Treasury and Resources
Ministerial Decision Report
Restructuring Provision allocation to Chief Minister’s Department (CMD) revenue head of expenditure to enable Phase 1 of the eGovernment Programme to be completed
- Purpose of Report
To enable the Minister for Treasury and Resources to approve a transfer of £1,925,000 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to enable Phase 1 of the eGovernment Programme to be completed.
Funding is to be allocated in annual tranches of up to £962,500 for 2017 and of up to £962,500 for 2018.
- Background
In March 2014, the Council of Ministers approved the eGovernment business case that requested a bid of £7,650,000 to the Restructuring Provision to fund eGovernment Phase 1, namely, to build an eGovernment platform (to design, build and deliver a number of new components and capabilities.
During Phase 1, early funding of a “tax office modernisation team” enabled the transformation of the taxes office to start, and therefore deliver benefits, earlier. The co-funding of eGovernment activity with the parishes recognises the importance of aligning service delivery from the wider public administration for the benefit of our mutual customers.
Due to the scale and complexity of the programme of change there has been an inability to recruit the complete programme team from existing staff, and there has therefore been a need to recruit contractors. The programme managed down the cost of contractors from normal rates but this has still resulted in an additional incremental cost that was not originally budgeted.
- Recommendation
The Treasury and Resources Minister is recommended to approve a transfer of £1,925,000 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to enable Phase 1 of the eGovernment Programme to be completed.
Funding is to be allocated in annual tranches of up to £962,500 for 2017 and of up to £962,500 for 2018.
- 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.
The Contingency Allocation Policy published by the Minister for Treasury and Resources (R.10/2012) states that all requests for Allocation from Contingency will be considered by the Council of Ministers and this restructuring provision bid was approved at their meeting on 10th May 2017.
MD-C-2017-0076 was signed by the Deputy Chief Minister on 2nd June 2017.
- Resource Implications
The Chief Minister’s Department revenue head of expenditure to increase up to £962,500 for 2017 and of up to £962,500 for 2018 and the Restructuring Provision, held within Central Contingencies, to decrease by the same amount in the corresponding years.
The £1,925,000 in total is proposed to be drawn down in 2017 and 2018 but the amount for each year may be varied without exceeding the total amount for the two years.
This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016 to 2019.
Report author : Head of Decision Support | Document date : 6th June 2017 |
Quality Assurance / Review : Director – Financial Planning and Performance | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-0081 - PSR funding for eGov phase 1 £1.925m |
MD sponsor : Director – Financial Planning and Performance |