Capital Budgets: Rephasing

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A decision made on 23 October 2014:

Decision Reference: MD-HSS-2014-0051
Decision Summary Title :	Re-phasing of Capital Budgets		Date of Decision Summary:	21 October 2014
Decision Summary Author:	Assistant Director of Finance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Re-phasing of Capital Budgets		Date of Written Report:	21 October 2014
Written Report Author:	Assistant Director of Finance		Written Report : Public or Exempt?	Public
Subject: Proposed measures to manage the Consolidated Fund balance by the re-phasing of currently unspent capital budget approvals in 2014 to 2015 and 2016.
Decision(s): The Minister for Health and Social Services approved a re-phasing request for the capital heads of expenditure (as shown in the table in the attached report) to decrease by £3,362,000 in 2014 to reflect the re-phasing set out in the States budget. £1,662,000 has been reallocated in the 2015 Budget to the Limes project and it is anticipated that £1,700,000 will be allocated for the Sandybrook project by the States as part of the Capital Programme for 2016 in order to more appropriately reflect the timing of the project expenditure required to progress to completion.
Reason(s) for Decision: Article 18(1)(c) of the Public Finances (Jersey) 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 used for the purposes of another head of expenditure.
Resource Implications: The Treasury and Resources capital heads of expenditure to decrease by £3,362,000 in 2014 (as detailed in the table in the attached report) and the Consolidated Fund to increase by an identical amount and the capital heads of expenditure to increase by £1,662,000 in 2015 and £1,700,000 in 2016 and the Consolidated Fund to decrease by identical amounts (subject to approvals by the States of Jersey).
Action required: Treasury and Resources Minister to approve the transfers as set out above.
Signature:		Position: Minister for Health and Social Services
Date Signed:		Date of Decision (If different from Date Signed):

Capital Budgets: Rephasing

Health and Social Services Department

Ministerial Decision Report

REPHASING OF CAPITAL BUDGETS

Purpose of Report

To enable the Minister for Health and Social Services to consider the proposed measures set out in the States Budget to manage the Consolidated Fund by the rephasing of unspent capital budget approvals in 2014 to 2015 and 2016.

Background

Article 10(8) of the Public Finances (Jersey) Law 2005 requires the Minister for Treasury and Resources to lodge a Budget where the Consolidated Fund is balanced. The forecast of States income in 2014 and 2015 necessitates measures to be proposed to maintain a positive balance on the Consolidated Fund.

One of the proposed measures approved in the States Budget is the re-phasing of capital heads of expenditure. As shown in the table below the Treasury and Resources Department capital heads of expenditure relating to Health and Social Services projects will decrease by £3,362,000 in 2014 to reflect the amount not required in the current year. The funding for the Limes project has already been reallocated in the 2015 Budget and it is anticipated that the funding for the Sandybrook project will be reallocated in the 2016 Budget by the States as part of the Capital Programme in order to more appropriately reflect the timing of the project expenditure required to progress to completion.

2014 unspent capital projects identified for re-profiling
Project	Proposed reallocation from 2014	Reallocated in 2015	Proposed reallocation in 2016
The Limes	(£1,662,000)	£1,662,000
Sandybrook	(£1,700,000)		£1,700,000

Recommendation

The Minister is recommended to approve a rephasing request for the capital heads of expenditure (as detailed in the table above) to decrease by £3,362,000 in 2014 to reflect the proposed re-phasing. The same amount will be reallocated into future years budgets (2015 and 2016) by the States as part of the Capital Programme in order to more appropriately reflect the timing of the project expenditure required to progress to completion.

Reason(s) for Decision

Article 18(1)(c) of the Public Finances (Jersey) 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 used for the purposes of another head of expenditure.

Resource Implications

The Treasury and Resources capital heads of expenditure to decrease by £3,362,000 in 2014 (as detailed in the table above) and the Consolidated Fund to increase by an identical amount and the capital heads of expenditure to increase by £1,662,000 in 2015 and £1,700,000 in 2016 and the Consolidated Fund to decrease by identical amounts (subject to approvals by the States of Jersey).

Report author : Assistant Director of Finance, HSSD	Document date :
Quality Assurance: Finance Director, HSSD	File name and path :
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