Treasury and Resources
Ministerial Decision Report
Allocation of £6.756 million from Central Contingencies to Various Capital Heads of Expenditure
- Purpose of Report
To approve a non-recurring allocation of £6.756 million from Central Contingency to the Department for Infrastructure (DFI) and Department of the Environment (DOE) in relation to the return of unspent capital allocations to Central Contingencies £5.756 million per MD-TR-2017-0138 and the anticipated unspent Contingencies up to £1 million to be carried forward and reallocated as identified and presented to the States assembly during the 2018 budget debate (P90/2017).
- Background
On 17th November 2017 the Treasury and Resources Minister signed a Ministerial Decision (MD-TR-2017-0138) approving a non-recurring transfer of £5.756 million from various capital heads of expenditure to Central Contingencies. This unspent budget could then be reprioritised to in order to manage the significant pressure on the capital programme over the coming years and support other key priorities without increasing the total amount of expenditure approved by the States.
The states approved the 2018 Capital Programme (P90/2017) which has been funded from a number of sources to manage the requirements within available funding, and the table below is an extract from the Budget Statement 2018.
3. Recommendation
The Minister is recommended to approve:
- The allocation of £5.158 million in 2018 from Central Contingency to the various capital heads of expenditure detailed below, and;
- The allocation of £1.598 million in 2018 from Central Contingency in respect of future amounts required for 2019 to the various capital heads of expenditure detailed below:
4. Reason for Decision
Article 18(1A) 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 the head of expenditure to contingency expenditure, within or after the end of the relevant financial year.
Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.
The current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from Contingency over £100,000 to be considered by the Council of Ministers prior to submission to the Minister for approval.
Ministerial Decision, MD-T-2017-0138 was signed by the Minister for Treasury and Resources on 17th November 2017.
The funding proposals for the 2018 Capital Programme (P90/2017) was approved by the States of Jersey on the 30th November 2017.
5. Resource Implications
The following capital heads of expenditure budget to increase by £6.756 million in 2018 and Central Contingencies to decrease by £6.756 million as detailed in the table below.
This decision does not change the total amount of expenditure approved by the States for 2017 – 2019 in the Medium Term Financial Plan.
Report author : Head of Decision Support | Document date: 3rd January 2018 |
Quality Assurance / Review : Director of Financial Planning and Performance | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2018-0002 - C18 Contingency funding for various capital heads of expenditure £6.756m |
MD sponsor : Director of Financial Planning and Performance |