Budget Transfer: capital to revenue heads of expenditure

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A decision made 29 June 2016:

Decision Reference: MD-PE-2016-0088
Decision Summary Title:	Department of the Environment capital to revenue transfer for countryside infrastructure to comply with IFRS		Date of Decision Summary:	24 June 2016
Decision Summary Author:	Finance Manager		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Department of the environment GAAP capital to revenue transfer for countryside infrastructure to comply with IFRS		Date of Written Report:	24 June 2016
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: Non-recurring budget transfer from the Department of the Environment (DoE) Countryside Infrastructure capital head of expenditure (I00MF14015) to the DoE revenue head of expenditure, to comply with International Financial Reporting Standards (IFRS).
Decision(s): The Minister approved a non-recurring budget transfer of up to £200,000 in 2016 from the DoE Countryside Infrastructure capital head of expenditure (I00MF14015) to the DoE revenue head of expenditure.
Reason(s) for Decision: This transfer is essential to ensure that the Department accounts for its spend in accordance with applicable accounting standards. 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 18(1)(a) of the Public Finances (Jersey) Law 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 transferred from a revenue head of expenditure to a capital head of expenditure, or vice versa, in order to comply with accounting standards issued for the purposes of Article 32(2). Delegation 1.2 delegates authority for non-contentious transfers between revenue and capital heads of expenditure (and vice versa) with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with accounting standards issued under Article 32(2) of the Law.
Resource Implications: In 2016 the DoE Countryside Infrastructure capital head of expenditure (I00MF14015) will decrease by up to £200,000 and the DoE revenue head of expenditure will increase by an identical amount.
Action required: The Finance Director to request the approval of the Treasurer of the States for this budget transfer.
Signature: Deputy S Luce		Position: Minister for the Environment
Date Signed:		Date of Decision: