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.

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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
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A decision made 27 February 2017:

Decision Reference: MD-T-2017-0016
Decision Summary Title:	Use of additional revenue income by the Department for Infrastructure and transfer to capital head of expenditure		Date of Decision Summary:	20 February 2017
Decision Summary Author:	Finance Manager		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Use of additional revenue income by the Department for Infrastructure and transfer to capital head of expenditure		Date of Written Report:	20 February 2017
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: The increase of £1,250,000 in 2017, £1,500,000 in 2018 and £1,500,000 in 2019 to the Department for Infrastructure income budget and an increase of an identical amount to the Department for Infrastructure expenditure budget; followed by an internal budget transfer of £1,200,000 in 2017, £1,500,000 in 2018 and £1,500,000 in 2019 from the Department for Infrastructure revenue head of expenditure to the Department for Infrastructure Road Safety Improvements capital head of expenditure (Q00MF15037). The remaining £50,000 in 2017 will remain in the DfI revenue head of expenditure to be used to fund the e-bikes scheme.
Decision(s): The Minister approved the increase of £1,250,000 in 2017, £1,500,000 in 2018 and £1,500,000 in 2019 to the Department for Infrastructure income budget and an increase of an identical amount to the Department for Infrastructure expenditure budget; followed by an internal budget transfer of £1,200,000 in 2017, £1,500,000 in 2018 and £1,500,000 in 2019 from the Department for Infrastructure revenue head of expenditure to the Department for Infrastructure Road Safety Improvements capital head of expenditure (Q00MF15037). The remaining £50,000 in 2017 will remain in the DfI revenue head of expenditure to be used to fund the e-bikes scheme.
Reason(s) for Decision: The Jersey Car Parking trading operation was originally established to undertake the administration, management, financing, development and maintenance of the public parking places that are within the functions of the Minister for Infrastructure. It was also intended that the trading fund would provide funding for improvements in the Island’s traffic and transport system. This allocation has been identified to fund several sustainable transport capital schemes in 2017-19. As the delivery of these schemes, and the assets once created, will be managed by the Department for Infrastructure, it is intended that the funding will be made as a capital grant from Jersey Car Parks to the Department for Infrastructure. This will enable consistency with other schemes being delivered by the Department for Infrastructure which achieve the same objective. Under International Financial Reporting Standards (IFRS) expenditure that meets the definition of capital expenditure must be capitalised. 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 19 (1) (a) of the Public Finances (Jersey) Law 2005 states that if, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure – (a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income Article 18 (1) (c) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States.
Resource Implications: The JCP Sustainable Transport & Road Safety capital head of expenditure (QYCMF16039) in 2017 will decrease by £1,250,000; £1,500,000 in 2018 and £1,500,000 in 2019 to £nil and the JCP revenue head of expenditure will increase by £1,250,000; £1,500,000 in 2018 and £1,500,000 in 2019. The DfI revenue head of expenditure will show an additional income budget of £1,250,000; £1,500,000 in 2018 and £1,500,000 in 2019 and an additional expenditure budget of £1,200,000; £1,500,000 in 2018 and £1,500,000 in 2019. This expenditure budget will subsequently be transferred to the DfI Road Safety Improvements capital head of expenditure (Q00MF15037), increasing it by £1,200,000 in 2017; £1,500,000 in 2018 and £1,500,000 in 2019. £50,000 will remain in the DfI revenue head of expenditure to be used to fund the e-bikes scheme during 2017.
Action required: The Finance Director to request the approval of the Minister for Treasury and Resources Department for these budget transfers.
Signature:		Position: Minister for Infrastructure
Date Signed:		Date of Decision (If different from Date Signed):

