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STATES OF JERSEY
FINANCE LAW DELEGATION REPORT FOR THE SIX-MONTH PERIOD TO 30TH JUNE 2021
Presented to the States on 20th August 2021 by the Minister for Treasury and Resources
STATES GREFFE
2021 R.133
REPORT
- The administration of the public finances of Jersey
In accordance with the Public Finances (Jersey) Law 2019 ("the Law") certain matters are required to be reported to the States Assembly twice yearly by the Minister for Treasury and Resources ("the Minister").
This report summarises all decisions made during the six-month period to 30th June 2021. Where decisions have not previously been published, this is due to one of two 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 required to be reported on are as follows:
- each function undertaken, within the applicable 6-month period under any of Articles 18 to 21, 24 and 26 to 28; and
- each direction given, within the applicable 6-month period by the Minister under Article 15(3) with respect to the amounts appropriated for a reserve head of expenditure.
Article 18 relates to transfers between heads of expenditure.
Article 19 relates to transfers to the following year's reserve.
Article 20 relates to transfers of major project amounts to the following year. Article 21 relates to the power to allocate excess income.
Article 24 relates to emergency expenditure.
Article 26 relates to financing (borrowing).
Article 27 relates to loans.
Article 28 relates to guarantees and indemnities.
There were no approvals in the period under Article 24. Other approvals are detailed below.
- Transfers between heads of expenditure under Article 18.
Department | £ | Purpose | |
From | To | ||
CLS | General Reserve | 814,000 | Transfer following agreed deferral of Andium annual rent adjustment. (MD-TR-2021- 0004) |
IHE | Road Safety Improvements Capital Head of Expenditure | Up to 1,672,000 | Redirection of the balance of the Jersey Car Parking financial return to the States, |
|
|
| after funding of revenue items. (MD-TR-2021-0015) |
COO | IHE | Net income budget of 56,000 | Transfer of budget for the budget for the Geospatial Information System. (MD-TR- 2021-0022) |
General Reserve | Reserve for Centrally Held Items | 60,000 | Transfer for ring-fenced purposes i.e. Revenue Consequences of Capital Schemes. (MD-TR-2021- 0029) |
Financial Services and Digital Economy | OCE | 152,000 | Transfer of budget and posts associated with the Communications directorate. (MD-TR-2021-0038) |
JHA | CLS | 92,200 | Transfer to fund additional staffing to administer the change in the GST de minimis. (MD-TR-2021-0042) |
CYPES | HCS | 82,000 | Transfer of budget and staffing for two Therapy Support Assistants. (MD-TR-2021- 0050) |
HCS | SPPP | 470,000 | Transfer of Preventable Diseases programme funding to situate project resources in the appropriate departments. (MD-TR-2021-0051) |
HCS | CYPES | 179,000 | Transfer of Preventable Diseases programme funding to situate project resources in the appropriate departments. (MD-TR-2021-0051) |
CYPES | CLS | 32,400 | Transfer of budget for the Nursery Education Funding (NEF) administrator post. (MD-TR-2021-0054) |
HCS | CYPES | 600,000 | Transfer of the budget for Child and Adolescent Mental Health Services (CAMHS) service. (MD-TR-2021-0058) |
CYPES | COO | 2,101,000 | Transfer of the budget and staffing for the Digital team supporting CYPES. (MD-TR- 2021-0059) |
Various heads of expenditure | Our Hospital | Up to 17,796,000 | To provide essential funding for the Our Hospital project. (MD-TR-2021-0066) |
States of Jersey Police | COO | 1,273,200 | Transfer of the budget and staffing for the Digital team supporting the States of Jersey Police. (MD-TR-2021-0071) |
HCS | CLS | 493,000 income and 374,250 expenditure | Transfer of Crematorium budget and staff. (MD-TR- 2021-0078) |
- Transfers to the following year's reserve under Article 19.
From Department | Amount £ | Purpose |
Non-Ministerial departments | 903,288 | To the Smoothing Reserve – Court & Case Costs in 2021. (MD-TR-2021-0013) |
OCE | 140,000 | To the Smoothing Reserve – Court & Case Costs in 2021. (MD-TR-2021-0013) |
IHE | 20,088 | To the Smoothing Reserve – Markets surplus in 2021. (MD-TR-2021-0013) |
Various departments | 9,671,856 | Unspent 2020 funding. (MD-TR-2021-0013) |
Various capital project Heads of Expenditure | Up to 84,300,000 | Unspent 2020 funding. (MD-TR-2021-0013) |
Reserves | Up to 55,100,000 | Unspent 2020 funding. (MD-TR-2021-0013) |
OCE | Up to 1,500,000 | Unspent 2020 funding. (MD-TR-2021-0017) |
Reserves | 4,735,141 | Unspent 2020 funding. (MD-TR-2021-0017) |
Electronic Patient Records | Up to 667,000 | Adjustment to MD-TR-2021-0013 to transfer funding from this head of expenditure instead of Combined Control IT. (MD-TR-2021-0021) |
- Transfers of Major Project heads of expenditure to the following year under Article 20
Head of expenditure | Amount £ |
MS Foundation | 1,426,709 |
Integrated Technology Solution | 10,511,806 |
Cyber Security | 2,167,625 |
Office Modernisation Project | 3,252 |
Liquid Waste Strategy | 18,200,000 |
Our Hospital | 14,375 |
- Approvals of the allocation of excess income under Article 21
Department | Amount £ | Purpose |
Law Officers' Department | 250,000 | Use of additional income from the Criminal Offences Confiscation Fund to maintain Jersey's position as a donor nation for the next three years, 2021-2023 inclusive, to the International Centre for Asset Recovery (ICAR) (MD-TR-2021-0023) |
CLS | 2,858,411 | Allocation from the Fiscal Stimulus Fund for Tranche One grant awards. (MD-TR-2021- 0044) |
CYPES | 4,172,352 | Allocation from the Fiscal Stimulus Fund for Tranche One grant awards. (MD-TR-2021- 0044) |
HCS | 188,992 | Allocation from the Fiscal Stimulus Fund for Tranche One grant awards. (MD-TR-2021- 0044) |
IHE | 8,296,132 | Allocation from the Fiscal Stimulus Fund for Tranche One grant awards. (MD-TR-2021- 0044) |
OCE | 7,308,056 | Allocation from the Fiscal Stimulus Fund for Tranche One grant awards. (MD-TR-2021- 0044) |
Conversion Courtroom and Dewberry House heads of expenditure | 2,240,000 | Use of additional income from the Criminal Offences Confiscation Fund. (MD-TR-2021- 0066) |
CLS | 189,500 | Allocation from the Fiscal Stimulus Fund for Tranche Two grant awards. (MD-TR-2021- 0074) |
CYPES | 1,897,300 | Allocation from the Fiscal Stimulus Fund for Tranche Two grant awards. (MD-TR-2021- 0074) |
HCS | 859,655 | Allocation from the Fiscal Stimulus Fund for Tranche Two grant awards. (MD-TR-2021- 0074) |
IHE | 1,477,070 | Allocation from the Fiscal Stimulus Fund for Tranche Two grant awards. (MD-TR-2021- 0074) |
OCE | 2,393,066 | Allocation from the Fiscal Stimulus Fund for Tranche Two grant awards. (MD-TR-2021- 0074) |
- Approvals of financing (borrowing) under Article 26
On 21st May 2021 the Minister signed MD-TR-2020-0062 authorising drawdowns up to £130 million from the Revolving Credit Facility for the period to 30th June 2021, and
authorising the Treasurer of the States to complete monthly utilisation requests for May and June 2021 as required up to a total maximum of £130 million. As of 30th June, the Treasurer approved a total utilisation request of £25 million to meet the cashflow requirements for the Government of Jersey to the end of June 2021.
- Approvals of loans under Article 27 (as amended by P.28/2020)
- Housing Development Fund
During the six-month period to 30th June 2021, no new loans were approved by the Minister for Treasury and Resources.
The net value of loans outstanding from the Housing Development Fund decreased from £226,205,030 at 31st December 2020 to £223,369,108 at 30th June 2021.
Loans from the HDF were split between the following loan holders: Andium £222,119,108
Le Vaux Housing Trust £1,250,000
Total loans £223,369,108
- Other loans
On 30th June 2020 the Minister had approved MD-TR-2020-0081 which agreed a secured loan facility of £10 million to Blue Islands Limited. Under delegation from the Minister the Treasurer had approved the drawdowns from this amount of £5 million (on 13th July 2020) and a further £2 million (on 14th September 2020). On 23rd April 2021 the Treasurer approved a further drawdown of £1.5 million.
- Approvals of guarantees under Article 28 (as amended by P.28/2020)
- Jersey student loan scheme
During the six-month period to 30th June 2021, no new loans were guaranteed by the States under the Jersey Student Loan Scheme.
P53/2007 Student Loans for higher education – guarantees was debated by the States Assembly on the 6th June 2007 and a maximum outstanding limit of £10 million for an unlimited time period was approved.
