Revisions to 2007 Budget.

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A decision made (26/02/2007) regarding: Revisions to 2007 Budget.

Subject:	Revisions to 2007 Budget
Decision Reference:	MD-TR-2007-0020	Exempt clause(s):		n/a
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		n/a
Telephone or e-mail Meeting?	n/a	Report File ref:		JS/14/21/02/07
Written Report – Title	Revisions to 2007 Budget	Written report - author		Jane Strecker
Decision(s): The Minister approved the budget transfers included within the attached report on the basis that none of the transfers represent significant policy changes.
Reason(s) for decision To provide a revised budget to Managers which reflects the change in business needs since the issue of the 2007 Business Plan.
Action required: To action the budget transfers and advise the relevant Budget Holders accordingly.
Signature: (Minister/ Assistant Minister)			Date of Decision: 26 February 2007

Revisions to 2007 Budget.

TREASURY AND RESOURCES MINISTER

revisions to 2007 budget

1. Purpose of Report

1.1. The Minister is required to approve any revisions to the original budget included in the 2007 Business Plan, in order that the revised budget can form the basis for the service analysis included in the quarterly reporting process.

2. Background

2.1. The original States Treasury budget, included in the 2007 Business Plan, was completed in April 2006. Subsequent to this a decision was made to revisit the service analysis calculation and improve the basis for allocating overheads.

2.2. In addition to a change in the overhead apportionment, the rechargeable income, in the current States Treasury service analysis, has been netted off against the indirect costs. It is however, more appropriate to identify the income stream separately.

2.3. An amended States Treasury service analysis has been provided to reflect the change in overhead allocation and the restatement of the income figures and a copy of this is included in Appendix A.

2.4. Further to the publication of the 2007 Business Plan the States Treasury is also requesting the Minister consider any intra-departmental transfers to reflect the change in current services.

2.5. It should be noted that none of the above represent significant policy changes however, ministerial approval is required in accordance with Treasury requirements.

3. Comments

3.1. The original 2007 Budget included additional funds of £30,000 allocated to the States Audit Division. However, following a decision to outsource a significant part of the audit function, it was considered that these funds would no longer be required in this service area.

3.2. However, there is currently a significant shortfall in the original trainee budget set following the recent recruitment. On this basis it is considered appropriate to allocate £26,400 to meet the shortfall in the trainee budget and £3,600 to meet a shortfall in the Corporate Financial Strategy Division training budget.

3.3. Further to the original budget being set a decision had been made to split the full time, grade 6 PA post, currently held within Shared Services. The post will be split into two part time posts to reflect the different responsibilities that were in the role and 0.3 f.t.e will be transferred to Directorate to provide administration support to the Business Manager. The budget amount to be transferred is £9,456.

3.4. The following budget transfers were agreed in 2006, however, also require budget transfers in 2007 because they were included as part of the Treasury Budget when the 2007 Business Plan was approved:

· Rent which relates to the Customer Service Centre is required to be transferred to the Chief Minister’s Department – Budget amount £17,425 (£17,000 in 2006 x 2.5%)

· Part of a finance post (0.46 f.t.e) is required to be transferred from the Shared Services Division to the Chief Minister’s Department – Budget amount £13,112

· Transfer of payroll staff to the Customer Services Centre – Budget amount £40,189

3.4 In addition, the 2007 budget transfers to Property Holdings are required. The amounts to be transferred are the budget of £156,000 currently held in Corporate Capital and £70,700 from the advisory unit, relating to the transfer of one Senior Accountant post.

3.5 A Ministerial Decision has been received from the Home Affairs Department, requesting that the Minister approves the transfer of two Grade 10 posts to the GST implementation team. The budget, in 2007, for the posts is £85,608 and thereafter annually £114,144. The posts are required, based on the recommendations by Crown Agents, to assist with the implementation of GST within the Customs and Immigration Service.

4. Recommendation

4.1. That the Minister approves the budget transfers included within this report on the basis that none of the transfers represent significant policy changes.

5. Reason for Decision

5.1. To provide a revised budget to Managers which reflects the change in business needs since the issue of the 2007 Business Plan.

States Treasury Corporate Finance

6 March, 2007 for Decision Meeting 26/02/2007