Budget transfer between capital and revenue: Urban Renewal 2006

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 22 July 2016:

Decision Reference: MD-PE-2016-0101
Decision Summary Title :	Budget transfer from capital to revenue in order to comply with IFRS for Future St Helier		Date of Decision Summary:	14 July 2016
Decision Summary Author:	Finance 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 :	Budget transfer from capital to revenue in order to comply with IFRS for Future St Helier		Date of Written Report:	14 July 2016
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: The transfer of £12,382.21 budget in 2016 between the Department of the Environment (DOE) Urban Renewal 2006 capital head of expenditure (I0000C0971) and the DOE revenue head of expenditure, to match the accounting treatment of future expenditure.
Decision(s): The Minister approved the transfer of budgets in 2016 between the DOE Urban Renewal 2006 capital head of expenditure (I0000C0971) and the DOE revenue head of expenditure.
Reason(s) for Decision: Under International Financial Reporting Standards (IFRS) expenditure that meets the definition of revenue expenditure must be expensed in year. 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 IFRS. 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. This transfer moves budgets to match the proposed accounting treatment for the expenditure to be incurred by DOE.
Resource Implications: The DOE Urban Renewal 2006 capital head of expenditure (I0000C0971) will decrease in 2016 by £12,382.21 to £nil, and the DOE revenue head of expenditure will increase by an identical amount. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.
Action required: The Finance Director to request the approval of the Treasurer of the States for this budget transfer.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Budget transfer between capital and revenue: Urban Renewal 2006

Department of the Environment

Ministerial Decision Report

budget transfer from capital to revenue in order to comply with IFRS for Future St HELIER

Purpose of Report

To enable the Minister to approve a non-recurring budget transfer in 2016 of £12,382.21 between the Department of the Environment (DOE) Urban Renewal 2006 capital head of expenditure (I0000C0971) and the DOE revenue head of expenditure, to match the accounting treatment of future expenditure.

Background

In the Budget 2006, Environment and Public Services were allocated £200,000 as additional funding for Urban Renewal, with a further £200,000 allocated in 2008. The purpose of this funding was to continue investment in the public infrastructure of the Island to directly improve the quality of urban life for residents and to sustain the economic prosperity, vitality and viability of St Helier.

It is considered appropriate that the remaining budget within this head of expenditure supports work to develop a vision for the regeneration of St. Helier, one of the strategic priorities for the Council of Ministers. The nature of the work undertaken within the Department of the Environment in relation to this strategic priority will be revenue in nature.

As the budgets for this future spend are loaded into the Urban Renewal 2006 capital head of expenditure (I0000C0971), a budget transfer to the DOE revenue head of expenditure is required to match the accounting treatment.

3. Recommendation

The Minister is recommended to approve a non-recurring budget transfer in 2016 of £12,382.21 between the DOE Urban Renewal 2006 capital head of expenditure (I0000C0971) and the DOE revenue head of expenditure.

4. Reason(s) for Decision

Under International Financial Reporting Standards (IFRS) expenditure that meets the definition of revenue expenditure must be expensed in year. 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 IFRS.

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.

This transfer moves budgets to match the proposed accounting treatment for the expenditure to be incurred by DOE.

Resource Implications

The DOE Urban Renewal 2006 capital head of expenditure (I0000C0971) will decrease in 2016 by £12,382.21 to £nil, and the DOE revenue head of expenditure will increase by an identical amount. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan.

Report author : Finance Manager	Document date : 14 July 2016
Quality Assurance / Review : Finance Director	File name and path: I:\FINANCE\Ministerial Decisions\DOE\2016\2016-05 MD Cap-Rev to Future St Helier\MR - DoE IFRS Cap to Rev Future St Helier v2.docx