Sludge Capital Project: Amalgamation of funding under one head of expenditure

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 11 March 2011:

Decision Reference: MD-T-2011-0025
Decision Summary Title :	Waste Head of Expenditure Capital Budget Transfers		Date of Decision Summary:	16 February 2011
Decision Summary Author:	Finance Director		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 :	Waste Head of Expenditure Capital Budget Transfers		Date of Written Report:	16 February 2011
Written Report Author:	Finance Director		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: The amalgamation of funding for the Sludge Capital Project under one vote.
Decision(s): The Minister approved the amalgamation of the Sludge Project funding sources into the Sludge Thickener Project vote.
Reason(s) for Decision: To simplify financial management of the project by having all costs and budgets under one capital head of expenditure.
Resource Implications: Budget transfer of £2,258,311.54 to the Sludge Thickener Project from other heads of expenditure. There are no further resource implications as a result of this decision.
Action required: The Finance Director to seek approval from the Minister for Treasury and Resources for the transfer. Once approval is obtained, the Finance Director to action the transfers.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Sludge Capital Project: Amalgamation of funding under one head of expenditure

TRANSPORT AND TECHNICAL SERVICES DEPARTMENT

WASTE Directorate Capital HEAD OF EXPENDITURE Transfers 2011

Purpose of Report

For the Minister to approve the budget transfers between capital heads of expenditure to enable budgets relating to the Sludge Capital Project to be amalgamated under one head of expenditure.

Background

Finance Direction No.3.6 ‘Variations to Heads of Expenditure’ sets out the procedures for the transfers between capital heads of expenditure. It states that transfers between heads of expenditure require the approval of the department’s Minister. Approval of non-contentious transfers between heads of expenditure up to £1,000,000 is delegated to the Treasurer of the States. In all other instances, the approval of the Minister for Treasury and Resources must be obtained.

Discussion

The funding streams for the Sludge Capital Project have been approved by the States in tranches, and as such, have been given different heads of expenditure within capital. In 2010, the States agreed funding for odour control. The mechanism to control the odour is improvement in the sludge facilities, where the odour comes from. In addition, some of the infrastructure monies have been allocated to sludge digesters. In order to simplify and therefore better control the costs, the internal audit report in 2010 recommended that all the funding streams associated with sludge are combined into a single head of expenditure.

The following table identifies transfers between capital heads of expenditure required:

Capital Project Description	Business Unit Description	Account Codes	DR £	CR £
Q00RL10011- Infrastructure	Sludge digester plant	QZRL01.121010		900,000
Q00RL10011- Infrastructure	Sludge digester	QZL143.121010		275,000
Q00BP10018 – Odour Treatment Works	Odour Control	QZL147.121010		1,043,302
Q00BP10018 – Odour Treatment Works	Odour Control	QZL147.120410		40,009.54
Q00BP11004 – Sludge Thickener Project	Sludge Thickening facilities	QZS023.121010	1,800,000
Q00BP11004 – Sludge Thickener Project	Accommodation works	QZS022.121010	458,311.54
Total			2,258,311.54	2,258,311.54

Recommendation

That the Minister approves the budget transfer of £2,258,311.54 to the Sludge Thickener Project from the other heads of expenditure identified to simplify the reporting for this project.

Reason for Decision

The sludge project consists of a number of smaller projects which have different capital heads of expenditure funding streams. In order to report on the project as a whole, it is simpler for all the funding streams to be amalgamated into one head of expenditure and separated by business units.

Resource Implications

Budget transfer of £2,258,311.54 to the Sludge Thickener Project from other heads of expenditure. There are no further resource implications as a result of this decision.

Action Required

The Finance Director to seek approval from the Minister for Treasury and Resources for the transfer. Once approval is obtained, the Finance Director to action budget transfers.

Written by:

Finance Director

Approved by:

Chief Officer