Budget Transfer: 2012 Carry Forwards: Countryside Infrastructure

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 5 August 2013:

Decision Reference: MD-PE-2013-0085
Decision Summary Title :	Allocation of carry forward funds from 2012 Central Reserves to a new capital head of expenditure within the Department of the Environment for Countryside Infrastructure		Date of Decision Summary:	29th July 2013
Decision Summary Author:	Finance Manager – Department of the Environment		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Allocation of carry forward funds from 2012 Central Reserves to a new capital head of expenditure within the Department of the Environment for Countryside Infrastructure		Date of Written Report:	29th July 2013
Written Report Author:	Finance Manager – Department of the Environment		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Transfer of 2012 Carry Forward Funds to a new capital head of expenditure for Countryside Infrastructure within the Department of the Environment (DoE).
Decision(s): The Minister approved an internal budget transfer of up to £50,000 from the Treasury central reserves as identified in the 2012 Carry Forwards Report to a new capital head of expenditure for Countryside Infrastructure within the Department of the Environment.
Reason(s) for Decision: To enable DoE to achieve the Scrutiny recommendations to adequately improve the standard of maintenance of coastal paths and publicly owned land in the National Park.
Resource Implications: Other than those detailed in the report there are no further financial or manpower implications.
Action required: The Minister for the Department of the Environment to seek approval from the Minister for Treasury and Resources for the budget transfer and creation of a new capital head of expenditure highlighted above. The Finance Director for the Department of the Environment will then action the budget transfers in conjunction with the Head of Financial Performance Reporting.
Signature:		Position: Minister for the Department of the Environment
Date Signed:		Date of Decision (If different from Date Signed):

Budget Transfer: 2012 Carry Forwards: Countryside Infrastructure

Department of the Environment Ministerial Decision Report

Allocation of carry forward funds from Central Contingency (one-off) to a new capital head of expenditure within the Department of the Environment (DoE) for Countryside Infrastructure

Purpose of Report

To enable the Minister to accept an internal budget transfer of £50,000 from Central Contingency (one-off) to a new capital head of expenditure (I00MF14015) within the DoE for Countryside Infrastructure.

Background

A funding pressure of £50,000 was identified by Scrutiny and detailed in the Medium Term Financial Plan (MTFP) Second amendment to “adequately improve the standard of maintenance of coastal paths and publicly owned conservation land in the National Park”.

The amendment was subsequently withdrawn following assurances given during the MTFP debate that funding would be provided to the department by the Council of Ministers from alternative sources. The 2012 Carry Forwards Report identified £50,000 from Departmental under spends which could be used by the Department for Environmental Protection from Countryside Infrastructure.

Discussion

The 2012 Carry Forward Report states:

“Funding pressure identified by Scrutiny and detailed in the Medium Term Financial Plan Second Amendment to adequately improve the standard of maintenance of coastal paths and publicly owned land in the National Park. This would reduce the decline in standards and risks of dangers to users in arising from intensification of use following successful tourism promotion for changes in local lifestyles.”

The planned expenditure meets the IFRS accounting definition of capital expenditure and therefore a new capital head of expenditure for Countryside Infrastructure (I00MF14015) should be created.

The States of Jersey implemented Generally Accepted Accounting Principles (GAAP) in 2009 and subsequently moved to IFRS accounting in 2012. IFRS accounting requires that expenditure should be accounted for as capital if it meets the IFRS accounting definition of capital expenditure, and revenue otherwise.

Previously, ‘capital’ budgets have represented whatever the States Assembly voted as capital. The States have already approved capital allocations for 2013 in the 2013 – 2015 MTFP. These budget transfers move budgets between revenue and capital so as to align the budgeting treatment of 2013 expenditure with the IFRS accounting treatment.

Recommendation

That the Minister accepts the internal budget transfer of up to £50,000 from Central Contingency (one-off) to a new capital head of expenditure for Countryside Infrastructure (I00MF14015) within the Department of the Environment.

Reason for Decision

Under Financial Direction 3.6 and the Public Finances (Jersey) Law 2005, the approval of the Minister for Treasury and Resources is required for any variations to heads of expenditure.

Resource Implications

The Department of the Environment’s new capital head of expenditure for Countryside Infrastructure (I00MF14015) will increase by up to £50,000 in 2013 and Central Contingency (one-off) to decrease by an identical amount.