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Annual Reporting (R.171/2021): Executive Response

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STATES OF JERSEY

ANNUAL REPORTING (R.171/2021): EXECUTIVE RESPONSE

Presented to the States on 13th December 2021 by the Public Accounts Committee

STATES GREFFE

2021  R.171 Res.

2

FOREWORD

In accordance with paragraphs 64-66 of the Code of Practice for engagement between Scrutiny Panels and the Public Accounts Committee' and the Executive', (as derived from the Proceedings Code of Practice) the Public Accounts Committee presents the Executive Response to the Comptroller and Auditor General's Report entitled: Annual Reporting (R.171/2021, presented to the States on 3rd November 2021).

The Committee is pleased to note that all of the C&AG's recommendations have been accepted.

Deputy I. Gardiner

Chair, Public Accounts Committee

R.171/2021

Chief Executive and Treasurer's Response to C&AG Review: Annual Reporting (R.171/2021) - Executive Response to PAC by 10 December 2021 please. (If Recommendation 5 is accepted, please include a list of SOEs to whom you have sent R5 with an action plan as to how it will be implemented and monitored – thank you)

Summary of response:

The Chief Executive and Treasurer welcome the report of the C&AG, and the accompanying Good Practice Guide. It is pleasing to note the C&AG's recognition that there are some improvements, including within the States' own Annual Report and Accounts.

The ability to implement recommendations quickly will obviously depend on the degree of influence that the States and Government have. Improvements to the States' Annual Report and Accounts can be planned, resourced and delivered. For the States-owned Entities (where there is already a degree of good practice), there is ability to influence improvement. For other bodies within the definition of "States established and States controlled entities" the degree of influence varies, particularly where those bodies are regulatory in nature and/or less dependent on grant funding from the States/Government. The Arm's Length Bodies Oversight Board is beginning a programme of work to look holistically at the relationship with these bodies. Improvements in annual reporting are already identified as a key component of the emerging framework.

Action Plan

Recommendations  (for  States  of Jersey)

Action

Target date

Responsible Officer

R1  Set  out  a  public  ambition  and timetable for the production of an annual sustainability report based on the Jersey Performance Framework and the TCFD recommended disclosures. This report should include the publication of targets alongside  actual  performance  and comparative data with other jurisdictions where this is available.  

Accept. The States Assembly will debate the Carbon Neutral Roadmap (CNR) in April 2022. The CNR will include  a  policy  commitment  to  decarbonise  the operations of the Government of Jersey and will set out a  programme  of  continued  improvement  in  reporting requirements to be introduced during 2022. Action will be subject to approval of the CNR and associated policy package.

Irrespective of that outcome, consideration is being given to if and how it would be possible to report broader (i.e. not  just  environmental)  sustainability  measures  and performance  against  the  Jersey  Performance Framework. As the Performance Framework matures, the  States  of  Jersey  Annual  Report  and  Accounts (AR&A) will increasingly be used to provide summary

Quarter 4 2022

Head  of  Group Reporting  working with Strategic Policy, Planning  and Performance

 

 

performance  narrative  with  links  to  more  detailed performance information elsewhere.  

 

 

R2 Consider whether the sustainability report referred to in R1 should form part of the Annual Report or be a separate report.

Accept. See response to R1. The sustainability report for 2021 will follow the same format as 2020 on the basis that the CNR will set the requirements for continuous improvement to start to be implemented in 2021.

For Annual Report and  Accounts 2022

Head  of  Group Reporting  working with Strategic Policy, Planning  and Performance

R3 Consider the degree of independent assurance that should be provided over the  data  contained  within  the sustainability report referred to in R1.

Accept. The CNR decarbonisation of Government of Jersey policy will consider the options for compliance with  appropriate  management  standards  that  require external  third-party  verification  and  assurance.  The policy  requires  that  an  action  plan  be  developed  to outline  the  tasks  and  actions  needed  to  meet  the standard, see R1.

At the current time, data compiled from financial and commercial services reporting is checked against the information provided by the utility companies directly.

Jersey's  greenhouse  gas  emissions  inventory  is independently  compiled  and  verified  by  Aether, consultants appointed by UK Government to calculate the  Overseas  Territories  and  Crown  Dependencies emissions as components of the UK greenhouse gas inventory.

Depends  on outcome  of options assessment  – initial  estimate Quarter 4 2022

Head  of  Group Reporting  working with Strategic Policy, Planning  and Performance

R4  Introduce  a  set  of  minimum requirements for sustainability reporting by  States  established  and  States controlled entities. In doing so, consider how to apply the Jersey Performance Framework  and  the  TCFD recommended disclosures in the context of  States  established  and  States controlled entities.  

Accept. See response to R3. We must first establish our own standards

The  reporting  requirements  for  States  arm's  length bodies (ALBs) falls within the remit of the Arm's Length Bodies Oversight Board (ALBOB) which was established in 2021.

Any minimum reporting standards will be communicated and confirmed through that group in the first instance.

Commence  in 2022   outcome depends on R3 - initial  estimate Quarter 4 2023

Head  of  Group Reporting  working with Strategic Policy, Planning  and Performance

 

Recommendation  for  States established  and  States  controlled entities

Action

Target date

Responsible Officer

R5  Develop  the  content  of  annual reports to include sustainability reporting using  a  framework  appropriate  to  the entity.

Accept

States-owned Entities ("SOEs") (Andium Homes, Jersey

31  December 2021

30  September 2022

31  December 2021

Director of Treasury and  Investment Management   for States-owned Entities

Director of Treasury and  Investment Management   for States-owned Entities

Chief  Executive Officer

Electricity,  Jersey  Post,  JT,  Jersey  Water,  Ports  of

Jersey and States of Jersey Development Company)

The  content  of  the  C&AG's  report  and  best practice guide to be  shared with each of the SOEs (noting that each are cited as examples of best practice in differing reports) with a request that the Finance Directors provide a summary of what improvements they intend introducing into their 2021/2022 accounts.

Review 2021/2022 accounts and identify further areas to develop content of future annual reports against the best practice guide.

Other States established and States controlled entities

 Write to all other bodies believed to fall within the definition  of  States  established  and  States controlled entities:

  • Drawing their attention to the reports of the C&AG;
  • Asking  what  their  proposals  are  for making improvements;
  • Offering help and support; and
  • Saying that the Government is working on the  best  way  in  which  to  promote improvement across all bodies.

 

 

 ALBOB to continue to develop frameworks for improvement of reporting by States established and States controlled entities

31  December 2022

Chief  Executive Officer

Recommendations not accepted  

Recommendation  Reason for rejection