2021-2024.
Action required: The Head of Financial Governance to notify the Head of Finance Business Partnering for T&E, COO and OCE once the decision has been signed.
Signature:			Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:			Date of decision:

Treasury and Exchequer and Chief Operating Office Departments: Revenue Management System Project Revenue to Capital Budget Transfers 2020

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GoJ logo red English Treasury and Exchequer

Ministerial Decision Report

Treasury and Exchequer and Chief Operating Office Departments: RMS project Revenue to Capital Budget Transfers 2020

Purpose of Report

To enable the Minister to approve the following budget transfers in 2020:

• up to £587,000 from T&E Head of Expenditure (D35GP20010); and

• up to £750,000 from COO Head of Expenditure (D05GP20001)

to the Taxes Office System Renewal Capital Head of Expenditure (C00MF16014) to fund the Revenue Management System build in Revenue Jersey.

Background

Transfers are proposed in 2020 from the T&E and COO Revenue heads of expenditure to a Capital head of expenditure. The transfers are needed to ensure capital project budgets will be sufficient for the RMS project to be finished to completion and costs appropriately accounted for.

Below is an extract from the original Business Case which outlines the summary of the project:

This case seeks investment to continue the work of the team building Revenue Jersey (previously the business case designated Taxes Office 05). The team’s funding ends with MTFP2 and a residual – smaller – team is needed to continue the work to integrate other revenue streams into the new department, to continue the development of the new Revenue Management System and to continue executing the benefits realisation plans of our programme. In particular, over the coming few years, the team will need to work with our suppliers to re-develop the personal-taxation components of the Revenue Management system (in response to the current significant review); and integrate the collection of social security contributions into Revenue Jersey.

This case also includes funding to maintain a Taxes Helpdesk within the C&LS one-stop shop at La Motte Street. This was previously funded from contingency until 2019. It is not expected that channel-shifting activities will substantially reduce the need for face-to-face help for some years.

3. Recommendation

The Minister is recommended to approve the following budget transfers in 2020:

• up to £587,000 from T&E Head of Expenditure (D35GP20010); and

• up to £750,000 from COO Head of Expenditure (D05GP20001)

to the Taxes Office System Renewal Capital Head of Expenditure (C00MF16014) to fund the Revenue Management System build in Revenue Jersey.

4. Reason for Decision

Article 18(1)(a) of the Public Finances (Jersey) Law 2019 states that a specified amount appropriated for one head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure that is set out in the government plan.

Article 18(5) of the Public Finances (Jersey) Law 2019 states that if a direction under this Article would affect a head of expenditure that relates to the responsibilities of any Minister, that Minister must be consulted before the direction is made. The Ministers have been consulted and agree the transfer.

P.28/2020 Draft Public Finances (Amendment of Law) (Jersey) Regulations 202-, approved by the States Assembly on 24th March 2020, temporarily removed the requirement for the Minister to give the States at least 4 weeks’ notice of the day on which the Minister proposes to give a direction under Article 18.

5. Resource Implications

The Taxes Office System Renewal Capital Head of Expenditure will increase by up to £1,337,000. The T&E Head of Expenditure (D35GP20010) will decrease by up to £587,000 in 2020 and the COO Head of Expenditure (D05GP20001) will decrease by up to £750,000 in 2020.

This decision does not change the total amount of expenditure approved by the States in the Government Plan for 2020-23. Changes to current indicative allocations for 2021 onwards will be reflected in the Government Plan 2021-2024.

Report author : Finance Business Partnering T&E	Document date 27th August 2020
Quality Assurance / Review :Head of Financial Governance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2020-0104 - Transfer of funding from Revenue to Capital within T&E and COO
MD Sponsor: Treasurer of the States