Review of Annual Reporting (R.86/2020): Executive Response

Recommendations (for States of Jersey)

Action

Target date

Responsible Officer

R1 Reintroduce the requirement for the Chief Executive to sign the performance report.  

This will be clarified and implemented for the 2020 Annual Report and Accounts, although the 2019 Annual Report and Accounts were signed as a single document that included performance indicators.

Annual Report and Accounts 2020

Chief Executive

R2 Introduce a consistent requirement for  all  States'  controlled  unlisted companies  to  make  their  financial statements publicly available.

SOE's:

For the States wholly-owned and majority-owned unlisted companies, annual reports including financial statements are already published on their websites shortly after the Annual General Meeting has taken place – No Action required for SOEs

ALO's:

The Annual Reports of ALOs should be presented to the States Assembly by the host department as well as available on the ALOs website. This requirement will be (re)captured in guidance for host departments produced and agreed by ALBOB.

N/a

From 1st January 2021

N/a

.

Chair of ALBOB

R3  Introduce  a  consistent  set  of requirements  for  the  accounting framework  to  be  adopted  by  States controlled unlisted companies.

SOEs:

In relation to the States wholly owned and majority- owned unlisted companies, The Companies (Jersey) Law 1991 requires the Directors to prepare financial statements for each financial period in accordance with generally accepted accounting principles. It is the legal responsibility of the Directors to:

• select suitable accounting policies and then apply them consistently

• specify which generally accepted accounting principles have been adopted in the preparation of financial statements

The financial statements are then subject to an independent external audit which includes opinion on the presentation of the accounts in accordance with the accounting principles selected. It is noted from the C&AG's report that the majority of States controlled

N/a

N/a

unlisted companies already use the same accounting framework – No Action required for SOEs

ALOs:

This requirement will be captured in guidance for host departments produced and agreed by ALBOB.

From 1st January 2021

Chair of ALBOB

R4  Introduce  a  consistent  set  of minimum  requirements for  the  annual reports  of  States  controlled  unlisted companies.  These  minimum requirements should include information regarding  performance  and accountability of the companies as well as minimum requirements for financial information disclosure.

SOEs:

In relation to the States wholly owned and majority- owned unlisted companies their annual reports already meet many of the minimum requirements proposed in the C&AG's report. Each company is undertaking a review against the findings of the C&AG's reports and will agree amendments to annual reports with the Minister for T&E ahead of publication next year.

ALOs:

This requirement will be captured in guidance for host departments produced and agreed by ALBOB.

Amendments agreed with each SOE's 2021 AGM

From January 2021

Director of Treasury

& Investment Management

Chair of ALBOB

R5  Introduce  a  consistent  set  of minimum  requirements for  the  annual reports  of  other  States  controlled entities. These minimum requirements should  include  information  regarding performance and accountability of the entities  as  well  as  minimum requirements  for  financial  information disclosure.

ALOs:

This requirement will be captured in guidance for host departments produced and agreed by ALBOB.

From January 2021

Chair of ALBOB

R6 Introduce a requirement for Statistics Jersey to produce an annual report.

To bring forward proposals to update the Statistics and Census Law to introduce a requirement for Statistics Jersey to produce an annual report.

Q2 2021

Director General for Strategic Policy,

Planning and Performance

R7  Introduce  a  consistent  set  of minimum  requirements for  the  annual reports of all entities established by the States  Assembly.  These  minimum requirements should include information regarding  performance  and accountability of the entities as well as minimum  requirements  for  financial information disclosure.

This recommendation will be taken on by ALBOB and a Report produced as a number of changes to legislation will be necessary.

Report produced by end of Q1 2021

Director of Partnerships

R9 Introduce a consistent requirement for all entities controlled by the States or established by the States Assembly to publish  an  accountability  report comprising a directors' (or equivalent) report, a statement of responsibilities, a governance report and a remuneration and staff report as part of their annual report.

SOEs:

In relation to the States wholly owned and majority- owned unlisted companies their annual reports already meet many of the requirements proposed in the C&AG's report. Each company is undertaking a review against the findings of the C&AG's reports and will agree amendments to annual reports with the Minister for T&E ahead of publication next year.

ALOs:

This recommendation is partially agreed for ALOs. This recommendation will be taken on by ALBOB and a Report produced into the cost / benefits as this potentially adds significant detail to Reports and costs to the production of accounts. Ultimately these costs are borne by the taxpayer.

Amendments agreed with each SOE's 2021 AGM

End of Q1 2021

Director of Treasury

& Investment Management

Director of Partnerships

Recommendations (for all entities)

Action

Target Date

Responsible Officer

R8 Improve the public annual reporting of  performance  to  include  all  of  the

GoJ cannot accept this recommendation on behalf of all entities, but will discuss the elements of best practice

elements of best practice identified in this report.

identified with a view to improving annual reporting protocol, where best practice applies to the majority of the activity undertaken by the ALO,

R10 Review the contents of the annual report  to  include  best  practice accountability  reports  including  a directors'  (or  equivalent)  report,  a statement  of  responsibilities,  a governance report and a remuneration and staff report.

SOEs:

In relation to the States wholly owned and majority- owned unlisted companies their annual reports already meet many of the requirements proposed in the C&AG's report. Each company is undertaking a review against the findings of the C&AG's reports and will agree amendments to annual reports with the Minister for T&E ahead of publication next year.

ALOs:

Partially agree. This recommendation will be taken on by ALBOB and a Report produced into the cost / benefits as this potentially adds significant detail to Reports and costs to the production of accounts. Ultimately these costs are borne by the taxpayer.

Amendments agreed with each SOE's 2021 AGM

End of Q1 2021

Director of Treasury

& Investment Management

Director of Partnerships

R11 Review and update the content of the next annual report to embrace the best  practice  principles  noted  in  this report.

SOE's:

Each States-owned entity is undertaking a review against the findings of the C&AG's reports and will agree amendments to annual reports with the Minister for T&E ahead of publication next year.

ALOs:

Partially agree. This recommendation will be taken on by ALBOB and a cost / benefit analysis undertaken.

Director of Treasury

& Investment Management

Director of Partnerships

Areas for consideration by the States of Jersey

Action

Target Date

Responsible Officer

A1  Consider  whether  to  introduce  a requirement for States controlled entities above  a  consistent  size  threshold,  to produce  stand-alone  audited  financial statements  prepared  under  a suitable accounting framework such as FRS102.

See note above in relation to SOEs and the current use of suitable accounting principles, as required under the Companies (Jersey) Law 1991.

N/a

N/a

A2  Consider  adopting  consistent provisions  about  deadlines  for  the preparation, submission and publication of annual reports.

In practice it is anticipated that annual reports will be published as soon as reasonably practicable. The Government of Jersey has already improved the publication date of its own annual report from May to March and similar timely reporting deadlines will be discussed with all ALOs.