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STATES OF JERSEY
BUDGET MANAGEMENT REPORT FOR THE PERIOD ENDED
31ST DECEMBER 2010
Presented to the States on 2nd June 2011 by the Minister for Treasury and Resources
STATES GREFFE
2011 Price code: B R.65
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 decisions made during the 6 month period to 31st December 2010, the majority of which have been previously published.
- 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; and
- Budget transfers (including Economic Stimulus Plan allocations and Voluntary Redundancy).
- Use of trading funds
The following Ministerial Decisions on the use of trading funds were taken to 31st December –
- MD-TR-2010-0163 – Transfer of £382,000 from the Harbours Trading Fund in respect of the St. Aubin Remediation Project.
- Borrowing
- Small Firms Loan Guarantee Scheme
During the 6 month period to 31st December, 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 31st December 2010, the total amount loaned under the SFLGS was £686,203, of which £514,652 was guaranteed by the States.
- Jersey Student Loan Scheme
The Jersey Student Loan Scheme commenced in September 2007. As at 31st December 2010, 468 students had taken out a loan under the Scheme, and the total amount borrowed was £1,284,195. Terms with the intermediaries require the States of Jersey to underwrite 100% of the value of the loan.
- Budget transfers
Budget transfers 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.
Economic Stimulus Plan allocations are reported separately in section 2.3.4 below.
- Transfers between revenue heads of expenditure
Revenue transfers during the period ended 31st December 2010 are shown in Table 1. Table 1: Transfers between revenue heads of expenditure
Department | £ | Funding of: | |
To: | From: | ||
Treasury and Resources | Social Security | 500,000 | Restructuring and 4FTE taxes |
Economic Development | Treasury and Resources (JPH) | 250,000 | Transfer of La Collette Fuel Farm responsibilities |
Economic Development | Transport and Technical Services | (100,000) | Transfer of La Collette Fuel Farm responsibilities |
Treasury and Resources (JPH) | Housing | 9,090 | Crisis properties |
Social Security | Housing | 214,000 | Lost rental income arising from CSR |
Chief Minister's Department | Treasury and Resources (JPH) | 300,000 | Corporate Savings |
| Total | £1,173,090 |
|
- Transfers between capital heads of expenditure
Transfers between existing capital heads of expenditure are shown in Table 2. Table 2: Transfers between capital heads of expenditure
Department | £ | Funding of: | |
To: | From: | ||
Judicial Greffe | Judicial Greffe | 27,228 | Magistrate's Court Cell Improvements |
Probation | Judicial Greffe | 1,721 | Probation and Aftercare |
Jersey Airport | Jersey Airport | 879,000 | Hold Baggage and Telebag System |
Department | £ | Funding of: | |
To: | From: | ||
Jersey Harbours | Jersey Harbours | 150,000 | Elizabeth Harbour East Pier Project |
Transport and Technical Services | Treasury and Resources (JPH) | 145,000 | Howard Davis Farm Animal Incinerator Works |
Transport and Technical Services | Transport and Technical Services | 900,000 | EFW Contingency |
Transport and Technical Services | Treasury and Resources | 10,779,051 | EFW Contingency |
Treasury and Resources (JPH) | Treasury and Resources (Planning Vote) | 90,000 | Design work on New Oncology Unit |
| Total | £12,972,000 |
|
- Transfers between revenue and capital heads of expenditure
Transfers between revenue and capital during the period to 31st December are shown in Table 3.
Table 3: Transfers between revenue and capital heads of expenditure
Department | £ | Funding of: | |
To | From | ||
Transport and Technical Services Capital | Economic Development Revenue | 255,000 | Transfer of La Collette Fuel Farm responsibilities |
Planning and Environment Revenue | Planning and Environment Capital | 23,628 | Transfer to align budgeting and accounting treatment |
Home Affairs Revenue | Treasury and Resources Contingency | 221,500 | HCAE Q2 2010 |
Law Officers' Department | Treasury and Resources Contingency | 129,004 | HCAE Q2 2010 |
Transport and Technical Services Capital | Transport and Technical Services Revenue | 450,000 | Jersey Harbours Repayment |
Education, Sport and Culture Revenue | Education, Sport and Culture Capital | 600,000 | Interim Funding for Jersey Heritage Trust |
Transport and Technical Services Capital | Transport and Technical Services Revenue | 512,000 | Transfer to align budgeting and accounting treatment |
Home Affairs Revenue | Treasury and Resources Contingency | 186,300 | HCAE Q3 2010 |
Law Officers' Department | Treasury and Resources Contingency | 75,227 | HCAE Q3 2010 |
Department | £ | Funding of: | |
To | From | ||
Treasury and Resources Capital (JPH) | Treasury and Resources Revenue (JPH) | 710,000 | CSSD Stores and Backlog Maintenance |
Home Affairs Capital | Home Affairs Revenue | 11,068 | Transfer to align budgeting and accounting treatment |
Planning and Environment Revenue | Planning and Environment Capital | 125,356 | Transfer to align budgeting and accounting treatment |
Transport and Technical Services Capital | Transport and Technical Services Revenue | 658,140 | Transfer to align budgeting and accounting treatment |
Home Affairs Capital | Home Affairs Revenue | 44,500 | Transfer to align budgeting and accounting treatment |
Treasury and Resources Capital (JPH) | Social Security Revenue | 300,000 | Acorn Enterprises |
Health and Social Services Revenue | Health and Social Services Capital | 68,500 | Transfer to align budgeting and accounting treatment |
Home Affairs Capital | Home Affairs Revenue | 100,000 | Passport Income to Biometric Passports |
| Total | £4,470,223 |
|
- Economic 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 stimulus package (P.55/2009 refers).
During the period to 31st December 2010, the Minister approved the re-allocation of £7,541,511 from the Consolidated Fund (see Table 4 below).
Table 4: Economic stimulus budget allocations
Department | £ | Purpose of allocation: |
Economic Development | 1,500,000 | Grant to Durrell Wildlife Conservation Trust |
Housing | 1,714,793 | Building Maintenance Works at Social Housing Estates |
Housing | 464,107 | Refurbishment of 80 St. Mark's Road |
Treasury and Resources (JPH) | 1,891,202 | Refurbishment of Rosewood House |
Health and Social Services | 162,963 | Refurbishment of Rosewood House |
Education, Sport and Culture | 112,000 | Jersey Opera House |
Housing | 427,664 | Replacement Heating Systems at Social Housing Estates |
Department | £ | Purpose of allocation: |
Education, Sport and Culture | 125,000 | Major restoration and refurbishment of St. Matthew's (Glass) Church |
Education, Sport and Culture | 67,500 | Beaulieu School renovation project |
Education, Sport and Culture | 496,380 | Additional Student Places at Highlands College (Skills and Training) |
Transport and Technical Services | 69,402 | West Park to Cheapside (Phase 2) Project |
Education, Sport and Culture | 510,500 | Beaulieu School – Facilities for Students with Learning Support Needs |
Total | 7,541,511 |
|
- Voluntary Redundancy (VR)
The States agreed the withdrawal of an additional £6 million from the Consolidated Fund for a voluntary redundancy scheme (P.64/2010 refers). In order to comply fully with the proposition, the money was transferred to, and distributed from, the Chief Minister's Department.
When it became apparent that the approved funding would be insufficient, it was agreed by the Council of Ministers to use a portion of the Social Security Department's underspend for 2010. This proved a timely opportunity to deliver savings over and above those previously put forward.
During the period to 31st December 2010, the Minister approved the following transfers in relation to voluntary redundancies (via MD-TR-2010-0159, MD-TR-2010- 0186 and MD-TR-2010-0189) (see Table 5 below).
Table 5: Voluntary Redundancy allocations
Department | From T&R Contingency £ | From Social Security £ | To CMD (for re- distribution) £ | To Depts. £ | Actuarial valuations £ |
| 6,000,000 |
|
|
|
|
First Tranche |
|
|
|
|
|
| (5,760,373) |
| 5,760,373 |
|
|
|
|
| (5,760,373) |
|
|
Judicial Greffe |
|
|
| 155,018 |
|
Education, Sport and Culture |
|
|
| 712,844 |
|
Lieutenant Governor's |
|
|
| 96,673 |
|
Resources (IS) |
|
|
| 364,888 |
|
Planning and Environment |
|
|
| 605,774 |
|
Department | From T&R Contingency £ | From Social Security £ | To CMD (for re- distribution) £ | To Depts. £ | Actuarial valuations £ |
JPH |
|
|
| 135,081 |
|
Economic Development |
|
|
| 43,610 |
|
Home Affairs |
|
|
| 385,684 |
|
Health and Social Services |
|
|
| 1,761,212 |
|
Housing |
|
|
| 360,048 |
|
Human Resources |
|
|
| 179,087 |
|
Transport and Technical Services |
|
|
| 960,454 |
|
Total | 239,627 |
| 0 | 5,760,373 |
|
Returned from Depts. for VR applications no longer going ahead |
|
| 266,412 | (266,412) |
|
To Depts. for 2% uplift |
|
| (58,093) | 58,093 |
|
Transfer remainder of 11(8) funding to CMD | (239,627) |
| 239,627 |
|
|
Actuarial valuations |
|
| (11,550) |
| 11,550 |
Total | 0 |
| 436,396 | 5,552,054 | 11,550 |
Second Tranche |
|
|
|
|
|
|
| (470,841) | (436,396) |
|
|
Chief Minister's Dept. |
|
|
| 247,488 |
|
Education, Sport and Culture |
|
|
| 84,846 |
|
Resources (IS) |
|
|
| 285,280 |
|
Treasury and Resources |
|
|
| 177,725 |
|
Home Affairs |
|
|
| 111,898 |
|
Total | 0 | (470,841) | 0 | 6,459,291 | 11,550 |
Further funds totalling £318,536.12 were returned from Departments in 2011 for VR applications no longer going ahead and to correct original calculation errors. These budget transfers will be reported in the next Budget Management Report.
The total funding used by Departments for VR was £6,140,754.88.