The official version of this document can be found via the PDF button.
The below content has been automatically generated from the original PDF and some formatting may have been lost, therefore it should not be relied upon to extract citations or propose amendments.
STATES OF JERSEY
FINANCE LAW DELEGATION REPORT FOR THE 18-MONTH PERIOD ENDED 31ST DECEMBER 2015
Presented to the States on 19th October 2016 by the Minister for Treasury and Resources
STATES GREFFE
2016 R.108
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 the decisions made during the 18-month period up to 31st December 2015. Where decisions have not previously been published, this is due to one of two reasons –
- Decisions were exempted under the Freedom of Information (Jersey) Law 2011; or
- 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 and lending;
- budget transfers; and
- carry-forwards of revenue balances from 2014.
- Use of Trading Funds
During the 18-month period to 31st December 2015, a total of £2,326,680.00 was transferred from the Trading Fund to various Airport Capital projects, and £500,000.00 was transferred to Harbours Capital projects.
- Borrowing and lending
- Jersey Student Loan Scheme
During the 18-month period to 31st December 2015, 245 new loans with a collective value of £367,000.00 were guaranteed by the States under the Jersey Student Loan Scheme. As at 31stDecember 2015, the total amount loaned under the Jersey Student Loan Scheme was £2,279,089.42. Terms with the intermediaries require the States of Jersey to underwrite 100% of the value of the loans.
- Pilot Starter Home Deposit Loan Scheme
During the 18-month period to 31st December 2015, no new loans were issued. The last loan was issued on 23rd May 2014 with the pilot scheme now finished. As at the year-end 2015, the total value of outstanding loans under this Scheme was £2,072,577.
- Lending
Two new loans were issued in the 18-month period to 31st December 2015. One was approved on 3rd November 2014 for the Caesarean Lawn and Tennis Club for £100,000, and another on 30th January 2015 for the Channel Islands Financial Ombudsman for £100,000.
- Infrastructure Investments from the Currency Fund
During the 18-month period to 31st December 2015, a new infrastructure investment with a value of £750,000[1] was paid to the Parish of Trinity for the financing of Phase 2 of a building project on Field No. 578 to construct 5 bungalows for the over-55s.
- Housing Development Fund
During the 18-month period to 31st December 2015, 8 new loans with a collective value of £71,948,000 were approved by the Minister for Treasury and Resources to Andium Homes Ltd., of which £59,463,000 has been drawn down.
- Innovation Fund
During the 18-month period to 31st December 2015, 7 Jersey Innovation Fund loans have been approved to 6 companies, with a total loan value of £2,210,000, of which £1,960,000 has been released. The drawdown balance of £250,000 is subject to performance conditions attached to two 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 18-month period to 31st December 2015 are shown below –
Department | £ | Funding of – | |
From – | To – | ||
Central Contingency | DoE | 100,000.00 | Island Plan/Master-planning work |
Central Contingency | H&SS | 40,000.00 | Costs associated with Doctors' Pay Award for 2014 |
Central Contingency | CMD | 275,000.00 1,884,200.00 | Restructuring provision funds for Public Sector Reform |
Central Contingency | Bailiff 's Chambers | 27,100.00 | WW1 Centenary Anniversary Events |
Central Contingency | T&R Rev | 1,469,089.26 | Historic Abuse Redress Scheme costs |
