Budget Transfer for work completed under Planning Obligation Agreements

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A decision made on 4 September 2017:

Decision Reference: MD-T-2017-0077
Decision Summary Title :	The increase of budget and subsequent transfer between Revenue and Capital Heads of Expenditure for work completed under Planning Obligation Agreements		Date of Decision Summary:	23 August 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 :	The increase of budget and subsequent transfer between Revenue and Capital Heads of Expenditure for work completed under Planning Obligation Agreements		Date of Written Report:	23 August 2017
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: The increase of budget and subsequent transfer between Department for Infrastructure (DFI) Revenue and Capital Heads of Expenditure of up to £570,004.24 for work completed by the Department to fulfil the requirement of various Planning Obligation Agreements during the current MTFP 2017-19.
Decision(s): The Minister approved the following: The increase of up to £570,004.24 to the Department for Infrastructure (DfI) income and expenditure budgets during the current MTFP 2017-19. The subsequent budget transfers of up to £536,336.20 from the DfI revenue head of expenditure; £521,336.22 to the capital head of expenditure for Road Safety Improvements (Q00MF15037) £15,000 to the capital head of expenditure for Eastern Cycle Network (Q00BP10016) during 2017-19, leaving £33,668.02 remaining in revenue for bus service contributions as detailed below.
Reason(s) for Decision: Article 18(1)(a) 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 transferred from a capital head of expenditure to a revenue head of expenditure, or vice versa, in order to comply with generally accepted accounting principles or an Order made under Article 32. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with GAAP or an Order made under Article 32 of the Law. Under Generally Accepted Accounting Principles (GAAP) 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 GAAP.
Resource Implications: The DfI revenue head of expenditure will show an additional income budget of up to £570,004.24 and an additional expenditure budget of up to £570,004.24 during the current MTFP 2017-19. The majority expenditure budget will subsequently be transferred to DfI capital heads of expenditure, with £33,668.02 remaining in Revenue. The Finance Director for DfI will ensure that this total is not exceeded without additional Ministerial approval being sought. A spreadsheet will be used to maintain a running total of the amounts transferred from Revenue to Capital as a means of ensuring the total is not exceeded.
Action required: The Finance Director to request the Treasurer of the States to approve the budget creation and subsequent transfers from revenue to capital as referred to in the accompanying report.
Signature:		Position: Minister for Infrastructure
Date Signed:		Date of Decision (If different from Date Signed):