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JCG and Langford Capital Projects - Inflation Allocation.

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A decision made (03/12/2007) regarding: JCG and Langford Capital Projects - Inflation Allocation.

Decision Reference: MD-TR-2007-0128

Decision Summary Title:

JCG and Langford Capital Projects– Inflation Allocation

Date of Decision Summary:

23rd November 2007

Decision Summary Author:

Ray Foster - Assistant Director - Finance & Strategy

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

JCG and Langford – Inflation Allocation

Date of Written Report:

23rd November 2007

Written Report Author:

Ray Foster  - Assistant Director - Finance & Strategy

Written Report :

Public or Exempt?

Public

Subject: 

JCG and Langford Capital Projects – Inflation Allocation.

Decision(s): 

The Minister approved the following budget transfers from the Capital Reserve in respect of inflation for the following projects:

  • Jersey College for Girls  £692,725
  • Langford Sports Centre  £52,187

Reason(s) for Decision: 

To enable the Jersey College for Girls and Langford capital projects to be closed within the financial ledger.

Resource Implications: 

Provision for the inflation funding has been made in the Capital Reserve.

Action required: 

Treasury to action the budget transfers.

Signature: 
 

Position: Senator Terry Le Sueur, Treasury and Resources Minister 
 
 

Date Signed: 3rd December 2007

Date of Decision:  3rd December 2007

JCG and Langford Capital Projects - Inflation Allocation.

STATES TREASURY  ITEM NO:          

 

TREASURY AND RESOURCES MINISTER  

JCg and langford - inflation allocation  

  1. Purpose of Report
  2. The Minister is asked to approve the transfer of sums in respect of inflation from the capital reserve for the following projects:
  • Jersey College for Girls  £692,725
  • Langford Sports Centre  £52,187

 

  1. Background
  2. Both of these projects commenced before individual inflation assessments were identified as part of the budgeting process in 1999. Prior to this date budgets were set on a ‘current cost’ basis and inflation claimed from the General Reserve.
  3. The General Reserve was abolished under the Public Finances (Jersey) Law 2005 and provision for the inflation sums on these schemes has been made in the Capital Reserve.
  4. The final accounts for both projects are complete, with all outstanding items relating to claims, fee payments and retentions now settled. The inflation funding requirement, effectively the ‘balancing figure’, has been established and budget transfers are required to close down the schemes within the financial ledger.
  5. The final account and inflation sums have been verified by the States Chief Quantity Surveyor.

 

  1. Comments
  1. JCG - this has been an exceptionally complex scheme involving a number of interlinked projects and a lengthy claim in relation to the serpentine wall.

 

The final account position can be summarised as follows: 

Currently Approved Budget  £18,800,340

Inflation Sum Claimable  £     805,190

Total Budget Claimable  £19,605,530

Final Account Cost   £19,493,065

Net Underspend   £     112,465

Inflation Sum Required  £     692,725 

 

  1. Langford - the final account has been delayed due to the resolution of ongoing defects. These issues are now resolved and retention sums due have been released.

The Minister will recall that a funding transfer of £410,000 from the Langford Sport Centre capital budget to support the Education, Sport and Culture Department’s ICT replacement programme was approved under MD-TR-2006-0081

The final account position, incorporating budget transfers, can be summarised as follows:

Original Budget    £8,067,601

Final Account Cost   £7,709,788

Net Position before Transfers £   357,813

Less agreed transfers to

Education ICT Project  £   410,000

Inflation Sum Required  £     52,187 

  1. Recommendation
  2. That the Minister approves the following budget transfers from the capital reserve for the following projects in respect of inflation:
    • Jersey College for Girls  £692,725
    • Langford Sports Centre  £52,187

 

  1. Reason for Decision
  2. To enable the Jersey College for Girls and Langford capital projects to be closed within the financial ledger.

 

States Treasury Corporate Finance

29 November, 2007 for Decision Meeting 03/12/2007

l:\treasury\sections\corporate finance\ministerial decisions\written reports\2007\december\3rd\wr - jcg and langford inflation  - rf.doc printed on 29/11/07 at 09:11 AM

 

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