Budget transfers: New Public Recycling Centre

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A decision made 3 August 2015:

Decision Reference: MD-T-2015-0057
Decision Summary Title :	Consolidation of budgets in multiple capital heads of expenditure, in relation to the La Collette Recycling Park		Date of Decision Summary:	30 July 2015
Decision Summary Author:	Finance Manager		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Consolidation of budgets in multiple capital heads of expenditure, in relation to the La Collette Recycling Park		Date of Written Report:	30 July 2015
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: The consolidation of budgets within two capital heads of expenditure, being £1,538,000 from Bottom Ash Recycling (Q00MF14034), and £3,050,000 from Infrastructure (Q00RL10011), into New Public Recycling Centre (Q00MF14033).
Decision(s): The Minister approved the transfer of budgets from the two TTS capital heads of expenditure, New Public Recycling Centre (Q00MF14033) and Infrastructure (Q00RL10011) to New Public Recycling Centre (Q00MF14033).
Reason(s) for Decision: Transport and Technical Services had originally planned to create separate recycling areas across La Collette and Warwick Farm which would deal with different types of waste recycling. During the feasibility studies for these projects it became clear that a large amount of construction and operating efficiencies could be gained by combining the projects into one overall Public Recycling Park at La Collette. In addition some of the costs that will be incurred will be common to all the recycling projects and cannot be easily split. In order to effectively manage and control expenditure, as well as better reflecting the overall costs of the project, it is desirable to consolidate the separate funding streams into one overall capital head of expenditure. In accordance with Financial Direction 3.6 paragraphs 5.1 and 5.3, and the Public Finances (Jersey) Law 2005 Articles 18(1)(c) and 18(2)(c), the approvals of both the Minister for Treasury and Resources, and the Minister for Transport and Technical Services are required for these variations to heads of expenditure.
Resource Implications: The Bottom Ash Recycling (Q00MF14034) and Infrastructure (Q00RL10011) TTS capital heads of expenditure will decrease by £1,538,000 and £3,050,000 respectively, and New Public Recycling Centre (Q00MF14033) will increase by £4,588,000. After this transfer Bottom Ash Recycling (Q00MF14034) will be closed.
Action required: The Finance Director to request the approval of the Minister for Treasury and Resources for these budget transfers.
Signature:		Position: Minister for Transport and Technical Services
Date Signed:		Date of Decision (If different from Date Signed):

Budget transfers: New Public Recycling Centre

TRANSPORT AND TECHNICAL SERVICES DEPARTMENT

CONSOLIDATION OF BUDGETS IN MULTIPLE CAPITAL HEADS OF

EXPENDITURE, IN RELATION TO THE LA COLLETTE RECYCLING PARK

Purpose of Report

To enable the Minister to approve the consolidation of budgets within two capital heads of expenditure, being £1,538,000 from Bottom Ash Recycling (Q00MF14034), and £3,050,000 from Infrastructure (Q00RL10011), into New Public Recycling Centre (Q00MF14033).

Background

The Medium Term Financial Plan (MTFP) capital programme originally allocated funding for two separate capital projects, Bottom Ash Recycling, and a new Public Recycling Centre. These recycling facilities were originally planned to be spread across La Collette and Warwick Farm.

During the feasibility stage for these projects it became clear that large construction and operational efficiencies could be achieved by combining the projects and concentrating all recycling operations at La Collette. In addition some of the costs that will be incurred will be common to both projects and cannot be easily split.

During this stage it was also recognised that the funds available within these two projects would be insufficient to deliver the La Collette Recycling Park, principally due to the additional infrastructure requirements (roads and services) required for the proposed site. As a result, additional funds were identified within Infrastructure, to be used to fund the project.

In order to effectively manage construction efficiencies, and to better represent the true costs of the project, it is essential that the Department consolidates these budgets into one capital head of expenditure for the new La Collette Recycling Park.

Discussion

Article 18 of the Public Finances (Jersey) Law 2005 (the Law) and Finance Direction No.3.6 ‘Variations to Heads of Expenditure’ (the FD) set out the procedures for transfers between heads of expenditure. Paragraph 5.1 of the FD and Article 18(2)(c) of the Law require departments wanting to transfer funds between heads of expenditure to obtain the approval of the Minister responsible for their administration. Article 18(1)(c) of the Law requires the approval of the Minister for Treasury and Resources for any budget transfers between heads of expenditure. Paragraph 5.2 of the FD delegates non-contentious transfers between heads of expenditure up to £1,000,000 to the Treasurer of the States. Paragraph 5.3 of the FD states that, in all other instances, the approval of the Minister for Treasury and Resources must be obtained.

Recommendation

It is recommended that the Minister approves the transfer of the relevant budgets from Bottom Ash Recycling (Q00MF14034) and Infrastructure (Q00RL10011) into New Public Recycling Centre (Q00MF14033).

Resource Implications

The Bottom Ash Recycling (Q00MF14034) and Infrastructure (Q00RL10011) TTS capital heads of expenditure will decrease by £1,538,000 and £3,050,000 respectively, and New Public Recycling Centre (Q00MF14033) will increase by £4,588,000.

After this transfer Bottom Ash Recycling (Q00MF14034) will be closed.

6. Action Required

The Finance Director to request the approval of the Minister for Treasury and Resources for these budget transfers.

Written by:	Finance Manager
Approved by:	Director of Finance