Budget transfer from Future Hospital Capital Head of Expenditure to Department of Infrastructure

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A decision made 18 January 2017:

Decision Reference: MD-T-2017-0005
Decision Summary Title:	Budget transfer from Future Hospital Capital Head of Expenditure to Department for Infrastructure Revenue Head of Expenditure		Date of Decision Summary:	12 January 2017
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 Future Hospital Capital Head of Expenditure to Department for Infrastructure Revenue Head of Expenditure		Date of Written Report:	12 January 2017
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: Non recurring budget transfer in 2016 of £2,959,479 to enable the transfer of non-capitalisable costs associated with the Future Hospital project from the Future Hospital Capital Head of Expenditure (FA0BT14014) to the Department for Infrastructure Revenue Head of Expenditure in order to comply with States accounting policies.
Decision(s): The Minister approved the transfer in 2016 of £2,959,479 from the Future Hospital Capital Head of Expenditure (FA0BT14014) to the Department of Infrastructure Revenue Head of Expenditure in order to comply with States Accounting policies.
Reason(s) for Decision: Under International Financial Reporting Standards (IFRS) expenditure that meets the definition of capital expenditure must be capitalised. These budget transfers are the movement in budgets between capital and revenue heads of expenditure required to align the budgeting treatment of expenditure with the accounting treatment, in order to comply with IFRS and to ensure that capital expenditure is charged to the correct head of expenditure.
Resource Implications: The Future Hospital Capital Head of Expenditure (FA0BT14014) to decrease by £2,959,479 in 2016 and the Department for Infrastructure Revenue Head of Expenditure to increase by £2,959,479 in 2016. This transfer does not change the amount of expenditure agreed by the States.
Action required: The Department for Infrastructure Finance Manager to let Treasury and Resources Business Support team know that the decision has been signed.
Signature:		Position: Minister for Infrastructure
Date Signed:		Date of Decision (If different from Date Signed):

Budget transfer from Future Hospital to Department of Infrastructure

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DEPARTMENT FOR INFRASTRUCTURE

BUDGET TRANSFER FROM THE FUTURE HOSPITAL CAPITAL HEAD OF

EXPENDITURE TO DEPARTMENT FOR INFRASTRUCTURE REVENUE HEAD OF

EXPENDITURE

Purpose of Report

The Minister is asked to approve a non-recurring budget transfer in 2016 from the Future Hospital Capital Head of Expenditure (FA0BT14014) to the Department for Infrastructure (DfI) Revenue Head of Expenditure in order to comply with States accounting policies.

Background

In approving “Future Hospital: Preferred Site” (P.110/2016) the States Assembly selected a preferred hospital site which means that previous work undertaken on other sites and related activities can no longer be attributable to the eventual new hospital asset. Therefore, advisory costs, including technical, financial and other advisors, stakeholder engagement activity, and those feasibility studies, relocation and enabling works associated with other previously preferred or abortive sites must be transferred from capital to revenue costs in 2016. The detail of the proposed transfer is attached to this Report.

3. Recommendation

In line with States of Jersey accounting policies the Minister is recommended to approve a non-recurring budget transfer of £2,959,479 from the Future Hospital Capital Head of Expenditure (FABT14014) to the DfI Revenue Head of Expenditure in 2016.

4. Reason for Decision

Under International Financial Reporting Standards (IFRS) expenditure that meets the definition of capital expenditure must be capitalised. These budget transfers are the movement in budgets between capital and revenue heads of expenditure required to align the budgeting treatment of expenditure with the accounting treatment, in order to comply with IFRS and to ensure that capital expenditure is charged to the correct head of expenditure.

5. Resource Implications

The Future Hospital Capital Head of Expenditure (FA0BT14014) to decrease by £2,959,479 and the Department for Infrastructure Revenue Head of Expenditure by £2,959,479 in 2016.

These transfers do not change the amount of expenditure agreed by the States.

6. Action Required

The Department for Infrastructure Finance Manager to let Treasury and Resources Business Support team know that the decision has been signed.

Written by:	Finance Manager
Approved by:	Director of Finance