Budget transfers: New Public Re-Cycling Centre

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A decision made 17 August 2015:

Decision Reference: MD-TR-2015-0092
Decision Summary Title:	Transfer of budgets within multiple capital heads of expenditure, in relation to the La Collette Recycling Park		Date of Decision Summary:	11th August 2015
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Transfer of budgets within multiple capital heads of expenditure, in relation to the La Collette Recycling Park		Date of Written Report:	11th August 2015
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: The transfer of budgets within two Transport and Technical Services (TTS) capital heads of expenditure, being £1,538,000 from Bottom Ash Recycling (Q00MF14034) and £3,050,000 from Infrastructure (Q00RL10011) into the 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. Under Financial Direction 3.6 and the Public Finances (Jersey) Law 2005, Article 18(1)(c) the approval of the Minister for Treasury and Resources is required for any 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. The Finance Manager has confirmed that the New Public Recycling Centre (Q00MF14033) will have a budget of £6,638,000 once the budget transfers are effected.
Action required: The Head of Decision Support to request the approval of the Minister for Treasury and Resources for these budget transfers.
Signature:		Position: Senator Alan J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfers: New Public Re-Cycling Centre

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Treasury and Resources

Ministerial Decision Report

Transfer 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 transfer of budgets within two Transport and Technical Services (TTS) capital heads of expenditure, being £1,538,000 from Bottom Ash Recycling (Q00MF14034) and £3,050,000 from Infrastructure (Q00RL10011) into the 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 & 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.

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).

Reason for Decision

Finance Direction No.3.6 ‘Variations to Heads of Expenditure’ sets out the procedures for the transfers between revenue and capital heads of expenditure and states that budget transfers in excess of £1,000,000 require the approval of the Minister for Treasury and Resources and the relevant Minister party to the transfer.

Under Financial Direction 3.6 and the Public Finances (Jersey) Law 2005, Article 18(1)(c) the approval of the Minister for Treasury and Resources is required for any 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.

The Finance Manager has confirmed that the New Public Recycling Centre (Q00MF14033) will have a budget of £6,638,000 once the budget transfers are effected.

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

Report author : Finance Manager	Document date 11/08/2015
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\MD-TR-2015-00xx La Collette Recycling Park
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