TREASURY AND RESOURCES MINISTER
Capital to revenue transfer
- Purpose of Report
To enable the Minister for Treasury and Resources to approve the Minister for Education, Sport and Culture’s request to transfer revenue funds to capital for the purpose of completing a number of unfunded capital projects.
- Background
Under Financial Direction 3.6 and the Public Finance (Jersey) Law 2005 the approval of the Minister is required for any variations to heads of expenditure above £100,000.
The Education, Sport and Culture Department have carried forward a balance of £330,000 and wish to transfer a further £403,000 from revenue to capital in order to fund the following projects:-
All of the funds are to be transferred to Jersey Property Holdings (“JPH”) control, who have been working in conjunction with the Department, in order to manage the delivery of works.
Position after transfer
The transfer will ensure sufficient funding for all of projects apart from the Victoria College Drama / ICT and 6th Form Building. The design produced for this project currently exceeds the available funding. Therefore JPH are looking into phasing the project to enable commencement in 2010, subject to planning permission, and this transfer is to fund the first phase. The Education, Sport and Culture Department has stated that funding for future phases will be met from the combination of raising more money through College donations and future transfers from revenue.
The initial tender for the Jersey College for Girls Drama Studio proved too expensive. However, JPH have been working with the School to revise the scheme and are looking to re-tender the project early in 2010.
The time scale for putting to tender the Victoria College Preparatory Staff Room Extension and Jersey College for Girls Preparatory School Hall is expected to be relatively short due to the scale of the projects.
3. Recommendation
It is recommended that the Minister for Treasury and Resources approves the transfer of funds amounting to £100,000 in respect of Victoria College, £35,000 in respect of Victoria College Preparatory School, £166,000 in respect of Jersey College for Girls and £102,000 in respect of Jersey College for Girls Preparatory School from ESC revenue to Jersey Property Holdings capital heads of expenditure.
4. Reason for Decision
Under Financial Direction 3.6 and Article 15(1)(a) of the Public Finances (Jersey) Law 2005 the approval of the Minister is required for any variations to heads of expenditure above £100,000.
States Treasury Finance Manager Decision Support
6 January, 2010