Treasury and Resources
Ministerial/Treasurer’s Decision Report
budget transfer to resources directorate
1. Purpose of Report
To request that the Minister for Treasury and Resources approves the transfer of £1,713,312 revenue budget from 1 January 2010 with a recurring effect of £1,693,580 from 1 January 2011 and 24 manpower (FTE) from 1 April 2010 from the Treasury and Resources Department to the Chief Minister’s Department. The proposed transfer is an interim step towards the full establishment of the Resources Department which is likely to come under the Treasury and Resources Department from 2011. This interim step reflects the change in management accountability for JDE Financial Systems (Systems) and Procurement to the Chief Officer – Resources.
The transfer of the associated capital budgets is also requested. These are:
· 2010 £750,000 capital vote for the upgrade of the JDE Financial Systems
· 2009 £472,475 balance brought forward for JDE Financial Systems
· 2009 £156,598.64 budget for the Payroll system
All balance sheet entries associated with these business units will also be transferred in order to comply with Generally Accepted Accounting Principles (GAAP).
2. Background
The Resources Directorate was created on 1st November 2009 and consists of:
a. Jersey Property Holdings
b. Human Resources – under the Chief Minister
c. Information Services Department
d. Financial Systems - which was brought under the management of the Director of Information Services from 1 September 2009
e. Procurement
The Accounting Officer for the Resources Directorate is the Deputy Chief Executive/Chief Officer Resources.
3. Main Content / Subject matter
In order to establish the Directorate budgets and reflect the political and management accountability for its constituent services, the capital and revenue budgets and associated balance sheet items for the Financial Systems team and the Procurement function need to be transferred to the Resources Directorate which lies within the Chief Minister’s Department. Political responsibility for Jersey Property Holdings will remain with the Treasury and Resources Minister for 2010.
As a result of this proposal to transfer these budgets and manpower to the Resources Directorate, Ministerial responsibility for Systems and Procurement will also transfer from the Minister for Treasury and Resources to the Chief Minister.
One post within the Systems team will not transfer from Treasury and this has a part year effect on the overall sums to be transferred to the Resources Department. This post represents the accounting and financial support to the Resources Department and reverts to the Treasury and Resources Department recurringly from 1 April 2010.
The proposed revenue and capital budget transfers are shown in detail in the table below:
Transfer of budgets for Systems and Procurement from Treasury and Resources Cash Limit to Chief Minister's Department | |
| |
| Budget | Manpower |
| £ | FTE |
2010 revenue budget | | |
Systems | | |
Systems budget - 2010 Business Plan | 1,490,200 | 19.30 |
Less allocation of Treasury overheads | -231,700 | -2.30 |
Direct Systems budget | 1,258,500 | 17.00 |
Less 1 post from 1.4.10 | -57,788 | -1.00 |
Systems budget for transfer 2010 | 1,200,712 | 16.00 |
| | |
Procurement | | |
Procurement budget - 2010 Business Plan | 575,300 | 9.60 |
Less allocation of Treasury overheads | -62700 | -1.6 |
Procurement budget for transfer 2010 | 512,600 | 8.00 |
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2010 Total Revenue Budget Transfer | 1,713,312 | 24.00 |
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Recurring revenue budget transfer from 2011 | | |
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Direct Systems budget | 1,258,500 | 17.00 |
Less 1 post from 1.1.11 | -77,520 | -1.00 |
Recurring Systems budget 2011 | 1,180,980 | 16.00 |
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Recurring Procurement budget 2011 | 512,600 | 8.00 |
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2011 Recurring Revenue Budget Transfer | 1,693,580 | 24.00 |
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2010 capital budget | | |
JDE (Systems) upgrade | 750,000 | |
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Capital budgets brought forward from 2009 | | |
JDE (Systems) upgrade | 472,475 | |
Payroll | 156,599 | |
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Total capital budget transfer | 1,379,074 | |
4. Recommendation
To establish budgets which follow lines of accountability for the Resources Directorate, it is recommended that the Minister for Treasury and Resources approves the budget and manpower transfers as detailed above and asks the Head of Financial Planning and Acting Finance Director, Corporate Group to action them.
5. Reason for Decision
To establish budgets which follow lines of accountability for the Resources Directorate, it is recommended that the Minister for Treasury and Resources approves the budget and manpower transfers as detailed above and asks the Head of Financial Planning and Acting Finance Director, Corporate Group to action them.
6. Resource Implications
There is no overall increase to States spending or manpower as a result of this decision.
Report author : Acting Finance Director – Corporate Group | Document date : 25/2/10 |
Quality Assurance / Review : Head of Decision Support | File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2010-0037 - budget transfer to resources department - ah\wr - transfer of budget to resources department - ah.doc |
MD sponsor : Deputy Treasure |
Page of 3 Printed: 3/4/2010