Central Contingency | CMD | 220,000.00 | Jersey London Representative Office |
Central Contingency | CMD | 57,800.00 | Sunstone Holdings Ltd. and De Lec Ltd. independent review |
Central Contingency | CMD | 70,000.00 | Support of management costs as per P.108/2014 |
Central Contingency | CMD | 250,000.00 | Funding for administration of the Control of Housing and Work (Jersey) Law 2012 |
Central Contingency | LOD | 850,000.00 | Independent Jersey Care Inquiry ("IJCI") |
Central Contingency | HA | 1,222,000.00 | IJCI |
Central Contingency | HSSD | 208,500.00 | IJCI |
Central Contingency | ESC | 50,000.00 | IJCI |
Central Contingency | CMD | 2,932,899.83 | IJCI |
Central Contingency | CMD | 1,600,000.00 | Implementation of Freedom of Information ("FOI") |
Corporate Contingency | T&R Rev | 100,279.06 | Helping to fund the Pensions Review Project |
Central Contingency | States Assembly | 6,038,491.17 | IJCI |
Central Contingency | ESC | 8,559.97 | Costs associated with cover for staff seconded to the Prince's Trust |
Central Contingency | CMD | 89,000.00 | Support of management costs as per P.108/2014 |
Central Contingency | SSD | 250,000.00 | Funding for administration of the Control of Housing and Work (Jersey) Law 2012 |
Central Contingency | BC | 108,217.00 | Liberation 70 celebrations |
Central Contingency | DoE | 192,200.00 | Planning Appeal Tribunal forwarded to Judicial Greffe |
Central Contingency | T&R Rev | 210,000.00 | Jersey Opera House and Jersey Arts Centre |
Central Contingency | Various depts | 4,666,119.00 | Voluntary Release Scheme |
Central Contingency | T&R Rev | 100,000.00 | Tax Information Exchange Agreements |
Central Contingency | TTS | 1,500,000.00 | Guernsey Waste Income Shortfall |
- Transfers between revenue heads of expenditure
Revenue transfers during the 18-month period to 31st December 2015 are shown below –
Department | £ | Funding of – | |
From – | To – | ||
T&R Rev | CMD Rev | 130,752.00 | Freedom of Information resources |
T&R Rev | ESC Rev | 15,000.00 | Fund the initial set-up and promotion of enhanced events management at Fort Regent as part of the Rediscovering Fort Regent' initiative |
HSSD Rev | T&R Rev | 300,000.00 | Transfer of service responsibility to JPH for maintenance of agreed buildings |
HSSD Rev | ESC Rev | 60,000.00 | To ensure delivery of an integrated Children's Centre |
Viscount's Dept. Rev (680,721.00) Probation Rev (265,740.00) JG Rev (35,905.00) | LOD Rev HA Rev BC Rev OLG Rev | 735,379.00 184,363.00 36,299.00 26,325.00 | To cover overspends on Court and Case costs within Law Officers' Department, Home Affairs, Bailiff 's Chambers and Office of the Lieutenant Governor |
CMD Rev | LOD Rev HA Rev | 72,334.33 262,927.09 | Funding for work in relation to the IJCI |
CMD Rev | HA Rev | 150,031.00 | To manage the Emergency Planning Function |
JG Rev | Viscount's Dept. Rev | 8,800.00 | Part-time Invoice Clerk |
ESC Rev | T&R JPH Rev | 8,110.00 | Transfer of service of Les Creux Country Park |
CMD | SSD | 124,109.00 | Transfer of the Population Office to the Social Security Department |
CMD | HA | 68,650.00 | Taskforce |
CMD | HA | 15,600 | HM Prison IS Systems |
CMD | T&R | 13,321.00 | IS Systems |
T&R | CMD | 1,421,802.00 | Taxes IS Systems |
- Transfers between capital heads of expenditure
Transfers between existing capital heads of expenditure during the 18-month period to 31st December 2015 are shown below –
Department | £ | Funding of – | |
From – | To – | ||
EfW Replacement Asset Vote | TTS Replacement assets | 450,000.00 | Green waste shredder |
Magistrate's Court | Non Mins Minor | 118,671.00 | Daisy Software Upgrade |
Central Planning Vote | T&R | 60,000.00 | Feasibility study on the proposed extension to the Jersey Archive |
Bottom Ash Recycling and Infrastructure | New Public Recycling Centre | 4,588,000.00 | New La Collette Recycling Centre |
Clinical Waste Refurbishment and Infrastructure | Liquid Waste Strategy | 3,057,979.00 | Liquid Waste Strategy |
- Transfers between revenue and capital heads of expenditure
Transfers between revenue (rev) and capital (cap) during the 18-month period up to 31st December 2015 are shown below –
Department | £ | Funding of – | |
From – | To – | ||
TTS Rev | TTS Replacement Assets Cap | 66,770.00 | Sewage Treatment Works improvements |
TTS Rev | TTS Sludge Digestion & Storage Cap | 57,000.00 | Sludge Treatment Works improvements |
Official Analyst Rev | Official Analyst minor Cap | 90,000.00 | Supporting the purchase of a High Resolution Liquid Chromatograph/ Mass Spectrometer |
Future Hospital Cap | T&R Rev | 100,000.00 | Up to 100,000 for revenue costs relating to rents, training costs, uncapitalisable professional fees and travel costs for training |
HA Rev | HA Cap | 317,000.00 | Purchase of goods and services for the States of Jersey Police ("SoJP") and Jersey Customs and Immigration Service ("JCIS") |
Department | £ | Funding of – | |
From – | To – | ||
ESC Cap | ESC Rev | 50,000.00 | A grant to fund an extension to Youth Project facilities at St. John's Recreation Centre |
T&R Cap | ESC Rev | 170,000.00 | A contribution to a grant of a maximum of £220,000 from the ESC Dept. to the Billy Butlin Memorial Trust for development of the St. John 's Recreation Centre |
TTS Cap | TTS Rev | 215,890.00 | Expenditure resulting from the 2013/14 storm damages |
TTS Rev | TTS Cap | 503,526.64 | Expenditure resulting from the 2013/14 storm damages |
Central Environment Vote Cap | DoE Rev | 25,000.00 | Up to 25,000 to fund the consultancy assistance required to carry out Phase 1 of Climate Change Adaptation Plan |
TTS Rev | TTS Infrastructure Cap | 301,357.19 | Release of funding relating to costs incurred relating to the road and sewer collapse at Rue du Maupertuis |
TTS Rev | TTS replacement Assets Cap | 85,000.00 | DVS Vehicle Test Centre Equipment |
TTS (JPH) Rev | Public Markets Maintenance Cap | 12,520.00 | Central Market budget surplus |
CMD Cap (3,758,000.00) T&R Cap (3,362,000.00) | Consolidated Fund | 7,120,000.00 | Re-allocation of unspent capital budget approvals in 2014 to 2015 and 2016 |
TTS Rev | TTS Cap | 35,408.65 | Upgrade works at Coronation Park |
CMD Cap | CMD Rev | 4,098,833.00 | e-Government and Enterprise Development Systems |
TTS Rev | TTS Cap | 111,500.00 | Festoon Lighting |
TTS Rev | TTS Cap | 88,400.00 | Replacement assets |
TTS Cap | TTS Rev | 83,000.00 | Fiscal Stimulus Project – Parish of St. Helier |
HA Cap | HA Rev | 56,740.00 | Tetra, Fire Service, Replacement Assets |
TTS Rev | TTS Cap | 33,435.00 | Road Safety Improvements |
Central Planning Vote | ESC Rev | 25,000.00 | Public consultation for replacement school at Les Quennevais |
T&R Cap | T&R Rev | 6,944.83 | Write-off of loan |
T&R Cap | T&R Rev | 50,000.00 | Community Savings and credit grant |
- Transfers between revenue and capital heads of expenditure where the transfer is required in order to comply with accounting standards
The States of Jersey adopted International Financial Reporting Standards ("IFRS") as interpreted by the Jersey Financial Reporting Manual ("JFReM") from 2012 as its Generally Accepted Accounting Principles ("GAAP") framework. 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 18-month period to 31st December 2015 are shown below –
Department | £ | Funding of – | |
From – | To – | ||
HA Rev | HA JFRS and HM Prison Cap | 290,000.00 | Renovation of Western Fire Station and provision of facilities for training; Replacement of assets for HM Prison |
ESC Rev | ESC Minor Cap | 85,000.00 | Minor capital projects at Victoria College |
DoE Cap | DoE Rev | 200,000.00 | Budget transfer for Countryside Infrastructure |
ESC Sports Strategy Cap | ESC Rev | 50,000.00 | Fit For The Future 2014–2018 |
HA Cap | HA Rev | 47,696.78 | Purchase of goods and services for the States of Jersey Police, HM Prison and Jersey Fire and Rescue Service |
DoE Cap | DoE Rev | 8,000.00 | Repairs to fisheries vessels |
T&R Rev (Taxes Office) | T&R Cap | 348,920.00 | Capital element of 2014 expenditure associated with the ITAX software asset |
TTS Rev | TTS Infrastructure Cap | 199,000.00 | Planning Obligation Agreement |
H&SS Rev | H&SS Minor Cap | 45,803.00 | Expenditure relating to the purchase of medical equipment |
H&SS Minor Cap | H&SS Rev | 94,000.00 | Expenditure relating to the Jersey Talking Therapies IT system capital project |
HA Rev | HA Minor Cap | 126,000.00 | Specialist equipment and vehicle replacements |
TETRA replacement Cap | HA Rev | 29,283.35 | Purchase of goods and services for the TETRA Radio Replacement project |
e-Gov & Enterprise Cap | CMD Rev | 522,067.00 | Revenue costs relating to travel, training and non- capital professional fees |
Department | £ | Funding of – | |
From – | To – | ||
Relocation Sea Cadets Cap | T&R Rev | 192,736.88 | The relocation of the Sea Cadets |
Relocation Sea Cadets Cap | T&R Rev | 299,896.36 | The Port Galôts scheme |
TTS Rev | TTS Infrastructure Cap | 485,000.00 | Parish centre improvements |
ESC Rev | ESC JCG Cap | 200,000.00 | Minor capital projects at JCG and JCGP |
ESC Sports Strategy Cap | ESC Rev | 500,000.00 | Fit For The Future 2014–2018 |
ESC Rev | ESC Cap | 47,299.00 12,992.50 | Purchase of a wheelchair access vehicle at Mont à L'Abbé School |
TTS Rev | TTS Cap | 200,000.00 | Asbestos Waste Disposal |
COCF (117,849.00) HA Rev (73,350.00) | HA Minor Capital | 191,119.00 | NUIX Software and body-worn video projects – States of Jersey Police |
T&R Rev | T&R (JPH) Children's Home Cap | 75,000.00 | Refurbishment and modernisation of Oakwell |
COCF HA Rev | HA Cap T&R (JPH) Cap | 1,800,677.00 | Specialist equipment and facilities – Police Headquarters relocation capital project |
HA Rev | HA Minor Cap | 458,626.00 | SOJP previously approved projects funded from COCF and DTCF |
TTS Rev | TTS Cap | 12,000.00 | Disposal proceeds from sale of milling machine and lathe |
ESC Rev | Esc Cap | 36,750.00 | First Tower Playground |
ESC Rev | Esc Cap | 31,100.00 | JCGP Playground |
HA Rev | HA Cap | 226,300.00 | Projects SoJP and Jersey Prison Service |
TTS Rev | TTS Cap | 240,000.00 | Road Safety Improvements and replacement assets |
TTS Rev | TTS Cap | 44,120.00 | St. Mary 's Village Improvement Scheme |
T&R Cap | T&R Rev | 70,125.00 | Supply Jersey |
TTS Rev | TTS Cap | 414,989.00 | Highway Infrastructure resurfacing |
Department | £ | Funding of – | |
From – | To – | ||
ESC Rev | Esc Cap | 410,000.00 | 3G Pitch and playground equipment |
T&R Rev | T&R Cap | 60,000.00 | Tax Transformation Programme |
CMD Rev | T&R Cap | 214,500.00 | Tax Transformation Programme |
ESC Rev | Esc Cap | 18,000.00 | St. John 's School Minibus |
TTS Rev | TTS Cap | 59,283.00 | Sludge Thickener Project |
TTS Rev | TTS Cap | 31,564.00 | Town Park |
T&R Cap | T&R Rev | 2,113,000.00 | Youth Service Work – St. James |
- Carry-forwards
Departments' carry-forwards were dealt with in a Ministerial Decision of the Minister for Treasury and Resources in 2015 – MD-TR-2015-0045.
Ministry | 2014 Budget Variance (Near Cash) £ | Original Requests £ | Additional Requests £ | Total Carry Forward Requests £ | Balance of Underspends (Return to Consolidated Fund) £ | Carry Forward as % of Total Budget |
|
Chief Minister's | 1,382,353 | 411,230 | 418,958 | 830,188 | 552,165 | 2.6% |
|
Overseas Aid | 147,363 |
| 147,363 | 147,363 | - | 1.5% |
|
Economic Development | 332,749 | 168,500 | 163,500 | 332,000 | 749 | 1.4% |
|
Education, Sport & Culture | 4,484,691 | 2,136,672 | 745,000 | 2,881,672 | 1,603,019 | 2.4% |
|
Department of the Environment | 500,934 | 197,341 | 55,062 | 252,403 | 248,531 | 3.9% |
|
Health & Social Services | 3,831,401 | 1,250,000 | 1,361,426 | 2,611,426 | 1,219,975 | 1.3% |
|
Home Affairs | 1,105,076 | 367,500 | 318,530 | 686,030 | 419,046 | 1.9% |
|
Social Security | 8,033,145 | 588,145 |
| 588,145 | 7,445,000 | 0.3% |
|
Transport & Technical Services | 2,038,970 | 916,424 | 498,401 | 1,414,825 | 624,145 | 5.0% |
|
# Treasury & Resources | 2,969,100 | 989,551 |
| 989,551 | 1,979,549 | 2.8% |
|
Non Ministerial |
|
|
|
|
|
|
|
- Bailiff s Chamber | 95,961 | 5,675 | 90,286 | 95,961 | - | 5.1% |
|
- Law Officer's | 777,978 | 410,000 | 178,000 | 588,000 | 189,978 | 6.4% |
|
- Judicial Greffe | 294,319 | 2,875 | 57,112 | 59,987 | 234,332 | 0.9% |
|
- Viscount's Services | 247,398 | 63,692 | 26,308 | 90,000 | 157,398 | 12.2% |
|
- Official Analyst | 63,832 |
|
| - | 63,832 | 0.0% |
|
- Office of the Lieutenant Governor | 109,696 | 35,965 | 73,731 | 109,696 | - | 12.0% |
|
- Office of the Dean of Jersey | 405 |
|
| - | 405 | 0.0% |
|
- Data Protection Commission | 57,497 | 26,081 | 31,416 | 57,497 | - | 22.2% |
|
- Probation Department | 40,068 | 11,806 | 28,262 | 40,068 | - | 2.1% |
|
- Comptroller and Auditor General | 511,831 1 (994,331) | 195,693 | 45,716 | 241,409 - 994,331 | 270,422 1 (1,988,662) | 19.2% |
|
States Assembly |
|
| 0.0% | ||||
Procurement Savings in T&R |
| 994,331 |
| ||||
Departmental Total | 26,030,437 | 7,777,150 | 5,233,402 | 13,010,552 | 13,019,885 | 1.8% |
|
Central Reserves * | 15,689,808 | 7,869,808 | 2,000,000 | 9,869,808 | 5,820,000 |
| |
Restructuring Provision | 2,797,550 | 96,200 | - | 96,200 | 2,701,350 |
| |
Court & Case Costs | 3,596,265 | - | - | - | 3,596,265 |
| |
Central Reserves and Restructuring Total | 22,083,623 | 7,966,008 | 2,000,000 | 9,966,008 | 12,117,615 |
| |
Grand Total | 48,114,060 | 15,743,158.35 | 7,233,402 | 22,976,560 | 25,137,500 |
| |
# £994,331 of unidentified corporate procurement savings offset against the Treasury budget have now been identified separately to be offset by underspends across departments for 2014 and requested as an additional request for 2015.
* £7,820,000 of Central Reserves being returned to the Consolidated Fund is the agreed Budget Measures identified from Rephasing of Unspent Capital Approvals and was ringfenced during 2014 in Central Reserves. This has been netted off with £2 million transferred from the Social Security underspend and ringfenced in Contingency for Long Term Care.
Note: Original requests were capped at a maximum of 50% of the departments' forecast Quarter 3 underspend.