States Treasury and Exchequer
Ministerial Decision Report
Health and Community Services: Use of income from gift funds and transfer between capital heads of expenditure
- Purpose of Report
To request the approval of:
- The transfer of £1 million from gift funds to the Health and Community Services revenue head of expenditure in 2019 and the use of that additional income;
- The use of £1.07 million from capital head of expenditure JJZO106 (Equipment Replacement) to install a second new MRI to modern standards; and,
- The transfer of up to £330,000 from the MRI Scanner capital head of expenditure JZO115 to the Equipment Replacement capital head of expenditure.
- Background
The Health and Community Services Department currently has some capital funding for the purchase of a replacement MRI scanner. The Department considers that the best approach is to purchase a second MRI scanner, and has approached the Minister for Treasury and Resources to endorse the change of use for that capital head of expenditure.
The Department is able to use £1 million from the various gift funds to part fund the purchases. The remainder, apart from the existing balance, will be transferred from the Capital Replacement head of expenditure. The Department also requires additional revenue budget in 2019. Rather than transfer the gift fund income to capital, and then make a transfer back from revenue to capital, the gift fund income will remain in revenue but is effectively supporting the purchase of the second scanner.
The table below shows the gift funds which are planned to be used – balances are estimated:
Funding source (gift funds):- | | | | | £ | £ |
• | RM Vinson | | 700.0 | |
• | AM Newton | | 254.0 | |
• | M Hunt | | 46.0 | |
| | | | | | | | | 1,000.0 |
The proposal meets the terms of all bequests and will completely exhaust the 3 funds listed. If there is any shortfall on the liquidation of the assets of the Funds, it is proposed to take the balance from the EJ Bailhache gift fund which is also suitable for this purpose.
3. Recommendation
The Minister is recommended to approve:
- The transfer of £1 million from gift funds to the Health and Community Services revenue head of expenditure in 2019 and the use of that additional income;
- The use of £1.07 million from capital head of expenditure JJZO106 (Equipment Replacement) to install a second new MRI to modern standards; and,
- The transfer of up to £330,000 from the MRI Scanner capital head of expenditure JZO115 to the Equipment Replacement capital head of expenditure.
4. Reason for Decision
Article 19(1) of the Public Finances (Jersey) 2005 states that If, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure
(a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income.
Article 18(1)(c) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.
Article 18(1B) of the Public Finances (Jersey) Law 2005 states that the Minister shall, after consulting the Chief Minister and PAO, give the States Assembly at least 2 weeks’ notice before an amount is transferred under paragraph (1)(c).
Article 18(1C) of the Public Finances (Jersey) Law 2005 states that before giving notice under paragraph (1B), the Minister shall, in relation to any States funded body, consult the Minister responsible for that body. The Ministers for the departments listed have been consulted. The Chief Minister and Principal Accountable Officer (PAO) have been consulted.
5. Resource Implications
The balance on the MRI scanner capital head of expenditure will reduce to zero following the transfers and the purchase of the second MRI scanner. The balances on the Vinson, Newton and Hunt gift funds will reduce to zero and they will be closed.
This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016-2019.
This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016-2019.
Report author : Head of Decision Support | Document date 4th January 2019 |
Quality Assurance / Review : Director of Financial Planning and Performance/ | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2019-0001 - H&CS various capital transfers |
MD Sponsor: Director of Financial Planning and Performance |