Approval of 2006 Budget Transfers.

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A decision made (25/01/2007) regarding: Approval of 2006 budget transfers.

Subject:	Approval of 2006 budget transfers
Decision Reference:	MD-TR-2007-0002	Exempt clause(s):		N/A
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		N/A
Telephone or e-mail Meeting?	N/A	Report File ref:		01/KH/25/01/07
Written Report – Title	Approval of 2006 Budget Transfers	Written report - author		Kevin Hemmings – Head of Decision Support
Decision(s): The Minister approved the following 2006 budget transfers: Capital to Capital a) £300,000 from the Chief Minister’s Department to the Planning and Environment Department to contribute towards the costs of preparing a Development and Regeneration Strategy for St Helier. b) £100,000 from the Health and Social Services Department to Jersey Property Holdings for Greenfields building costs. c) Various transfers between the Transport and Technical Services Department’s approved capital schemes as detailed in Appendix B to the attached written report. Revenue to Capital d) £150,000 from the Economic Development Department to the Planning and Environment Department to contribute towards the cost of preparing the Island Plan. e) £515,000 from the Education, Sport and Culture Department’s revenue budget to their own capital budget for ICT strategy spend during 2006. Capital to Revenue f) £17,900 from the Treasury and Resources Department’s contingency vote to the Planning and Environment Department to contribute towards the legal costs incurred in relation to the modification of a planning permit identified. g) £230,000 from the Planning and Environment Department’s capital budget to its revenue budget to fund the overspend caused by the decision of the Council of Ministers that the central contingency for VR/VERs is no longer available, and all VR/VERs to be funded henceforth from within departments’ cash limits. h) £131,355 from the Treasury and Resources Department’s contingency vote to the Health and Social Services Department for purchases made in preparation for a potential flu pandemic. i) £1,417,800 from the Treasury and Resources Department’s contingency vote to the Social Security Department for 2006 Income Support costs. Revenue to Revenue j) £19,800 from the Health and Social Services Department to the Education, Sport and Culture Department to fund the transfer of a Home/School Liaison Officer post.
Reason(s) for decision: Financial direction 3.6 requires certain budget transfers to be approved by the Minister for Treasury and Resources.
Action required: To request Treasury officers to effect the necessary transfers. To advise relevant Departments when the transfers have been effected.
Signature: (Minister/ Assistant Minister)			Date of Decision: 25th January 2007

Approval of 2006 Budget Transfers.

TREASURY AND RESOURCES MINISTER

2006 BUDGET TRANSFERS

1. Purpose of Report

To enable the Minister for Treasury and Resources to approve a number of budget transfers.

2. Background

Financial direction 3.6 requires certain budget transfers to be approved by the Minister for Treasury and Resources.

3. Comments

A number of requests have been made for transfers of 2006 budgets prior to the closure of the accounts for that year. The majority of these relate to the Planning and Environment Department. That department’s report, supporting a ministerial decision, is attached as Appendix A. This contains supporting information relating to the transfers. Further transfers relate largely to the Transport and Technical Services Department. That department’s report, supporting a ministerial decision, is attached as Appendix B. Additional supporting documentation relating to other Departments’ transfers is also attached.

In all cases where the approval of a minister is required for a transfer this approval has been obtained.

4. Recommendation

That the Minister approves the 2006 budget transfers as detailed on the decision template.

5. Reason for Decision

To ensure compliance with financial direction 3.6.

States Treasury Corporate Financial Strategy Division

31 January, 2007 for decision in Jan 2007

Appendix A

PLANNING AND ENVIRONMENT

BUDGET TRANSFERS

Purpose of the Report

The purpose of this report is to seek the Planning and Environment Minister’s approval to the following:

· to request that the Chief Minister transfers a budget of £300,000 to contribute towards the costs of producing a Development and Regeneration Strategy for St Helier.

· to request that the Minister for the Economic Development Department transfers a budget of £150,000 to contribute towards the costs of preparing an Island Plan.

· to request that the Minister for the Treasury and Resources Department approves a budget transfer amounting to £17,900 from its contingency vote to contribute towards the legal costs incurred in relation to the modification of a planning permit identified.

· to request that the Minister for the Treasury and Resources Department approves an internal budget transfer between Capital and Revenue amounting to £230,000 to fund the overspend caused by the decision of the Council of Ministers that the central contingency for VR/VER's is no longer available, and all VR/VER's to be funded henceforth from within department's cash limit.

Background

Finance Direction No.3.6 ‘Variations to Heads of Expenditure’ sets out the procedures for the transfer of revenue funds and states that requests for transfers of revenue funds from one Department to another require the prior approval of the Minister for Treasury and Resources and the relevant ministers party to the transfer.

