Budget Transfer: Boiler House Controls and Burners: Purchase

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 6 December 2013:

Decision Reference: MD-HSS-2013-0049

Decision Summary Title :

H&SS Budget Transfer from Revenue to Minor Capital to comply with GAAP for the purchase of new boiler house controls and burners.

Date of Decision Summary:

23 November 2024

Decision Summary Author:

Capital & Control Account Manager

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

Written Report

Title :

H&SS Budget Transfer from Revenue to Capital to comply with GAAP for the purchase of new boiler house controls and burners.

Date of Written Report:

Written Report Author:

Capital & Control Account Manager

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

Non-recurring budget transfer in 2013 of £89,400 from the H&SS Revenue head of expenditure to the H&SS Minor Capital head of expenditure. This budget transfer is required in order to comply with Generally Accepted Accounting Principles (GAAP).

Decision(s):

The Minister approved a non-recurring budget transfer in 2013 of £89,400 from the H&SS Revenue to the H&SS Minor Capital head of expenditure for the Boiler House project in order to comply with GAAP.

Reason(s) for Decision:

Under Generally Accepted Accounting Principles (GAAP) expenditure that meets the definition of capital expenditure must be capitalised. This budget transfer is the movement in budget between capital and revenue required to align the budgeting treatment of expenditure with the accounting treatment, in order to comply with GAAP.

Article 18(1)(a) of the Public Finances (Jersey) Law 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 & Resources, be transferred from a revenue head of expenditure to a capital head of expenditure, or vice versa, in order to comply with generally accepted accounting principles or an Order made under Article 32. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with GAAP or an Order made under Article 32 of the Law.

Resource Implications:

The H&SS revenue head of expenditure to decrease by £89,400 in 2013 and the H&SS Minor capital head of expenditure to increase by £89,400. This decision does not change the total amount of expenditure approved by the States.

Action required:

For officers of the Department to request the approval of the Treasurer of the States to the transfer.

Signature:

Position:

Minister For Health and Social Services

Date Signed:

Date of Decision (If different from Date Signed):

Budget Transfer: Boiler House Controls and Burners: Purchase - GAAP Accounting

Health & Social Services

Minister’s Decision Report

Budget Transfer from Treasury and Resources to Health and Social Services for purchase of new boiler house controls and burners

Purpose of Report

To enable the Minister to approve a non-recurring budget transfer in 2013 of £89,400 from the H&SS Revenue head of expenditure to the H&SS Minor Capital head of expenditure. This budget transfer is required in order to comply with Generally Accepted Accounting Principles (GAAP).

Background

H&SS have been targeted with achieving recurrent Comprehensive Spending Review (CSR) savings of £260,000 from their annual spend on energy by the end of 2013.

A report was commissioned by the Transformation Programme Energy Project (dated 9th January 2012) which identified a number of invest-to-save projects that would yield the targeted savings. This resulted in an agreed total investment of £523,000 from the CSR Restructuring Provision.

Of this, £413,000 was allocated to H&SS in 2012 (reference MD-HSS-2012-0006) and the balance of £110,000 was allocated to Corporate Procurement projects.

Below is a table that summarises the financial position of these projects at the end of 2012:-

Department	Allocation	2012 Spend *	Balance
Health and Social Services	£413,000	£309,750	£103,250
Corporate Procurement	£110,000	£0	£110,000
TOTAL	£523,000	£309,750	£213,250

The balance of £213,250 was approved by the Minister for Treasury & Resources (T&R) to be carried forward into 2013 to fund a number of energy saving projects within H&SS.

To enable these projects to be carried out the Minister for H&SS accepted a revenue budget transfer of £110,000 from the T&R revenue head of expenditure which represented the Corporate Procurement’s unspent allocation (reference MD-HSS-2013-0030).

Boiler House:

One of the H&SS projects is for the purchase of new controls and burners for the Boiler House at the General Hospital.

The capital element of upgrading the burners of £89,400 is being refunded from the CSR Restructuring Provision whilst the replacement controls panels are being funded as planned by the Jersey Property Holdings backlog maintenance programme. H&SS accepted the transfers from the CSR Restructuring Provision as a revenue transfer. It now needs to be re-categorised as capital to comply with GAAP.

3. Recommendation

It is recommended that the Minister of Health & Social Services approves a non-recurring budget transfer in 2013 of £89,400 from the H&SS Revenue to the H&SS Minor Capital head of expenditure for the Boiler House project in order to comply with GAAP.

4. Reason for Decision

Article 18(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Health & Social Services, be transferred from a revenue head of expenditure to a capital head of expenditure, or vice versa, in order to comply with generally accepted accounting principles or an Order made under Article 32. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with GAAP or an Order made under Article 32 of the Law.

Resource Implications

The H&SS revenue head of expenditure to decrease by £89,400 with effect from 1st January 2013 and the H&SS minor capital head of expenditure to increase by an identical amount. This decision does not change the total amount of expenditure approved by the States.

Report author : Capital & Control Account Manager	Document date :
Quality Assurance / Review : Finance Director	File name and path:
	File name and path: