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Finance Law Delegation Report for the 6-month period to 30th June 2019

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STATES OF JERSEY

r

FINANCE LAW DELEGATION REPORT FOR THE 6-MONTH PERIOD TO

30TH JUNE 2019

Presented to the States on 15th August 2019 by the Minister for Treasury and Resources

STATES GREFFE

2019  R.109

REPORT

  1. The administration of the public finances of Jersey

In accordance with the Public Finances (Jersey) Law 2019 ("the 2019 Law"), certain matters are required to be reported to the States twice-yearly by the Minister for Treasury and Resources ("the Minister").

This report summarises all decisions made during the 6-month period to 30th June 2019. Where decisions have not previously been published, this is due to one of 2 reasons –

  1. Reporting on decisions

The areas of administration which are to be reported on are as follows –

  • Borrowing and lending;
  • Budget transfers; and
  • Carry-forward of revenue balances.
  1. Borrowing and lending
  1. Jersey Student Loan Scheme

During the 6-month period to 30th June 2019, no new loans were guaranteed by the States under the Jersey Student Loan Scheme.

P.53/2007 – Student Loans for higher education – guarantees was debated by the States Assembly on 6th June 2007, and a maximum outstanding limit of £10 million for an unlimited time period was approved.

  1. Infrastructure investments

During the 6-month period to 30th June 2019, no new loans were approved.

  1. Housing Development Fund

During the 6-month period to 30th June 2019, 3 new loans were approved by the Minister for Treasury and Resources –

  • Loan 17 – Ann Court, for the value £37,800,000
  • Loan 18 – Summerland, for the value £21,332,000
  • Loan 19 – Hue Court, for the value £15,133,000.

The net value of loans outstanding from Andium increased from £139,709,856 at 31st December 2018 to £152,731,714 at 30th June 2019.

  1. Other loans

During the 6-month period to 30th June 2019, 3 new loans were approved by the Minister for Treasury and Resources –

  • FGS046 – JSPCA, for the value £500,000
  • FGS047 – Parish of St. Martin (School redevelopment), up to £2,600,000 (following approval by the States Assembly)
  • FGS048 – Beaulieu Convent School, up to £7,300,000 (following approval by the States Assembly).
  1. Budget transfers

Article 58 of the 2019 Law states that the provisions of the previous Law, as they have effect immediately before the 2019 Law came into force, continue to apply to money received, expended or otherwise handled by or on behalf of the States during the financial year in which this Law came into force.

Articles 17 and 18 of the Public Finances (Jersey) Law 2005 ("the 2005 Law") permit contingency expenditure and variations between heads of expenditure with the approval of the Minister.

Budget transfers under Articles 17 and 18 of the 2005 Law are reported on the following basis –

  • transfers from contingency expenditure to heads of expenditure
  • transfers between revenue heads of expenditure
  • transfers between capital heads of expenditure
  • transfers between revenue and capital heads of expenditure
  • transfers between revenue and capital heads of expenditure where the transfer is required in order to comply with accounting standards.

All transfers between departments vary the budgets of individual departments, but are net nil in total.

  1. Transfers between contingency expenditure and heads of expenditure

Transfers  between  contingency  expenditure  and  heads  of  expenditure  during  the 6-month period to 30th June 2019 are shown below –

 

Department

£

Purpose

From –

To –

Central Contingency

Various Departments

1,892,500

Costs associated with the 2018/19 Pay Award in respect of Manual Workers and Energy Recovery Facility Workers.

Central Contingency (Court and Case Costs Smoothing Reserve)

Non-Ministerial Departments

251,339

To cover overspends on Court and Case Costs.

Central Contingency

Various Departments

2,260,000

Additional funding requests for 2019 – see MD-TR-2019-0018.

Various Departments

Central Contingency

16,141,750

Transfer of underspends – see MD-TR-2019-0031.

Central Contingency

SPPP

Amount withheld

To fund the Redress II/ Les Chênes Scheme.

Central Contingency

SPPP

122,780

To fund the Strategic Adviser to the Housing Policy Development Board.

Central Contingency

T&E

Up to 600,000

Costs associated with the PECRS pre-1987 Debt repayments.

Central Contingency

T&E

139,085

Costs associated with the Historic Abuse Redress Scheme.

Central Contingency

GHE and CYPES

Up to 385,000

Additional funding requests for 2019 – see MD-TR-2019-0049.

Central Contingency

CYPES

85,340

Actions to address IJCI recommendations – Jersey Practice Model.

Central Contingency

SPPP

15,000

Actions to address IJCI recommendations – Children's Strategic Partnership Board.

Central Contingency

COO

111,910

Recruitment of dedicated HR professional for children's social work.

Central Contingency

CYPES

60,000

Advocacy services for children.

  1. Transfers between revenue heads of expenditure

Revenue transfers during the 6-month period to 30th June 2019 are shown below –

 

Department

£

Purpose

From –

To –

Non-Ministerial Departments

Non-Ministerial Departments

176,227

2018 year-end adjustment on Court and Case Costs.

  1. Transfers between capital heads of expenditure

Transfers between existing capital heads of expenditure during the 6-month period to 30th June 2019 are shown below –

 

Department

£

Purpose

From –

To –

HCS MRI Scanner capital head of expenditure

HCS Equipment Replacement

330,000

Transfers to assist installation of a second new MRI scanner.

  1. Transfers between revenue and capital heads of expenditure

Transfers between revenue and capital during the 6-month period to 30th June 2019 are shown below –

 

Department

£

Purpose

From –

To –

DfI revenue

Public Markets Maintenance Capital

Up to £100,000

Transfer of public markets budget surplus.

  1. Transfers between revenue and capital heads of expenditure where the transfer is required in order to comply with accounting standards

The States of Jersey adopted International Financial Reporting Standards ("IFRS") as interpreted by the Jersey Financial Reporting Manual ("JFReM") from 2012 as its framework. Under IFRS, expenditure that meets the definition of capital expenditure must be capitalised. The following transfers show the movement between capital and revenue required to align the budgeting treatment of expenditure with the accounting treatment, in order to comply with IFRS.

IFRS  transfers  between  revenue  and  capital  during  the  6-month  period  to 30th June 2019 are shown below –

 

Department

£

Purpose

From –

To –

CMD Revenue

CMD Replacement Assets Capital

167,000

Cyber Security Tool

(2018 year-end adjustment)

CCA Revenue

CCA Minor Capital

39,000

Equipment purchases (2018 year-end adjustment)

Future Hospital Capital

DfI Revenue

23,448,091

To recognise expenditure incurred to date on the project to be written off (2018 year-end adjustment)

Acronyms and Abbreviations

CCA  Community and Constitutional Affairs

COO  Chief Operating Office

CMD  Chief Minister's Department

CYPES  Children, Young People, Education and Skills DfI  Department for Infrastructure

GHE  Growth, Housing and Environment

HCS  Health and Community Services Department IJCI  Independent Jersey Care Inquiry

SPPP  Strategic Policy, Performance and Population T&E  Treasury and Exchequer