Jersey Airport: Capital Budgets 2015

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A decision made 20 November 2014:

Decision Reference: MD-E-2014-0108

Decision Summary Title:

DS - Correction of 2015 Capital Allocations – Jersey Airport

Date of Decision Summary:

22 October 2014

Decision Summary Author:

Deputy Director of Business Resource - PoJ

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

WR – Correction of 2015 Capital Allocations – Jersey Airport

Date of Written Report:

22 October 2014

Written Report Author:

Deputy Director of Business Resource - PoJ

Written Report :

Public or Exempt?

Public

Subject: Approval for the reallocation of Jersey Airport capital budgets for 2015

Decision(s):

The Minister is recommended to approve the reallocation of capital budgets to correct the capital allocations for 2015 as per the written report and;
Requests approval from the Minister of Treasury and Resources to transfer the relevant budgets to effect the corrections

Reason(s) for Decision:

In accordance with Article 2(6)(a) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011, the Minister for Treasury and Resources is requested to authorise the transfer.

Resource Implications:

There are no resource implications the overall capital head of expenditure allocated in the 2015 MTFP remains unchanged, this is merely a reallocation between projects.

Action required:

Head of Planning and Performance to request Treasury and Resources to transfer the relevant capital budgets as per the written report to effect the corrections to the 2015 MTFP Jersey Airport capital allocations.

Signature:

Position:

Minister - Economic Development

Date Signed:

Date of Decision (If different from Date Signed):

Jersey Airport: Capital Budgets 2015 - Reallocation Approval

Economic Development

Minister’s Decision Report

JERSEY AIRPORT transfers between Capital heads of expenditure

Purpose of Report

To request the transfer of budgets between capital heads of expenditure in regards to the Jersey Airport 2015 capital allocation in the MTFP.

Background

During April 2014 Treasury compiled the 2015 budget requests, which included the division of the capital allocation between different heads of capital expenditure (essentially projects).

Initially there was confusion and it was not understood by Ports of Jersey (PoJ) that the capital allocation had to remain within the previously approved MTFP envelope and as a result the submission made by the PoJ in April had to be re-visited in May. The allocation of funding was reviewed and provided by the Group Capex Manager and was submitted May 20th. Subsequent to this, an internal review by PoJ Finance discovered that budgets for Jersey Airport projects had been split across years, it is policy that capital budgets are requested in totality upfront and not allocated on a cash flow basis. An updated submission was provided to Treasury on 23rd May.

During August 2014, PoJ provided Treasury with a copy of DP 92a-2014 “Indicative Funding Schedule” (available on request), the schedule provided information on the budgets that were to be approved for 2015. Upon review Treasury realised that allocations they had included in the Medium Term Financial Plan update did not agree to this DP.

Investigation into the audit trail of the updates provided made it apparent, that although received, the Jersey Airport update of the 23rd May had been inadvertently overlooked and the allocation in the MTFP update was as per the 20th May submission. The initial confusion re the spending envelope and subsequent submissions are likely to have contributed to this error.

By the time this was discovered it was too late to correct as the documentation of the MTFP update had gone to publication.

Treasury requested that a Ministerial Decision be made in 2015 to correct these allocations.

Proposal
The following adjustments are required to correct the Jersey Airport 2015 capital allocations:

Recommendation

The Minister is recommended to approve the reallocation of capital budgets to correct the capital allocations for 2015 and to request the Minister of Treasury and Resources to transfer the relevant budgets to effect the corrections.

Reason for Decision

In accordance with Article 2(6)(a) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011, the Minister for Treasury and Resources is requested to authorise the transfer.

Resource Implications

There are no resource implications the overall capital head of expenditure allocated in the 2015 MTFP remains unchanged, this is merely a reallocation between projects.