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STATES OF JERSEY
FINANCE LAW DELEGATION REPORT JANUARY TO JUNE 2022
Presented to the States on 31st August 2022 by the Minister for Treasury and Resources
STATES GREFFE
2022 R.122
REPORT
- The administration of the public finances of Jersey
In accordance with the Public Finances (Jersey) Law 2019 ("the Law") certain matters are required to be reported to the States Assembly twice yearly by the Minister for Treasury and Resources ("the Minister").
This report summarises all decisions made during the six month period to 30th June 2022. Where decisions have not previously been published, this is due to one of two reasons -
• The decisions were exempted under the Freedom of Information (Jersey) Law 2011; or
• The decisions were taken by the Treasurer of the States under delegated authority from the Minister.
- Reporting on decisions
The areas of administration which are required to be reported on are as follows:
- each function undertaken, within the applicable 6-month period under any of Articles 18 to 21, 24 and 26 to 28; and
- each direction given, within the applicable 6-month period by the Minister under Article 15(3) with respect to the amounts appropriated for a reserve head of expenditure.
Article 18 relates to transfers between heads of expenditure.
Article 19 relates to transfers to the following year's reserve.
Article 20 relates to transfers of major project amounts to the following year. Article 21 relates to the power to allocate excess income.
Article 24 relates to emergency expenditure.
Article 26 relates to financing (borrowing).
Article 27 relates to loans.
Article 28 relates to guarantees and indemnities.
There were no approvals in the period under Article 24. Other approvals are detailed below.
- Transfers between heads of expenditure under Article 18.
Department | £ | Purpose | |
From | To | ||
COO | T&E | up to 4,500,000 | Transfer of Commercial Services. (MD-TR- 2022-0009) |
T&E | OCE | up to 200,000 | Transfer of Risk Management Team. (MD- TR-2022-29) |
SPPP | HCS | 519,000 | To situate programme resources in the right department and ensure objectives of the |
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| Analytics Transformation Programme are achieved. (MD-TR-2022-185) |
SoJP | JHA | up to 437,000 | To ensure adequate coordination and oversight of Combined Control Room resources. (MD-TR-2022-187) |
IHE | Road Safety Improvements Project Head of Expenditure | up to 1,000,000 | Redirection of the balance of the Jersey Car Parking financial return to the States, after funding of revenue items. (MD-TR-2022- 191) |
HCS | SPPP | 276,430 | To situate health promotion resources in the appropriate departments for governance and management purposes. (MD-TR-2022-260) |
HCS | COO | 3,200,698 | Representing the budget and staffing for the Digital team supporting this department. (MD-TR-2022-261) |
- Transfers to the following year's reserve under Article 19.
From Department | Amount £ | Purpose |
Various departments | 5,731,667 | Unspent 2021 funding. (MD-TR-2022-083) |
Various project Heads of Expenditure | up to 67,472,816 | Unspent 2021 funding. (MD-TR-2022-083) |
Reserves | up to 32,949,015 | Unspent 2021 funding. (MD-TR-2022-083) |
- Transfers of Major Project heads of expenditure to the following year under Article 20
Head of expenditure | Amount £ |
Fort Regent | up to 2,777,299 |
Vehicle Testing Centre | up to 193,440 |
- Approvals of the allocation of excess income under Article 21
Department | Amount £ | Purpose |
CYPES | 90,000 | Additional income resulting from increases in school fees for Jersey College for Girls and Jersey College Preparatory. (MD- TR-2022-116) |
CYPES | 71,000 | Additional income resulting from increases in school fees for Victoria College and Victoria College Preparatory. (MD-TR- 2022-173) |
IHE | 1,230,000 | Contributions from States of Jersey Development Company and Ports of Jersey to project costs. Decision taken by Treasurer of the States under delegation from the Minister. (TR-2022-TD006) |
- Approvals of financing (borrowing) under Article 26
During the six months to 30th June 2022 the Minister signed one decision relation to use of the Revolving Credit Facility:
MD-TR-2022-262 approving a utilisation cap of up to £120,806,369 in total.
The Treasurer of the States did not authorise any drawdowns in the period. £21 million was repaid on 21st June 2022 and the two remaining drawdowns for £20 million and £19,806,369 (Fiscal Stimulus Fund) were rolled on the 30th June 2022 for one and three months respectively.
The total drawdowns from the Revolving Credit facility as at 30th June 2022 equate to £39,806,369, leaving £460,193,631 undrawn.
