E J Bailhache Charitable Trust Fund: Transfer to fund ward refurbishment costs in HSS

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A decision made on 29 June 2020

Decision Reference: MD-HSS-2020-0043
Decision Summary Title:	Transfer from the E J Bailhache Fund to fund non-recurrently acute hospital ward refurbishment costs		Date of Decision Summary:	3rd June 2020
Decision Summary Author:	Head of Finance Business Partnering (Hospital)		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Transfer from the E J Bailhache Fund for ward refurbishment costs.		Date of Written Report:	3rd June 2020
Written Report Author:	Head of Finance Business Partnering (HCS)		Written Report : Public or Exempt?	Public
Subject: Use of E J Bailhache Charitable Trust Fund to fund ward refurbishment costs in HCS. The Ministerial Decision is seeking the proposed distribution of up to a maximum of £0.826m non-recurrent funding to be drawn down over 2020 and 2021 as required from the E J Bailhache Charitable Fund, to the HCS head of expenditure in respect of support to the cost of ward refurbishments relating to Rozel, Sorel and Bartlett wards • Upgrade Rozel ward (medical ward) • Move Sorel Ward into Rozel, undertake improvements in Sorel, upgrade Sorel Ward – move back to Sorel • Transfer Rayner Ward to Plemont to undertake improvements in Rayner – move back to Rayner • Transfer Bartlett to Plemont and undertake improvements to Bartlett
Approval of the use of the E J Bailhache Fund This has been proposed by the Director General of Health and Community Services. A Charitable Trust Fund committee is being set up to provide suitable governance in the future for such decisions. In the absence of this committee being in place with delegated authority, a Ministerial Decision is being sought. The late E J Bailhache bequeathed assets for the following purposes, as detailed in her Will dated 20th September 1974, to be used by the “Public of the Island of Jersey for the benefit of the Public Health Committee (now the Minister for Health and Social Services) of the States of Jersey, for the general welfare of persons elderly, and/or blind or sick at the General Hospital.”
Decision(s): The Minister of Health and Social Services approved the distribution up to a maximum of £0.826m non-recurrent funding in 2020 and 2021 from the E J Bailhache Fund, to the HCS Head of Expenditure in respect of: Ward refurbishment relating to Rozel, Sorel, and Bartlett Wards
Reason(s) for Decision: The transfer of £0.826m from the E. J Bailhache Fund aligns with the purpose of the charitable trust fund which is: “for the general welfare of persons elderly and/or blind or sick at the General Hospital.”
Resource Implications: The HCS revenue head of expenditure will increase by a maximum £0.826m in 2020 and 2021. The balance on the E J Bailhache Fund will reduce by a maximum of £0.826m in 2020 and 2021.
Action required: Authorisation will be sought from the Minister for Treasury & Resources to use the transferred income to meet the costs of ward refurbishments in accordance with Article 21 of the Public Finances (Jersey) Law 2019. A Treasurer decision will be obtained to facilitate the drawdown of £0.826m from the Common Investment Fund.
Signature:		Position: Deputy Richard Renouf Minister for Health & Social Services
Date Signed:		Date of Decision:

E J Bailhache Charitable Trust Fund: Transfer to fund ward refurbishment costs in HSS

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Health & Community Services

Ministerial Decision Supporting Report

TRANSFER FROM THE E. J Bailhache Fund Charitable Fund to HCs revenue account

to support Hospital Ward refurbishments

Purpose of Report

To request a distribution of up to a maximum of £0.826m from the Bailhache Charitable Trust Fund to the Health and Community Services (HCS) revenue head of expenditure in 2020 and 2021 to meet the costs of;

Refurbishment of three wards (Rozel £0.476m, Sorel £0.150m, Bartlett £0.2m)

Background

2.1 Our Hospital Project

The initiative to provide an updated/new acute hospital in Jersey began in 2012 it was known as the “Future Hospital project” however the project experienced several challenges which resulted in the project being closed. The need for a new hospital remains and as such the Our Hospital Project “Our Hospital” has progressed with a new hospital forecast to be completed in c2026.

It was recognized by the Health Minister in November 2018 that the current hospital buildings were not fit for purpose; with some areas not able to meet either modern health standards or the requirement of regulations. It is also acknowledged that the maintenance of the existing buildings needed to be managed and prioritised to minimize clinical risk and maintain a good patient experience until the new hospital is delivered.

