Budget transfer from revenue to capital for Victoria College Preparatory School: Works relating to bike shed and parking

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A decision made 13 April 2016:

Decision Reference: MD-ESC-2016-0013
Decision Summary Title:	Budget transfer from revenue to capital for minor capital project at Victoria College Prep.	Date of Decision Summary:	21st March 2016
Decision Summary Author:	Finance Manager, Education Department	Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written	Person Giving Oral Report:	N/A
Written Report Title:	Budget transfer from revenue to capital for minor capital project at Victoria College Prep.	Date of Written Report:	21st March 2016
Written Report Author:	Finance Manager, Education Department	Written Report : Public or Exempt?	Public
Subject: Budget transfer from revenue to capital for minor capital project at Victoria College Prep.
Decision(s): The Minister for Education approved a budget transfer of £40,883 in 2016 from the Education revenue head of expenditure to capital head of expenditure.
Reason(s) for Decision: In order to improve student safety and access for emergency vehicles the existing bike shed and parking area at VCP should be configured and a new bike shed constructed. Under Generally Accepted Accounting Principles (GAAP) expenditure that meets the definition of capital expenditure only can 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. 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.

Resource Implications: The Education capital head of expenditure will increase by £40,883 in 2016, and the revenue head of expenditure will decrease by an identical amount in 2016. This decision does not change the total amount of expenditure approved by the States for 2016.

Action required: The Minister for Education to seek approval of the Treasurer of the States for the transfer.

Signature:

Position: Deputy Rod Bryans

Minister for Education

Date Signed:

Date of Decision:

Budget transfer from revenue to capital for Victoria College Preparatory School: Works relating to bike shed and parking

Education Department

Ministerial Decision Report

Budget transfer from revenue to capital for minor capital project at Victoria College Prep.

Purpose of Report

To enable the Minister for Education to request that the Minister for Treasury and Resources (T&R) approve a budget transfer of £40,883 in 2016 from the Education revenue head of expenditure to capital head of expenditure to fund minor capital works at Victoria College Prep.

Background

The existing bike shed facility at VCP has been identified as a risk due to its dilapidated state during the recent site hazard identification inspection.

Due to the layout of parking areas at VCP students are required to walk through the parking areas during the school day posing a Health and Safety risk for the students if any cars need to be moved during the school day.

Current parking arrangements restrict access for emergency vehicles to College lawn and lower grounds.

Proposed solution:

Remove the existing bike sheds in order to reconfigure the student pathway and parking areas. This will create at least more parking spaces and improve access for emergency vehicles, whilst also improving student safety.

Construct a new bike shed built to modern specifications in a different location.

The whole project has been put out to tender and the most cost effective option was selected. Preliminary work will be carried out in the Easter holidays and the main project will be completed during the summer holidays.

Recommendation

The Minister for Education is recommended to request that the Minister for T&R approve a budget transfer of £40,883 in 2016 from the Education revenue head of expenditure to capital head of expenditure to fund minor capital works at Victoria College Prep.

Reasons for Decision

Under Generally Accepted Accounting Principles (GAAP) expenditure that meets the definition of capital expenditure only can 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.

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.

Resource Implications

The Education capital head of expenditure will increase by £40,883 in 2016 and the revenue head of expenditure will decrease by identical amount in 2016. This decision does not change the total amount of expenditure approved by the States for 2016.

Report author: Finance Manager, Education Department	Document date : 21st March 2016
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