States Assembly | R-12-2009

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STATES OF JERSEY

STATES OF JERSEY LAW 2005: DELEGATION OF FUNCTIONS – PUBLIC FINANCES AND THE TREASURY AND RESOURCES DEPARTMENT

Presented to the States on 10th February 2009 by the Minister for Treasury and Resources

STATES GREFFE

REPORT

On 6th February 2009, the Minister for Treasury and Resources made a Ministerial Decision delegating certain of his functions under Article 28 of the States of Jersey Law 2005 (MD-TR-2009-0018, available at www.gov.je).

The terms of the delegations, and the legislation under which those delegations were made, were recorded in a Report attached to the Ministerial Decision, as shown below –

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P u r poseof the Report

T o update the delegation ofMinisterialpowersdetailed in the PublicFinances(Jersey)Law2005 (the Finance Law)includingthose in Regulations approved under that Law,Financial Directions andother areas ofadministration.
1. B a c kground

U n der Article 27 of the States of Jersey Law a Minister may delegate, wholly or partly, functions conferred upon them by any Law to either an Assistant Minister oran officer.
M inisterial decisionMD-TR-2008-0147 delegated powers to the Assistant Minister for Treasury and Resources, Deputy John LeFondréof St. Lawrence, the Treasurerofthe States and other officers. These delegations are detailed in the tables below (delegations 3.1 to3.16 inclusive).
T h is report details an additional delegation (3.17) to the Assistant Minister for Treasuryand Resources, Deputy EdwardJamesNoelof St. Lawrence.

C o mments

T h e f ollowing tables detail those delegations already in place together with the proposed delegation of all

of the functions conferred on or vested in the Minister by or under the Public Finances (Jersey) Law 2005 including those in Regulations approved under that Law and Financial Directions to the Assistant Minister for Treasury and Resources, Deputy Edward James Noel of St. Lawrence.

R ec ommendations

4.1 T h at the Minister approve –

• t h e d elegations detailed below for his current period of office.

R ea sonsforDecision

5.1. T h e Minister is required to formally approve delegations made under the Public Finances (Jersey) Law 2005.

AnnualBusiness Plan Estimates

Articles from the Law –

(8) Estimates to be provided; and

(10) Estimates for the States Assembly and its services

To enable the preparation of the Annual Business Plan and Budget, the Law enables the Minister to request that estimates be provided by States funded bodies (including ministerial and non-ministerial bodies and the States Assembly) in respect of the following financial year for revenue expenditure, income, and capital projects scheduled to start or continue in that year.

In addition, the Minister can request details of income that may arise from the disposal of assets, and for any other income of the States.

The Minister may request information for other time periods and is able to specify the format and time scale to which the aforementioned estimates be provided within.

Delegate:

Authority is delegated to the Treasurer of the States, or in his absence, another person as nominated by the Treasurer.

RetentionofIncome

Article 14 – Expenditure Approval, heads of expenditure and withdrawals from the consolidated fund

Sub-paragraph 14 (6) (7) refers

This sub-paragraph of the Law empowers the Minister to authorise a States funded body (Sfb) to use any additional income it may generate over and above the estimate approved by the States in the Annual Business Plan.

Ministerial decision:

The Minister agreed that States funded bodies be allowed to retain and use additional income in instances where –

a ny such income and associated additional expenditure match; and
the additional income is in excess of increased expenditure required to generate that income but the excess income is not more than 10% (or £500,000 for a States trading operation and £100,000 for all other States funded bodies) of the estimated income notified to the States for that particular service area - this additional income should not be used to fund recurring expenditure for which no future funding is secured.

Non-Contentious Transfers

Article 15 – Permitted variations

Sub-paragraph 15(1)(a) refers

This sub-paragraph of the Law enables the Minister to approve the transfer of funds from one head of expenditure to another head of expenditure (a head of expenditure being either –

• th e annual net revenue budget of a States funded

body; or

• th e amount allocated for each capital project).

Delegate: Authority is delegated to the Treasurer of the States, or

in his absence, another person as nominated by the Treasurer, to agree non-contentious transfers between expenditure heads up to £100,000.

Ministerial decision: The Minister agreed that funds can be transferred,

without further approval by the Minister, in instances where there is a transfer of responsibility and administration of a service which has been agreed by the States and the relevant ministers agree in respect of the funds to be transferred. Such decisions must be notified to the Treasurer.

Carry Forwards

Article 15 – Permitted This sub-paragraph empowers the Minister to allow a variations States funded body, in the case of revenue expenditure, Sub-paragraph 15(1)(b) and 2 to carry funds forward to the following financial year and refers report to the States, the approval given, in periods no longer than six months.