The Government Plan 2020-2023 has set aside £5m a year to address the backlog maintenance work required, this will seek to address infection prevention, isolation and support compliance with JNASS standards, privacy and dignity.

2.2 Backlog Maintenance

The backlog maintenance requirements arising from limited investment in the last decade are significant and as such have required prioritisation. For 2020 the funding available has been targeted to deliver the work associated with the engineering and basic infrastructure. There is insufficient funding to support the soft ward refurbishment improvements (decorating, minor changes or improvements) which are important to the patient experience and wellbeing. Ideally the timing of these would be aligned to the timing of the hard infrastructure upgrades planned in the ward areas (Water, electrical infrastructure etc.).

In 2020/ 2021 it is planned to

Upgrade Rozel ward (medical ward)
Move Sorel Ward into Rozel, undertake improvements in Sorel upgrade Sorel Ward – move back to Sorel
Transfer Rayner ward to Plemont to undertake improvements in Rayner – move back to Rayner
Transfer Bartlett to Plemont undertake improvements to Bartlett

At the time of writing the timing of the ward refurbishment programme is expected to be affected by the need for HCS to respond to the Coronavirus and as such whilst a commitment to the £0.826m is requested from the Charitable Trust Fund, the drawdown of the funding is requested to be allowed over 2020 and 2021 when required.

HCS are seeking a total of a maximum of £0.826m to support the associated ward upgrades cost, it is requested that a commitment of £0.826m is made non-recurrently to HCS from The Bailhache Charitable Trust Fund noting that this use of the fund accords with the purpose of the fund as set out in paragraph 3.

3.0 Background/Purpose of The E. J Bailhache Fund

The late E J Bailhache bequeathed assets for the following purposes, as detailed in her Will dated 20th September 1974:

“Public of the Island of Jersey for the benefit of the Public Health Committee (now the Minister for Health and Social Services) of the States of Jersey, for the general welfare of persons elderly, and/or blind or sick at the General Hospital.”

3.1 Fund Balance

The fund is composed of Jersey based property, cash and investments in equities, bonds and alternatives. As at the end of 2019 the fund value is £5.5m. Of which £2.9m is represented through property ownership. £55k is held in the bank, the remainder is held in the Common Investment Fund.

Although the Will makes no differentiation between whether distributions should be made from capital or income of the Fund, until a reserves policy is adopted grants will be made with due regard to the reduction of the fund capital sum. (Including this grant of £0.826m the fund will have seen a reduction of £0.426m over a 3 year period.

4.0 Approval of the use of the E J Bailhache Fund

This has been proposed by the Director General of Health and Community Services. A Charitable Trust Fund committee is being set up to provide suitable governance in the future for such decisions, in the absence of this committee being in place with delegated authority a Ministerial Decision is being sought.

The late E J Bailhache bequeathed assets for the following purposes, as detailed in her Will dated 20th September 1974 to be used “Public of the Island of Jersey for the benefit of the Public Health Committee (now the Minister for Health and Social Services) of the States of Jersey, for the general welfare of persons elderly, and/or blind or sick at the General Hospital.”

5.0 Recommendation

The Minister is recommended to approve the distribution of £0.826m from the E J Bailhache Fund, to be transferred on a non-recurrent basis to the HCS revenue head of expenditure in 2020 and 2021.

Following approval of the recommendation the following will take place;

Authorisation will also be sought from the Minister for Treasury & Resoources to use the transferred income against the Estates budget in accordance with Article 21 of the Public Finances (Jersey) Law 2019.
A Treasurer Decision will be obtained to facilitate the drawdown of £0.826m from the Common Investment Fund.

6.0 Reason for Decision

Approval of grants made from the E J Bailhache Fund are required to be approved by the Minister of Health and Social Services.

Article 21 of the Public Finances (Jersey) Law 2019 states that where a States body or area of operation will earn income more than that estimated in an approved government plan during that financial year, the Minister for Treasury and Resources may direct that the excess income be allocated to a head of expenditure set out in the plan.

6.0 Resource Implications

The balance of funds on the E J Bailhache Fund will reduce from £5.54m by £0.826m to £4.71m.

The revenue budget head of expenditure available for HCS will increase by £0.826m this will equate to the expenditure incurred in accordance with this fund distribution request.

	Name and Signature
Report Author -Head of Finance Business Partnering (Hospital)	Jo Larkin	Document date 3rd June 2020
Quality Assurance / Review: Group Director	Steven Mair	File name and path:
Director General sponsor:	Caroline Landon	File name and path: