Health and Social Services: Budget Transfer: Minor Operations Suite and Ambulance and Fire Dispatch System

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A decision made 30 September 2013:

Decision Reference: MD-HSS-2013-0039

Decision Summary Title :

H&SS Budget Transfer from Revenue to Minor Capital to comply with GAAP

Date of Decision Summary:

26 September 2013

Decision Summary Author:

Capital & Control Account Manager

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

Written Report

Title :

H&SS Budget Transfer from Revenue to Capital to comply with GAAP for White Paper

Date of Written Report:

Written Report Author:

Capital & Control Account Manager

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

Non-recurring budget transfer in 2013 from H&SS Revenue to H&SS Minor Capital for the purchase of:

Minor Operations Suite (air handling unit) £208,000
Ambulance and Fire Priority Dispatch System.£112,251

Non-recurring budget transfer in 2013 from the Home Affairs Department Minor Capital to H&SS Minor Capital as a contribution to the Priority Dispatch System

Decision(s):

The Minister approved:

A non-recurring budget transfer in 2013 of £320,251 from the H&SS Revenue head of expenditure to the H&SS Minor Capital head of expenditure.
The transfer of £43,749 from the Home Affairs Department Minor Capital head of expenditure to the H&SS Minor Capital head of expenditure as a contribution towards the Priority Dispatch System

Reason(s) for Decision:

Under Generally Accepted Accounting Principles (GAAP) expenditure that meets the definition of capital expenditure must be capitalised. This budget transfer is the movement in budget 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 generally accepted accounting principles or an Order made under Article 32. Delegation 1.2 delegates authority to the Treasurer of the States for non-contentious transfers between heads of expenditure with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with GAAP or an Order made under Article 32 of the Law.

Article 2(6) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011 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.

Resource Implications:

The H&SS revenue head of expenditure to decrease by £320,251 in 2013, the Home Affairs Minor capital head of expenditure to decrease by £43,749 and the H&SS Minor capital head of expenditure to increase by £364,000. This decision does not change the total amount of expenditure approved by the States.

Action required:

The Minister for Health and Social Services to obtain the approval of the Treasurer of the States in accordance with Financial Direction 3.6 for the transfers described above.

Treasury to process the budget transfers between the H&SS Revenue and Capital heads of expenditure.

Signature:

Position:

Minister For Health & Social Services

Date Signed:

Date of Decision (If different from Date Signed):

Health and Social Services: Budget Transfer: Minor Operations Suite and Ambulance and Fire Dispatch System

Health and Social Services

Minister’s Decision Report

H&SS Budget Transfer from revenue to minor capital to comply with GAAP for white paper initiatives

Purpose of Report

To enable the Minister to approve a non-recurring budget transfer in 2013 of £320,251 from the H&SS Revenue head of expenditure to the H&SS Minor Capital head of expenditure. This budget transfer is required in order to comply with Generally Accepted Accounting Principles (GAAP).

In addition to enable the Minister to approve the transfer of £43,749 from the Home Affairs Department Minor Capital head of expenditure to the H&SS Minor Capital head of expenditure.

Background

White Paper Initiatives

In the Medium Term Financial Plan (MTFP) 2013 – 2015 funding of £4,518,000 was agreed for White Paper initiatives in 2013. In addition a further £516,000 was allocated from the carry forward of White Paper funding allocated part way through 2012.

As part of the White Paper Initiatives there are two capital projects which are ready to be progressed. In order to do so the funding needs to be transferred to capital in line with GAAP and the States of Jersey Accounting Policies. These are as follows:

Expenditure on the Minor Operations Suite to increase hospital capacity £208,000
Implementation of an Ambulance and Fire Priority Dispatch System.£112,251

Minor Operations Suite

This project will facilitate the upgrade of the Minor Operations Suite, including the installation of an air handling unit which meets modern standards for theatre environments.

This will allow the transfer of most ophthalmic procedures from Main Theatres to the Minor Operations Suite which will:

Ensure patients receive care in the most clinically appropriate setting which is less invasive and typically quicker; and
Increase availability of Main Theatre sessions for other specialities which will help to reduce waiting times thereby contributing to sustainable and appropriate acute services.

The total cost of this project is £208,000.

Ambulance and Fire Priority Dispatch System

This proposal is for the installation of a call prioritisation system in the joint fire/ambulance control room. The system will:

Ensure that an appropriate response is sent to a 999 caller in a timely manner;
Enable 999 callers to receive professional consistent advice while awaiting the arrival of emergency services;
Redirect patients calling 999 to the most appropriate service (intermediate care, primary care etc.). This allows patients to be cared for in the community where applicable; and
Provide the support framework in order to establish a community responder scheme.

The overall cost of the project is £156,000. Of this cost, the Home Affairs Department has agreed to contribute £43,749 for the Fire Service elements of the system. The net budget transfer required is therefore £112,251.

Recommendation

It is recommended that the Minister of Health & Social Services:

Approves a non-recurring budget transfer in 2013 of £320,251 from the H&SS Revenue to the H&SS Minor Capital head of expenditure for the following projects:
- Minor Operations Suite £208,000
- Ambulance and Fire Priority Dispatch System.£112,251
Approves the transfer of £43,749 from the Home Affairs department minor capital head of expenditure to the H&SS minor capital head of expenditure as a contribution towards the project; and
Seeks the approval of the Treasurer of the States in accordance with Financial Direction 3.6 for the transfers described above.

Reason for Decision

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 generally accepted accounting principles or an Order made under Article 32. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with GAAP or an Order made under Article 32 of the Law.

Resource Implications

Report author : Capital & Control Account Manager	Document date : 26September 2013
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