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

Article 8 - Estimates to be provided; and

Article 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.

Delegation

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

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.

Delegation

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

instances where:

(a) any  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.

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:

• the  annual  net  revenue  budget  of  a  States funded body; or

• the amount allocated for each capital project).

Delegation

Authority is delegated to the Treasurer of the States, or in his absence, another  person as nominated by the Treasurer,  to  agree  any  non-contentious  transfers between expenditure heads up to £1,000,000.

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.

Article 15 – Permitted variations

Sub-paragraph 15(1)(b) and 2 refers

This sub-paragraph empowers the Minister to allow a States funded body, in the case of revenue expenditure, to carry funds forward to the following financial year and report to the States, the approval given, in periods no longer than 6 months.

Delegation

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).

Article 15 – Permitted variations

This sub-paragraph of the Law empowers the Minister to  authorise  a  States  funded  body  to  make  use  of

Sub-paragraph 15(3) refers

income from the sale of an asset for the acquisition of a replacement or other asset.

Delegation

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.

Delegation

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.

Article 22 – Minister and Treasurer may be authorized to borrow; and

Regulation 9 – authorizes the Minister to make certain borrowings in the name of, and on behalf of the States.

Regulation 10 – allows the Minister to delegate his or her power to borrow on behalf of the States to the Treasurer.

Both the Law and Regulations allow the Minister to delegate (where they so wish) to the Treasurer minor borrowing transactions which, in summary, include:

• short-term bank overdrafts/overdraft facilities and temporary loans (these must not exceed more than 25% of the previous year's income from taxation);

other minor borrowing – up to £1 million in any one transaction in a financial year so long as the total amount borrowed does not exceed £3 million in that year, the total amount outstanding in this way does not exceed £20 million and with all such borrowing having a maximum repayment period of 10 years;

• borrowing  for  a  States  trading  operation  where additional income or tangible savings arising from the underlying expenditure meet the costs of the borrowing;

• other parameters specifically agreed by the States.

Delegation

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.

Delegation

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).

Article 27 - Returns of States trading operations to be agreed

These  sub-paragraphs  empower  the  Minister  to request  States  trading  operations  to  enter  into discussions  and  provide  estimates  in  respect  of  the

sub-paragraphs (1) and

(2)(a)(b)(c)(d) refer

business  activities  during  the  succeeding  financial year.  The  estimates  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.

Delegation

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.

Article 33 – Treasurer to open bank accounts

Sub-paragraphs 33(1) and

(4) refer

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.

Delegation

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.

Article 33 – Treasurer to open bank accounts

Sub-paragraph 33 (3) refer

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.

Delegation

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.

Article 34 – Financial directions

This Article enables the Treasurer of the States to issue financial directions with the approval of the Minister.

Delegation

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).

Regulation 18 - prescribes the bank accounts that may be used for trust money.

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).

Delegation

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.

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 –

1. the amount approved by the States for the project as part of an annual business plan has proved to be insufficient; or

2. the project arises from a contingency that could not have  been  reasonably  foreseen  at  the  time  the estimates  of  the  States  trading  operation  were submitted  to  the  Minister  in  accordance  with Article 8 of the 2005 Law for inclusion as part of an annual business plan."

Delegation

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.

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.

Delegation

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 .

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).

Delegation

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.

Decimal Currency (Jersey) Law 1971 – Article 3 – Coinage of the new currency

This delegation enables the Deputy Treasurer of the States to approve individual commemorative currency designs as and when they are produced.

Delegation

The  Minister  delegated  approvals  of  individual commemorative  currency  designs  to  the   Deputy Treasurer of the States.

P.67/1999 – Regulation of Public Sector Employment

This proposition charges the Minister for Treasury and Resources to regulate the number of persons that may be employed by the States of 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.

Delegation

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.

Standing Order 168

This standing order applies to the following actions –

1. the disposal, acquisition, letting or rental of land on behalf of the public of Jersey;

2. the grant or acquisition of rights or servitudes over land on behalf of the public of Jersey;

3. the renewal, extension or variation of any lease of land on behalf of the public of Jersey;

4. the  approval  of  plans  for  the  construction  or alterations of buildings where the work is to be funded wholly or partly by money voted by the States.

Delegation

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

Delegation

Authority  is  delegated  to  the  Director,  Property Holdings, and in his absence the Assistant Director – Finance and Investment, the power to approve:

• Any acquisition or disposal of land or property on behalf of the public for a consideration of less than £150,000;

• Any 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;

• The 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;

• The 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

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

Standing Order 168 – Land transactions

Contract signing

Signing  of  contract  on  behalf  of  the  Minister  for Treasury and Resources.

Delegation

For  work  commissioned  by  Property  Holdings responsibility for signing the contract is delegated to:

• The  Assistant  Minister,  Treasury  and  Resources ( Deputy Le Fondré of St. Lawrence ), for contracts between £1,000,000 and £5,000,000;

• The  Director  of  Property  Holdings,  or  in  his absence  the  Assistant  Director  -  Finance  and Investment  for  contracts  with  a  value  up  to £1,000,000.

Delegation

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.

Delegation

For  non  Property  Holdings  contracts  the  Minister delegated  responsibility  for  signing  contracts  to  the Treasurer of the States.