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Finance Law Delegation Report for the 6-month period ended 31st December 2016.

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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

  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 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.
  1. 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 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.

  1. 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.

  1. Other lending

No new loans were issued in the 6-month period to 31st December 2016.

  1. 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.

  1. 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.

  1. 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.

  1. 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 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

  1. 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

  1. 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

  1. 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

  1. 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

  1. 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