Budget Transfer (GAAP) Accounting: Purchase of Vehicle: Rouge Bouillon School

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A decision made 29 June 2012:

Subject:	Revenue to Capital Budget Transfer for School Minibus
Decision Summary:	MD-ESC-2012-0015	Date of Decision Summary:		19th June 2012
Decision Summary Author:	Lynne Haws ESC Finance Manager	Decision Summary: Public or Exempt?		Public
Type of Report Oral or Written):	Written	Person Giving Oral Report:		N/A
Written Report Title:	Revenue to Capital Budget Transfer for School Minibus – Rouge Bouillon School	Date of Written Report:		19th June 2012
Written Report Author:	Lynne Haws ESC Finance Manager	Written Report: Public or Exempt		Public
Subject:	Budget transfer – revenue to capital - purchase of a vehicle: Rouge Bouillon School
Decision(s): The Minister for Education, Sport and Culture approved a non-recurring budget transfer in 2012 of £26,658.50 from the ESC revenue head of expenditure to the ESC Minor Capital capital head of expenditure.
Reason(s) for decision: The Minister for Education, Sport and Culture (ESC) authorised a non-recurring 2012 budget transfer from the ESC revenue head of expenditure to the ESC Minor Capital capital head of expenditure for the purchase of a vehicle to enable Rouge Bouillon School to take children out of school for curriculum and developmental purposes and in order to comply with Generally Accepted Accounting Principles (GAAP). The States of Jersey implemented Generally Accepted Accounting Principles (GAAP) in 2009. GAAP accounting requires that expenditure should be accounted for as capital only if it meets the GAAP accounting definition of capital expenditure, and revenue otherwise. This budget transfer moves budget between revenue and capital so as to align the budgeting treatment of 2012 expenditure with GAAP.
Resource Implications : The ESC revenue head of expenditure to decrease by £26,658.50 and the ESC Minor Capital capital head of expenditure to increase by an identical amount in 2012. This decision does not change the total amount of expenditure approved by the States.
Action required: For officers of the Department to request the approval of the Treasurer of the States to the transfer in accordance with Financial Direction 3.6
Signature:			Position:
Date Signed:			Date of Decision:

Budget Transfer (GAAP) Accounting: Purchase of Vehicle: Rouge Bouillon School

Education, sport & culture MINISTER

REVENUE TO CAPITAL TRANSFER

Purpose of Report

For the Minister for Education, Sport and Culture to approve the following revenue to capital transfer in order to comply with GAAP requirements:-

£26,658.50, representing the money required to finance the purchase of a vehicle to act as a school wide resource for the transportation of students for Rouge Bouillon School.

Background

This purchase is to replace an ageing bus, J41626 which was donated from Ace of Clubs. The total cost of £26,658.50 includes the cost of the vehicle and the signage and VRD and needs to be transferred from a revenue account. There are no other manpower or cost implications, both staffing and maintenance costs have been identified from the current resources allocated to the school. The bus was purchased through JFM as per the new arrangement.

Under Financial Direction 3.6, the approval of the Treasurer of the States is required for transfers up to £1,000,000.

Recommendation

That the Minister for Education, Sport & Culture approves the transfer of £26,658.50 from revenue to capital to fund the purchase of the Rouge Bouillon minibus.