Budget transfers: Liquid Waste Strategy

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A decision made 3 August 2015:

Decision Reference: MD-T-2015-0058
Decision Summary Title :	Transfer of budgets between three capital heads of expenditure, in relation to the Liquid Waste Strategy		Date of Decision Summary:	30 July 2015
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 :	Transfer of budgets between three capital heads of expenditure, in relation to the Liquid Waste Strategy		Date of Written Report:	30 July 2015
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: Transfer of budgets within two Transport and Technical Services (TTS) capital heads of expenditure, being £557,979 from Clinical Waste Refurbishment (Q00MF13030), and up to £2,500,000 from Infrastructure (Q00RL10011), into the Liquid Waste Strategy (Q00BT14022) capital head of expenditure.
Decision(s): The Minister approved the transfer of budgets from the two TTS capital heads of expenditure, Clinical Waste Refurbishment (Q00MF13030) and Infrastructure (Q00RL10011) into the Liquid Waste Strategy (Q00BT14022) capital head of expenditure.
Reason(s) for Decision: Reductions to the future capital program across the States of Jersey have resulted in TTS having to review its existing and future capital allocations to identify where funding can be diverted towards the Liquid Waste Strategy, which is seen as the highest priority planned capital project for the department. As part of this review, budgets within Clinical Waste Refurbishment and Infrastructure have been identified which are available to be reallocated to the Liquid Waste Strategy. In order to effectively manage and control expenditure, as well as better reflecting the overall costs of the project, it is desirable to consolidate the separate funding streams relating to the Liquid Waste Strategy into one capital head of expenditure. In accordance with Financial Direction 3.6 paragraphs 5.1 and 5.3, and the Public Finances (Jersey) Law 2005 Articles 18(1)(c) and 18(2)(c), the approvals of both the Minister for Treasury and Resources, and the Minister for Transport and Technical Services are required for these variations to heads of expenditure.
Resource Implications: The Clinical Waste Refurbishment (Q00MF13030) and Infrastructure (Q00RL10011) TTS capital heads of expenditure will decrease by £557,979 and up to £2,500,000 respectively, and Liquid Waste Strategy (Q00BT14022) will increase by the corresponding amount.
Action required: The Finance Director to request the approval of the Minister for Treasury and Resources for these budget transfers.
Signature:		Position: Minister for Transport and Technical Services
Date Signed:		Date of Decision (If different from Date Signed):

Budget transfers: Liquid Waste Strategy

TRANSPORT AND TECHNICAL SERVICES DEPARTMENT

TRANSFER OF BUDGETS BETWEEN THREE CAPITAL HEADS OF

EXPENDITURE, IN RELATION TO THE LIQUID WASTE STRATEGY

Purpose of Report

To enable the Minister to approve the transfer of some of the budgets within two capital heads of expenditure, being £557,979 from Clinical Waste Refurbishment (Q00MF13030), and up to £2,500,000 from Infrastructure (Q00RL10011), into Liquid Waste Strategy (Q00BT14022).

Background

The Medium Term Financial Plan (MTFP) capital programme, as amended, has included funding for various separate capital projects in the years 2013 to 2015, including funding for Clinical Waste Refurbishment, Infrastructure and the Liquid Waste Strategy.

As these projects have developed, dependencies have been identified, as the implementation of the Liquid Waste Strategy will require use of the space at Bellozanne currently occupied by the existing clinical waste incinerator (CWI). The replacement of the CWI forms part of the overall Liquid Waste Strategy. As a result of the planned replacement at an alternative location, the scope of the planned CWI refurbishment works has reduced accordingly.

At the same time, reductions to the future capital program across the States of Jersey have resulted in TTS having to review its existing and future capital allocations to identify where funding can be diverted towards the Liquid Waste Strategy, which is seen as the highest priority planned capital project for the department, and an essential piece of infrastructure for Jersey.

As part of this review, budgets within Clinical Waste Refurbishment and Infrastructure have been identified which are available to be reallocated to the Liquid Waste Strategy.

In order to better represent the true costs of the project, and to improve the effective management of these budgets, it is essential that the Department transfers these budgets into the Liquid Waste Strategy capital head of expenditure.

Discussion

Article 18 of the Public Finances (Jersey) Law 2005 (the Law) and Finance Direction No.3.6 ‘Variations to Heads of Expenditure’ (the FD) set out the procedures for transfers between heads of expenditure. Paragraph 5.1 of the FD and Article 18(2)(c) of the Law require departments wanting to transfer funds between heads of expenditure to obtain the approval of the Minister responsible for their administration. Article 18(1)(c) of the Law requires the approval of the Minister for Treasury and Resources for any budget transfers between heads of expenditure. Paragraph 5.2 of the FD delegates non-contentious transfers between heads of expenditure up to £1,000,000 to the Treasurer of the States. Paragraph 5.3 of the FD states that, in all other instances, the approval of the Minister for Treasury and Resources must be obtained.

Recommendation

It is recommended that the Minister approves the transfer of the relevant budgets from Clinical Waste Refurbishment (Q00MF13030) and Infrastructure (Q00RL10011) into Liquid Waste Strategy (Q00BT14022).

Resource Implications

The Clinical Waste Refurbishment (Q00MF13030) and Infrastructure (Q00RL10011) TTS capital heads of expenditure will decrease by £557,979 and up to £2,500,000 respectively, and Liquid Waste Strategy (Q00BT14022) will increase by the corresponding amount.

6. Action Required

The Finance Director to request the approval of the Minister for Treasury and Resources for these budget transfers.

Written by:	Finance Manager
Approved by:	Director of Finance