Budget Transfer: Capital to Revenue (Sport Strategy

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 on 8 December 2014:

Decision Reference: MD-ESC-2014-0032
Decision Summary Title:	Budget transfer from capital to revenue covering the Sport Strategy “Fit For The Future 2014-2018”		Date of Decision Summary:	10th November 2014
Decision Summary Author:	Finance Manager		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Budget transfer from capital to revenue covering the Sport Strategy “Fit For The Future 2014-2018”		Date of Written Report:	10th November 2014
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: Budget transfer from capital to revenue covering the Sport Strategy “Fit For The Future 2014-2018”.
Decision(s): The Minister for Education, Sport and Culture approved a budget transfer of £50,000 in 2014 from the Sports Strategy infrastructure (E00BT14010) capital head of expenditure to ESC revenue head of expenditure.
Reason(s) for Decision: The Capital Programme 2014-2015 provided funding of £3,000,000 (£1,550,000 in 2014 and £1,450,000 in 2015) to support the Sport Strategy “Fit For The Future 2014-2018”. The strategy was launched on 14 October 2013 and required funding to deliver on all aspects of the new strategy, including preparation for the 2015 NatWest Island Games and capital projects including a new artificial pitch at Springfield, upgrade to Les Quennevais cycle track, improvements at Crabbe shooting ranges and improvements of school, club and community facilities. Under Generally Accepted Accounting Principles (GAAP) expenditure that meets the definition of capital expenditure only can be capitalised. This budget transfer is the movement in budget between capital and revenue required to align the budgeting treatment of expenditure with the accounting treatment, in order to comply with GAAP. Article 18(1)(a) of the Public Finances (Jersey) Law 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 transferred from a capital head of expenditure to a revenue head of expenditure, or vice versa, in order to comply with generally accepted accounting principles or an Order made under Article 32. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with GAAP or an Order made under Article 32 of the Law.
Resource Implications: The ESC revenue head of expenditure will increase by £50,000 in 2014 and the Sports Strategy infrastructure (E00BT14010) capital head of expenditure will decrease by an identical amount in 2014. This decision does not change the total amount of expenditure approved by the States for 2014.
Action required: The Minister for ESC to seek approval of the Minister for Treasury and Resources for this transfer, in accordance with Financial Direction 3.6.
Signature:		Position: Deputy Rod Bryans, Minister for Education, Sport and Culture
Date Signed:		Date of Decision:

Budget Transfer: Capital to Revenue (Sport Strategy - Fit for the Future)

Education, Sport and Culture

Ministerial Decision Report

Budget transfer from capital to revenue covering the Sport Strategy “Fit For The Future 2014-2018”

Purpose of Report

To enable the Minister for Education, Sport and Culture (ESC) to request that the Minister for Treasury and Resources (T&R) approve a budget transfer of £50,000 in 2014 from the Sports Strategy infrastructure (E00BT14010) capital head of expenditure to ESC revenue head of expenditure to cover the Sport Strategy “Fit For The Future 2014-2018”.

Background

The Capital Programme 2014-2015 provided funding of £3,000,000 (£1,550,000 in 2014 and £1,450,000 in 2015) to support the Sport Strategy “Fit For The Future 2014-2018”. The strategy was launched on 14 October 2013 and required funding to deliver on all aspects of the new strategy, including preparation for the 2015 NatWest Island Games and capital projects including a new artificial pitch at Springfield, upgrade to Les Quennevais cycle track, improvements at Crabbe shooting ranges and improvements of school, club and community facilities.

The Sport Strategy “Fit For The Future 2014-2016” focusses on four key areas:

Organisation

to give sport a stronger voice in Jersey and a new strategic direction

Getting active, staying active

to help more Islanders take up physical activity
to encourage children to take up sport at an early age
to ensure all young people have opportunities to engage in positive activity
to ensure all young people become competent swimmers and are safe in the water and sea

Spaces and places

to ensure all facilities are the highest possible standard
to actively promote the development of new facilities
to increase participation levels by providing new artificial pitches

Personal bests

to help Jersey’s top athletes achieve their best possible performance in local, national and international competitions
to increase sports tourism and events
to have an all-Island overview of how to improve performance and participation
to help sports clubs improve and work together

Recommendation

The Minister for ESC is recommended to request that the Minister for T&R approve a budget transfer of £50,000 in 2014 from the Sports Strategy infrastructure (E00BT14010) capital head of expenditure to ESC revenue head of expenditure to cover the Sport Strategy “Fit For The Future 2014-2018”.

Reasons for Decision

Sport strategy spending plans contain a mixture of capital and revenue expenditure and in total require a transfer from the ESC capital head of expenditure to revenue head of expenditure of £50,000 in 2014 to fund planned revenue expenditure.

Under Generally Accepted Accounting Principles (GAAP) expenditure that meets the definition of capital expenditure only can be capitalised. This budget transfer is the movement in budget between capital and revenue required to align the budgeting treatment of expenditure with the accounting treatment, in order to comply with GAAP.

Article 18(1)(a) of the Public Finances (Jersey) Law 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 transferred from a capital head of expenditure to a revenue head of expenditure, or vice versa, in order to comply with generally accepted accounting principles or an Order made under Article 32.

Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with GAAP or an Order made under Article 32 of the Law.

Resource Implications

The ESC revenue head of expenditure will increase by £50,000 in 2014 and the Sports Strategy infrastructure (E00BT14010) capital head of expenditure will decrease by an identical amount in 2014. This decision does not change the total amount of expenditure approved by the States for 2014.

Report author: Finance Manager	Document date : 10th November 2014
Quality Assurance / Review:	File name and path:
	File name and path: