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STATES OF JERSEY
BUDGET MANAGEMENT REPORT FOR THE PERIOD ENDED 30TH JUNE 2011
Presented to the States on 14th December 2011 by the Minister for Treasury and Resources
STATES GREFFE
2011 Price code: B R.151
REPORT
- The administration of the Public Finances of Jersey
In accordance with the Public Finances (Jersey) Law 2005 ("the Law") (including Regulations approved under that Law and Financial Directions), certain matters relating to budgeting and to the financial control and administration of States Trading Operations 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 2011, the majority of which have been previously published. Where decisions have not previously been published, this is due to one of 2 reasons –
- The decisions were exempted under the States of Jersey ("SoJ") Code of Practice on Public Access to Official Information; 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 to be reported on are as follows –
- The use of trading funds by States Trading Operations;
- Borrowing;
- Budget transfers (including Fiscal Stimulus Plan allocations); and
- Carry forward of revenue balances from 2010.
- Use of Trading Funds
The following Ministerial Decisions on the use of trading funds were approved in the 6 month period ended 30th June –
- MD-TR-2011-0006 – Reinstatement of Jersey Airport revenue budget originally transferred from capital in 2009 Shadow Budget as no expenditure was made until 2010.
- MD-TR-2011-0018 – Use of £590,000 from the Harbours Trading Fund in order to expedite works on Elizabeth Harbour Breakwater and the Albert and Victoria Piers.
- Borrowing
- Small Firms Loan Guarantee Scheme
During the 6 month period to 30th June, the Treasurer of the States did not guarantee any new loans under the Small Firms Loan Guarantee Scheme (SFLGS). Under the terms of the Scheme, the Economic Development Department underwrites up to 75% of the value of a loan. As at 30th June 2011, the total amount loaned under the SFLGS was £600,102, of which £450,076 was guaranteed by the States.
- Jersey Student Loan Scheme
The Jersey Student Loan Scheme commenced in September 2007. As at 30th June 2011, 460 students had taken out a loan under the Scheme, and the total amount borrowed was £1,204,620. Terms with the intermediaries require the States of Jersey to underwrite 100% of the value of the loan.
- Budget Transfers
Article 15(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister, be used for the purposes of another head of expenditure.
Budget transfers under Article 15(1)(a) are reported on the following basis –
- Transfers between revenue heads of expenditure;
- Transfers between capital heads of expenditure; and
- Transfers between revenue and capital heads of expenditure.
Budget transfers between departments vary the budgets of individual departments but are net nil in total.
Fiscal Stimulus Plan allocations are reported separately in section 2.3.4 below.
- Transfers between Revenue Heads of Expenditure
Revenue transfers during the 6 month period to 30th June 2011 are shown below –
Department | £ | Funding of: | |
To | From | ||
Treasury and Resources | Chief Minister's | 155,000 | Transfer of Director of International Taxation and team |
Social Security | Education, Sport and Culture | 84,846 | Withdrawal of one Voluntary Redundancy (VR) application |
Bailiff 's Chambers | Viscount's | 98,856 | Shortfall in Bailiff 's Chambers budget |
Social Security | Home Affairs | 10,610 | Withdrawal of one Voluntary Redundancy (VR) application |
Health and Social Services | T&R contingency | 365,000 | Restructuring Provision – 1st Tranche |
Treasury and Resources | Health and Social Services | 22,540 | Transfer of one Human Resources Officer FTE and budget |
Lt. Gov. Rev. | T&R contingency | 27,100 | Restructuring provision – restructuring of Housekeeping |
Home Affairs | T&R contingency | 54,600 | Restructuring provision – closure of Police Canteen |
Chief Minister's | Treasury and Resources | 78,132 | Transfer of Head of Strategic Planning |
Treasury and Resources | Chief Minister's | 25,000 | Tax Policy Team – transfer of non-staff costs |
Health and Social Services | T&R contingency | 486,000 | Restructuring Provision – 2nd Tranche |
Education, Sport and Culture | T&R contingency | 1,326,0001 | |
Transport and Technical Services | T&R contingency | 135,000 | |
Environment | T&R contingency | 85,000 | |
Chief Minister's | T&R contingency | 79,000 | |
Judicial Greffe | Social Security | 168,300 | Transfer of Jersey Employment Tribunal budget |
Education, Sport and Culture | T&R contingency | 500,000 | Teachers' Terms and Conditions |
Economic Development | Chief Minister's | 140,700 | Transfer of budget for International Finance |
| Total: | £3,841,684 |
|
1N.B. Actual amount transferred was £616,700 (see MD-TR-2011-0118).
- Transfers between Capital Heads of Expenditure
Transfers between existing capital heads of expenditure during the 6 month period to 30th June are shown below –
Department | £ | Funding of: | |
To | From | ||
Treasury and Resources (JPH) | Health and Social Services | 2,231,905 | Transfer of A&E/Radiology extension capital project |
Chief Minister's | Chief Minister's | 325,400 | Web Development project |
Harbours | Harbours | 2,124,949 | Amalgamation of 3 Cap HoE for Elizabeth Harbour East/West Walkways |
Transport and Technical Services | Transport and Technical Services | 2,258,312 | Sludge Thickener |
Housing Rolling Vote | Housing | 132,352 | Le Marais Low Rise Phase 2 and The Cedars: unspent budget |
Housing | Treasury and Resources (JPH) | 531,725 | Pomme D'Or Farm Refurbishment |
Housing | Treasury and Resources contingency | 3,250,000 | Pomme D'Or Farm Refurbishment |
Education, Sport and Culture | Education, Sport and Culture | 538,558 | ICT Phase 3 Strategy |
| Total: | £11,393,201 |
|
- Transfers between Revenue and Capital Heads of Expenditure
Transfers between revenue (Rev) and capital (Cap) during the 6 month period to 30th June are shown below –
Department | £ | Funding of: | |
To | From | ||
H&SS Rev | T&R contingency | 600,000 | Brig-Y-Don refurbishment |
ESC Rev | ESC Cap | 6,274 | Youth Service Mobile Project |
H&SS Rev | H&SS Cap | 1,200,000 | ICR Project |
T&TS Cap | T&TS Rev | 375,000 | Ash Pit |
H&SS Rev | T&R contingency | 628,000 | Flu Pandemic reimbursements |
LOD Rev | T&R contingency | 92,318 | HCAE Q4 2010 reimbursements |
Home Affairs | T&R contingency | 127,600 | |
Judicial Greffe Rev | T&R contingency | 455,082 | Additional Court and Case Costs |
ESC Rev | ESC Cap | 650,000 | ICT Strategy Phase 2 |
T&R (JPH) Cap | T&R (JPH) Rev | 89,906 | Indoor Market Surplus |
CMD Rev | CMD Cap | 176,6022 | IS/IT Projects |
T&TS Rev | T&TS Cap | 2,400,000 | Asbestos disposal and liquid waste strategy from in-vessel composting funds no longer needed |
T&TS Cap | T&TS Rev | 450,000 | Jersey Harbours Repayment |
ESC Rev | ESC Cap | 139,300 | Secondary School Catering improvements |
CMD Rev | T&R contingency | 546,338 | To meet funding shortfall |
T&R contingency | CMD Rev | 59,426 | VR Clawbacks |
T&R contingency | Judicial Greffe Rev | 78,588 | |
T&R contingency | ESC Rev | 194,521 | |
T&R contingency | T&R Rev | 268,030 | |
T&R contingency | P&E Rev | 223,947 | |
T&R contingency | Home Affairs Rev | 55,234 | |
T&R contingency | H&SS Rev | 28,848 | |
T&R contingency | Housing Rev | 220,990 | |
T&R contingency | T&TS Rev | 244,419 | |
ESC Rev | T&R contingency | 89,988 | Partial return of VR Clawback |
H&SS Cap | H&SS Rev | 445,000 | Transfer to align budgeting and accounting treatment (GAAP)* |
Lt. Gov. Office Cap | Lt. Gov. Office Rev | 17,000 | Transfer to align budgeting and accounting treatment (GAAP)* |
Official Analyst Cap | Official Analyst Rev | 46,855 | Transfer to align budgeting and accounting treatment (GAAP)* |
Probation Cap | Probation Rev | 21,563 | Transfer to align budgeting and accounting treatment (GAAP)* |
Airport Cap | Airport Rev | 1,185,209 | Transfer to align budgeting and accounting treatment (GAAP)* |
Harbours Rev | Harbours Cap | 110,000 | Transfer to align budgeting and accounting treatment (GAAP)* |
T&R Cap | T&R Rev | 13,000 | Transfer to align budgeting and accounting treatment (GAAP)* |
T&TS Cap | T&TS Rev | 2,005,000 | Transfer to align budgeting and accounting treatment (GAAP)* |
Airport Rev | Airport Cap | 1,291,403 | Transfer to align budgeting and accounting treatment (GAAP)* |
LOD Cap | LOD Rev | 75,000 | Transfer to align budgeting and accounting treatment (GAAP)* |
Home Affairs Cap | Home Affairs Rev | 13,600 | Transfer to align budgeting and accounting treatment (GAAP)* |
ESC Rev | ESC Cap | 600,000 | Transfer to align budgeting and accounting treatment (GAAP)* |
| Total: | £15,224,040 |
|
2N.B. Actual amount transferred was £168,734.
*The States of Jersey implemented 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 as revenue otherwise. These budget transfers are to correctly align expenditure with GAAP.
- Fiscal Stimulus Plan Allocations
The States agreed the transfer of £44 million from the Stabilisation Fund to the Consolidated Fund in order to provide funding for the proposed Economic (Fiscal) Stimulus Plan (P.55/2009 refers).
During the 6 month period to 30th June 2011, the Minister approved the re-allocation of £3,477,419 from the Consolidated Fund as shown below –
Department | £ | Purpose of allocation: |
ESC | 393,650 | Advance to Work and Careers Strengthening |
T&R (JPH) | 921,493 | Jersey Opera House |
ESC | 2,162,276 | Skills and Training Projects |
Total: | £3,477,419 |
|
- Carry Forwards Revenue Carry Forwards
Total 2010 Year End Departmental Revenue Carry Forwards of £11,918,867 were approved by the Minister (MD-TR-2011-0042) as shown below –
Department | Approved amount |
| £ |
Chief Minister's | 750,210 |
Overseas Aid | 4,902 |
Economic Development | 712,200 |
Education, Sport and Culture | 2,628,040 |
Health and Social Services | 3,520,000 |
Home Affairs | 655,500 |
Housing | 757,953 |
Environment | 283,340 |
Social Security | – |
Transport and Technical Services | 122,340 |
Treasury and Resources | 751,953 |
NMSFB | 1,732,429 |
States Assembly | – |
Total: | £11,918,867 |
In the same Ministerial Decision, the Minister also approved funding of £1.21 million from underspends of spending pressures to Departments as shown below –
Department | £ | Reason: |
Bailiff 's Chambers | 125,000 | Address the findings from the staff costs review. |
Resources | 236,000 | Unachievable corporate savings in relation to the Joint Fraud Office. |
Chief Minister's | 84,000 | To fund Deputy Director International post in response to recent changes at UK Ministry of Justice who will no longer act as intermediary with other UK departments. |
Environment | 150,000 | IT improvements as recommended by Committee of Enquiry following Reg's Skips review. |
Transport and Technical Services | 250,000 | Bus Contract – £500K is required to conduct a full review of bus contract and service network to improve the service in relation to the Strategic Transport Policy. |
Treasury and Resources | 143,000 | Additional fraud investigations within Taxes Office. |
Treasury and Resources | 223,000 | Taxes Office implementation programme based on recommendations of Deloitte Review. |
Total: | £1,211,000 |
|
Fiscal Stimulus and 11(8) Carry Forwards
In a separate Ministerial Decision, Fiscal Stimulus Carry Forwards of £2,811,703 were approved by the Minister (MD-TR-2011-0040) as shown below –
Department | £ | Reason: |
Chief Minister's | 657,112 | Finance Industry Support |
Economic Development | 791,517 | Finance Industry Support |
Health and Social Services | 7,194 | Rosewood House |
Housing | 950,373 | Social Housing Maintenance Projects |
Treasury and Resources | 405,507 | Jersey Hospice |
Total: | £2,811,703 |
|
In the same Ministerial Decision, the Minister also approved P.64/2010, Article 11(8) Year End Carry Forwards of £232,100 as shown below –
Department | £ | Reason: |
Chief Minister's | 123,000 | Improved Procurement |
Home Affairs | 109,100 | Court and Case Costs |
Total: | £232,100 |
|