TRANSPORT AND TECHNICAL SERVICES DEPARTMENT
BUDGET TRANSFER FROM THE TTS REVENUE HEAD OF
EXPENDITURE TO THE TTS INFRASTRUCTURE CAPITAL HEAD OF
EXPENDITURE FOR PARISH CENTRE IMPROVEMENTS
Purpose of Report
To enable the Minister to approve an internal budget transfer of up to £450,000 from the Transport and Technical Services (TTS) Revenue Head of Expenditure to the TTS Infrastructure Capital Head of Expenditure (Q00RL10011).
Background
A proposal was made within the Medium Term Financial Plan (MTFP) for TTS to implement schemes to address longstanding traffic issues and enhance the village environments at the centre of each Parish. This money was awarded into the TTS Revenue Head of Expenditure, however, in order for TTS to achieve this proposal the funding is required to be spent on both Revenue and Capital programmes.
Discussion
The States of Jersey implemented Generally Accepted Accounting Principles (GAAP) in 2009 and subsequently moved to International Financial Reporting Standards (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.
Previously, ‘Capital’ budgets have represented whatever the States Assembly voted as Capital. The States have already approved Capital allocations for 2013 in the 2013 – 2015 MTFP Plan. This budget transfer move between Revenue and Capital is required so as to align the budgeting treatment of 2013 expenditure with the IFRS accounting treatment.
Recommendation
That the Minister approves the budget transfer of up to £450,000 from the TTS Revenue Head of Expenditure to the TTS Capital Head of Expenditure (Q00RL10011) to enable TTS to achieve the Parish Centre Improvements projects as highlighted within the MTFP.
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 £450,000 in 2013 and the TTS Infrastructure Capital Head of Expenditure for Parish Centre Improvements will increase by an identical amount in 2013.
Action required
The Minister for TTS to seek approval from the Minister for Treasury and Resources for this budget transfer. The Finance Director for Transport and Technical Services will then action the budget transfer in conjunction with the Head of Financial Performance Reporting.
Written by: | Capital Accountant |
Approved by: | Director of Finance |