- Approvals of loans under Article 27 (as amended by P.28/2020)
- Housing Development Fund
During the six-month period to 30th June 2022, no new loans were approved by the Minister for Treasury and Resources.
The net value of loans outstanding from the Housing Development Fund increased from £228,825,082 at 31st December 2021 to £228,864,024 as of the 30th June 2022.
Loans from the HDF were split between the following loan holders:
Andium £227,615,776 Le Vaux Housing Trust £1,248,247
Total loans £228,864,024 NB the above table does not total by £1 due to roundings.
- Other loans
On 30th June 2020 the Minister had approved MD-TR-2020-0081 which agreed a secured loan facility of £10 million to Blue Islands Limited. Under delegation from the Minister, the Treasurer had approved the drawdowns from this amount of £5 million (on 13th July 2020) and a further £2 million (on 14th September 2020). On 23rd April 2021 the Treasurer approved a further drawdown of £1.5 million. There have been no further drawdowns since that date.
- Approvals of guarantees under Article 28 (as amended by P.28/2020)
- Jersey student loan scheme
During the six month period to 31st December 2021, no new loans were guaranteed by the States under the Jersey Student Loan Scheme.
P53/2007 Student Loans for higher education – guarantees was debated by the States Assembly on the 6th June 2007 and a maximum outstanding limit of £10 million for an unlimited time period was approved.
- Disruption Loan Guarantee Scheme
On 30th June 2021, the Minister signed MD-TR-2021-0081 to extend the period that the scheme was open to new applications to 30th September 2021. This window was then further extended to 31st December 2021 by MD-TR-2021-0115.
The application window was not extended beyond 31st December 2021 and therefore no new facilities can be granted after this date. At that date, 169 enquiries had been made to banks, of which 70 had progressed and a facility issued. Whilst £4.3 million of facilities had at one stage or another been approved, by 30th June 2022 fewer than 50 are active with a balance greater than £1,000 and the total remaining outstanding facility value is approximately £2.5 million (including accrued interest).
To date, there has been one confirmed default and no pending defaults have been notified. The claim was paid to a value of £28,645 (reference MD-TR-2021-0144).
2.8 Allocations from the Reserve under Article 15(3)
Department | £ | Purpose | |
From | To | ||
General Reserve | Various departmental heads expenditure of | 4,495,739 | Allocation of unspent 2021 approvals. (MD-TR-2022-083) |
General Reserve | Inspiring Active Places project | up to 3,100,000 | Allocation of unspent 2021 approvals to enable delivery of the Oakfield Sport Centre project. (MD-TR-2022- 083) |
General Reserve | Economy | up to 2,237,000 | Allocation of unspent 2021 approvals to enable delivery of the Jersey Opera House project. (MD-TR-2022-083) |
General Reserve | Various project heads of expenditure | 21,475,737 | Allocation of unspent 2021 approvals. (MD-TR-2022-083) |
General Reserve (Restructuring) | Various departmental heads expenditure of | up to 1,014,865 | To fund the Total Reward Review – Voluntary Release Scheme. (MD-TR- 2022-131) |
General Reserve (AME) | CYPES | up to 2,000,000 | To fund Special Educational Needs. (MD-TR-2022-132) |
General Reserve - Departmental Expenditure Limit (DEL) | Jersey Overseas Aid | 1,000,000 | Providing aid in order to respond to the ongoing humanitarian crisis in the Ukraine. (MD-TR-2022-156) |
General Reserve - Departmental Expenditure Limit (DEL) | OCE | up to 250,000 | For potential costs relating to the immigration of Ukraine nationals eligible for a visa through family connections to the Island. (MD-TR- 2022-156) |
General Reserve (Covid-19 Contingency) | Covid-19 Response | up to 500,000 | To fund the Covid-19 Helpline in 2022. (MD-TR-2022-228) |
General Reserve (Covid-19 Contingency) | Covid-19 Response | up to 2,241,000 | To fund CYPES Covid-19 Pressures. (MD-TR-2022-229) |
