Department for Infrastructure Income Budget: Increase and transfer: Road Safety Improvements

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A decision made 2 June 2016:

Decision Reference: MD-TR-2016-0047
Decision Summary Title:	Use of additional revenue income by the Department for Infrastructure and transfer to capital head of expenditure		Date of Decision Summary:	19th May 2016
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Use of additional revenue income by the Department for Infrastructure and transfer to capital head of expenditure		Date of Written Report:	19th May 2016
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: The increase of £1,000,000 to the Department for Infrastructure income budget and an increase of an identical amount to the Department for Infrastructure expenditure budget; followed by an internal budget transfer of £1,000,000 from the Department for Infrastructure revenue head of expenditure to the Department for Infrastructure Road Safety Improvements capital head of expenditure (Q00MF15037).
Decision(s): The Minister approved the increase of £1,000,000 to the Department for Infrastructure income budget and an increase of an identical amount to the Department for Infrastructure expenditure budget; followed by an internal budget transfer of £1,000,000 from the Department for Infrastructure revenue head of expenditure to the Department for Infrastructure Road Safety Improvements capital head of expenditure (Q00MF15037).
Reason(s) for Decision: The Jersey Car Parking trading operation was originally established to undertake the administration, management, financing, development and maintenance of the public parking places that are within the functions of the Minister for Infrastructure. It was also intended that the trading fund would provide funding for improvements in the Island’s traffic and transport system. A capital allocation of £1,000,000 for Sustainable Transport and Road Safety Schemes for 2016 was debated and approved as part of proposition P.127/2015 on 15th December 2015. This allocation has been identified to fund several sustainable transport capital schemes in 2016. As the delivery of these schemes, and the assets once created, will be managed by the Department for Infrastructure, it is intended that the funding will be made as a capital grant from Jersey Car Parks to the Department for Infrastructure. This will enable consistency with other schemes being delivered by the Department for Infrastructure which achieve the same objective. Under International Financial Reporting Standards (IFRS) expenditure that meets the definition of capital expenditure must 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 IFRS. Article 19 (1) (a) of the Public Finances (Jersey) Law 2005 states that if, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure – (a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income Article 18 (1) (c) of the Public Finances (Jersey) 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 used for the purposes of another head of expenditure. Delegation 1.2 delegates authority for non-contentious transfers between heads of expenditure of up to £1,000,000 to the Treasurer of the States. A departmental decision was signed by the Minister for Infrastructure (MD-DFI-2016-0044) on 17th May 2016.
Resource Implications: The Jersey Car Parking Sustainable Transport & Road Safety capital head of expenditure (QYCMF16039) in 2016 will decrease by £1,000,000 to £nil. The Department for Infrastructure revenue head of expenditure will show an additional income budget of £1,000,000 and an additional expenditure budget of £1,000,000. This expenditure budget will subsequently be transferred to the Department for Infrastructure Road Safety Improvements capital head of expenditure (Q00MF15037), increasing it by £1,000,000 in 2016.
Action required: The Head of Decision Support to notify the Finance Manager - Department for Infrastructure once this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision: