Countryside Infrastructure: Budget transfer

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 6 October 2014:

Decision Reference: MD-PE-2014-0089
Decision Summary Title:	Department of the environment GAAP capital to revenue transfer for countryside infrastructure		Date of Decision Summary:	2nd October 2014
Decision Summary Author:	Finance Manager - DoE		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Department of the environment GAAP capital to revenue transfer for countryside infrastructure		Date of Written Report:	2nd October 2014
Written Report Author:	Finance Manager - DoE		Written Report : Public or Exempt?	Public
Subject: Non-recurring Generally Accepted Accounting Principles (GAAP) budget transfer for Countryside Infrastructure
Decision(s): The Minister approved a non-recurring budget transfer of up to £200,000 over 2014 and 2015 from the Department of the Environment (DoE) capital head of expenditure (I00MF14015) to the DoE revenue head of expenditure for Countryside Infrastructure.
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 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. Within the Medium Term Financial Plan DoE was awarded £200,000 of capital funding to “maintain the national park and environmental car parks”. In order to gain the best environmental impact from work on the national park the Department needs to identify and assess the biological assets within these highly diverse habitats. The Department has commenced with this work but will not complete everything until 2015. These pieces of work are essential for informing the Department’s ongoing maintenance programme, however, under accounting principles they cannot be capitalised and therefore require being expensed through the Department’s Statement of Comprehensive Net Expenditure. The Department is currently estimating that the total expenditure which will require transfer is £100,000; however, the majority of this work is investigatory in nature and as such may result in additional expenditure up to £200,000.
Resource Implications: Over 2014 and 2015 the DoE Countryside Infrastructure capital head of expenditure will decrease by up to £200,000 and the DoE revenue head of expenditure will increase by an identical amount. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2013 to 2015.
Action required: DoE Finance Manager to inform the Treasury and Resources Business Manager that this decision has been approved so that the Treasurer’s decision can be progressed.
Signature:		Position:
Date Signed:		Date of Decision:

Budget transfer for Countryside Infrastructure

Department of the Environment

Ministerial Decision Report

Department of the environment GAAP Capital to revenue transfer for couNtryside infrastructure

Purpose of Report

To enable the Chief Officer to approve a non-recurring budget transfer of up to £200,000 over 2014 and 2015 from the Department of the Environment (DoE) capital head of expenditure (I00MF14015) to the DoE revenue head of expenditure to comply with Generally Accepted Accounting Principles (GAAP).

Background

Within the Medium Term Financial Plan DoE were awarded £200,000 of capital funding to “maintain the national park and environmental car parks”. In order to gain the best environmental impact from work on the national park the Department needs to identify and assess the biological assets within these highly diverse habitats. The Department has commenced with this work but will not complete everything until 2015. These pieces of work are essential for informing the Department’s ongoing maintenance programme, however, under accounting principles they cannot be capitalised and therefore require being expensed through the Department’s Statement of Comprehensive Net Expenditure. The Department is currently estimating that the total expenditure which will require transfer is £100,000; however, the majority of this work is investigatory in nature and as such may result in additional expenditure up to £200,000.

3. Recommendation

The Chief Officer is recommended to approve a non-recurring budget transfer of up to £200,000 over 2014 and 2015 from the DoE capital head of expenditure (I00MF14015) to the DoE revenue head of expenditure for Countryside Infrastructure.

4. 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 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

Over 2014 and 2015 the DoE Countryside Infrastructure capital head of expenditure will decrease by up to £200,000 and the DoE revenue head of expenditure will increase by an identical amount. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2013 to 2015.

Report author : Finance Manager	Document date :
Quality Assurance / Review :	File name and path: I:\FINANCE\Ministerial Decisions\DOE\2014\Countryside Infrastructure Cap – Rev\WR – DoE GAAP Cap to Rev Countryside Infra