Health and Social Services
Minister’s Decision Report
H&SS GAAP Budget Transfers 2014
- Purpose of Report
The purpose of this report is to enable the Minister to approve non-recurring budget transfers in 2014 as follows:
- £45,803 from the H&SS Minor Capital Head of Expenditure to the H&SS Revenue Head of Expenditure; and;
- £94,000 from the H&SS Revenue Head of Expenditure to the H&SS Minor Capital Head of Expenditure.
These budget transfers are required in order to comply with Generally Accepted Accounting Principles (GAAP).
- Background
Equipment Minor Capital to Revenue Transfers:
Allocated within the 2014 H&SS Minor Capital budget were the following amounts required to replace medical equipment within the General Hospital.
Surgical Equipment: Ear, Nose and Throat (ENT) surgical instrument sets and Orthopaedic drills
During the year two new ENT consultants were appointed as part of an initiative to reduce waiting times and improve the service being provided to the public. It was necessary to purchase new surgical instrument sets for each of these consultants. In addition it was necessary to replace two orthopaedic drills for the Trauma & Orthopaedics service which had reached the end of their operating life.
It was understood during the allocation of minor capital that these items of surgical equipment would cost in excess of £10,000 each however due to advances in technology and procurement’s relationship with the suppliers these items of equipment have fallen beneath the £10,000 threshold and as such cannot be treated as capital under the States of Jersey Capital Accounting Manual.
The total cost of the surgical equipment described above was £26,572.
Pathology cold room
During the year the pathology cold room was replaced to ensure appropriate standards are met for storing pathology consumables and samples. The total cost of the installation was £19,231 however of these costs £9,641 did not meet the recognition criteria under the States of Jersey Capital Accounting Manual. The remaining £9,589 falls under the £10,000 threshold for capitalisation and hence the total cost of £19,231 has been transferred to revenue.
A non-recurring capital to revenue budget transfer totalling £45,803 is required to comply with GAAP and match the expenditure.
White Paper Revenue to Minor Capital Transfer:
In the Medium Term Financial Plan (MTFP) 2013 – 2015 funding of £10 million was agreed for White Paper initiatives in 2014. In early 2014 a further £1.1 million was approved for Jersey Talking Therapies.
As part of the White Paper initiatives the following capital project relating to Jersey Talking Therapies is ready to be progressed. In order to do so the funding needs to be transferred from revenue to capital in line with GAAP and the States of Jersey Accounting Policies.
Jersey Talking Therapies IT System
Jersey Talking Therapies service (JTT) was launched during the year as part of the redesign of the health and social care set out in the HSS White Paper. The service assesses patients and provides the appropriate level of mental health care with referral out into the HSSD Mental Health Care Service only if necessary.
JTT will make it easier, simpler and quicker for people with low level mental health problems to receive psychological therapies. Earlier intervention and treatment will improve the health outcomes for these individuals. In addition JTT will provide their services in a range of settings that are accessible and not stigmatising for individuals.
The “Jersey Talking Therapies IT System” project is required to provide the JTT Service with an IT system that will enable them to work efficiently and cost effectively so they can maximize their available resources to work directly with patients.
The IT system is required to:
- provide therapists with a client case management information system for high volume Jersey Talking Therapies mental health caseloads;
- collect data and core outcome datasets, effectively manage clinical caseloads and automatically analyse and create reports from data;
- measure and report patient progress in real time;
- provide data to determine if the JTT Service is meeting its aims; and
- provide an electronic audit trail of communications activities, critical to any patient and/or staff requests for information as well as any future Serious Untoward Incidents, public inquiry/hearing; and
- organise individual appointments as well as group bookings.
The total anticipated cost of the project is £94,000.
- Recommendation
It is recommended that the Minister of H&SS approves the following non-recurring budget transfer in 2014:
- £45,803 from the H&SS Minor Capital Head of Expenditure to the H&SS Revenue Head of Expenditure; and
- £94,000 from the H&SS Revenue Head of Expenditure to the H&SS Minor Capital Head of Expenditure
- Reason for Decision
The budget transfers are required to align the budgeting treatment of expenditure with the accounting treatment in line with States of Jersey accounting policies and GAAP.
Article 18(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be transferred from a Revenue head of expenditure to a Capital head of expenditure, or vice versa, in order to comply with generally accepted accounting principles or an Order made under Article 32. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with GAAP or an Order made under Article 32 of the Law.
Article 2(6) of the Public Finances (Transitional Arrangements) (Jersey) Order 2011 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.
- Resource Implications
The net resource implication is that the H&SS Minor Capital Head of Expenditure will increase by £48,197 in 2014 and the H&SS Revenue Head of Expenditure will decrease by the same amount.
Report author : Financial Accountant | Document date : 25 November 2014 |
Quality Assurance / Review : Assistant Director of Finance | File name and path: |
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