- Disruption Loan Guarantee Scheme
On 30th June 2021 the Minister signed MD-TR-2021-0081 to extend the scheme to 30th September 2021. As at 30th June 2021, 163 applications had been received by banks, of which 65 had progressed and issued into Loans.
The loans that have been guaranteed and issued had a value of £3.6 million as at 30 June 2021, of which the guarantee is 80% of capital plus accrued interest. At that date, no defaults have been formally notified by the issuing banks, although we had been notified of one likely default whose full guaranteed value is £28k plus interest.
- Allocations from the Reserve under Article 15(3)
Department | £ | Purpose | |
From | To | ||
General Reserve | Office of the Comptroller and Auditor General | Up to 73,000 | For the increase in costs delivering Annual Audit for the year end 31 December 2021. (MD-TR-2021- 0002) |
General Reserve (Covid) | Financial Services and Digital Economy | Up to 241,500 | To enable essential air connectivity to and from the Island due to the impact of COVID-19. (MD-TR- 2021-0006) (later rescinded and replaced by MD-TR-2021-0045) |
General Reserve | HCS | Up to 6,390,111 | For the delivery of initiatives to manage and mitigate the impact of COVID-19 in 2020. (MD-TR-2021- 0008) |
General Reserve | CYPES | Up to 1,100,000 | For the delivery of initiatives to manage and mitigate the impact of COVID-19 in 2020. (MD-TR-2021- 0008) |
General Reserve (Covid) | Covid-19 Response | Up to 27,600,000 | For the Co-Funded Payroll Scheme Phase 4. (MD-TR-2021-0011) |
General Reserve | Jersey Overseas Aid | 407,411 | 2020 unspent funding reallocated in 2021. (MD-TR-2021-0013) |
General Reserve | Various capital project Heads of Expenditure in 2021 | Up to 32,137,423 | 2020 unspent funding reallocated in 2021. (MD-TR-2021-0013) |
General Reserve | Our Hospital | Up to 11,167,000 | To fund early works in advance of the financing of the main project. (MD-TR-2021-0020) |
General Reserve (Covid) | CYPES | Up to 955,000 | To enable investment in the children's mental health and wellbeing via an expansion in capacity within the Child and Adolescent Mental Health Service. (MD-TR-2021-0030) (later rescinded and replaced by MD-TR-2021-0045) |
General Reserve | COO | Up to 1,500,000 | For Commercial Services Accelerated Transformation. (MD- TR-2021-0033) |
General Reserve (Covid) | Covid-19 Response | Up to 190,000 | For devices for online home learning for Primary and Secondary students. (MD-TR-2021-0043) |
General Reserve (Covid) | Covid-19 Response | Up to 1,196,500 | For investment in children's mental health and wellbeing and to enable essential air connectivity to be |
|
|
| maintained. (MR-TR-2021-0045) (Rescinds and replaces MD-TR- 2021-0006 and MD-TR-2021-0030) |
Central Planning Reserve | IHE | Up to 850,000 | For pre-feasibility work on four projects. (MD-TR-2021-0049) |
General Reserve | T&E | Up to 1,299,450 | For Revenue Jersey – high demand, transformation capacity, succession planning and data management requirements - and the creation of an additional 18 FTE (Full-time Equivalent) posts within T&E. (MD- TR-2021-0052) |
Reserve for Centrally Held Items | Various Heads of Expenditure in 2021 | Up to 5,766,500 | To cover the costs associated with the 2020 and 2021 Pay Awards in respect of specific pay groups and pension fund contribution increases. (MD-TR-2021-0065) |
General Reserve | Financial Services and Digital Economy | Up to 461,140 | To fund the Mock MONEYVAL assessment. (MD-TR-2021-0073) |
General Reserve (Brexit) | Financial Services and Digital Economy | Up to 560,000 | For the Fisheries Support Scheme to assist with the effects of Brexit. (MD-TR-2021-0075) |
Central Planning Reserve | IHE | Up to 50,000 | For the Rouge Bouillon site review – St Helier Schools. (MD-TR-2021- 0076) |
Reserve for Centrally Held Items | Various Heads of Expenditure in 2021 | Up to 1,136,800 | To cover the costs associated with the 2020 and 2021 Pay Awards in respect of specific pay groups. (MD- TR-2021-0080) |
Abbreviations
CLS Customer and Local Services
COO Chief Operating Office
CYPES Children, Young People, Education and Skills IHE Infrastructure, Housing and Environment HCS Health and Community Services
OCE Office of the Chief Executive
SPPP Strategic Policy, Performance and Planning T&E Treasury and Exchequer
Minister for Treasury and Resources August 2021.