Budget Transfer: Revenue and Minor Capital Heads of Expenditure

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A decision made on 3 December 2015:

Decision Reference: MD-HA-2015-0077
Decision Summary Title:	Non Recurring Budget Transfers to Comply with GAAP Accounting		Date of Decision Summary:	30 October 2015
Decision Summary Author:	Finance Director, Home Affairs		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title :	Non Recurring Budget Transfers to Comply with GAAP Accounting (Joint Control Room)		Date of Written Report:	30 September 2015
Written Report Author:	Finance Director, Home Affairs		Written Report : Public or Exempt?	Qualified Exempt Article 42 of the Freedom of Information (Jersey) Law 2011
Subject: Capital expenditure for the States of Jersey Police Headquarters Joint Control Room – a non-recurring budget transfer between the Home Affairs (HA) revenue head of expenditure and HA minor capital head of expenditure.
Decision(s): The Minister approved a non-recurring budget transfer of £267,000 for 2015 in order to comply with GAAP accounting as set out in the accompanying report.
Reason(s) for Decision: Under GAAP accounting expenditure that meets the definition of capital expenditure must be capitalised. These budget transfers are the movement in budgets between capital and revenue required to align the budgeting treatment of expenditure with the accounting treatment, in order to comply with GAAP. Article 18(1)(a) 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 transferred from a revenue head of expenditure to a capital head of expenditure, or vice versa, in order to comply with accounting standards issued for the purposes of Article 32(2). Delegation 1.2 delegates authority for non-contentious transfers between revenue and capital heads of expenditure (and vice versa) with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with accounting standards issued under Article 32(2) of the Law.
Resource Implications: The HA revenue head of expenditure to decrease by £267,000 and the HA minor capital head of expenditure to increase by an identical amount in 2015. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2013 to 2015. This decision does not change the total amount of expenditure approved by the States.
Action required: Finance Director to seek the approval of the Minister for Treasury and Resources in accordance with Financial Direction 3.6. (Treasurer’s Delegation).
Signature:		Position: Minister for Home Affairs
Date Signed:		Date of Decision (If different from Date Signed):