Transfer of Unspent Contingency Budgets from 2018 into 2019

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A decision made on 12th April 2019

Decision Reference: MD-TR-2019-0032
Decision Summary Title:	Transfer of Unspent Contingency Budgets from 2018 into 2019		Date of Decision Summary:	27th March 2019
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Transfer of Unspent Contingency Budgets from 2018 into 2019		Date of Written Report:	27th March 2019
Written Report Author:	Financial Performance Reporting Manager		Written Report : Public or Exempt?	Public
Subject: A non-recurring transfer of £47,926,738 of balances in Allocation of Contingency from 2018 into 2019 (as detailed in the attached report).
Decision(s): The Minister decided to approve a non-recurring transfer of £47,926,738 from unspent balances in Allocation of Contingency from 2018 into 2019.
Reason(s) for Decision: Article 17(6) of the Public Finances (Jersey) Law 2005 states that if, at the end of a financial year, the whole of the amount available for contingency expenditure in the year has not been transferred, the Minister may approve transfers of all or any of the balance after the end of the financial year.
Resource Implications: Allocation of Contingency to decrease by £47,926,738 in 2018 and increase by the same amount in 2019. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016-2019.
Action required: Head of Decision Support to advise the Financial Performance Reporting Manager once this decision has been approved.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Transfer of Unspent Contingency Budgets from 2018 into 2019

Treasury and Exchequer

Ministerial Decision Report

TRANSFER OF UNSPENT contingency BUDGETS from 2018 inTO 2019

Purpose of Report

To request the approval of a non-recurring transfer of contingency balances of £47,926,738 from 2018 into 2019.

Background

At the end of 2018 there was remaining unallocated contingency balances of £47,926,738.

The £48 million underspend in contingencies includes a number of ring-fenced allocations and a central sum. £8.9 million of the total is the contingency allocated to Economic Productivity Growth Draw down Provision (EPGDP), with up to £5.2 million already committed in 2019. £1.6 million of the total underspend is the balance of the Court and Case Costs Smoothing Reserve, which may be required in 2019. £6.2 million is the balance of the redundancy provision which is expected to be utilised in 2019. £1.8 million relates to the Restructuring Provision and is required in 2019 for previously committed expenditure.

Following rigorous examination of existing decisions and bids, the significant proportion of the balance of unspent contingencies are required to fund commitments already made for 2019. These commitments include funding for Fort Regent demolition works, £2.7 million, £5.6 million for Modernisation and Digital, £3.8 million for transformation, and £4 million relating to care inquiry recommendations and children.

To enable departments to deliver previous commitments this funding is required to be transferred into the Allocation of Contingency to be used during 2019.

3. Recommendation

The Minister is recommended to approve a non-recurring transfer of £47,926,738 from 2018 to 2019 within Allocation of Contingency.

4. Reason for Decision

Article 17(6) of the Public Finances (Jersey) Law 2005 states that if, at the end of a financial year, the whole of the amount available for contingency expenditure in the year has not been transferred, the Minister may approve transfers of all or any of the balance after the end of the financial year.

5. Resource Implications

This decision will result in Allocation of Contingency decreasing by £47,926,738 in 2018 and increasing by the same amount in 2019.

This decision does not change the total amount of expenditure approved by the States for 2017 in the Medium Term Financial Plan.

Report author : Financial Performance Reporting Manager	Document date: 27th March 2019
Quality Assurance / Review : Director of Financial Planning and Performance/ Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2019-0032 - Carry forward of 2018 Contingency
MD Sponsor: Director of Financial Planning and Performance