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STATES OF JERSEY
BUDGET MANAGEMENT REPORT FOR THE PERIOD ENDED 30TH JUNE 2013
Presented to the States on 18th December 2013 by the Minister for Treasury and Resources
STATES GREFFE
2013 Price code: B R.155
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 2013. Where decisions have not previously been published, this is due to one of two 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; and
- Carry-forward of revenue balances from 2012.
- Use of trading funds
The following Ministerial Decision in the use of trading funds was approved in the 6 month period that ended 30th June 2013 –
- MD-TR-2013-0008 – Use of Jersey Harbours Trading Fund in 2013 for West Linkspan civil works, Elizabeth Harbour (£2,643,999).
- Borrowing
2.2.1 Jersey student loan scheme
During the 6 month period to 30th June 2013, 16 new loans with a collective value of £24,000 were guaranteed by the Treasurer of the States under the Jersey Student Loan Scheme. As at 30th June 2013, the total amount loaned under the Jersey Student Loan Scheme was £2,054,174.89. Terms with the intermediaries require the States of Jersey to underwrite 100% of the value of the loans.
- Budget transfers
Articles 17 and 18 of the Public Finances (Jersey) Law 2005 permit contingency expenditure and variations between heads of expenditure with the approval of the Minister.
Budget transfers under Articles 17 and 18 of the Public Finances (Jersey) Law 2005 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 Generally Accepted Accounting Principles (GAAP).
All transfers between departments vary the budgets of individual departments but are net nil in total.
- Transfers from contingency expenditure to heads of expenditure
Transfers from contingency expenditure to heads of expenditure during the 6 month period to 30th June 2013 are shown below –
Department | £ | Narrative for Report | |
To | From | ||
**Chief Minister's Department (CMD) | Contingency | 247,750 | States Pay Awards for 2013 – 1% Consolidated & 1% Non-Consolidated |
**Economic Development (EDD) | 72,290 | ||
**ESC | 1,664,380 | ||
**Health & Social Services (H&SS) | 2,096,000 | ||
**Home Affairs (HA) | 627,000 | ||
**Housing | 51,000 | ||
**Department of the Environment (DoE) | 127,320 | ||
**Social Security (SSD) | 100,695 | ||
**Transport & Technical Services (TTS) | 357,750 | ||
**Treasury & Resources (T&R) | 258,260 | ||
** Bailiff 's Chamber | 15,734 | ||
**Law Officers' Department (LOD) | 87,740 | ||
**Judicial Greffe | 42,259 | ||
**Viscount's Department | 18,172 | ||
**Official Analyst | 8,094 | ||
**Office of the Lieutenant Governor (LG) | 10,770 | ||
**Data Protection Commission | Contingency | 3,825 | States Pay Awards for 2013 – 1% Consolidated & 1% Non-Consolidated |
**Probation Department | 30,849 | ||
**States Assembly & its Services | 25,611 | ||
**Grant to the Overseas Aid Commission | 1,396 | ||
Department | £ | Narrative for Report | |
To | From | ||
**EDD | Contingency | 20,000 | Band of the Island of Jersey |
**LG | Contingency | 26,000 | Cadet and Military Support Officer |
Education, Sport and Culture (ESC) | Provision for restructuring | 306,300 | Faithful Companions of Jesus (FCL) Funding (CSR) |
*CMD | Provision for restructuring | 1,000,000 | Public Sector Reform Programme |
T&R – Insurance | Contingency – Insurance | 922,816 | HCAE Costs |
Total transfers | 8,122,011 | ||
* Decisions with multi-year budget transfers for 2013 and 2014. The budget transfer for 2013 is reflected above with the budget transfer for 2014 reflected under 2.3.6.
** Decisions with multi-year budget transfers for 2013 to 2015. The budget transfer for 2013
is reflected above with the budget transfer for 2014 to 2015 reflected under 2.3.6.
- Transfers between revenue heads of expenditure
Revenue transfers during the 6 month period to 30th June 2013 are shown below –
Department
£ Funding of
To From
**CMD EDD 996,800 Transfer of Financial Services Bailiff 's Chambers 58,300
To cover overspends on Court and Case Judicial Greffe LOD 23,100
Costs
LG 30,400
H&SS SSD 300,000 Develop a new model of Primary care CMD EDD 95,000 Grant to Bureau de Jersey
CMD T&R 70,000 Law Draftsman's Post
T&R – Taxes Office SSD 614,500 Long Term Care Charge – Capital Cost **TTS CMD 60,540 Corporate Health and Safety Manager
Total transfers 2,248,640
** Decisions with multi-year budget transfers for 2013 to 2015. The budget transfer for 2013
is reflected above, with the budget transfer for 2014 to 2015 reflected under 2.3.6.
- Transfers between capital heads of expenditure
Transfers between existing capital heads of expenditure during the 6 month period to 30th June 2013 are shown below –
Department | £ | Funding of | |
To | From | ||
CMD Enterprises Systems Development (ESD) | CMD Human Resources Information System (HRIS) | 740,000 | HRIS Replacement |
New Public Recycling Centre Feasibility Study | Central Planning Vote (CPV) | 200,000 | Feasibility study into the new Public Recycling Centre |
Scrap Yard Infrastructure Feasibility Study | CPV | 150,000 | Feasibility study into the Scrap Yard Infrastructure |
JPH – Replacement School Feasibility and Planning | CPV | 250,000 | Feasibility Study and Planning into Replacement School |
JPH – Autism Support Unit Feasibility | CPV | 50,000 | Feasibility Study into Autism Support Unit |
TTS Replacement Assets | TTS Waste Management Assets Vote | 1,313 | Asset replacement programme |
JPH – Green Street Car Park Extension | CPV | 100,000 | Green Street Car Park Extension |
JPH – Refurbishment of Sandybrook | CPV | 100,000 | Refurbishment of Sandybrook |
Ports of Jersey – Harbours – St. Helier Marina | Ports of Jersey – Harbours – RoRo No. 5 access ramp replace/upgrade | 300,000 | Support No. 5 RoRo removal and St. Helier Marina Phase 1 works |
Total transfers | 1,891,313 | ||
- Transfers between revenue and capital heads of expenditure
Transfers between revenue (Rev) and capital (Cap) during the 6 month period to 30th June 2013 are shown below –
Department | £ | Funding of | |
To | From | ||
JPH Cap | HA Rev | 46,962 | Prison Horticulture |
EDD Rev | T&R Corporate Contingency | 34,450 | Capital Economics Study |
*CMD Cap | Provision for restructuring | 1,685,000 | Public Sector Reform Programme |
Public Markets Maintenance Cap | Central Market Surplus (JPH) Rev | 276,266 | Central Market Refurbishment |
HA Cap | HA Rev | 94,784 | Various Capital Projects |
H&SS Cap | H&SS Rev | 446,638 | Development of intermediate care |
Department | £ | Funding of | |
To | From | ||
TTS Rolling Infrastructure Cap | DVS Rev | 10,675 | DVS on-line driving test booking system extension |
TTS Infrastructure Cap | TTS Rev | 450,000 | Parish Centre Improvements |
**CMD Rev | T&R Corporate Contingency | 9,500 | HR Broad-banding |
Lieutenant Governor (LG) Rev | T&R Corporate Contingency | 30,000 | HMS Iron Duke |
T&R Rev | T&R Corporate Contingency | 35,000 | Legal costs associated with Low Value Consignment Relief (LVCR) |
Total transfers | 3,119,275 | ||
* Decisions with multi-year budget transfers for 2013 and 2014. The budget transfer for 2013 is reflected above with the budget transfer for 2014 reflected under 2.3.6.
** Decisions with multi-year budget transfers for 2013 to 2015. The budget transfer for 2013
is reflected above with the budget transfer for 2014 to 2015 reflected under 2.3.6.
- Transfers between revenue and capital heads of expenditure where the transfer is required in order to comply with Generally Accepted Accounting Principles (GAAP)
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.
GAAP transfers between revenue (Rev) and capital (Cap) during the 6 month period to 30th June 2013 are shown below –
Department | £ | Funding of | |
To | From | ||
T&R Cap | T&R Rev | 346,440 | ITAX System Development for 2012 |
T&R Cap | T&R Rev | 38,335 | Purchase of two IT Servers |
Total transfers | 384,775 | ||
- Transfers over multiple years between various heads of expenditure
Multi-year transfers between the various heads of expenditure during the 6 month period to 30th June 2013 are shown below –
Department Transfer Year(s)
£ Funding of between heads of
To From of expenditure transfer
Recurring effect of the
Contingency to
1% Consolidate Pay 2014 to Departments Contingency 6,504,854 Revenue heads of
Award from 2013 for 2015
expenditure
all States Departments
Contingency to
Provision for Public Sector Reform
CMD Cap 745,000 capital heads of 2014
restructuring Programme
expenditure
Contingency to
Provision for Public Sector Reform
CMD Rev 950,000 revenue heads of 2014
restructuring Programme
expenditure
Financial services Revenue heads of 2014 to CMD Rev EDD Rev 2,033,000
transfer of service expenditure 2015
Contingency to
Band of the Island of 2014 to EDD Rev Contingency 40,000 revenue heads of
Jersey 2015
expenditure
Contingency to
Cadet and Military 2014 to LG Rev Contingency 84,000 revenue heads of
Support Officer 2015
expenditure
Capital to
T&R Corporate 2014 to CMD Rev 69,200 HR Broad-banding revenue heads of
Contingency 2015 expenditure
Corporate Health and Revenue heads of 2014 to TTS Rev CMD Rev 121,200
Safety Manager expenditure 2015 Total transfers 10,547,254
- Carry-forwards
Carry-forwards were dealt with in Ministerial Decision MD-TR-2013-0017.