Approval of Capital Expenditure from Trading Funds

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A decision made (03.06.08) to delegate all future approvals under Article 22 of the Public Finances (Transitional Provisions) (No.2) (Jersey) Regulations 2005 to the Treasurer of the States where the amount is less than £100,000)

Decision Reference: MD-TR-2008-0069
Decision Summary Title:	Approval of capital expenditure from Trading Funds		Date of Decision Summary:	29th May 2008
Decision Summary Author:	Kevin Hemmings Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Approval of capital expenditure from Trading Funds		Date of Written Report:	29th May 2008
Written Report Author:	Kevin Hemmings Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Delegation of future decisions relating to trading fund capital expenditure.
Decision(s): The Minister agreed to Delegate all future approvals under Article 22 of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005 to the Treasurer of the States where the amount concerned is less than £100.000
Reason(s) for Decision: The Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005 require the Minister to approve capital expenditure from Trading Funds where previous amounts approved by the States have been insufficient. This decision delegates those approvals in certain circumstances.
Resource Implications: Other than those detailed in the report there are no further financial or manpower implications.
Action required: None.
Signature:		Position: Senator T A Le Sueur, Minister for Treasury and Resources
Date Signed: 3rd June 2008		Date of Decision: 3rd June 2008

Approval of Capital Expenditure from Trading Funds

TREASURY AND RESOURCES MINISTER

Approval of capital expenditure

from Trading Funds

1. Purpose of Report

To enable the Minister to delegate approval of the use of trading funds in accordance with the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005.

2. Background

The Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005 include the following at Article 22:

“Money standing to the credit of the trading fund of a States trading operation may also be used, with the approval of the Minister, for a capital project of the trading operation if –

(a) the amount approved by the States for the project as part of an annual business plan has proved to be insufficient; or

(b) the project arises from a contingency that could not have been reasonably foreseen at the time the estimates of the States trading operation were submitted to the Minister in accordance with Article 8 of the 2005 Law for inclusion as part of an annual business plan.”

In order to minimise the administrative burden on the Minister it is suggested that any further approvals under Article 22(2) of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005 are delegated to the Treasurer of the States where the amount concerned is less than £100,000.

3. Recommendation

That the Minister agrees to delegate all future approvals under Article 22 of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005 to the Treasurer of the States where the amount concerned is less than £100.000.

4. Reason for Decision

The Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005 require the Minister to approve capital expenditure from Trading Funds where previous amounts approved by the States have been insufficient. This decision delegates those approvals in certain circumstances.

States Treasury Head of Decision Support

11 August, 2008 for decision 3rd June 2008