Reserve for Centrally Held Items | SPPP | up to 250,000 | For onward payment of a grant to Jersey Community Partnership as the delivery partner of the care survivor-led legacy initiatives, and to provide mental health support for the care survivors participating in the initiatives. (MD- TR-2022-241) |
General Reserve (Covid-19 Contingency) | Covid-19 Response | up to 700,000 | Funding for PCR Laboratory. (MD- TR-2022-341) |
General Reserve (Covid-19 Contingency) | Covid-19 Response | up to 22,643,484 | Funding for Testing Programme including Technology. (MD-TR- 2022-341) |
General Reserve | Various departmental heads expenditure of | up to 5,205,005 | To fund unforeseen pressures in 2022. (MD-TR-2022-344) |
General Reserve (Covid-19 Contingency) | Covid-19 Response | up to 565,000 | To fund Ambulance Services Improvements. (MD-TR-2022-352) |
General Reserve (Covid-19 Contingency) | Covid-19 Response | up to 6,379,300 | To fund the HCS Covid Response in 2022. (MD-TR-2022-352) |
General Reserve (DEL) | Various departmental heads expenditure of | up to 8,345,985 | To fund unforeseen pressures in 2022. (MD-TR-2022-357) |
Reserve for Centrally Held | Various departmental | up to 16,371,702 | To fund the budget allocation of the 2022 pay award for various pay groups. (MD-TR-2022-399) |
Items – Pay Provision | heads of expenditure |
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Reserve for Centrally Held Items – Capital Smoothing Reserve | Discrimination Law and Safeguarding heads of expenditure | up to 162,569 | To complete various workstreams within the Discrimination Law and Safeguarding heads of expenditure. (MD-TR-2022-431) |
General Reserve | COO | up to 1,113,567 | To fund costs associated with software licensing. (MD-TR-2022- 439) |
General Reserve | HCS | up to 375,000 | To fund costs associated with legal proceedings. (MD-TR-2022-453) |
Budget Reconciliation
This section provides a breakdown of amounts to be appropriated from the Consolidated Fund (budgets') in 2022 by head of expenditure as approved by the States Assembly in the Government Plan 2022 – 2025 and all subsequent budget allocations and movements made during the year, approved by the Minister for Treasury and Resources as detailed in the sections above. It is intended for this section to illustrate the impact of all budget amendments made during the year and how the total allocated budget as at 30 June 2022 compares to the original budget approved in the Government Plan 2022 – 2025.
A similar analysis is provided in the States of Jersey Annual Report and Accounts in the Political Accountability Report section (page 281 in the 2021 Annual Report and Accounts) comparing actual income and expenditure for the year with the original Government Plan budget and final approved budget for the year per head of expenditure.
Minister for Treasury and Resources August 2022
Abbreviations
CLS Customer and Local Services
COO Chief Operating Office
CYPES Children, Young People, Education and Skills Econ Economy
IHE Infrastructure, Housing and Environment HCS Health and Community Services
OCE Office of the Chief Executive
SoJP States of Jersey Police
SPPP Strategic Policy, Performance and Planning T&E Treasury and Exchequer
- – Total Approved Allocated Budget as at June
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- Reserves
To 30 June 2022 | COVID-19 | General Reserve | Centrally Held Items | The Reserves Totals |
| Capital Reserves |
| £000 | £000 | £000 | £000 |
| £000 |
2022 Gov. Plan Allocation | 52,085 | 25,762 | 22,385 | 100,232 |
| 2,700 |
Carry forward from 2021 | - | 24,230 | 51,031 | 75,261 |
| 1950 |
Opening Budget 2022 | 52,085 | 4 9,992 | 73,416 | 175,493 |
| 4 ,650 |
Transfers in to Reserves in 2022 | - | - | - | - |
| - |
Drawdowns to departments | (31,873) | (21,949) | ( 17,334) | (71,156) |
| - |
Total Unallocated Budget | 20,212 | 28,043 | 56,082 | 104,337 |
| 4,650 |
Existing Approvals | (1,156) | (1,956) | - | (3,112) |
| - |
Ring fenced | (2,585) | (21,660) | (54,628) | (78,873) |
| (4,650) |
