Budget Transfer: Digital Care Strategy

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A decision made 15 December 2017:

Decision Reference: MD-HSS-2017-0081
Decision Summary Title:	Transfer funding from revenue to capital head of expenditure for Digital Care Strategy		Date of Decision Summary:	21st November 2017
Decision Summary Author:	Planning Accountant		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Transfer funding from revenue to capital head of expenditure for Digital Care Strategy		Date of Written Report:	21st November 2017
Written Report Author:	Planning Accountant		Written Report : Public or Exempt?	Public
Subject: One-off budget transfers of £1,615,000 in 2017 and up to £1,450,000 in 2018 from Health and Social Services revenue head of expenditure to a new capital head of expenditure for Digital Care Strategy.
Officer recommendation: The Minister is recommended to approve the transfer of £1,615,000 in 2017 and up to £1,450,000 in 2018 from Health and Social Services revenue head of expenditure to a new capital head of expenditure (J00MF18015). This is being funded from P82-2012 programme of work which was approved in the Medium Term Financial Plan Addition (2017 to 2019) and Budget 2018.
Decision(s): The Minister agreed to request the Minister for Treasury and Resources to approve the transfer of £1,615,000 in 2017 and up to £1,450,000 in 2018 from Health and Social Services revenue head of expenditure to a new capital head of expenditure for Digital Care Strategy.
Reason(s) for Decision: Accounting regulations require the capitalisation of some of the Digital Care Strategy costs (e.g. software licences, software development and testing), hence the need to establish a new capital head of expenditure (J00MF18015) and transfer budget between revenue and capital heads of expenditure. The funding for the Digital Care Strategy forms part of the P82-2012 programme of work identified in the Medium Term Financial Plan for 2016 to 2019 with the 2017 and 2018 allocations approved as part of the Central Growth Provision allocation in the Medium Term Financial Plan Addition 2017 – 2019 and Budget 2018. Article 18(1) (a) of the Public Finances (Jersey) 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 revenue head of expenditure to a capital head of expenditure, or vice versa, in order to comply with accounting standards issued for the purposes of Article 32(2).
Resource Implications: The Health and Social Services revenue head of expenditure to decrease by £1,615,000 in 2017 and up to £1,450,000 in 2018 and Health and Social Services capital head of expenditure (J00MF18015) to increase by the same amount.
Action required: Director of Finance to request the approval of the Minister for Treasury and Resources for the transfer as described above.
Signature:		Position: Minister for Health and Social Services
Date Signed:		Date of Decision:

Budget Transfer: Digital Care Strategy

Health and Social Services

Ministerial Decision Report

Transfer FUNDING FROM REVENUE HEAD OF EXPENDITURE TO CAPITAL HEAD OF EXPENDITURE TO SUPPORT THE IMPLEMENTATION OF THE DIGITAL CARE STRATEGY

Purpose

To enable the Minister for Health and Social Services to approve the transfer of £1,615,000 in 2017 and up to £1,450,000 in 2018 from Health and Social Services revenue head of expenditure to a new capital head of expenditure.

Background to this Decision

The Digital Care Strategy (DCS) for health and care set out the broad ambitions and approach to ‘digitising’ the whole health and care system so that the benefits of digital technologies can in turn deliver benefits to patients, service-users and care professionals alike. The broad vision is:

“Jersey is a ‘digitally-world-class’ health and care system that uses technology everywhere to deliver accessible, joined-up, person-centred care that is safe, effective and efficient, where data is used intelligently to improve every aspect of care, and where innovation flourishes.”

The DCS sets out the vision and plans for how health and care will being reshaped over the coming years, to the benefit of patients, service users and the economics of the sector as a whole. Technology is seen as critical enabler in all of these strategies and plans, without effective technology the anticipated benefits are unlikely to be fully realised. Primary and secondary care organisations have recognised this and developed strategies and plans to enable these developments. This strategy consolidates and builds on these existing plans, setting out a system wide vision and strategy for how technology will be used to integrate care and deliver better services for the citizens of Jersey. This strategy aims to ensure that service transformation is enabled and that technology solutions implemented ‘think ahead’ sufficiently in a way that can readily accommodate future innovations.

The development of this strategy has been influenced by technology considerations related to the future new hospital and the early technology plans for the future new hospital has been equally informed by this strategy. As health and care is such a complex business area, a single digital strategy describing how digital technologies will support and enable health and care to be delivered more effectively, in an integrated, cost efficient manner is helpful to guide and shape all subsequent technology delivery programmes, and act as a ‘touchstone’ during the long periods of delivery that are necessary to complete the journey.

To resource this, funding has been approved as part of P82-2012 programme of work in the Medium Term Financial Plan (MTFP) for 2016 to 2019 with additional funding proposed from the Central Growth Provision in 2017 – 2019. Each successive project will be aligned with the overall roadmap, so that there is a cumulative beneficial effect from each individual project. Accounting regulations require the capitalisation of relevant costs (e.g. software licences, software development and testing), hence the need to establish a new capital head of expenditure (J00MF18015) and transfer budget between revenue and capital heads of expenditure.

The additional funding from the Central Growth Provision for 2017 and 2018 was approved by the States Assembly as part of the Medium Term Financial Plan Addition 2017 – 2019 and Budget 2018 debates. It is important to note that the additional funding required for 2019, which has been identified in the MTFP for P82-2012, has not been allocated to Health and Social Services and is being held in the Central Growth Provision subject to the annual States approval process in the

Budget 2019. Should this be approved, it will be allocated to the department following the Budget 2019 debate at the end of 2018.

Recommendation

The Minister is recommended to approve the transfer of £1,615,000 in 2017 and up to £1,450,000 in 2018 from Health and Social Services revenue head of expenditure to a new capital head of expenditure (J00MF18015). This is being funded from P82-2012 programme of work which has been approved as part of the Medium Term Financial Plan Addition 2017 – 2019 and Budget 2018.

Reason for Decision

Article 18(1)(a) of the Public Finances (Jersey) 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 revenue head of expenditure to a capital head of expenditure, or vice versa, in order to comply with accounting standards issued for the purposes of Article 32(2).

Resource Implications

The Health and Social Services revenue head of expenditure to decrease by £1,615,000 in 2017 and up to £1,450,000 in 2018 and Health and Social Services capital head of expenditure (J00MF18015) to increase by the same amount. This decision does not change the total amount of expenditure approved by the States for the period of the current MTFP 2016 to 2019.

Report author : Planning Accountant for HSSD	Document date : 21st November 2017
Quality Assurance / Review : Assistant Director of Finance HSSD	File name and path: L:\Finance\Ministerial Decisions\2017\Digital Care Strategy – Rev to Cap Transfer\WR – Transfer Funding from Revenue to Capital for Digital Care Strategy.doc