DEPARTMENT FOR INFRASTRUCTURE
NON RECURRING BUDGET TRANSFERS FROM COMMUNITY AND
CONSTITUTIONAL AFFAIRS IN RESPECT OF PROJECTS FOR THE STATES OF
JERSEY POLICE AND THE JERSEY PRISON SERVICE
- Purpose of Report
The purpose of this report is to seek the Minister’s approval for the following non-recurring budget transfers:
- £26,384 from the Community and Constitutional Affairs minor capital head of expenditure (DH0MC10006) to the Jersey Property Holdings (JPH) Police Relocation capital head of expenditure (FA0BP12005) for items included in the main contract but to be funded by the States of Jersey Police (SoJP);
- £126,217.20 from the Community and Constitutional Affairs minor capital head of expenditure (DH0MC10006) to the Jersey Property Holdings (JPH) Prison Improvement Phase 4 capital head of expenditure (FA0BP11006) for the Prison perimeter fence.
- Background
Community and Constitutional Affairs have funded works towards two JPH projects, this decision effects the budget transfers required under International Financial Reporting Standards and the Public Finances (Jersey) Law 2005.
3. Recommendation
The Minster is recommended to approve the following budget transfers:
SoJP New Headquarters
Non recurring budget transfer of £26,384 from business unit DXP036 to JPH for the purchase of items (marathon servers) included in the main JPH contract but funded by the SoJP. The items will form part of the new Headquarters asset managed by JPH.
Prison Perimeter Fence
Non recurring budget transfer of £126,217.20 from the Community and Constitutional Affairs minor capital head of expenditure for costs relating to the erection of additional perimeter fencing to secure a gap in the security perimeter. As these costs form part of the Prison Improvement Phase 4 which is managed by JPH a budget transfer is required to ensure that the expenditure is charged to the correct head of expenditure.
4. Reason for Decision
Under International Financial Reporting Standards (IFRS) expenditure that meets the definition of capital expenditure must be capitalised. These budget transfers are the movement in budgets between capital and revenue heads of expenditure required to align the budgeting treatment of expenditure with the accounting treatment, in order to comply with IFRS and to ensure that capital expenditure is charged to the correct head of expenditure. These transfers do not change the amount of expenditure agreed by the States.
Article 18 of the Public Finances (Jersey) Law 2005 and Finance Direction No.3.6, Variations to Heads of Expenditure, set out the procedures for transfers between heads of expenditure. Paragraph 5.1 of FD3.6 and Article 18(2) (c) of the Law require departments wanting to transfer funds between heads of expenditure to obtain the approval of the Minister responsible for their administration. Article 18(1) (c) of the Law requires the approval of the Minister for Treasury and Resources for any budget transfers between heads of expenditure. Paragraph 5.2 of the FD delegates non-contentious transfers between heads of expenditure up to £1,000,000 to the Treasurer of the States. Paragraph 5.3 of the FD states that, in all other instances, the approval of the Minister for Treasury and Resources must be obtained.
5. Resource Implications
As a result of the above transfers:
- the Community and Constitutional Affairs minor capital head of expenditure (DH0MC10006) will decrease by £152,601.20;
- the JPH Police relocation capital head of expenditure ((FA0BP12005) will increase by £26,384;
- the JPH Prison Improvement Phase 4 capital head of expenditure (FA0BP11006) will increase by £126,217.20.
These transfers do not change the amount of expenditure agreed by the States.
6. Action Required
Finance Manager to request the approval of the Treasurer of the States for these budget transfers.
Written by: | Finance Manager |
Approved by: | Director of Estates |