Chief Operating Office: Allocation of General Reserve Funding

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A decision made on 3 July 2020

Decision Reference: MD-TR-2020-0084
Decision Summary Title:	Allocation of General Reserve Funding to the Chief Operating Office		Date of Decision Summary:	22 June 2020
Decision Summary Author:	Specialist – Business Cases		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Allocation of General Reserve Funding to the Chief Operating Office		Date of Written Report:	22 June 2020
Written Report Author:	Specialist – Business Cases		Written Report: Public or Exempt?	Public
Subject: The allocation of up to £1,500,000 from the General Reserve head of expenditure to the Chief Operating Office in 2020 to restructure Commercial Services and deliver a new operating model.
Decision(s): The Minister approved an allocation of up to £1,500,000 from the General Reserve head of expenditure to the Chief Operating Office in 2020.
Reason(s) for Decision: Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a government plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan. The current Procedures on Allocations from the Reserve (published as R.23/2020) sets the requirement for allocations from the Reserve to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval. For requests over £100,000, the Minister of Treasury & Resources will provide the One Government Political Oversight Group (OneGovPOG) with a schedule of all funding decisions she is minded to make before making a final decision, seeking that Group’s comments. If the Minister is minded to approve a funding allocation, the draft Ministerial Decision will be circulated to the Council of Ministers five working days before a Ministerial Decision is signed and published. The Investment Appraisal Board has recommended this request for approval. Further to these reviews the States Treasurer recommends this allocation to the Minister for approval subject to:- funding being held in Reserves until there is evidence that it is required by the department; and Commercial Services submitting a performance measurement plan for tracking benefit realisation before the end of 2020. The Principal Accountable Officer, OneGovPOG and the Council of Ministers have also been consulted.
Resource Implications: The General Reserve head of expenditure to decrease by up to £1,500,000 in 2020 and the Chief Operating Office revenue head of expenditure to increase by the identical amount. This decision does not change the total amount of expenditure approved by the States in the Government Plan 2020-2023. The Chief Operating Office’s FTE to increase by up to 11 FTE in 2020. Future costs for 2021 and beyond are subject to inclusion within the Government Plan process. Successful delivery of the project objectives will depend on funding beyond 2020.
Action required: The Head of Financial Governance to advise the Specialist – Business Cases and the Head of Finance Business Partnering of the receiving department that this decision is approved.
Signature:		Position: Deputy Susie Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision:

Chief Operating Office: Allocation of General Reserve Funding

Treasury and Exchequer

Ministerial Decision Report

allocation of General Reserve Funding to the chief operating office

Purpose of Report

To enable the Minister to approve the allocation of up to £1,500,000 in 2020 from the General Reserve head of expenditure to the Chief Operating Office in 2020.

Background

Funding was made available in the Government Plan 2020-2023 in the General Reserve head of expenditure to be used to meet unforeseen pressures, or to provide advance funding for urgent expenditure in the public interest

In line with the Procedures for Allocations from the Reserve (published as R.23/2020), the Investment Appraisal Board (IAB) reviews funding requests. This supports the development of best practice in project development and evaluation, enabling better prioritisation and value for money across the Government.

All funding requests require a business case that has been designed using principles of HM Treasury’s Five Case Model to ensure that a consistent approach can be applied across the Government.

The IAB is not a decision-making body. It considers evidence to support a funding request and makes a recommendation for funding to the States Treasurer before the Minister for Treasury and Resources makes a funding decision and allocation. Recommendations for funding are also circulated to the Principal Accountable Officer, One Gov Political Oversight Group (OneGovPOG), and the Council of Ministers in advance of approval by the Minister for Treasury and Resources.

Based upon the evaluation of a business case and responses to further questions, the IAB recommended funding of up to £1,500,000 to the Chief Operating Office to enable Commercial Services to be restructured and to deliver a new operating model between 1st July to 31 December 2020. Funding should be held in the Reserve until there is evidence that it is required by the Department. Future costs for 2021 and beyond should be included within the Government Plan process as successful delivery of the project objectives will depend on funding beyond 2020.

Recommendation

The Minister is recommended to approve the allocation of up to £1,500,000 from the General Reserve head of expenditure to the Chief Operating Office in 2020.

Reasons for Decision

Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a government plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan.

The current Procedures for Allocations from the Reserve (published as R.23/2020) sets the requirement for allocations from the Reserve to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval.

For requests over £100,000, the Minister of Treasury & Resources will provide the One Government Political Oversight Group (OneGovPOG) with a schedule of all funding decisions she is minded to make before making a final decision, seeking that Group’s comments.

If the Minister is minded to approve a funding allocation, the draft Ministerial Decision will be circulated to the Council of Ministers five working days before a Ministerial Decision is signed and published.

The Investment Appraisal Board has recommended this request for approval.

Further to these reviews the States Treasurer recommends this allocation to the Minister for approval subject to:-

funding being held in Reserves until there is evidence that it is required by the department; and
Commercial Services submitting a performance measurement plan for tracking benefit realisation before the end of 2020.

The Principal Accountable Officer, OneGovPOG and the Council of Ministers have also been consulted.

5. Resource Implications

The General Reserve head of expenditure to decrease by up to £1,500,000 in 2020 and the Chief Operating Office revenue head of expenditure to increase by an identical amount. The Chief Operating Office’s FTE to increase by up to 11 FTE in 2020.

Future costs for 2021 and beyond are subject to inclusion within the Government Plan process. Successful delivery of the project objectives will depend on funding beyond 2020.

Report author: Specialist – Business Cases	Document date : 22nd June 2020
Quality Assurance / Review: Group Director, Strategic Finance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2020-0084 - Reserve funding to COO
MD sponsor: Treasurer of the States