Government of Jersey

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 7 February 2011 regarding: Budget Transfers - GAAP Accounting.

Decision Reference: MD-E-2011-0017
Decision Summary Title:	DS – Jersey Harbours – Capital Budget Transfer to Revenue Expenditure (XY1093)		Date of Decision Summary:	27 January 2011
Decision Summary Author:	Finance & Business Resources Director		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	WR – Capital Budget Transfers to Revenue Expenditure (XY1093)		Date of Written Report:	20 January 2011
Written Report Author:	Finance & Business Resources Director		Written Report : Public or Exempt?	Public
Subject 2011 Budget Transfers from Capital Heads of Expenditure to Revenue Expenditure.
Decision(s): The Assistant Minister to approve the transfer for £110,000 from the Jersey Harbours capital budget to the Jersey Harbours revenue budget.
Reason(s) for Decision: The States of Jersey previously approved 2010 capital heads of expenditure in the 2010 Business Plan. This included XY1093 Tanker Berth Gangway & Stage. This work has subsequently been reclassified as revenue expenditure, in accordance with GAAP accounting principles.
Resource Implications: N/A
Action required: For the Finance Director to seek the Treasurer of the States approval for the transfer. Once approval is obtained, the Finance Director to action budget transfers.
Signature:		Position: Assistant Minister – Economic Development
Date Signed:		Date of Decision:

Budget Transfers - GAAP Accounting

Report

Report Name: Capital Budget Transfers to Revenue Expenditure (XY1093) PUBLIC

Support for Ministerial Decision Capital/Revenue Budget Transfer (XY1093) – Economic Development Department – Jersey Harbours

Date: 20.01.2011

Purpose of Report

To approve the transfer of £110,000 budget from Jersey Harbours capital to Jersey Harbours revenue, to align budgeting with Generally Accepted Accounting Principles (GAAP).

Background

The States of Jersey has implemented Generally Accepted Accounting Principles (GAAP) in 2009. GAAP accounting requires that expenditure should be accounted for as capital only if it meets the GAAP accounting definition of capital expenditure, and revenue otherwise. Previously ‘capital’ budgets have represented whatever the States Assembly voted as capital. The States have already approved capital allocation for 2010 in the 2010 Business Plan. This budget transfer moves budget between capital and revenue so as to align the budgeting treatment of 2011 expenditure with the GAAP accounting treatment.

Subsequent to approval of the Business Plan site investigations have been carried out during Q3/Q4 2009 and Q1 2010. The site investigations relate to: The Corrosion Management Programme that requires that the Tanker Berth Gangway and Landing Stage receives remedial work for protection and repair. The option subsequently chosen for the remedial work is solely maintenance repair and as such the proposed necessary work has now been reclassified as Revenue based expenditure with reinstatement scope only rather than Capital expenditure. This is a restatement exercise that only affects expenditure that is expected to be incurred in early 2011. The reason this project has been delayed is due to the tendering process only just being completed. Documentation for the successful tender has been attached.

The following table identifies transfers between revenue and capital and vice versa that meet the relevant GAAP definitions.

Capital Budget at 1st January 2011

Transfers (to)/from revenue budget (2011 expenditure only)

Re-stated Capital Budgets after 2011 expenditure transfer only

Tanker Berth Gangway & Landing Stage

110,000

(110,000)

Total

110,000

(110,000)

Operating Account

	2011 Net Revenue Expenditure before Transfer	Adjust for 2011 Capital /Revenue Transfers	2011 Net Revenue Expenditure after Transfer
Income
Port of Jersey	9,269,081		9,269,081
Coastguard	1,123,076		1,123,076
Jersey Marinas	3,964,843		3,964,843
Notional Interest	178,000		178,000
Total Income	14,535,000		14,535,000
Expenditure
Port of Jersey	7,205,000	110,000	7,070,600
Coastguard	1,195,000		1,503,200
Jersey Marinas	3,269,000		3,286,000
Total Expenditure	11,669,000	110,000	11,779,000
Gross Operating Surplus	2,866,000	(110,000)	2,756,000
Less:
Depreciation	3,318,000		3,318,000
Net Surplus	(452,000)	(110,000)	(562,000)
Transfer to Trading Fund	2,414,000	(110,000)	2,194,000

The effect of the transfer would be to increase the Department’s 2011 operating expenditure cash limit from £11,669,000 to £11,779,000, and increase of 0.9%, and reduce the value of capital budgets by an equivalent amount. This does not change the total amount of expenditure approved by the States.

Recommendations

To approve the net transfer of £110,000 budget from capital to revenue with Jersey Harbours, to align budgeting with accounting treatment.