Finance Law Delegation Report for the 6 month period ended 30th June 2016.

STATES OF JERSEY

FINANCE LAW DELEGATION REPORT FOR THE 6 MONTH PERIOD ENDED 30TH JUNE 2016

Presented to the States on 22nd February 2017 by the Minister for Treasury and Resources

STATES GREFFE

2017  R.22

REPORT

1. The administration of the public finances of Jersey

1. 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").
2. This  report  summarises  all  decisions  made  during  the  6 month  period  to 30th June 2016. Where decisions have not previously been published, this is due to one of 2 reasons –

• the  decisions  were  exempted  under  the  Freedom  of  Information (Jersey) Law 2011; 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 –

• borrowing and lending;
• budget transfers; and
• carry forward of revenue balances.

1. Borrowing and Lending

1. Jersey student loan scheme

During the 6 month period to 30th June 2016, 7 new loans with a collective value of £10,500.00 were guaranteed by the States under the Jersey Student Loan Scheme. The total amount loaned as at 30th June 2016 was £2,567,858.00.

P.53/2007 – Student Loans for higher education – guarantees' – was debated by the States Assembly on 6th June 2007, and a maximum outstanding limit of £10 million for an unlimited time period was approved.

2. Pilot Starter Home Deposit Loan Scheme

During the 6 month period to 30th June 2016 no new loans were approved. As of 30th June 2016 the total value of outstanding loans under this scheme was £2,015,206.

3. Lending

No new loans were issued in the 6 month period to 30th June 2016. Of the existing loans, 2 were repaid in full for a total amount of £300,000.

4. Infrastructure Investments

During the 6 month period to 30th June 2016 no new infrastructure investment was approved.

5. Housing Development Fund

During the 6 month period to 30th June 2016, no new loans were approved by the  Minister  for  Treasury  and  Resources  to  Andium  Homes  Ltd.  Of  the 8 existing loans, an additional £11,182,000 was drawn down during this period.

6. Innovation Fund

To date, 7 Jersey Innovation Fund loans have been approved to 6 companies with a total loan value of £2,210,000.

During the 6 month period to 30th June 2016 no new loans were approved. However, £125,000 was drawn down against one of the approved loans.

The total drawn down loan value at 30th June 2016 was £2,085,000. The balance to be drawn down of £125,000 is subject to performance conditions being fully satisfied.

2. 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 accounting standards.

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 30th June 2016 are shown below –

2. Transfers between revenue heads of expenditure

Revenue transfers during the 6 month period to 30th June 2016 are shown below –

3. Transfers between capital heads of expenditure

Transfers between existing capital heads of expenditure during the 6 month period to 30th June 2016 are shown below –

4. Transfers between revenue and capital heads of expenditure

Transfers between revenue ("rev") and capital ("cap") during the 6 month period to 30th June 2016 are shown below –

5. 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 the 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 and capital during the 6 month period to 30th June 2016 are shown below –

*These budget transfers were signed in 2016 but relate to the 2015 accounts when JPH was still included within T&R. JPH is now part of DfI.

3. Carry Forwards

Departments'  carry  forwards  were  dealt  with  in  Ministerial  Decision MD-TR-2016-0029

2.3.1  Transfers over multiple years between various heads of expenditure

Multi-Year transfers between various heads of expenditure during the 6 month period to 30th June 2016 are shown below –