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STATES OF JERSEY
FINANCE LAW DELEGATION REPORT FOR THE 6-MONTH PERIOD ENDED 31ST DECEMBER 2016
Presented to the States on 25th April 2017 by the Minister for Treasury and Resources
STATES GREFFE
2017 R.43
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 31st December 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.
- 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.
- Borrowing and lending
- Jersey Student Loan Scheme
During the 6-month period to 31st December 2016, 117 new loans with a collective value of £128,126.00 were guaranteed under the Jersey Student Loan Scheme. As at 31st December 2016, the total amount loaned under the Jersey Student Loan Scheme was £2,695,984.00. 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 6-month period to 31st December 2016 no new loans were approved. As of the year end 2016 the total value of outstanding loans under this scheme was £1,957,835.
- Other lending
No new loans were issued in the 6-month period to 31st December 2016.
- Infrastructure Investments
During the 6-month period to 31st December 2016 an additional infrastructure investment with a value of £410,000.00 was paid to the Parish of Trinity for the financing of Phase 3 of the building project on a part of the remaining site of Field 578 to construct 14 first time buyer properties.
- Housing Development Fund
During the 6-month period to 31st December 2016, one new loan with a value of £10,036,739 was approved by the Minister for Treasury and Resources to Andium Homes Ltd., of which £888,000 was drawn down on 5th September 2016.
- Innovation Fund
No new loans were approved in 2016.
The Jersey Innovation Fund is currently not inviting any new applications and is subject to a full review.
- 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.
- Transfers from contingency expenditure to heads of expenditure
Transfers from contingency expenditure to heads of expenditure during the 6-month period to 31st December 2016 are shown below –
Department | £ | Funding of – | |
From – | To – | ||
from: Central Contingency | to: T&R Revenue | 159,675.44 | Historic Abuse Redress Scheme ("HARS") costs |
from: Central Contingency | to: EDTSC Revenue | 110,250.00 | Review of Sport and Culture Delivery within EDTSC ("PSR") |
from: Central Contingency | to: States Assembly LOD HA H&SS CMD | 2,719,726.00 494,634.00 458,792.00 208,500.00 1,485,056.00 | Independent Jersey Care Inquiry ("IJCI") |
from: Central Contingency – Redundancy Provision | to: Various Departments | 1,646,599.30 | Voluntary Release Scheme |
from: Various Departments | to: Central Contingency – Budget Measures | 864,227.00 | Savings arising from Voluntary Release Scheme |
from: Central Contingency | to: CMD Revenue | 350,000.00 | Relocation of the IS section to Jubilee Wharf |
from: Central Contingency | to: CMD Revenue | 177,166.00 | Additional funding for Data Protection and Digital Jersey Hub |
from: Central Contingency | to: DoE Equipment, Maintenance and Minor Cap | 171,370.00 | Digitally Integrated Planning Process |
from: Central Contingency | to: CMD LOD | 135,000.00 110,000.00 | Brexit allocation |
from: Central Contingency – Pay Provision | to: CCA Revenue | 222,000.00 | Costs associated with the 2015/2016 Prison and Police staff Pay Award |
from: Central Contingency – Pay Provision | to: EDU Revenue | 616,787.00 | Costs associated with the 2015/2016 Teachers Pay Award |
from: Central Contingency – Redundancy Provision | to: EDU Revenue | 88,745.56 | 2016 costs associated with the Voluntary Release Scheme |
from: H&SS Revenue | to: Central Contingency | 1,550,000.00 | Implementation and operating costs of Mental Health Legislation |
from: Central Contingency | to: H&SS Revenue | 100,000.00 | Review of Island Wide Governance |
from: Central Contingency – Redundancy Provision | to: Various Departments | 1,738,128.73 | Costs associated with Voluntary Release and Redundancy Scheme |
- Transfers between revenue heads of expenditure
Revenue transfers during the 6-month period to 31st December 2016 are shown below –
Department | £ | Funding of – | |
From – | To – | ||
from: DoE Revenue | to: Judicial Greffe Revenue | 84,200.00 | Administration and Inspectors' costs for Planning and Building (Jersey) Law 2002 Appeals Tribunal |
from: DfI Revenue | to: DoE Revenue | 64,473.00 | Transfer of Countryside Rangers function to DoE |
from: H&SS Revenue | to: EDU Revenue | 16,750.00 | Admin support for the alternative Curriculum Service |
from: Judicial Greffe Revenue | to: CMD Revenue | 3,900.00 | Support for transfer of post to Information Services |
from: H&SS Revenue | to: SSD Revenue | 33,751.00 | Contribution to the Long-Term Care Fund for older adult nursing domiciliary care clients |
from: EDU Revenue | to: CCA Revenue | 50,000.00 | Funding to support IJCI |
from: H&SS Revenue | to: SSD Revenue | 3,830.00 | Administration of Long-Term Care |
- Transfers between capital heads of expenditure
Transfers between existing capital heads of expenditure during the 6-month period to 31st December 2016 are shown below –
Department | £ | Funding of – | |
From – | To – | ||
from: CCA minor capital | to: Jersey Property Holdings Prison Improvement Phase 4 capital | 126,217.20 | Prison perimeter fence |
from: CCA minor capital | to: Jersey Property Holdings Police Relocation capital | 26,384.00 | Police Relocation |
from: EDU Minor Capital | to: DfI Capital | 567,950.00 | Capital works at Victoria College |
from: EFW Plant La Collette Capital and Clinical Waste Refurbishment Capital | to: EFW Replacement Assets Capital | 415,153.95 110,503.95 | Energy from Waste spare turbine |
from: H&SS Minor Capital Replacement RIS/PCS IT Assets | to: CMD Computer Development Vote Capital | 1,384,000.00 | Infrastructure Support |
- Transfers between revenue and capital heads of expenditure
Transfers between revenue and capital during the 6-month period to 31st December 2016 are shown below –
Department | £ | Funding of – | |
From – | To – | ||
from: H&SS Revenue | to: Replacement MRI Scanner Capital | 750,000.00 | Up to £750,000.00. Replacement MRI Scanner |
from: DfI Revenue | to: DfI Replacement Assets Capital | 250,000.00 | DVS vehicle registration system |
from: Victoria College Capital Projects Capital | to: DfI Revenue | 45,170.00 | Victoria College Foundation |
from: DfI Revenue | to: DfI Capital | 80,070.41 | Union Street Infrastructure Project |
from: DfI Revenue | to: DfI Capital | 16,000.00 | Acquisition of Highwayworx System |
from: Central Planning Vote | to: Grainville Phase 5 Capital | 175,000.00 | Grainville School Phase 5 Improvement Works feasibility study |
- 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 and capital during the 6-month period to 31st December 2016 are shown below –
Department | £ | Funding of – | |
From – | To – | ||
from: EDU Revenue | to: EDU Capital | 115,000.00 | Continued improvements to facilities at VCP |
from: EDU Revenue | to: EDU Capital | 50,000.00 | Minor Capital Projects at JCG and JCGP |
from: DoE Countryside Infrastructure Capital | to: DoE Revenue | 192,288.00 | Countryside Infrastructure |
Department | £ | Funding of – | |
From – | To – | ||
from: DfI Revenue | to: DfI Waste: Ash Pit La Collette Capital | 525,000.00 | Waste Cells in La Collette |
from: DfI Revenue | to: DfI Infrastructure Capital | 99,900.00 | Parish Centre Improvements |
from: DoE Equipment, Maintenance and Minor Capital | to: DoE Revenue | 149,152.66 | Met Office Spend |
from: DoE Urban Renewal 2006 Capital | to: DoE Revenue | 12,382.21 | Future St. Helier |
from: CCA Revenue | to: CCA minor Capital | 120,000.00 | Funding for equipment for the new Police Headquarters |
from: DfI Revenue | to: DfI Capital | 60,500.00 | Replacement streetlights and traffic signals |
from: DfI Revenue | to: DfI Infrastructure Capital | 29,804.93 | Replacement of pumps and infrastructure projects |
