Government of Jersey

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A decision made 12 July 2010 regarding: Budget transfer - GAAP accounting.

Decision Reference: MD-C-2010-0066
Decision Summary Title :	Capital to Revenue budget transfer - 2011		Date of Decision Summary:	9th June 2010
Decision Summary Author:	Anne Homer, Finance Director		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Transfer of CMD-ISD budgets in the approved Business Plan subject to States approval of the 2011 Business Plan.		Date of Written Report:	9th June 2010
Written Report Author:	Tony Baden, Finance Manager		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Transfers between capital and revenue heads of expenditure as a result of moving to GAAP accounting for the 2011 CMD-ISD budget.
Decision(s): The Minister approved, subject to States approval of the 2011 Business Plan, the 2011 budget transfers between capital and revenue, representing a recurring net budget transfer of £500,000 as detailed in the attached report.
Reason(s) for Decision: The States of Jersey implemented Generally Accepted Accounting Principles (GAAP) in 2009. GAAP accounting requires that only expenditure meeting its definition of capital should be treated as such and that all other expenditure must be accounted for as revenue. This budget transfer is the movement in 2011 between capital and revenue and is required to align the budgeting treatment with GAAP. This does not change the total amount of expenditure approved by the States.
Resource Implications: There are no resource implications.
Action required: The Corporate Group departmental Finance Director to seek the approval of the Minister for Treasury & Resources for the transfer. Once approval is obtained the departmental Finance Director to action the budget transfers.
Signature:		Position: Senator T.A. Le Sueur, Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):