Budget Transfer: Parish Centre Improvements

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A decision made 6 June 2014:

Decision Reference: MD-T-2014-0052
Decision Summary Title :	Transfer between the TTS Revenue and the TTS Infrastructure Capital Head of Expenditure for Parish Centre Improvements		Date of Decision Summary:	28 May 2014
Decision Summary Author:	Capital Accountant – TTS Finance		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Transfer between the TTS Revenue and the TTS Infrastructure Capital Head of Expenditure for Parish Centre Improvements		Date of Written Report:	28 May 2014
Written Report Author:	Capital Accountant – TTS Finance		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Transfer between the Transport and Technical Services (TTS) Revenue and the TTS Infrastructure Capital Head of Expenditure for Parish Centre Improvements.
Decision(s): The Minister approved an internal budget transfer of up to £500,000 from the TTS Revenue Head of Expenditure to the Infrastructure Capital Head of Expenditure (Q00RL10011).
Reason(s) for Decision: To enable TTS to achieve the MTFP proposal for Parish Centre Improvements by allowing expenditure to be incurred on both revenue and capital programmes.
Resource Implications: Other than those detailed in the report there are no further financial or manpower implications.
Action Required: The Minister for Transport and Technical Services to seek approval from the Minister for Treasury and Resources for the budget transfer highlighted above. The Finance Director for Transport and Technical Services will then action the budget transfers in conjunction with the Head of Financial Performance Reporting.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Budget Transfer: Parish Centre Improvements

TRANSPORT AND TECHNICAL SERVICES

TRANSFER BETWEEN REVENUE AND CAPITAL HEADS OF

EXPENDITURE FOR PARISH CENTRE IMPROVEMENTS

Purpose of Report

To enable the Minister to approve an internal budget transfer of up to £500,000 from the Transport and Technical Services (TTS) Revenue Head of Expenditure to the Infrastructure Capital Head of Expenditure (Q00RL10011).

Background

A proposal was made within the Medium Term Financial Plan (MTFP) for TTS to implement schemes to address longstanding traffic issues and enhance the village environments at the centre of each Parish. This money was awarded into the TTS Revenue Head of Expenditure, however, in order for TTS to achieve this proposal the funding is required to be spent on both revenue and capital programmes.

Discussion

The States of Jersey implemented Generally Accepted Accounting Principles (GAAP) in 2009 and subsequently moved to IFRS accounting in 2012. IFRS accounting requires that expenditure should be accounted for as capital if it meets the IFRS accounting definition of capital expenditure, and revenue otherwise.

Previously, ‘capital’ budgets have represented whatever the States Assembly voted as capital. The States have already approved capital allocations for 2013 in the 2013 – 2015 MTFP Plan. These budget transfers move budgets between revenue and capital so as to align the budgeting treatment of 2013 expenditure with the IFRS accounting treatment.

Recommendation

That the Minister approves the budget transfer of up to £500,000 from the TTS Revenue Head of Expenditure to the TTS Capital Head of Expenditure (Q00RL10011) to enable TTS to achieve the Parish Centre Improvements projects as highlighted within the MTFP.

Reason for Decision

Under Financial Direction 3.6 and the Public Finances (Jersey) Law 2005, the approval of the Minister for Treasury and Resources is required for any variations to heads of expenditure. Authority to approve non-contentious budget transfers under £1,000,000 has been delegated to the Treasurer of the States.

Resource Implications

The TTS Revenue Head of Expenditure will decrease by up to £500,000 throughout 2014 and the TTS Capital Head of Expenditure will increase by the identical amount.

Written by:	Capital Accountant
Approved by:	Director of Finance