Forecast Available Balance | 16,471 | 4,427 | 1,454 | 22,353 |
| - |
Potential calls on Reserves | - | (8,023) | - | (8,023) |
| - |
Available Balance | 16,471 | (3,596) | 1,454 | 14,330 |
| - |
- Projects
| Major Projects |
Department | 2022 Budget 2022 Government In Year held Available Head of Expenditure Plan Budget Carryforward Allocations centrally Budget |
Office of the Chief Executive Chief Operating Officer Chief Operating Officer Chief Operating Officer Chief Operating Officer Chief Operating Officer Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Health and Community Services Health and Community Services Health and Community Services | Elizabeth Castle 1 ,250 - - - 1 ,250 MS Foundation (Major Project) 5 ,546 - - 2,226 7 ,772 Integrated Tech Solution (MP) 19,730 - - 2,533 22,263 Cyber (Major Project) 4 ,370 - - 3,162 7 ,532 ITS Release 3 & 4 4 ,200 - - - 4 ,200 ITS Release 3 Additional 1 ,264 - - - 1 ,264 Ambulance and Fire Quarters 500 - - - 500 Schools Estate 1 ,250 - - - 1 ,250 Fort Regent 2 ,000 2,777 - - 4 ,777 Inspiring Active Places SS 814 - 3 ,100 - 3 ,914 Office Modernisation 460 - - 62 522 Sewage Treatment Works 10,740 - 6,373 17,113 Vehicle Testing Centre (Major - - - 193 Infrastructure Rolling Vote 13,318 - 630 13,948 Our Hospital 85,000 - - 85,000 Digital Care Strategy 3 ,900 - - 6 ,231 Learning Difficulties - Specia 3 ,300 - 826 4 ,126 - 1 93 - - 2,331 - |
Government Plan Major Projects Total | 157,642 5,301 3,100 15,812 181,855 |
| Other Projects |
|
Department | Head of Expenditure | 2022 Budget 2022 Government In Year held Available Plan Budget C/fwds Allocations centrally Budget |
Centrally Held Centrally Held Chief Operating Officer Chief Operating Officer Chief Operating Officer Chief Operating Officer Various Infrastructure, Housing & Environment Children, Young People, Education and Skills Justice and Home Affairs Justice and Home Affairs Justice and Home Affairs Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Health and Community Services Health and Community Services Health and Community Services Justice and Home Affairs Justice and Home Affairs States of Jersey Police Justice and Home Affairs Treasury and Exchequer Non Ministerial States Bodies | Central Risk & Inflation Central Planning Reserves Replacement assets Electronic Document Management Service Digitisation Customer Relationship Management Replacement Assets Discrimination law safegaurding - IHE Discrimination law safegaurding - CYPES Dewberry House SARC Prison Phase 8 Army Sea Cadets Quarters North Of St Helier YC School & Educational Development Prison Phase 6 Regulation Digital Assets New Skatepark Infrastructure Assets Jersey Care Model Health Services Improvements In-patient/support services re Combined Control IT Electronic patient records States of Jersey Police Firear Next Passport Project Revenue Transformation Project Non-Ministerial IT | 1 ,800 1 ,500 - 3 ,300 2 ,800 450 (1,900) 1 ,350 3 ,000 - - 3,000 2 ,200 - - 2 ,200 - - 1 ,750 259 736 - 7 ,851 1,868 1 ,600 614 - - 2 ,009 - - 736 - - 9,719 - 38 2 ,252 - 125 125 - - 882 - 1 ,609 - 494 - 2 ,000 - 10,650 2,031 230 - 1 ,230 - 700 - 2 ,300 - 800 - 5 ,000 1,584 989 - 400 - 130 - 264 - 355 - 3 ,385 - 1 ,413 283 200 - 1 ,082 663 - 2 ,272 - - 494 - - 2 ,000 - - 12,681 3 ,750 - 3 ,980 - - 1 ,230 559 - 1 ,259 - - 2 ,300 1 ,138 - 1 ,938 - - 6 ,584 5 0 - 1 ,039 1 ,352 - 1 ,752 528 658 1 ,022 1 ,286 - - - - - - 355 - 3 ,385 - 1 ,696 |
| GP Other Projects Total | 54,568 11,212 (1,737) 6,639 70,682 |
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| GP Total | 212,210 16,513 1,363 22,450 252,536 |
Carryfowards |
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| 2022 Budget 2022 |
| Government In Year held Available |
Department Head of Expenditure | Plan Budget C/fwds Allocations centrally Budget |
Chief Operating Officer IT for Migration Services | - 870 - - 8 70 |
Children, Young People, Education and Skills Victoria College | - 6 - - 6 |
Children, Young People, Education and Skills ESC Minor Capital / AUCC | - 125 - - 1 25 |
