Treasury and Resources
Ministerial Decision Report
jersey opera house and jersey arts centre – maintenance requests from contingency funding
- Purpose of Report
Request for non-recurring Central Contingency funding and budget transfer of £210,000 from the Provision for Central Reserves (Central Contingencies) for the essential maintenance works at the Jersey Opera House and Jersey Arts Centre.
- Background
Both the Opera House and the Arts Centre are States-owned assets; the former operated by Jersey Opera House Limited in the absence of a formal lease agreement, the latter by the Jersey Arts Centre Association with a fully repairing lease.
The case for applying funding to the two buildings is based on the fact that the Department for Education, Sport and Culture is currently seeking to place both organisations on a more sustainable basis with regard to accommodation, and that they both make a vital contribution to Jersey’s cultural life.
It was also noted in a recent report to the Department for Education, Sport and Culture by BDO that the two organisations were also being successful in efforts to generate their own income to supplement States’ funding and had displayed sound financial management of their affairs. However, inadequate funds to spend on the two buildings was also noted as a concern by BDO.
The Department for Education, Sport and Culture seeks to apply £210,000 from contingency funds to address immediate maintenance issues at both buildings which are essential to the continuing operation of the Opera House and Arts Centre, and to the wider objectives of sustainability.
Jersey Property Holdings has confirmed that it would be content to hold these funds and manage the maintenance works.
3. Proposed Maintenance Works
Jersey Property Holdings recommends that the lifts in both buildings are replaced. This accounts for a significant majority of the proposed funding.
It is, therefore, proposed to apply funding as follows:
Jersey Opera House
Lift replacement £90,000
Mechanical and electrical plant/equipment
servicing £15,000
Total £105,000
Jersey Arts Centre
Lift replacement £50,000
Electrical infrastructure upgrades £15,000
Replacement fire alarm system £20,000
Emergency lighting replacement £10,000
CCTV/intruder system upgrade £10,000
Total £105,000
4. Recommendation
The Minister is recommended to approve the non-recurring budget transfer in 2015 of £210,000 from the Provision for Central Reserves (Central Contingencies) to the Treasury and Resources revenue head of expenditure for the essential maintenance works at the Jersey Opera House and Jersey Arts Centre.
5. Reason for Decision
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.
On 25th November 2015, the Council of Ministers agreed to the request to approve non-recurring funding totalling £210,000 from the Provision for Central Reserves (Central Contingencies) for the essential maintenance works at the Jersey Opera House and Jersey Arts Centre, the sum to be divided equally between the two buildings.
6. Resource Implications
The Treasury and Resources revenue head of expenditure to increase by £210,000 in 2015 and the Provision for Central Reserves (Central Contingencies) to decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States for the period of the current MTFP 2013 to 2015.
Report author : Head of Decision Support | Document date: 24th November 2015. |
Quality Assurance / Review : Head of Decision Support | File name and path: LDrive/Treasury/Sections/Corporate Finance/Ministerial Decisions/2015-01xx – JSY Opera House and JSY Arts Centre Contingency Funding |
MD sponsor : Director of Treasury Operations |
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