Transfer of budgets for capital projects from Health and Social Services to Property Holdings

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A decision made 18 January 2010 regarding: Transfer of budgets for capital projects from Health and Social Services to Property Holdings.

Decision Reference: MD-HSS-2010-0003
Decision Summary Title :	Transfer of Building Projects		Date of Decision Summary:	6th January 2010
Decision Summary Author:	Director of Finance & Information Services		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Transfer of Building Projects		Date of Written Report:	6th January 2010
Written Report Author:	Director of Finance & Information Services		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Transfer of capital projects to Jersey Property Holdings
Decision(s): The Minister approved the transfer of capital budgets of £2,479,718 from H&SS to Jersey Property Holdings. The transfer is for the capital costs associated with the General Hospital Ward Upgrade (£1,109,601) and the Radiology element of the Accident & Emergency and Radiology extensions (£1,402,570).
Reason(s) for Decision: The transfer of these projects is necessary to enable the capitalisation of the expenditure on improving the facilities of the General Hospital in accordance with the requirements of the Jersey Capital Accounting Manual.
Resource Implications: The transfer and capitalisation of these projects will increase the recorded value of the property held by the States of Jersey and the overall asset base of the States. The additional asset values will result in an increased charge to depreciation in the accounts of Jersey Property Holdings.
Action required: Request the Minister for Treasury & Resources to transfer the budget for the Ward Upgrade (JZ0078) £1,109,601 and related expenditure £1,077,148 to Jersey Property Holdings. Request the Minister for Treasury & Resources to transfer the budget for the Radiology extension £1,402,570 and equivalent expenditure (JZ0063) to Jersey Property Holdings.
Signature:		Position: Minister for Health and Social Services
Date Signed:		Date of Decision (If different from Date Signed):

Transfer of budgets for capital projects from Health and Social Services to Property Holdings

STATES OF JERSEY

HEALTH AND SOCIAL SERVICES DEPARTMENT

Transfer of Building Projects

Background

In accordance with the requirements of Resource Accounting and Budgeting (RAB) completed capital projects were transferred to completed works at the end of 2008. Within H&SS funding there remained certain on-going capital projects including:

Accident & Emergency and Radiology extensions : This project involves the re location of Radiology administration, filing, ultrasound, waiting room, consultant rooms and radiographer rooms into the refurbished former administration corridor. The space vacated by Radiology will provide expanded facilities for A&E with new waiting room with access, new minor treatment rooms and facilities for administration and consultant staff currently occupying temporary porta-cabins. The existing waiting room will be converted into major treatment rooms and there will be other internal improvements. The transfer of the Radiology service has now been undertaken and work is proceeding on the facilities for Accident & Emergency.

General Hospital ward upgrades: The existing ward kitchen facilities are being replaced with stainless steel to meet infection control requirements. The hospital wards have been refurbished with the removal of wallpaper, tiles and carpets and the installation of wipe down surfaces to meet infection control requirements. Sluice rooms and clinic rooms have been improved. This project is now substantially complete.

Under the States of Jersey Capital Accounting Manual both of these projects are considered to increase the functionality of the General Hospital and thus require to be capitalised in accordance with the Accounting Manual. The asset to which these projects relate is the General Hospital. As this asset is a building, it is recorded as an asset of Jersey Property Holdings. To allow for the capitalisation of the expenditure on these projects it is therefore necessary for the schemes to be transferred to Jersey Property Holdings.

	Budget to Transfer	Expenditure to Date
JZ0078 - Gen. Hosp. Upgrade - Planning	1,109,601	1,077,148
The full budget for this project, all expenditure to date and responsibility for remaining costs to be transferred.
JZ0063 – A&E/Radiology Extens (Phase 2)	1,402,570	1,402,570
The proportion of the expenditure on this project relating to Radiology, and an equivalent budget, to be transferred. The remaining budget (£ 2,231,905) and continuing expenditure on the Accident and Emergency department would remain with Health and Social Services until completion.

N Aubin

6th January 2010