Discussion

Budget Virements – Capital to Capital

· Transfer from the Chief Minister’s Department - St Helier Development and Regeneration Strategy (£300,000)

The Minister will recall that he previously agreed to request that the Chief Minister transfer £238,000 to contribute towards the costs associated with recruiting EDAW to prepare a Development and Regeneration Strategy for St Helier which will embrace social, economic and cultural issues.

The Director of Planning originally estimated that the total cost of carrying out the Strategy should be in the region of £300,000. This projection takes into account the fixed price (£238,000) EDAW contract, any additional costs that might arise, particularly given the uncertainties over EDAW's involvement in the latter stages of the project (i.e. there may be additional work, not included in the specified work, required as the Strategy moves through its public consultation stages), but also to include any extra visits (us to them or them to us), exhibitions, printing of reports and so on. It is proposed that any unspent monies will be returned to the Millennium Fund on completion.

Budget Virements – Capital to Revenue

· Transfer from the Economic Development Department - Island Plan Review (£150,000)

In order for the Planning and Environment Department to undertake a review of the Island Plan it will require additional resources in order to:

§ Undertake the work required of the review, including the support studies;

§ Determine and undertake the requisite public engagement and scrutiny of the review’s policies and proposals;

§ Progress the Plan to adoption and publication;

§ Manage the procurement of consultants and project management.

It is estimated that the cost of reviewing the Island Plan will amount to £575,000. Although, funding requests have been sought in various Strategic Planning processes the Council of Ministers has requested that the Department fund the review from “one - off funding from carry forwards or other sources.”

The Minister for Economic Development has kindly agreed to transfer £150,000 of his Departments forecast 2006 underspend to a Planning and Environment Capital Vote to assist with meeting the cost of this review.

· Transfer from the Treasury and Resources Department - Rescindment of Planning Permit (£17,900)

The Minister will further recall that a provision was held against the unforeseen contingency balance of £700,000 for action due to result from the modification of a planning permit identified.

During 2006, the Department incurred legal costs in relation to this modification amounting to £17,900 but has yet to fund any compensation from the potential claimant.

· Internal Transfer - VR/VER’s (£230,000)

During 2006 the Planning and Environment Department has reported a projected overspend against its revenue budget. The reason for this is due to the decision of the Council of Ministers that the central contingency for VR/VER's is no longer available, and all VR/VER's to be funded henceforth from within department's cash limit. This has caused the department a short-term funding issue as its had to fund three VR/VER’s, amounting to £318,000, due to the fact that its staff budget has been reduced as part of the 2006 and 2007 FSR Service Reductions.

Recommendations

The Minister is recommended to approve the following:

· to request that the Chief Minister transfers a budget of £300,000 to contribute towards the costs of preparing a Development and Regeneration Strategy for St Helier.

· to request that the Minister for the Economic Development Department transfers a budget of £150,000 to contribute towards the costs of preparing an Island Plan.

· to request that the Minister for the Treasury and Resources Department:

o to transfer a budget of £17,900 from the Treasury and Resources Department contingency vote to contribute towards the legal costs incurred in relation the modification of a planning permit identified.

o to approve the Planning and Environment Department’s internal budget virement from capital to revenue, for the amount of £230,000, to meet the shortfall resulting from the decision of the Council of Ministers that the central contingency for VR/VER's is no longer available and all VR/VER's to be funded from within department's cash limit.

o to approve the budget virements from both the Chief Ministers an Economic Development Departments as detailed in the body of this report.

o to approve that all the budget virements highlighted above take effect as at the 31st December 2006.

Reason (s) for Decision

· Transfer from the Chief Minister’s Department - St Helier Development and Regeneration Strategy (£300,000)

To enable the Chief Minister to allocate funds in support of the St Helier Regeneration Strategy.

· Transfer from the Economic Development Department - Island Plan Review (£150,000)

To enable the Minister for Economic Development to allocate funds in support of the Island Plan review.

· Transfer from the Treasury and Resources Department - Rescindment of Planning Permit (£17,900)

To enable the Treasury and Resources Minister to allocate funds to meet the costs incurred by the modification of the planning permit.

· Internal Transfer - VR/VER’s (£230,000)

To enable the Treasury and Resources Minister to approve the internal virement between capital and revenue, for the amount of £230,000, to meet the revenue shortfall resulting from the decision of the Council of Ministers that the central contingency for VR/VER's is no longer available and all VR/VER's to be funded from within department's cash limit.

Action Required

The Finance Director:

· to notify the Chief Minister and Minister for Economic Development of the Minister’s approval of the transfers for St Helier Development and Regeneration Strategy and the Island Plan.

· to request the Minister for the Treasury and Resources Department to approve all transfers of the decisions referred to in this report.

Written by:	Ellen Littlechild, Finance Director

Approved by:	Paul Nichols, Chief Officer

Attachment: