Fiscal Stimulus Plan: Treatment of completed project underspends

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A decision made 27 September 2010 regarding: Fiscal Stimulus Plan: Treatment of completed project underspends.

Decision Reference: MD-TR-2010-0140
Decision Summary Title:	Fiscal Stimulus – treatment of completed project under spends		Date of Decision Summary:	22nd September 2010
Decision Summary Author:	Interim Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Treatment of under spends on completed fiscal stimulus projects		Date of Written Report:	22nd September 2010
Written Report Author:	Acting Fiscal Stimulus Programme Manager		Written Report : Public or Exempt?	Public
Subject: Economic Stimulus Plan: completed project under spends.
Decision(s): The Minister decided that any unspent funds on completion of any fiscal stimulus project awarded funding under his authority from the States following P55/2009 will be returned to the fiscal stimulus allocation with the funds to be retained within the fiscal stimulus funding allocation currently managed as a specific head of expenditure in the Consolidated Fund.
Reason(s) for Decision: Certain ministerial decisions awarding funding at an early stage of the fiscal stimulus programme did not explicitly state that any unspent funds on completion would be returned, although this was intended from the outset and communicated to bidding departments. This decision formalises the requirement for all under spends to be returned, for the avoidance of any doubt, and more importantly to eliminate the requirement for individual ministerial decisions in respect of each project as they complete which would be unnecessary and inefficient.
Resource Implications: No financial resource implications. Decision relates only to process surrounding funding decisions already made. No manpower resource implications.
Action required: Treasury to be informed of decision that all under spends on completed fiscal stimulus projects to be returned to the fiscal stimulus allocation, without individual ministerial decision being required in any case.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Fiscal Stimulus Plan: Treatment of completed project underspends

Treasury and Resources

Ministerial Decision Report

Treatment of under spends on completed fiscal stimulus projects

1. Purpose of Report

To recommend, for the avoidance of any doubt and so as to maximise efficiencies within Treasury and other departments, a consistent approach for the treatment of under spends in respect of completed fiscal stimulus projects which is in accordance with the Public Finances (Jersey) Law 2005.

2. Background and rationale for decision

As required by the States when P55/2009 was approved, the Minister for Treasury and Resources has awarded funding to fiscal stimulus projects by way of public ministerial decision following a review process which is independent of the bidding departments. Throughout the development of the programme it has been communicated to and understood by departments that any under spend after completion of a fiscal stimulus project must be returned to the Treasury’s fiscal stimulus allocation, however some of the earlier ministerial decisions did not explicitly state that fact. As a result, it would be necessary, without the approval of this decision, for the Minister for Treasury and Resources to approve a decision in respect of each individual return of under spend. With a large number of projects in the programme this would be inefficient.

3. Recommendation

It is recommended that the Minister formalise a decision to require all under spends in respect of completed projects to be returned to the fiscal stimulus allocation in order to comply with the requirements of the Public Finances (Jersey) Law 2005 and eliminating the need for specific ministerial decision in respect of each individual scheme.

4. Reason for Decision

To ensure that the recovery of under spends back to the Treasury is undertaken appropriately and in accordance with the requirements of the Public Finances (Jersey) Law 2005.

5. Resource Implications

No financial resource implications. Decision relates only to processes surrounding funding decisions already made.

No manpower resource implications.