Treasury and Resources
Ministerial Decision Report
Amalgamation of main theatres capital budget and maternity theatre capital budget
- Purpose of Report
To enable the Minister for Treasury and Resources to approve the amalgamation of two existing capital heads of expenditure entitled ‘Main Theatre Upgrade’ and ‘New Maternity Theatre’ into a single capital head of expenditure.
- Background
The Main Theatre Upgrade capital head of expenditure has been allocated £4,989,000 in three tranches since 2012. The New Maternity Theatre was allocated £1,494,000 in the 2012 Annual Business Plan. The total budget allocated to the two theatre capital heads of expenditure in the 2012 Annual Business Plan and 2013 and 2014 Budgets was £6,483,000.
- Budget Amalgamation
A revision to the Theatres projects means that it will now be run as a single project. The previous proposal to accommodate additional theatre capacity within the confines of the existing building has been superseded by the construction of two modular theatres within the Gloucester Street car park. This proposal provides the required Maternity Theatre capacity plus an additional general use theatre. The stage III and stage IV review of the project by internal audit, issued in March 2014, recommends that the two budgets be combined as one project, as the separation of the budget is no longer relevant to the revised proposal.
- Recommendation
It is recommended that the Minister for Treasury and Resources approves the amalgamation of two existing Capital Heads of Expenditure named ‘Main Theatre Upgrade’ and ‘New Maternity Theatre’ into a single existing capital head of expenditure, with a combined budget of £6,483,000.
- Reason for Decision
Article 18(1)(c) of the Public Finances (Jersey) 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 used for the purposes of another head of expenditure.
The Theatres projects were revised and will now be run as a single project; therefore a decision was taken to amalgamate the two heads of expenditure to reflect this. This amalgamation does not change the total voted by the States of Jersey for the Theatres upgrade.
- Resource Implications
The New Maternity Theatre capital head of expenditure to decrease by £1,494,000 and the Main Theatre Upgrade capital head of expenditure to increase by £1,494,000. Therefore the Main Theatre Upgrade capital head of expenditure will have a total budget of £6,483,000. This does not increase the total amount of expenditure approved by the States.
Report author : Finance Manager – Jersey Property Holdings | Document date : 2/04/2014 |
Quality Assurance / Review : Business Manager | File name and path L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2014-0031 -\WR - Theatres budget amalgamation 12-3-14 (2).docx |
MD sponsor : Treasurer of the States |