Budget Transfer: Health and Community Services to Treasury and Exchequer: Medical Malpractice (MedMal) Insurance

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A decision made 6 August 2021:

Decision Reference: MD-TR-2021-0094
Decision Summary Title:	Transfer of MedMal Insurance Budget to Treasury & Exchequer		Date of Decision Summary:	29th July 2021
Decision Summary Author:	Finance Business Partner – T&E		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Transfer of MedMal Insurance Budget from Health and Community Services to Treasury & Exchequer		Date of Written Report:	29th July 2021
Written Report Author:	Finance Business Partner – T&E		Written Report: Public or Exempt?	Public
Subject: The transfer in 2021 and on a recurring basis of £1,500,000 from Health and Community Services (HCS) to Treasury & Exchequer (T&E) representing the budget for the Medical Malpractice (MedMal) insurance budget.
Decision(s): The Minister approved the transfer in 2021 and on a recurring basis of £1,500,000 from HCS to T&E as detailed in the attached report.
Reason(s) for Decision: Article 18(1)(a) of the Public Finances (Jersey) Law 2019 states that a specified amount appropriated for one head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure that is set out in the government plan. Article 18(4) of the Public Finances (Jersey) Law 2019 states that the Minister shall give the States Assembly at least 4 weeks’ notice before an amount is transferred under paragraph (1)(a). Article 18(5) of the Public Finances (Jersey) Law 2019 states that if a direction under this Article would affect a head of expenditure that relates to the responsibilities of any Minister, that Minister must be consulted before the direction is made. Both Ministers have been consulted.
Resource Implications: The HCS revenue head of expenditure to decrease by £1,500,000 in 2021 and the T&E revenue head of expenditure to increase by an identical amount. This decision does not change the total amount of expenditure approved by the States in the Government Plan 2021-2024 and the transfer will be reflected in the next Government Plan 2022-2025 cash limits.
Action required: The Head of Financial Governance to advise the T&E and HCS Finance Business Partners that this decision is approved. In accordance with Article 18(4) the Greffier of the States is requested to arrange for the attached report to be presented to the States at least 4 weeks before the transfers are concluded. After the expiry of 4 weeks following presentation to the States the transfer may be concluded.
Signature:		Position: Deputy Susie Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget Transfer: Health and Community Services to Treasury and Exchequer: Medical Malpractice (MedMal) Insurance

Treasury and Exchequer

Ministerial Decision Report

Transfer of MedMal Insurance Budget from Health and Community Services to Treasury & Exchequer

Purpose of Report

To enable the Minister to approve a transfer in 2021 and on a recurring basis of £1,500,000 from Health and Community Services (HCS) to the Treasury & Exchequer (T&E), representing the budget for Medical Malpractice Insurance in HCS.

Background

HCS maintains the Medical Malpractice budget and are recharged the value from T&E on a yearly basis per the value paid by T&E. The negotiations are undertaken by T&E Risk, Audit and Reporting team who deal with the renewals and therefore it makes sense for all the budget to sit under the area who have greater control of the spend.

There is a new role funded from within the T&E Risk, Audit and Reporting team, “Head of Insurance” where it would be beneficial for them to understand their influenceable budget which would include this MedMal budget which currently sits in HCS.

Recommendation

The Minister is recommended to approve the transfer in 2021 and on a recurring basis of £1,500,000 and from Health and Community Services (HCS) to the Treasury & Exchequer (T&E),

Reasons for Decision

Article 18(1)(a) of the Public Finances (Jersey) Law 2019 states that a specified amount appropriated for one head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure that is set out in the government plan.

Article 18(4) of the Public Finances (Jersey) Law 2019 states that the Minister shall give the States Assembly at least 4 weeks’ notice before an amount is transferred under paragraph (1)(a).

Article 18(5) of the Public Finances (Jersey) Law 2019 states that if a direction under this Article would affect a head of expenditure that relates to the responsibilities of any Minister, that Minister must be consulted before the direction is made. Both Ministers have been consulted.

5. Resource Implications

The HCS revenue head of expenditure to decrease by £1,500,000 in 2021 and the T&E revenue head of expenditure to increase by an identical amount.

This decision does not change the total amount of expenditure approved by the States in the Government Plan 2021-2024 and the transfer will be reflected in the next Government Plan 2022-2025 cash limits.

Report author: Finance Business Partner – T&E	Document date : 29th July 2021
Quality Assurance / Review: Head of Financial Governance, Treasury and Exchequer	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2021-0094 - Transfer of MedMal Insurance from HCS to T&E
MD sponsor: Treasurer of the States