Budget transfers - internal: Road Safety Improvements and E-Bikes Scheme

DEPARTMENT FOR INFRASTRUCTURE

Transfer of road safety funding from Jersey Car ParkING to

the Road Safety Improvements capital head of expenditure

Purpose of Report

To enable the Minister to approve the increase of £1,250,000 in 2017, £1,500,000 in 2018 and £1,500,000 in 2019 to the Department for Infrastructure income budget and an increase of an identical amount to the Department for Infrastructure expenditure budget; followed by an internal budget transfer of £1,200,000 in 2017, £1,500,000 in 2018 and £1,500,000 in 2019 from the Department for Infrastructure revenue head of expenditure to the Department for Infrastructure Road Safety Improvements capital head of expenditure (Q00MF15037). The remaining £50,000 in 2017 will remain in the DfI revenue head of expenditure to be used to fund the e-bikes scheme.

Background

The JCP Trading operation was originally established to undertake the administration, management, financing, development and maintenance of the public parking places that are within the functions of the Minister for Infrastructure. It was also intended that the trading fund was to provide funding for improvements in the Island’s traffic and transport system. The trading fund is funded by means of the charges levied for parking in public spaces, which includes on-street, surface and multi-storey car parks.

In the Medium Term Financial Plan 2016-19 (P.72-2015), the States Assembly approved the JCP proposed programme of capital budget allocations for Sustainable Transport and Road Safety Schemes of £1,000,000 in 2016, £1,250,000 in 2017, £1,500,000 in 2018 and £1,500,000 in 2019.

This funding has been identified to fund several sustainable transport capital schemes in 2017. As the delivery of these schemes, and the assets once created, will be managed by DfI, it is intended that the funding be made as a capital grant from JCP to DfI, who will request the use of the income, the creation of budgets, and the transfer of expenditure budgets to capital, to match the proposed accounting treatment. This will enable consistency with other schemes being delivered by DfI which achieve the same objective.

It is intended that future year allocations from JCP will continue to fund infrastructure improvements, being delivered by DfI, which support the Sustainable Transport Policy.

Recommendation

That the Minister approves the increase of £1,250,000 in 2017, £1,500,000 in 2018 and £1,500,000 in 2019 to the Department for Infrastructure income budget and an increase of an identical amount to the Department for Infrastructure expenditure budget; followed by an internal budget transfer of £1,200,000 in 2017, £1,500,000 in 2018 and £1,500,000 in 2019 from the Department for Infrastructure revenue head of expenditure to the Department for Infrastructure Road Safety Improvements capital head of expenditure (Q00MF15037). The remaining £50,000 in 2017 will remain in the DfI revenue head of expenditure to be used to fund the e-bikes scheme.

Reason for Decision

Under International Financial Reporting Standards (IFRS) expenditure that meets the definition of capital expenditure must be capitalised. 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 19 (1) (a) of the Public Finances (Jersey) Law 2005 states that if, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure –

(a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income

Article 18 (1) (c) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States.

Resource Implications

The JCP Sustainable Transport & Road Safety capital head of expenditure (QYCMF16039) in 2017 will decrease by £1,250,000; £1,500,000 in 2018 and £1,500,000 in 2019 to £nil and the JCP revenue head of expenditure will increase by £1,250,000; £1,500,000 in 2018 and £1,500,000 in 2019. The DfI revenue head of expenditure will show an additional income budget of £1,250,000; £1,500,000 in 2018 and £1,500,000 in 2019 and an additional expenditure budget of £1,200,000; £1,500,000 in 2018 and £1,500,000 in 2019. This expenditure budget will subsequently be transferred to the DfI Road Safety Improvements capital head of expenditure (Q00MF15037), increasing it by £1,200,000 in 2017; £1,500,000 in 2018 and £1,500,000 in 2019. £50,000 will remain in the DfI revenue head of expenditure to be used to fund the e-bikes scheme during 2017.

6. Action Required

The Finance Director to request the approval of the Minister for Treasury and Resources Department for these budget transfers.

Written by:	Finance Manager
Authorised by:	Director of Finance

Budget Transfers - Internal: Road Safety Improvements and E-Bikes Scheme

Information about the publication of Ministerial Decisions

A decision made 27 February 2017: