Finance Law Delegation Report for the 6 month period ended 31st December 2013

STATES OF JERSEY

FINANCE LAW DELEGATION REPORT FOR THE 6 MONTH PERIOD ENDED 31ST DECEMBER 2013

Presented to the States on 30th June 2014 by the Minister for Treasury and Resources

STATES GREFFE

2014   Price code: B  R.88 (re-issue)

REPORT

1. 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  31st December  2013,  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.

2. Reporting on Decisions

The areas of administration which are to be reported on are as follows –

1. The use of trading funds by States Trading Operations;
2. Borrowing and Lending;
3. Budget transfers.

1. Use of Trading Funds

The following Ministerial Decisions in the use of trading funds were approved in the 6 month period that ended 31st December 2013 –

• MD-TR-2013-0105 – Use of Jersey Airport Trading Fund in 2013 for Jersey Airport Cargo Centre relocation (£4,653,000).
• MD-TR-2013-0114 –  Use  of  Jersey  Harbours  Trading  Fund  for  Elizabeth Harbour Trailer Park (£865,000).

2. Borrowing and Lending

1. Borrowing

The 2014 Budget (P.122/2013) was approved by the States on 5th December 2013, which also approved the borrowing of up to a maximum of £250,000,000 for Housing purposes.

2. Jersey Student Loan Scheme

During the 6 month period to 31st December 2013, 139 new loans with a collective value of £209,254.65 were guaranteed by the Treasurer of the States under the Jersey Student Loan Scheme. As at 31st December 2013, the total amount loaned under the Jersey  Student  Loan  Scheme  was  £2,308,600.73.  Terms  with  the  intermediaries require the States of Jersey to underwrite 100% of the value of the loans.

3. Pilot Starter Home Deposit Loan Scheme

During the 6 month period to 31st December 2013, 31 new loans were issued, with a total value of £1,587,300.

4. Infrastructure Investments

During the 6 month period to 31st December 2013, the Minister approved the issuance of a £13,000,000 infrastructure investment from the Currency Fund to provide the States of Jersey Development Company with financing for part of the underground car park, subject to conditions (MD-TR-2013-0095). Note that at present it is not planned that this investment will proceed.

3. 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; and
• 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.

1. Transfers from contingency expenditure to heads of expenditure

Transfers from contingency expenditure to heads of expenditure during the 6 month period to 31st December 2013 are shown in the table below –

* Decision with multi-year budget transfers for 2013 and 2014. The budget transfer approval for 2013 is reflected above, with the budget transfer for 2014 reflected under 2.3.6.

** Decisions with multi-year budget transfers for 2013, 2014 and 2015. The budget transfer approval for 2013 is reflected above, with the budget transfers for 2014 and 2015 reflected under 2.3.6.

2. Transfers between revenue heads of expenditure

Revenue  transfers  during  the  6 month  period  to  31st  December  2013  are  shown below –

** Decisions with multi-year budget transfers for 2013, 2014 and 2015. The budget transfer approval for 2013 is reflected above, with the budget transfers for 2014 and 2015 reflected under 2.3.6.

3. Transfers between capital heads of expenditure

Transfers between existing capital heads of expenditure during the 6 month period to 31st December 2013 are shown in the table on the next page –

Department  

£ Funding of:

To:  From:

TTS Replacement  TTS Gas Engine  Transfer of the remaining

4,165

Assets  Bellozanne Vote  balance

HA Fire and Rescue  Transfer of the remaining HA  151,003

and HM Prison  balance

Upgrade of the Fire and H&SS  HA  43,749  Ambulance combined

control centre

T&R (JPH) Cap  Office Rationalisation

T&R (JPH)  540,000

(Mont-à-l'Abbé)  Programme

Central Planning Vote  Les Quennevais replacement T&R (JPH)  320,000

(CPV)  School

Total transfers  1,058,917  

4. Transfers between revenue and capital heads of expenditure

Transfers between revenue (Rev) and capital (Cap) heads of expenditure during the 6 month period to 31st December 2013 are shown below –

Department  

£ Funding of:

To:  From:

T&R Corporate

**HA Rev  7,700  Jersey Community Relations

Contingency

Caretaker's van for Victoria College ESC Cap  ESC Rev  15,753

Preparatory

Router for Jersey College for Girls ESC Cap  ESC Rev  17,388

and Victoria College

Central  

Study on the security of Jersey's DoE Rev  Environment  42,000

energy supply

Vote Cap

Capital works at Victoria College ESC Cap  ESC Rev  130,000  (refurbishment of the Great Hall and

building classrooms)

T&R Cap  T&R Rev  30,378  Opera House

T&R (JPH) Cap  SSD Rev  926,000  Silver Jubilee Crabbé works T&R (JPH) Cap  T&R (JPH) Rev  1,179,260  Office Rationalisation Programme

Total transfers  2,348,479  

** Decision with multi-year budget transfer for 2013, 2014 and 2015. The budget transfer approval for 2013 is reflected above with the budget transfers for 2014 and 2015 reflected under 2.3.6.

5. 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 31st December 2013 are shown below –

Department  

£ Funding of:

To:  From:

Purchase of Operations Suite and the H&SS Cap  H&SS Rev  320,251  Ambulance and Fire priority Dispatch

System

HA Cap  HA Rev  130,000  Equipment for Prison stores

HA Cap  HA Rev  215,000  Purchase of IT and Communications

equipment for the States of Jersey Police (1st Tranche)

Purchase of IT and Communications HA Cap  HA Rev  200,000  equipment for the States of Jersey Police

(2nd Tranche)

H&SS Cap  H&SS Rev  89,400  Boiler-house controls and burners *TTS rev  TTS cap  31,446  Ash Strategy

TTS Cap  TTS Rev  36,886  Road Panels: Les Quennevais and

Trinity Hill

Purchase of goods and services for the HA Rev  HA CAP  48,216

TETRA project

TTS Cap  TTS Rev  25,000  DVS garage doors

H&SS Rev  H&SS Cap  284,651  Purchase of defibrillators Viscount's Cap  Viscount's Rev  27,735  Désastre software upgrade TTS Cap  TTS Rev  19,459  Leica equipment

Total transfers  1,428,044  

* Decision with multi-year budget transfers for 2013 and 2014. The budget transfer approval for 2013 is reflected above with the budget transfer for 2014 reflected under 2.3.6.

6. Transfers over multiple years between various heads of expenditure

Multi-year transfers between the various heads of expenditure during the 6 month period to 31st December 2013 are shown below –

* Decisions with multi-year budget transfers for 2013 and 2014. The budget transfer approval for 2014 is reflected above, with the budget transfer for 2013 reflected on the relevant section on the body of the report.

** Decisions with multi-year budget transfers for 2013, 2014 and 2015. The budget transfer approval for 2014 and 2015 is reflected above, with the budget transfer for 2013 reflected on the relevant section on the body of the report.

*** Decisions with multi-year budget transfer approvals for 2014 and 2015 reflected above.

 _____________________________________________________________________ Re-issue Note

This Report is re-issued because the Department requested that the title be amended.