Budget transfer from restructuring provision to Office Modernisation Project via Central Planning Vote

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 1 February 2016:

Decision Reference: MD-TR-2016-0006
Decision Summary Title:	Public Sector Reform –Allocation from Restructuring Provision to the Office Modernisation Project via the Central Planning Vote		Date of Decision Summary:	12th January 2016
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Public Sector Reform –Allocation from Restructuring Provision to the Office Modernisation Project via the Central Planning Vote		Date of Written Report:	12th January 2016
Written Report Author:	Finance and Information Manager – Jersey Property Holdings		Written Report : Public or Exempt?	Public
Subject: The 2016 allocation of £350,000 from the Restructuring Provision to the Central Planning Vote and a budget transfer to a new capital head of expenditure entitled Office Modernisation Project to enable feasibility work to be undertaken.
Decision(s): The Minister approved the 2016 allocation of £350,000 from the Restructuring Provision to the Central Planning Vote and a subsequent budget transfer to a new capital head of expenditure entitled Office Modernisation Project to enable feasibility work to be undertaken.
Reason(s) for Decision: In accordance with States of Jersey policy and the Public Finances Law (Jersey) Law 2005, funding for work to scope or assess the feasibility of proposed capital projects that the States have agreed, in principle, will start in the future must be allocated from the Central Planning Vote. The £350,000 from the Restructuring Provision must therefore be transferred to the Central Planning Vote to enable an allocation to the Office Modernisation Project. The Council of Ministers agreed on 22 July 2015 that funding should be transferred from the Restructuring Provision to the Office Modernisation Project to enable feasibility to be undertaken on the early stages of the project in support of the Public Sector Reform Programme. The States recognised the need to invest funds to achieve success in the PSR Programme when it approved a Restructuring Provision in the Medium Term Financial Plan. This decision will enable initial site appraisal and feasibility work to progress on the Office Modernisation Project. Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. Article 16 (3A) states that the approval by the States of a central planning vote authorizes the Minister to approve – (a) capital heads of expenditure to fund work to scope or assess the feasibility of proposed capital projects that the States have agreed, in principle, will start in the future; and (b) the transfer of amounts to such capital heads of expenditure, for such purposes, from the central planning vote.
Resource Implications: The Restructuring Provision will decrease by £350,000 and the Central Planning Vote will increase by an identical amount. Following a subsequent budget transfer of £350,000 from the Central Planning Vote, the newly created Office Modernisation Project capital head of expenditure will increase by £350,000 and the Central Planning Vote will decrease by £350,000. This decision does not change the total amount of expenditure approved by the States for 2016 in the Medium Term Financial Plan.
Action required: The Head of Decision Support to notify the Finance and Information Manager – Jersey Property Holdings and the Head of Financial Performance that the decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from restructuring provision to Office Modernisation Project via Central Planning Vote

- 1 -

Treasury and Resources

Ministerial Decision Report

PUBLIC SECTOR REFORM – ALLOCATION FROM RESTRUCTURING PROVISION TO THE OFFICE MODERNISATION PROJECT VIA CENTRAL PLANNING VOTE

Purpose of Report

To request that the Minister approves the 2016 allocation of £350,000 from the Restructuring Provision to the Central Planning Vote and a subsequent budget transfer to a new capital head of expenditure entitled Office Modernisation Project to enable feasibility work to be undertaken.

Background

The OMP Strategic Business Case, setting out the Target Operating Model for the future organisation of States offices, was considered and agreed by the OMP Project Board on 16th June 2015, by the Corporate Management Board on the 25th June 2015 and by the OMP Ministerial Oversight Group on 9th July 2015.

The above was subsequently agreed by the Council of Ministers at its meeting on 22nd July 2015, along with agreement that £350,000 of funding should be earmarked from the Restructuring Provision for 2016 to enable feasibility work to be undertaken on the early stages of the project (see breakdown below).

	Study	Estimated Cost
1	Initial site appraisal – Central Administrative Hub	£50,000
2	Feasibility Study – TTS	£100,000
3	Feasibility study – Central Administration Hub	£200,000
	Total:	£350,000

The specific transfer of funds from the Restructuring Provision was endorsed by Corporate Management Board on 22nd October 2015, approved by the reform Political Oversight Group on 10th December 2015 and agreed in principle by the Council of Ministers on 9th December 2015 (on the condition that the Political Oversight Group made no amendments on 10th December).

All necessary approvals are now in place for the transfer of funds. In order to set up a new capital head of expenditure the funds have to be transferred from the Restructuring Provision to the Central Planning Vote, and then on to the Office Modernisation Project capital head of expenditure.

Recommendation

The Minister, with reference to the Council of Ministers’ approval of this funding on 22nd July 2015 in support of the Public Sector Reform Programme, is recommended to approve the 2016 allocation of £350,000 from the Restructuring Provision to the Central Planning Vote and a subsequent budget transfer to a new capital head of expenditure entitled Office Modernisation Project to enable feasibility work to be undertaken.

Reason for Decision

In accordance with States of Jersey policy and the Public Finances Law (Jersey) Law 2005, funding for work to scope or assess the feasibility of proposed capital projects that the States have agreed, in principle, will start in the future must be allocated from the Central Planning Vote. The £350,000 from the Restructuring Provision must therefore be transferred to the Central Planning Vote to enable an allocation to the Office Modernisation Project.

The Council of Ministers agreed on 22nd July 2015 that funding should be transferred from the Restructuring Provision to the Office Modernisation Project to enable feasibility to be undertaken on the early stages of the project in support of the Public Sector Reform Programme.

The States recognised the need to invest funds to achieve success in the PSR Programme when it approved a Restructuring Provision in the Medium Term Financial Plan. This decision will enable initial site appraisal and feasibility work to progress on the Office Modernisation Project.

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

Article 16 (3A) states that the approval by the States of a central planning vote authorizes the Minister to approve –

(a) capital heads of expenditure to fund work to scope or assess the feasibility of proposed capital projects that the States have agreed, in principle, will start in the future; and

(b) the transfer of amounts to such capital heads of expenditure, for such purposes, from the central planning vote.

Resource Implications

The Restructuring Provision will decrease by £350,000 and the Central Planning Vote will increase by an identical amount. Following a subsequent budget transfer of £350,000 from the Central Planning Vote, the newly created Office Modernisation Project capital head of expenditure will increase by £350,000 and the Central Planning Vote will decrease by £350,000.

This decision does not change the total amount of expenditure approved by the States for 2016 and in the Medium Term Financial Plan.

Report author : Senior Decision Support Officer

Document date 11/08/2015

Quality Assurance / Review : Head of Decision Support

File name and path: L:\Treasury\Sections\Corporate Finance\Treasurer Delegated Decisions\TR-2015-DD081 use of proceeds from disposal of gas engine

MD sponsor :