Budget transfer relating to procurement savings

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A decision made 9 September 2013:

Decision Reference: MD-H-2013-0068
Decision Summary Title :	DS – Inter-departmental Budget Transfers – T&R		Date of Decision Summary:	4th September 2013
Decision Summary Author:	Finance Director		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	WR - Inter-departmental Budget Transfers – T&R		Date of Written Report:	4th September 2013
Written Report Author:	Finance Manager		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: The transfer of budgets between the Housing Department and the Treasury & Resources Department
Decision(s): The Minister accepted the budget transfer of £30,135, £30,888 and £31,660 in 2013, 2014, 2015 respectively, from the Treasury & Resources Department.
Reason(s) for Decision: The transfer represents an appropriate allocation of procurement savings achieved across the States of Jersey
Resource Implications: Financial: Increase in Housing’s cash limit of £30,135, £30,888 and £31,660 in 2013, 2014, 2015 respectively.
Action required: Housing Finance Director to obtain the approval of the Minister for Treasury and Resources and arrange for the transfers to take place.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Budget transfer relating to procurement savings

Date of report 4th September 2013

REPORT FOR THE MINISTER FOR HOUSING

Inter-Departmental Budget Transfer relating to the recharge of insurance costs for

Clos Des Sables, Quennevais Park, Maison D’Azette and Clearview Street

Purpose

To consider a budget transfer between the Housing Department and the Treasury & Resources Department in relation to the cost of insurance for Clos Des Sables, Quennevais Park, Maison D’Azette and Clearview Street

Background

The cost of insurance for 99 Year Lease Properties

In the initial composition of the Housing Department’s cash limit in the MTFP 2013 to 2015 an adjustment of £491,900 was made to account for proposed procurement savings to be made on a corporate (SOJ) basis. Of that amount, £303,000 related to the insurance premium relating to the Department’s assets and business operations, including some 99 year-lease properties under the administration of Jersey Property Holdings. It had been the practice to recharge JPH for the element of the premium relating to these properties on an annual basis.

In 2012 agreement was reached with Treasury & Resources to arrange a transfer of £29,400 being the amount which would otherwise have been recharged to JPH. However, as the cash-limit for 2013 had been fixed no such ongoing adjustment has been made. A transfer therefore now needs to be made between the two Department’s, on an ongoing basis.

Budget to transfer in 2013: £30,135 being £29,400 plus 2.5%

Budget to transfer in 2014: £30,888 being £30,135 plus 2.5%

Budget to transfer in 2015: £31,660 being £30,888 plus 2.5%

Recommendations

That the Minister: Accept the budget transfer to the Housing Department of £30,135, £30,888 and £31,660 in 2013, 2014, 2015 respectively, from the Treasury & Resources Department.

Housing Department

Report Prepared By: -

Lindsay Wood

Finance Manager

……………………………… Date: 2013

Report Checked By: -

John Hamon

Finance Director

……..………………………. Date: 2013

Authorised By: -

Ian Gallichan

Chief Officer

………………………………. Date: 2013