Budget Transfer for repairs to fisheries vessels.

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 24 November 2014:

Decision Reference: MD-PE-2014-0104
Decision Summary Title:	Department of the environment GAAP capital to revenue transfer for repairs to fisheries vessels.		Date of Decision Summary:	XXXX 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 repairs to fisheries vessels.		Date of Written Report:	18 November 2014
Written Report Author:	Finance Manager - DoE		Written Report : Public or Exempt?	Public
Subject: Non-recurring Generally Accepted Accounting Principles (GAAP) budget transfer for repairs to fisheries vessels.
Decision(s): The Minister approved a non-recurring budget transfer of £8,000 in 2014 from the Department of the Environment (DoE) capital head of expenditure (I0000C0974) to the DoE revenue head of expenditure for repairs to the fisheries vessels.
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 Capital Programme DoE was awarded £100,000 of capital funding to “fund a mid-life refurbishment of the Norman Le Brocq before it is replaced in 2019”. Due to extremely tight control over emergent works the Department achieved savings in the region of £19,000. In order to reduce future increased maintenance expenditure on other fisheries vessels it is recommended that £8,000 be transferred to revenue to purchase a new outboard motor for the No 2 Searider.
Resource Implications: In 2014 the DoE Fisheries Vessel Mid-Year Refit capital head of expenditure will decrease by £8,000 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 repairs to fisheries vessels

Department of the Environment

Ministerial Decision Report

Department of the environment GAAP Capital to revenue transfer for REPAIRS TO FISHERIES VESSELS

Purpose of Report

To enable the Chief Officer to approve a non-recurring budget transfer of £8,000 in 2015 from the Department of the Environment (DoE) capital head of expenditure (I0000C0974) to the DoE revenue head of expenditure to comply with Generally Accepted Accounting Principles (GAAP).

Background

The Marine Resources Section employ two Avon Searider semi-rigid inflatables for boarding work, one is carried onboard the Norman Le Brocq Patrol vessel and the other is kept ashore both as an emergency backup and for independent use. The Seariders are identical and exchanged regularly with each other to spread out wear and tear. Originally it had been intended to replace the oldest Searider on a regular basis, but to reduce costs this policy has been dropped in favour of replacing outboards and other equipment fitted to the vessels, as and when necessary.

The Norman Le Brocq has just undergone a 5 yearly maintenance period at a yard in the UK and as part of this process the No 1 Searider was refurbished. During the absence of the patrol vessel the No 2 Searider was heavily utilised and suffered an engine failure. This vessel and engine are 17 years old and the engine failure has been identified as due to internal corrosion. Repairs (if possible) are likely to be expensive and cannot be seen as a long term solution.

The Marine Resources Section has just completed a refit of the Norman Le Brocq patrol vessel and due to extremely tight control over emergent work savings in the region of £19,000 have been identified. The Marine Resources section believe that in order to minimise future capital expenditure £8,000 of savings achieved on the Norman Le Brocq refit is transferred to the Department of the Environment revenue budget to allow the repairs necessary to the No 2 Searider.

3. Recommendation

The Minister is recommended to approve a non-recurring budget transfer of £8,000 in 2014 from the DoE capital head of expenditure (I0000C0974) to the DoE revenue head of expenditure for Marine Resources.

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

The DoE Fisheries Mid-Year Refit capital head of expenditure will decrease by £8,000 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

18 November 2014