from: DfI Revenue | to: DfI Asbestos Waste Disposal Capital | 750,000.00 | Funding for construction of the new asbestos cell at La Collette |
from: EDU Revenue | to: EDU Minor Capital | 101,431.00 | Capital expenditure at Mont à L'Abbé School and Youth Service |
from: DfI Revenue | to: DfI Capital Road Safety Improvements | 180,000.00 | Contribution to St. Peter 's Valley Cycle Path Project |
from: CMD Capital Upgrade Microsoft Desktop, Application Rem, Windows 8, Desktop Upgrade and Hardware Refresh | to: CMD Revenue | 2,852,000.00 | Software and hardware upgrades |
- 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 2016 are shown below –
Department | £ | Funding of – | Year(s) of transfer | |
From – | To – | |||
from: HSSD Revenue | to: EDU Revenue | 28,700.00 | Admin support for the alternative Curriculum Service | 2017 |
from: Judicial Greffe Revenue | to: CMD Revenue | 46,800.00 | Support for transfer of post to Information Services | 2017 |
from: H&SS Revenue | to: LOD Revenue | 172,000.00 | Increased workload for the Children's Service | Each year 2017–2019 |
from: Central Contingency | to: EDTSC Revenue | 41,250.00 7,500.00 22,500.00 | Review of Sport and Culture Delivery within EDTSC (PSR) | 2017 2018 2019 |
from: Central Contingency | to: EPGDP | 177,050.00 77,050.00 | Additional funding for Data Protection and Digital Jersey Hub | 2017 2018 |
from: Central Contingency | to: CMD | 724,000.00 654,000.00 | Brexit allocation | 2017 2018 |
from: Central Contingency | to: LOD | 110,000.00 110,000.00 | Brexit allocation | 2017 2018 |
from: Central Contingency – Redundancy Provision | to: T&R Revenue | 204,175.00 23,000.00 | To fund the development of best practice in debt management within the Taxes Office | 2017 2018 |
from: Central Contingency | to: CCA | 184,000.00 | Temporary increase of 3 FTE in relation Brexit | Each year 2017 2018 |
from: Central Contingency | to: T&R Revenue (Taxes Office) | 352,300.00 252,300.00 | To create capacity and capability for the Island's international obligations | 2017 2018–2019 |
from: Central Contingency | to: Various Departments | 723,850.00 768,400.00 | Investment in initiatives that support vulnerable children | 2017 2018–2019 |
from: Central Contingency – Restructuring Provision | to: DfI Capital Replacement Assets | 49,999.00 | Funding for DVS replacement Vehicle Registration Scheme | 2017 |
from: H&SS Revenue | to: SSD Revenue | 3,830.00 | Administration of Long- Term Care | Each year 2018–2019 |
from: H&SS Revenue | to: SSD Revenue | 152,960.00 153,878.00 154,801.00 | Contribution to the Long- Term Care Fund for older adult nursing domiciliary care clients | 2017 2018 2019 |
from: DfI Revenue | to: DfI Capital Road Safety Improvements | 100,000.00 | Contribution to St. Peter 's Valley Cycle Path Project | Each year 2017–2019 |
from: EDU Revenue | to: EDTSC Revenue | 84,121.00 86,812.00 89,380.00 | Funding of Jerriais in Primary Schools | 2017 2018 2019 |
from: CMD Revenue | to: EDU Revenue | 52,000.00 | Funding of Jerriais in Primary Schools | Each year 2017–2019 |
Acronyms and Abbreviations
CCA | Community and Constitutional Affairs |
CMD | Chief Minister's Department |
DoE | Department of the Environment |
DfI | Department for Infrastructure |
EDU | Education Department |
EDTSC | Economic Development, Tourism, Sport and Culture |
EFW | Energy from Waste |
EPGDP | Economic and Productivity Growth Drawdown Provision |
FTE | Full-Time Equivalent |
HARS | Historic Abuse Redress Scheme |
H&SS | Health and Social Services Department |
IJCI | Independent Jersey Care Inquiry |
JCG | Jersey College for Girls |
JCP | Jersey College Preparatory |
JG | Judicial Greffe |
JPH | Jersey Property Holdings |
LOD | Law Officers' Department |
LTC | Long-Term Care |
PSR | Public Sector Reform |
SSD | Social Security Department |
VC | Victoria College |
VCP | Victoria College Preparatory |