Children, Young People, Education and Skills School ICT | - 90 - - 9 0 |
Infrastructure, Housing & Environment Jsy Instrumental Music Service | - 83 - - 8 3 |
Infrastructure, Housing & Environment VCP Replacement School | - 141 - - 1 41 |
Infrastructure, Housing & Environment Greenfields | - 76 - - 7 6 |
Infrastructure, Housing & Environment Victoria College capital proje | - 150 - - 1 50 |
Infrastructure, Housing & Environment Archive Storage Extension | - 17 - - 1 7 |
Infrastructure, Housing & Environment Grainville Phase 5 | - 49 - - 4 9 |
Infrastructure, Housing & Environment St Mary School | - 113 - - 1 13 |
Infrastructure, Housing & Environment Orchard House | - 4,317 - - 4 ,317 |
Infrastructure, Housing & Environment Automatic Weather Station | - 35 - - 3 5 |
Infrastructure, Housing & Environment Equipment, Maintenance, Minor | - 19 - - 1 9 |
Infrastructure, Housing & Environment Sports Division Refurbishment | - 53 - - 5 3 |
Infrastructure, Housing & Environment Eastern Cycle Network | - 66 - - 6 6 |
Infrastructure, Housing & Environment Drainage Foul Sewer Ext | - 878 - - 8 78 |
Infrastructure, Housing & Environment Replacement Assets | - 100 - - 1 00 |
Health and Community Services Five Oaks Refurbishment | - 58 - - 5 8 |
Justice and Home Affairs Minor Capital 2021 | - 184 - - 1 84 |
Justice and Home Affairs Police minor capital 2021 | - 200 - - 2 00 |
Justice and Home Affairs Aerial ladder platform | - 97 - - 9 7 |
Treasury and Exchequer Taxes Office System Renewal | - 1,471 - - 1 ,471 |
Non Ministerial States Bodies Phoenix Software | - 45 - - 4 5 |
Non Ministerial States Bodies Conversion Courtroom | - 438 - - 4 38 |
Non Ministerial States Bodies Non Mins - Minor Capital | - 203 - - 2 03 |
Other Projects Total | - 9,884 - - 9,884 |
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TOTAL PROJECTS | 212,210 26,397 3,263 22,450 262,420 |
- Covid-19 Response
Covid-19 2022 Budget by Department and Project | ||||
Project by Department | Gov Plan 2022 Budget | Allocation from Reserves | Departmenal Transfers | Budget as at 30 June 2022 |
Office of the Chief Executive | 500 | - | - | 500 |
Covid-19 Review | 500 | - | - | 500 |
Department for the Economy | 10,200 | - | (500) | 9 ,700 |
Economic Recovery | 10,200 | - | (500) | 9,700 |
Children, Young People, Education and Skills | - | 1,086 | 1,884 | 2 ,969 |
Covid-19 Pressures | - | 1 ,086 | - | 1,086 |
Covid-19 Social Recovery | - | - | 1,884 | 1,884 |
Customer and Local Services | 672 | 500 | 833 | 2 ,005 |
Covid-19 Income Support Costs (COVID) | 672 | 500 | 500 | 1,672 |
Covid-19 Social Recovery | - | - | 333 | 333 |
Infrastructure, Housing and Environment | 2,205 | - | 375 | 2 ,580 |
Covid-19 Bus Contract | 1,200 | - | - | 1,200 |
Covid-19 Social Recovery | - | - | 375 | 375 |
Support for Sports Infrsutructure | 1,005 | - | - | 1,005 |
Health and Community Services | 9,106 | 7,079 | (3,469) | 12,716 |
Covid -19 PPE Provision and Supply | 3,300 | - | - | 3,300 |
Covid Recovery | - | 6 ,379 | - | 6,379 |
Covid-19 Health Service Recovery | 1,296 | - | - | 1,296 |
Covid-19 PPE Warehousing | 407 | - | - | 407 |
Covid-19 Social Recovery | - | - | 634 | 634 |
Covid-19 Vaccine | 4,103 | - | ( 4,103) | - |
Test and Trace | - | 700 | - | 700 |
Justice and Home Affairs | - | 565 | - | 565 |
Covid-19 Pressures | - | 565 | - | 565 |
Treasury & Exchequer | 7,136 | - | - | 7 ,136 |
Covid-19 Revolving Credit Facility | 7,136 | - | - | 7,136 |
Strategic Policy, Performance and Planning | 3,769 | 22,643 | 878 | 27,290 |
Covid-19 Social Recovery | 3,769 | - | ( 3,225) | 544 |
Covid-19 Vaccine | - | - | 4,103 | 4,103 |
Test and Trace | - | 22,643 | - | 2 2,643 |
Total | 33,588 | 31,873 | - | 65,461 |
Appendix 1: Ministerial Decisions Approved vs Amounts Allocated
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Appendix 2: Additional Fiscal by Department
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Appendix 3: Transfers from Reserves by Department
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Appendix 4: Departmental Transfers