Budget Transfer: capital to revenue heads of expenditure

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A decision made on 16 December 2017:

Decision Reference: MD-T-2017-0110
Decision Summary Title :	Budget transfer from Future Hospital Capital Head of Expenditure to Department for Infrastructure Revenue Head of Expenditure		Date of Decision Summary:
Decision Summary Author:	Finance Manager		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Budget transfer from Future Hospital Capital Head of Expenditure to Department for Infrastructure Revenue Head of Expenditure		Date of Written Report:
Written Report Author:	Finance Manager		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Non recurring budget transfer in 2017 of up to £200,000 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 2017 of up to £200,000 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: 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 IFRS or an Order made under Article 32 of the Law. Under International Financial Reporting Standards (IFRS) expenditure that meets the definition of capital expenditure must 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 IFRS.
Resource Implications: The Future Hospital Capital Head of Expenditure (FA0BT14014) budget to decrease by up to £200,000 and the Department of Infrastructure Revenue Head of Expenditure to increase by up to £200,000.
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:
Date Signed:		Date of Decision (If different from Date Signed):

Budget Transfer: capital to revenue heads of expenditure

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Department for Infrastructure

Ministerial Decision Report

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 2017 of up to £200,000 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

The Future Hospital Capital Project includes spend on incidental items that can’t be capitalised under States accounting policies, these costs largely relate to the costs of running the Future Hospital Office, and to IT costs. In order to comply with the aforementioned policies a non-recurring budget transfer is required to move up to £200,000 from Future Hospital Capital Head of Expenditure (FA0BT14014) to the Department for Infrastructure (DfI) Revenue Head of Expenditure.

3. Recommendation

In line with States of Jersey accounting policies the Minister is recommended to approve a non-recurring budget transfer of up to £200,000 from the Future Hospital Capital Head of Expenditure (FABT14014) to the DfI Revenue Head of Expenditure in 2017.

4. Reason for Decision

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 IFRS or an Order made under Article 32 of the Law.

Under International Financial Reporting Standards (IFRS) expenditure that meets the definition of capital expenditure must 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 IFRS.

5. Resource Implications

The Future Hospital Capital Head of Expenditure (FA0BT14014) to decrease by up to £200,000 and the Department for Infrastructure Revenue Head of Expenditure by £200,000 in 2017.

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

Report author : Finance Manager DfI	Document date 2nd December 2016
Quality Assurance / Review : Future Hospital Project Director - Delivery	File name and path: O:\FINANCE\Annual Report and Accounts\2016 Year End\JPH Year End\Year end budget transfers\Decisions
MD sponsor :