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-2017-0081
Decision Summary Title:	Restructuring Provision allocation to Chief Minister’s Department (CMD) revenue head of expenditure to enable Phase 1 of the eGovernment Programme to be completed		Date of Decision Summary:	6th 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 enable Phase 1 of the eGovernment Programme to be completed		Date of Written Report:	6th June 2017
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: The transfer of £1,925,000 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to enable Phase 1 of the eGovernment Programme to be completed. Funding is to be allocated in annual tranches of up to £962,500 for 2017 and of up to £962,500 for 2018.
Decision(s): The Minister approved one off budget transfers of up to £962,500 for 2017 and of up to £962,500 for 2018 from the Restructuring Provision to the Chief Minister’s Department to enable Phase 1 of the eGovernment Programme to be completed.
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-2017-0076 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 £962,500 for 2017 and of up to £962,500 for 2018 and the Restructuring Provision, held within Central Contingencies, to decrease by the same amount in the corresponding years. The £1,925,000 in total is proposed to be drawn down in 2017 and 2018 but the amount for each year may be varied without exceeding the total amount for the two years. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016 to 2019.
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 - Phase 1

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Treasury and Resources

Ministerial Decision Report

Restructuring Provision allocation to Chief Minister’s Department (CMD) revenue head of expenditure to enable Phase 1 of the eGovernment Programme to be completed

Purpose of Report

To enable the Minister for Treasury and Resources to approve a transfer of £1,925,000 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to enable Phase 1 of the eGovernment Programme to be completed.

Funding is to be allocated in annual tranches of up to £962,500 for 2017 and of up to £962,500 for 2018.

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.

During Phase 1, early funding of a “tax office modernisation team” enabled the transformation of the taxes office to start, and therefore deliver benefits, earlier. The co-funding of eGovernment activity with the parishes recognises the importance of aligning service delivery from the wider public administration for the benefit of our mutual customers.

Due to the scale and complexity of the programme of change there has been an inability to recruit the complete programme team from existing staff, and there has therefore been a need to recruit contractors. The programme managed down the cost of contractors from normal rates but this has still resulted in an additional incremental cost that was not originally budgeted.

Recommendation

The Treasury and Resources Minister is recommended to approve a transfer of £1,925,000 from the Restructuring Provision to the Chief Minister’s Department (CMD) revenue head of expenditure to enable Phase 1 of the eGovernment Programme to be completed.

Funding is to be allocated in annual tranches of up to £962,500 for 2017 and of up to £962,500 for 2018.

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-2017-0076 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 £962,500 for 2017 and of up to £962,500 for 2018 and the Restructuring Provision, held within Central Contingencies, to decrease by the same amount in the corresponding years.

The £1,925,000 in total is proposed to be drawn down in 2017 and 2018 but the amount for each year may be varied without exceeding the total amount for the two years.

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

Report author :

Head of Decision Support

Document date : 6th 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\2017-0081 - PSR funding for eGov phase 1 £1.925m

MD sponsor : Director – Financial Planning and Performance