2009 Year end carry forwards

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A decision made 23 April 2010 regarding: 2009 Year end carry forwards.

Decision Reference: MD-TR-2010-0067
Decision Summary Title:	2009 Year End Carry Forwards		Date of Decision Summary:	21 April 2010
Decision Summary Author:	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:	2009 Year End Carry Forwards		Date of Written Report:	21 April 2010
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: 2009 year end carry forwards
Decision(s): The Minister approved the transfer of the £7,605,000 available underspend from 2009, split by £5,812,205 to the departments noted in the accompanying report and the remaining £1,792,795 to the proposed Corporate Contingency Fund. The Minister further approved the transfer of unspent capital funds (Les Chênes (ESC) £14,000 and Seaton Place (ESC) £18,000 plus an unneeded capital risk reserve of £131,000) totalling £0.163m to the proposed Corporate Contingency Fund. The Minister further approved transfers from the Corporate Contingency Fund to fund the Integrated Business Improvement Programme (£1.577m) and Jersey Heritage Trust support (£0.37m).
Reason(s) for Decision: Under Article 15(1) of the Public Finances (Jersey) Law 2005 the Minister for Treasury and Resources can permit all or any part of the amount appropriated by a head of expenditure to: (a) be used for the purposes of another head of expenditure; or (b) In the case of revenue expenditure, be withdrawn from the Consolidated Fund after the end of the relevant financial year.
Resource Implications: Other than those detailed in the report there are no further financial or manpower implications.
Action required: Head of Decision Support to inform departments and the Head of Financial Planning of the decision in order to transfer the funds.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

2009 Year end carry forwards

Treasury and Resources

Report

2009 year end carry forwards

1. Purpose of Report

To consider the carry forward of unspent expenditure approvals from 2009 to 2010.

2. Background

The 2009 year end out-turn across all departments is an underspend of £7.6m. The organisation as a whole faces a number of significant financial pressures in 2010, including the resourcing implications of the Comprehensive Spending Review and other essential central change programme initiatives. Therefore, proposed departmental carry forwards have been limited as far as possible to allow for the creation of a corporate contingency.

3. Proposed Carry Forwards

The year end underspend is summarised by department in Appendix A. The majority of the underspend was driven by: unspent fiscal stimulus funding (i.e. part complete initiatives), unspent funds traditionally treated as capital, and planned underspends relating to projects to be progressed in 2010 (e.g. review of un-elected members). It is proposed that funds totaling £5.8m relating to such issues are approved for carry forward. This clearly results in a number of departments receiving less in carry forward approval than their 2009 underspend and a number of departmental 2010 cost pressures needing to be funded from existing 2010 cash limits. The impact of the 2010 pay award will be absorbed in 2010 by deferring expenditure to 2011 if necessary and offsetting this against the favourable pay award variance vs 2011 Business Plan assumptions.

It is proposed that the remaining balance of the total 2009 underspend is carried forward to create a corporate contingency fund.

This is summarised below.

	£ 000

Year End Underspend against approved budget	7,605

Proposed Carry Forward Approvals
Departmental Carry Forwards	5,812
Carry Forward to create a corporate contingency fund	1,793
Total carry forward for approval	7,605

4. Corporate Contingency

In addition to £1.8m of funds carried forward from 2009, further funding of £600,000 has been identified as having the potential to be transferred to the corporate contingency fund. This comprises some unspent capital budgets (Les Chênes (ESC) £14,000 and Seaton Place (ESC) £18,000, plus an unneeded capital risk reserve of £131,000) and an existing contingency of £370,000 originally allocated to Education, Sport and Culture in 2007 but which is unlikely to be needed for the intended purposes and is now earmarked for Jersey Heritage Trust funding. There is also an unallocated balance on the contingency fund (held in T&R) of £67,000.

Together this funding would create a corporate contingency of £2.4m. It is proposed that this be used to fund the Integrated Business Improvement Programme (BIP) and contribute towards the funding of the Jersey Heritage Trust support. Combined with the proposed carry forward this would provide ESC with funding equivalent to their year end out-turn plus £800k JHT funding in total. This proposal is summarised below.

	£ 000
Carry Forward to create a corporate contingency fund	1,793
Other potential funding	600
Total Corporate Contingency Funding	2,393
Proposed Allocations
Contribution towards funding of IBIP	1,577
Contribution towards funding of JHT support	370
Total Allocations	1,947

Total unallocated	446

5. Recommendation

It is recommended that the Minister approves the following:

· Departmental carry forwards of £5.8m, as detailed in Appendix B

· Carry forward of £1.8m to create a corporate contingency

· Transfers of unspent capital funds (Les Chênes (ESC) £14,000 and Seaton Place (ESC) £18,000 plus an unneeded capital risk reserve of £131,000) totaling £0.163m to a corporate contingency

· Transfers from the corporate contingency to fund the IBIP (£1.577m) and JHT support (£0.37m)