Budget Transfer to Jersey Property Holdings (The Academy Restaurant Kitchens, Highlands College)

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A decision made on 2 December 2011:

Decision Reference: MD-ESC-2011-0037
Decision Summary Title:	Budget Transfer from ESC Revenue to T&R (Jersey Property Holdings) Capital Heads of Expenditure for The Academy Restaurant kitchens at Highlands College		Date of Decision Summary:	17 November 2011
Decision Summary Author:	Subina Shami, Head of Finance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Budget Transfer from ESC Revenue to T&R (Jersey Property Holdings) Capital Heads of Expenditure for The Academy Restaurant kitchens at Highlands College		Date of Written Report:	17 November 2011
Written Report Author:	Subina Shami, Head of Finance		Written Report : Public or Exempt?	Public
Subject: Budget transfer from the Education Sport and Culture (ESC) revenue head of expenditure to a new Treasury and Resources (T&R) (Jersey Property Holdings (JPH)) capital head of expenditure
Decision(s): The Minister for Education, Sport and Culture approved the transfer of Education Sport and Culture (ESC) Revenue funds amounting to £100,000 to a new Resources (T&R) (Jersey Property Holdings (JPH)) Capital head of expenditure in order to meet GAAP requirements for minor works. The Academy Restaurant kitchens at Highlands College to comply with Health and Safety Regulations.
Reason(s) for Decision: The funds for the minor works to The Academy Restaurant kitchens, which are currently included in revenue budgets, are required to be transferred to capital to comply with GAAP requirements.
Resource Implications: There are no other financial or manpower resource implications.
Action required: For officers of the Department to request the approval of the Treasurer of the States to the transfer in accordance with Financial Direction 3.6.
Signature:		Position: Minister for Education, Sport and Culture
Date Signed: 02.12.11		Date of Decision: 02.12.11

Budget Transfer to Jersey Property Holdings (The Academy Restaurant Kitchens, Highlands College)

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Education, sport & culture MINISTER

Budget Transfer from ESC Revenue to T&R (Jersey Property Holdings) Capital Heads of Expenditure for The Academy Restaurant kitchens at Highlands College

Purpose of Report

For the Minister for Education, Sport and Culture to approve the following budget transfer from ESC revenue to T&R (JPH) capital heads of expenditure in order to comply with GAAP requirements:-

£100,000, representing the funds required for minor works to The Academy Restaurant kitchens at Highlands College to comply with Health and Safety Regulations, as specified in the inspection report by the Environmental Health Officer.

Background

An inspection by the Environmental Health Officer revealed several issues that the College needs to deal with urgently in order to comply with the Health and Safety Regulations.

Amongst the Health Officer’s findings were:

a) The ceilings need to be replaced with suspended, tiled ceilings throughout the kitchen areas.

b) The bar requires a dedicated hand wash basin.

c) Carpet is unsuitable within a kitchen and should be removed.

d) Light diffusers must be installed to prevent glass contamination if the bulbs were to break.

e) Ventilation and extraction needs to be installed wherever there are gas hobs.

f) Wall coverings that are warped due to damage caused by heat and steam, need to be replaced with easily washable tiles.

The kitchen ceilings are in such a state that a considerable amount of flocculent dust is beginning to accumulate because they are not smooth, impervious and easy to clean. They are not suitable for kitchen areas where open food is handled and prepared. The same is true for areas where food is moved from stores or between kitchens, hence carpeted floor is unsuitable because it is not easy to clean.

As per the conclusion drawn by the Environmental Health Officer, the College does not comply with the regulations and it is in the College’s best interest to take this as an “Improvement Notice”. If the work is not completed during the 2011/12 academic year the College is in danger of being issued with a “Prohibition Notice” where The Academy Restaurant may be closed and not allowed to trade. As soon as the findings of this inspection were communicated to the Curriculum and Catering Manager at the Academy of Culinary Arts, the College started setting aside funds to carry out these essential works. As a result, the College is now in a position to allocate £100,000 from its revenue budget, which is an estimate for these works from initial quotes (Appendix ‘A’).

Since the works will improve the building and enhance the economic benefits of the asset beyond that previously expected of it, under FRS 15, such expenditure should be capitalised as an addition to the cost of the asset.

It has been agreed that the Jersey Property Holdings Department (JPH) will take responsibility for managing this project and these funds will be transferred to JPH under a new capital head of expenditure, within the Fixed Assets of the Treasury and Resources balance sheet.

Under Financial Direction 3.6 para 5.2, the approval of non-contentious transfers between heads of expenditure up to £1,000,000 is delegated to the Treasurer of the States, including the creation of a new capital head of expenditure.

Recommendation

That the Minister for Education, Sport & Culture approves the transfer of £100,000 from ESC revenue to JPH capital to fund the essential minor works to The Academy Restaurant kitchens at Highlands College.

APPENDIX ‘A’

Building Works for Suspended Ceilings Quote by E. McGarragle Building Services Ltd. (Refer to Appendix 'B')	£	Total £
Storage Area	1,240
Office	414
Elementary Kitchen	5,793
Pastry Kitchen	5,186
Larder	3,087
Training Room	775
Main Kitchen	7,002
Corridor	1,687
GST (5%)	1,259
Contingency	6,000
Total for Suspended Ceilings Works		32,443

Electrical Works for Lighting and Power Drops Quote by CFM Electricals Ltd. (Refer to Appendix 'C')
Larder	6,090
Pastry Kitchen	1,926
Production Kitchen	3,838
Vegetable Area	450
Contingency	2,000
Total for Electrical Works - Lighting and Power Drops		14,304

Sheet Metal Work for Stainless Steel Canopies Quote by Sheet Metal Fabrications Ltd. (Refer to Appendix 'D')
Production Kitchen	2,650
Pastry Kitchen	6,622
Elementary Kitchen (Assumed)	6,100
Contingency	2,400
Total for Sheet Metal Work		17,772

Total for Ventilation and Extraction Works (tbc)		15,000

Total for Under-floor Electrical Cabling (tbc)		10,000

Total for Under-floor Gas Works Installation (tbc)		10,000

Total for IT Costs (tbc)		5,000

GRAND TOTAL		104,519