Ministerial decision: The Minister agreed that Departments can automatically

carry forward to the following financial year up to 1% of their gross revenue head of expenditure or £200,000 (whichever is the larger).

Income from Asset Sales

Article 15 – Permitted variations This sub-paragraph of the Law empowers the Minister to authorise a Sub-paragraph 15(3) refers States funded body to make use of income from the sale of an asset for

the acquisition of a replacement or other asset.

Delegate: Authority is delegated to the Treasurer of the States, or in his absence

another officer nominated by the Treasurer of the States, to agree non-

contentious requests for the use of sale proceeds where the net balance

over the residual value of the asset sold is less than £100,000. Delegate: Authority is delegated to Accounting Officers to make use of up to

£5,000 of income from the sale of an asset where the net balance over

the residual value of the asset sold is less than £5,000.

Borrowing

Article 22 of the Law – Both the Law and Regulations allow the Minister to Minister and Treasurer may be delegate (where they so wish) to the Treasurer minor authorised to borrow; and borrowing transactions which, in summary, include –

• s h o rt-term bank overdrafts/overdraft facilities and

Regulation No. 9 - Minister's temporary loans (these must not exceed more than authority to borrow money in 25% of the previous year's income from taxation); the name of and behalf of the o t h er minor borrowing – up to £1 million in any States. one transaction in a financial year so long as the

total amount borrowed does not exceed £3 million Regulation No. 10 - Power of in that year, the total amount outstanding in this

the Minister to delegate way does not exceed £20 million and with all such functions - borrowing borrowing having a maximum repayment period

of 10 years;

• b o rrowing for a States trading operation where

additional income or tangible savings arising from the underlying expenditure meet the costs of the borrowing;

• o th er parameters specifically agreed by the States.

Delegate: Authority is delegated to the Treasurer of the States to

agree short-term bank overdrafts/overdraft facilities and temporary loans within the parameters set in the Law up to £10 million.

Delegate: Authority is delegated to the Treasurer of the States to

agree minor borrowing up to £100,000 in any one financial year (up to a maximum of £500,000), with no transaction to exceed £10,000 and repayment periods of 5 years or less. (Treasurer is not able to delegate his borrowing responsibilities to any other officers).

Trading Operations

Article 27- Returns of States These sub-paragraphs empower the Minister to request trading operations to be agreed States trading operations to enter into discussions and provide estimates in respect of the business activities

sub-paragraphs(1) and (2)(a) during the succeeding financial year. The estimates (b)(c)(d) refer should include income and expenditure, estimated contribution to the income of the States, estimate of any surplus of income over expenditure or estimated deficit, to be debited to trading fund and shall take into account capital expenditure details.

Delegate: Authority is delegated to the Treasurer of the States, or in

his absence, another person as nominated by the Treasurer of the States, to request the necessary estimates from the States trading operations.

Bank Accounts

Article 33 – Treasurer to open bank accounts

Sub-paragraphs 33(1) and (4)

These sub-paragraphs allow the Treasurer to open, operate and maintain bank accounts with a bank(s) approved by the Minister for the operation of the consolidated fund and for the proper administration of this or any other Law.

Delegate:

Authority is delegated to the Treasurer of the States to carry out this function without recourse to the Minister, provided that any bank selected is licensed for banking services in Jersey by the Jersey Financial Services Commission.

Recharge Accounts

Article 33 – Treasure to open bank accounts

Sub-paragraph 33 (3)

This sub-paragraph empowers the Minister to agree that money in the consolidated fund may be used to incur expenditure that will subsequently be recharged – for example the approval of stock accounts and other rechargeable accounts.

Delegate:

Authority is delegated to the Treasurer of the States, or in

his absence another officer as nominated by the Treasurer of the States, to approve all rechargeable and stock accounts.

Financial Directions

Article 34 of the Law Financial directions	This Article enables the Treasurer of the States to issue financial directions with the approval of the Minister.
Delegate:	Authority is delegated to the Treasurer of the States, or in his absence another person as nominated by the Treasurer, to issue Financial Directions that he deems to be required. (This authority shall not extend to those financial directions which propose the delegation of responsibility from the Minister to an officer without the Minister having already agreed those delegations).

Trust Assets – Bank Accounts

Regulation No. 18 Trust assets bank accounts	This Regulation states that Trust money should be held in a bank account with a bank(s) approved by the Minister (unless a Trust document specifies a certain bank).
Delegate:	Authority is delegated to the Treasurer of the States to carry out this function without recourse to the Minister, provided that any bank selected is licensed for banking services in Jersey by the Jersey Financial Services Commission.

States Charges

Anti-Inflation Strategy (P.125/2000)

The States in the Anti-Inflation Strategy agreed that increases in States charges should be limited to a maximum of 2.5 per cent a year, with any exceptions, in extremely compelling cases only, to be subject to prior approval by the Finance and Economics Committee (now the Minister for Treasury and Resources).

