Transfer of Visioning Funds to Property Holdings Department.

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A decision made (16/03/2007) Transfer of Visioning Funds to Property Services.

Subject:	Transfer of Visioning Funds to Property Holdings Department
Decision Reference:	MD-TR-2007-0033	Exempt clause(s):		N/A
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		N/A
Telephone or e-mail Meeting?	N/A	Report File ref:		FF/14/15/03/07
Written Report – Title	Budget Transfer	Written report - author		Frances Ferris, Finance Manager, Property Holdings Department
Decision(s): The Minister agreed-: to the transfer of the £1,176,500 from the Visioning Fund to the Property Holdings Department, this being the unspent portion of the Funds originally set aside for the Property Holdings Department development. that this money is earmarked within the Property Holdings Department Accounts and allocated to the various revenue projects as and when required with the signed approval of the Director of Property Holdings.
Reason(s) for decision: The States agreed in 2005 that a sum of £1.5 million would be allocated from the Visioning Fund to support the development of the Property Holdings Department and since then a total of £323,500 has been used. To date each call on the Fund has required a ministerial decision from both the Chief Minister and the Minister for Treasury and Resources. The transfer of the balance to the Property Holdings Department will save numerous ministerial decisions, and allow the Property Holdings Department access to the funds as they required them. Holding the money in an earmarked account and under the control of the Director will ensure that they it is used for the appropriate projects.
MD-TR-2007-0033 Action required: Finance Manager, Property Holdings to arrange: to notify the Chief Minister of this decision and ask that the funds are released. to carry out a budget virement transferring the funds.
Signature: (Minister/ Assistant Minister)			Date of Decision: 16th March 2007

Transfer of Visioning Funds to Property Holdings Department.

REPORT TO THE MINISTER FOR TREASURY AND RESOURCES

BUDGET TRANSFER

Purpose of Report

To seek the approval of the Minister for Treasury and Resources to transfer to the Property Holdings Department from the Chief Minister’s Department, the unspent balance of the Visioning Funds allocated for the development of the Property Holdings Department (PHD).

Background

In June 2005 the States agreed to the creation of a new department to be responsible for the administration of all States Property. The Director of the Department was appointed in September 2005 with a small project team. In January 2006 the Property Holdings Department was set up with the transfer of the Property Services Division of the Transport and Technical Services Department, and the Public Buildings followed on 1st August. Education maintenance and capital divisions were transferred as at 1st October 2006. Housing maintenance of non social rented properties on 1st January 2007 and four Home Affairs capital votes relating to the police station and prison cell block redevelopments at the end of January 2007. It is intended that the remainder of the Health Department maintenance will follow a few months later.

Each transfer of responsibility has been accompanied by its associated budgets, however the States also agreed that it would provided £1.5 million from the Visioning Fund to support the development of this new Department.

CMB, at its meeting of 19 April 2006, approved proposals for the implementation of Property Holdings, subject to finalisation of some aspects with the Chief Executive. The approved proposals determined that funds held in the Visioning Budget for Property Holdings would be used as shown

Table 1

Item	2005	2006	2007	2008	Total
KPMG Report	106,000				106,000
Allocated Operating Costs - 2005	68,000				68,000
Allocated Operating Costs - 2006		65,000			65,000
Change Management Support (2 years)		28,000	55,000	28,000	111,000
Accommodation - Interim Arrangements		15,000	10,000		25,000
Accommodation - Co-location (net costs)				250,000	250,000
Review of H&SS Maintenance		10,000	5,000		15,000
Valuation and Condition Surveys		200,000	200,000		400,000
Integrated Property System		45,000	300,000	30,000	375,000
Development of Filing/Records Mgmt.			75,000		75,000
Web Development			10,000		10,000
Development of Asset Recharging system
Totals	174,000	363,000	655,000	308,000	1,500,000

To date the following funds have been called off

Table 2

	2005	2006
Total Available & Balance b/fwd	1,500,000	1,329,000
KPMG Report	(106,000)
Interim Staff Costs	(25,000)
Consultant's costs	(30,000)	(50,000)
Ancillary set up costs	(10,000)
Change Manager		(52,500)
Computer software		(50,000)
Total called in Year	(171,000)	(152,500)
Balance carry forward	1,329,000	1,176,500

In 2007 it is intended that work to the value of £655,000 will be funded from the Change Funds. (table 1)

To date all calls on the fund have been for individual smaller amounts, each transfer requiring a Ministerial Decision from both the issuing and receiving Departments.

It is proposed therefore to ask the Chief Minister’s Department to transfer to the Property Holdings Department £1,176,500 this being the remainder of the funds set aside for the Property Holdings Department development. To ensure control of the fund it is proposed that they be transferred into a Property Holding’s balance sheet suspense account from which they will be allocated to the various revenue projects as and when required, and with the approval of the Director of Property Holdings.

Recommendation

That the Minister agrees to the transfer of the £1,176,500 from the Visioning Fund to the Property Holdings Department balance sheet, to be used as planned for the development of the Department.

Frances Ferris

Finance Manager,

Property Holdings Department

22nd February 2007. For decision on 16th March 2007

Report to the Minister to draw down change funds.doc