Budget transfer of A&E Radiology Project to Property Holdings

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A decision made 22 December 2010 regarding: Budget transfer of A&E Radiology Project to Property Holdings.

Decision Reference: MD-HSS-2010-0068
Decision Summary Title:	Transfer of A&E and Radiology Project To Jersey Property Holdings		Date of Decision Summary:	10th December 2010
Decision Summary Author:	Director of Finance Health and Social Services		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Transfer of A&E and Radiology Project To Jersey Property Holdings		Date of Written Report:	10th December 2010
Written Report Author:	Head of Financial Accounting Health & Social Services		Written Report : Public or Exempt?	Public
Subject: Transfer of the remainder of the Accident & Emergency and Radiology Project to Jersey Property Holdings to allow capitalisation of this project in accordance with the States of Jersey Capital Accounting Manual.
Decision(s): The Minister approved the transfer of the capital budget JZ0063 - A&E/Radiology Extension (Phase 2) in the sum of £2,231,905.40 and related expenditure for the Accident & Emergency and Radiology extensions to Jersey Property Holdings.
Reason(s) for Decision: Under the Public Finances (Jersey) Law 2005 the States of Jersey are required to follow generally accepted accounting practice. The States of Jersey Capital Accounting Manual specifies the procedures to be followed for accounting for capital expenditure. The transfer of the A&E/Radiology project to Jersey Property Holdings is required so that this expenditure can be capitalised.
Resource Implications: The proposals will result in the transfer of the A&E/Radiology project from the Health and Social Services Department to Jersey Property Holdings, the capitalisation of this expenditure and subsequent charges to depreciation over the life of the asset. There are no other resource implications.
Action required: A copy of the Ministerial Decision and the report are to be sent to the Treasury for the approval of the Minister for Treasury and Resources. The Treasury will be required to process the budget transfers as approved.
Signature:		Position: Minister for Health and Social Services
Date Signed:		Date of Decision:

Budget transfer of A&E Radiology Project to Property Holdings

Health and Social Services Department

Ministerial Decision Report

TRANSFER OF A&E and Radiology project to jersey property holdings

Purpose of Report

The purpose of this report is to request the Minister to approve the transfer of the A&E/radiology project to Jersey Property Holdings to permit the capitalisation of these works

Background

The budget for the Accident & Emergency and Radiology project was retained within Health and Social Services although the asset to which it relates, the General Hospital is recorded as an asset held by Jersey Property Holdings. The Radiology element of this work was transferred to Jersey Property Holdings by Ministerial Decision, (MD-HSS-2010-003), dated 6th January 2010. The budget of £1,402,750 was transferred together with equivalent expenditure. The budget and expenditure for the on-going work on the Accident & Emergency Department remained with Health and Social Services and, as this work is nearing completion, requires transfer to Jersey Property Holdings.

Accident & Emergency and Radiology extensions

This project involves the re location of Radiology administration, filing, ultrasound, waiting room, consultant rooms and radiographer rooms into the refurbished former administration corridor. The space vacated by Radiology is providing expanded facilities for the Accident & Emergency Department with a new waiting room, new access, new minor treatment rooms and facilities for administration and consultant staff currently occupying temporary porta-cabins. The existing waiting room is being converted into major treatment rooms and there are other internal improvements.

Under the States of Jersey Capital Accounting Manual this project is considered to increase the functionality of the General Hospital and thus requires to be capitalised in accordance with the Accounting Manual. The asset to which the project relates is the General Hospital. As this asset is a building it is recorded as an asset of Jersey Property Holdings. To allow for the capitalisation of the expenditure on the projects it is therefore necessary for the schemes to be transferred to Jersey Property Holdings.

It is therefore proposed to transfer the budget and related expenditure to Jersey Property Holdings. The budget is as follows:

JZ0063 - A&E/Radiology Extension (Phase 2)

£2,231,905.40

Expenditure against this budget at the end of October amounted to £1,744,283. Current expenditure and responsibility for future expenditure would be transferred with the budget to Jersey Property Holdings form the date of the ministerial decision.

Recommendation

It is recommended that the Minister approves the transfer of the budget JZ0063 - A&E/Radiology Extension (Phase 2), in the sum of £2,231,905.40, and related expenditure for the Accident & Emergency and Radiology extensions to Jersey Property Holdings.

Reason for Decision

Under the Public Finances (Jersey) Law 2005 the States of Jersey are required to follow generally accepted accounting practice. The States of Jersey Capital Accounting Manual specifies the procedures to be followed for accounting for capital expenditure. The transfer of the A&E/Radiology project to Jersey Property Holdings is required so that this expenditure can be capitalised.

Resource Implications

The proposals will result in the transfer of the A&E/Radiology project from the Health and Social Services Department to Jersey Property Holdings, the capitalisation of this expenditure and subsequent charges to depreciation over the life of the asset. There are no other resource implications.

10th December 2010

Nick Aubin - Head of Financial Accounting

Health & Social Services