Budget transfer from Restructuring Provision to Chief Minister's Department: eGovernment Programme

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A decision made 9 June 2017:

Decision reference: MD-TR-2017-0083
Decision Summary Title:	Restructuring Provision allocation to Chief Minister’s Department (CMD) revenue head of expenditure to meet ongoing revenue costs of the eGovernment Programme		Date of Decision Summary:	7th June 2017
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Restructuring Provision allocation to Chief Minister’s Department (CMD) revenue head of expenditure to meet ongoing revenue costs of the eGovernment Programme		Date of Written Report:	7th June 2017
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: The transfer of £2,610,000 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to meet ongoing revenue costs of the eGovernment Programme. Funding is to be allocated in annual tranches of up to £870,000 in each of the years 2017 to 2019.
Decision(s): The Minister approved one off budget transfers of up to £870,000 in each of the years 2017 to 2019 from the Restructuring Provision to the Chief Minister’s Department to meet ongoing revenue costs of the eGovernment Programme.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The Contingency Allocation Policy published by the Minister for Treasury and Resources (R.10/2012) states that all requests for Allocation from Contingency will be considered by the Council of Ministers and this restructuring provision bid was approved at their meeting on 10th May 2017. MD-C-2017-0075 was signed by the Deputy Chief Minister on 2nd June 2017.
Resource Implications: The Chief Minister’s Department revenue head of expenditure to increase up to £870,000 in each of the years 2017 to 2019 and the Restructuring Provision, held within Central Contingencies, to decrease by the same amount in the corresponding years. The £2,610,000 in total is proposed to be drawn down in 2017, 2018 and 2019 but the amount for each year may be varied without exceeding the total amount for the three years. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016 to 2019. Funding beyond 2019 will be subject to a growth bid in the next Medium Term Financial Plan.
Action required: The Head of Decision Support to advise the Finance Director of the Corporate Group that this decision is approved.
Signature:		Position: Senator A J H Maclean Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Restructuring Provision to Chief Minister's Department: eGovernment Programme

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Treasury and Resources

Ministerial Decision Report

Restructuring Provision allocation to Chief Minister’s Department (CMD) revenue head of expenditure to meet ongoing revenue costs of the eGovernment Programme

Purpose of Report

To enable the Minister for Treasury and Resources to approve a transfer of £2,610,000 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to meet ongoing revenue costs of the eGovernment Programme.

Funding is to be allocated in annual tranches of up to £870,000 in each of the years 2017 to 2019.

Background

In March 2014, the Council of Ministers approved the eGovernment business case that requested a bid of £7,650,000 to the Restructuring Provision to fund eGovernment Phase 1, namely, to build an eGovernment platform (to design, build and deliver a number of new components and capabilities.

The business case requested not only the funding required for the eGov programme as set out above, but also included an indication of ongoing revenue requirement, being £2,900,000, to run the eGovernment platform when it was passed from the programme to business as usual. Whilst initially approved, and the need to run the platform understood, a growth bid for the revenue funding was rejected during the MTFP2 process due to greater funding pressures in other areas.

Recommendation

The Treasury and Resources Minister is recommended to approve a transfer of £2,610,000 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to meet ongoing revenue costs of the eGovernment Programme.

Funding is to be allocated in annual tranches of up to £870,000 in each of the years 2017 to 2019.

Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

The Contingency Allocation Policy published by the Minister for Treasury and Resources (R.10/2012) states that all requests for Allocation from Contingency will be considered by the Council of Ministers and this restructuring provision bid was approved at their meeting on 10th May 2017.

MD-C-2017-0075 was signed by the Deputy Chief Minister on 2nd June 2017.

Resource Implications

The Chief Minister’s Department revenue head of expenditure to increase up to £870,000 in each of the years 2017 to 2019 and the Restructuring Provision, held within Central Contingencies, to decrease by the same amount in the corresponding years.

The £2,610,000 in total is proposed to be drawn down in 2017, 2018 and 2019 but the amount for each year may be varied without exceeding the total amount for the three years.

This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016 to 2019.

Funding beyond 2019 will be subject to a growth bid in the next Medium Term Financial Plan.

Report author :

Head of Decision Support

Document date : 7th June 2017

Quality Assurance / Review :

Director – Financial Planning and Performance

File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-0083 - PSR funding for eGov ongoing revenue costs £2.61m

MD sponsor : Director – Financial Planning and Performance