Delegate: Ministerial decision:

Authority is delegated to the Treasurer of the States, or in his absence, another person as nominated by the Treasurer to agree non-contentious fee/charge increases which do not require subsequent States approval; or in instances where fees are being increased in line with the "User Pays" principle.

The Minister agreed that approval for increases which are in line with statute or with a formula which has already received States or his approval do not require further approval.

Non-ContentiousStatesManpower

Standing Order 21 and P.67/1999 – This proposition charges the Minister for Treasury and Resources to Regulation of Public Sector regulate the number of persons that may be employed by the States of Employees Jersey in any area of the States administration, excluding those States' departments that report to The States trading operations, in accordance

with the principles contained within the Regulation of Undertakings

legislation and the policy statement issued by the then Finance and

Economics Committee in respect of the application of the Regulation of

Undertakings to the private sector, effective from 10th November 1998. Delegate: Authority is delegated to the Treasurer of the States, or in his absence,

another person as nominated by the Treasurer of the States for agreeing

non-contentious increases to States manpower.

TradingFunds

Article 22 Public Finances (Transitional Provisions) (No. 2) ( Jersey) Regulations 2005

"Money standing to the credit of the trading fund of a States trading operation may also be used, with the approval of the Minister, for a capital project of the trading operation if –

th e amount approved by the States for the project as part ofan annual business plan hasproved to be insufficient; or
th e project arises from a contingency that couldnothave been reasonably foreseen at the time the estimates of the States trading operation weresubmitted to the Minister in accordance with Article 8 ofthe2005 Law for inclusion as part of an annual businessplan."

Delegate:

Authority be delegated to the Treasurer of the States, or in his absence, another person as nominated by the Treasurer of the States for any further approvals under Article 22(2) of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005 where the amount concerned is less than £100,000.

Standing Order 168

States Standing Orders – No. 168

This standing order applies to the following actions –

th e disposal, acquisition, letting or rental of land on behalfofthepublicof Jersey;
th e grantoracquisitionof rights or servitudes over land on behalf of the publicofJersey;
th e renewal,extensionor variation of any lease of

land on behalf of the public of Jersey;

t he approval of plans for the construction or alterations of buildings where the workis to be funded wholly or partly by money votedbythe States.

Delegate:

Authority is delegated to the Assistant Minister, Treasury and Resources ( Deputy Le Fondré of St. Lawrence) all powers and responsibilities arising under Standing Order 168; and

Delegate:

Authority is delegated to the Director, Property Holdings, and in his absence the Assistant Director - Finance and

Investment, the power to approve –

• a n y acquisition or disposal of land or property on behalf of the public for a consideration of less than

£150,000;

• a n y grant or acceptance on behalf of the public of

any servitude or right in, on, over or under land by way of gift or for a sum of less than £50,000 or £12,500 a year;

• t h e letting on behalf of the public to any person or body for a term certain of any land or property for a rent payable on commencement of less than £50,000 a year;

• t h e rent on behalf of the public from any person or body for a term certain of any land or property for a rent payable on commencement of less than £50,000 a year; and

• t h e renewal, extension or variation of any lease where the value is less than £50,000 a year.

Contract Signing

Contract signing:	Signing of contract on behalf of the Minister for Treasury and Resources.
Delegate:	For work commissioned by Property Holdings responsibility for signing the contract is delegated to – th e Assistant Minister, Treasury and Resources ( Deputy Le Fondré of St. Lawrence), for contracts between £1,000,000 and £5,000,000; th e Director of Property Holdings, or in his absence the Assistant Director - Finance and Investment for contracts with a value up to £1,000,000.
Delegate:	Power to authorise the Attorney General and the Greffier of the States to pass any contracts on behalf of the public of Jersey that may be necessary in regard to land transactions approved by the Minister or his delegates under Standing Order 168 is delegated to the Assistant Minister, Treasury and Resources ( Deputy John Le Fondré of St. Lawrence) and to the Director, and in his absence the Assistant Director - Finance and Investment, Property Holdings.
Delegate:	For non Property Holdings contracts the Minister delegated responsibility for signing contracts to the Treasurer of the States

Public Finances Law – General

Powers under the Public Finances (Jersey) Law 2005	Functions conferred on or vested in the Minister by or under the Public Finances (Jersey) Law 2005.
Delegate:	The Minister delegated of all of the functions conferred on or vested in the Minister by or under the Public Finances (Jersey) Law 2005 including those in Regulations approved under that Law and financial directions to the Assistant Minister for Treasury and Resources, Deputy Edward James Noel of St. Lawrence.

States of Jersey Law 2005: delegation of functions – public finances and the Treasury and Resources Department.