Skip to main content Skip to accessibility
This website is not compatible with your web browser. You should install a newer browser. If you live in Jersey and need help upgrading call the States of Jersey web team on 440099.
Government of Jerseygov.je

Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Budget Transfer/GAAP Accounting: Customs and Immigration.

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 25 November 2009 regarding: Budget Transfer/GAAP Accounting: Customs and Immigration.

Decision Reference: MD-HA-2009-0105

Decision Summary Title:

Transfer of Budgets

Date of Decision Summary:

23 November 2009

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 :

Budget Transfers – GAAP Accounting

Date of Written Report:

23 November 2009

Written Report Author:

Finance Manager

Written Report :

Public or Exempt?

Public

Subject:

2009 Budget Transfers between Revenue and Capital Heads of Expenditure as a result of moving to GAAP accounting.

Decision(s):

The Minister approved net budget transfers of £17,000 for 2009 from the Customs and Immigration Service’s revenue budget to its capital budget.

Reason(s) for Decision:

The States of Jersey is implementing Generally Accepted Accounting Principles (GAAP) in 2009. GAAP accounting requires that only expenditure meeting the GAAP definition of capital expenditure should be treated as such. All other expenditure must be accounted for as revenue. These budget transfers are the movements in budgets between capital and revenue required to align the budgeting treatment of expenditure with the GAAP accounting treatment. This does not change the total amount of expenditure approved by the States.

Resource Implications:

None

Action required:

Finance Director to seek Treasury and Resources Ministerial Approval for the transfer. Once approval has been obtained Treasury and Resources Department to action budget transfers.

Signature: 

Position:

Minister for Home Affairs

Date Signed: 

Date of Decision (If different from Date Signed): 

Budget Transfer/GAAP Accounting: Customs and Immigration.

Home Affairs Department

Report for Minister

Subject:

Budget Transfers – GAAP Accounting

Exempt Clause:

n/a

Date:

23 November 2009

 

 

Author:

Carol Nicholas – Finance Manager

 

Introduction

The purpose of this report is to seek the Minister’s approval to transfer the sum of £17,000 from the Customs and Immigration revenue budget to its capital budget in order to align budgeting with Generally Accepted Accounting Principles (GAAP). 
 

Background 

The States of Jersey is implementing Generally Accepted Accounting Principles (GAAP) in 2009. GAAP accounting requires that expenditure should be accounted for as capital only if it meets the GAAP accounting definition of capital expenditure, and revenue otherwise. Previously, ‘capital’ budgets have represented whatever the States Assembly voted as capital. The States have already approved capital allocations for 2009 in the 2009 Business Plan. These budget transfers move budgets between capital and revenue so as to align the budgeting treatment of 2009 expenditure with the GAAP accounting treatment. 

This is a restatement exercise that only affects expenditure that is expected to be incurred in 2009. Revenue budgets held in capital that relate to future years will remain on the Department's capital budget ledgers, i.e. this transfer from revenue to capital only relates to 2009 expenditure. There will continue to be ‘capital’ budgets held against capital projects that relate to revenue spend expected in years 2010+, which will be transferred to revenue in the relevant year.  

There will continue to be a need to make transfers from capital to revenue on existing approved projects in each of the years in which expenditure will be incurred (please refer to Ministerial Decision’s MD-HA-2009-0017 and 0095). 
 

Recommendation

It is recommended that the Minister approves the net transfer of £17,000 from the Customs and Immigration revenue budget to its capital budget in order to align budgeting with accounting treatment following the move to GAAP accounting. 


 

 

Back to top
rating button