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Finance Law Delegation Report for the six-month period to 30 June 2022

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STATES OF JERSEY

FINANCE LAW DELEGATION REPORT JANUARY TO JUNE 2022

Presented to the States on 31st August 2022 by the Minister for Treasury and Resources

STATES GREFFE

2022  R.122

REPORT

  1. 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 2022. 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.

  1. Reporting on decisions

The areas of administration which are required to be reported on are as follows:

  1. each function undertaken, within the applicable 6-month period under any of Articles 18 to 21, 24 and 26 to 28; and
  2. 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.

  1. Transfers between heads of expenditure under Article 18.

 

Department

£

Purpose

From

To

COO

T&E

up to 4,500,000

Transfer of Commercial Services. (MD-TR- 2022-0009)

T&E

OCE

up to 200,000

Transfer of Risk Management Team. (MD- TR-2022-29)

SPPP

HCS

519,000

To situate programme resources in the right department  and  ensure  objectives  of  the

 

 

 

 

Analytics  Transformation  Programme  are achieved. (MD-TR-2022-185)

SoJP

JHA

up to 437,000

To  ensure  adequate  coordination  and oversight  of  Combined  Control  Room resources. (MD-TR-2022-187)

IHE

Road  Safety Improvements Project  Head of Expenditure

up to 1,000,000

Redirection of the balance of the Jersey Car Parking financial return to the States, after funding of revenue items. (MD-TR-2022- 191)

HCS

SPPP

276,430

To situate health promotion resources in the appropriate departments for governance and management purposes. (MD-TR-2022-260)

HCS

COO

3,200,698

Representing the budget and staffing for the Digital  team  supporting  this  department. (MD-TR-2022-261)

  1. Transfers to the following year's reserve under Article 19.

 

From Department

Amount £

Purpose

Various departments

5,731,667

Unspent 2021 funding. (MD-TR-2022-083)

Various project Heads of Expenditure

up to 67,472,816

Unspent 2021 funding. (MD-TR-2022-083)

Reserves

up to 32,949,015

Unspent 2021 funding. (MD-TR-2022-083)

  1. Transfers of Major Project heads of expenditure to the following year under Article 20

 

Head of expenditure

Amount £

Fort Regent

up to 2,777,299

Vehicle Testing Centre

up to 193,440

  1. Approvals of the allocation of excess income under Article 21

 

Department

Amount £

Purpose

CYPES

90,000

Additional income resulting from increases in school fees for Jersey College for Girls and Jersey College Preparatory. (MD- TR-2022-116)

CYPES

71,000

Additional income resulting from increases in school fees for Victoria  College  and  Victoria  College  Preparatory.  (MD-TR- 2022-173)

 

IHE

1,230,000

Contributions from States of Jersey Development Company and Ports of Jersey to project costs. Decision taken by Treasurer of the States under delegation from the Minister. (TR-2022-TD006)

  1. Approvals of financing (borrowing) under Article 26

During the six months to 30th June 2022 the Minister signed one decision relation to use of the Revolving Credit Facility:

MD-TR-2022-262 approving a utilisation cap of up to £120,806,369 in total.

The Treasurer of the States did not authorise any drawdowns in the period. £21 million was repaid on 21st June 2022 and the two remaining drawdowns for £20 million and £19,806,369 (Fiscal Stimulus Fund) were rolled on the 30th June 2022 for one and three months respectively.

The total drawdowns from the Revolving Credit facility as at 30th June 2022 equate to £39,806,369, leaving £460,193,631 undrawn.

  1. Approvals of loans under Article 27 (as amended by P.28/2020)
  1. Housing Development Fund

During the six-month period to 30th June 2022, no new loans were approved by the Minister for Treasury and Resources.

The net value of loans outstanding from the Housing Development Fund increased from £228,825,082 at 31st December 2021 to £228,864,024 as of the 30th June 2022.

Loans from the HDF were split between the following loan holders:

Andium  £227,615,776 Le Vaux Housing Trust   £1,248,247

Total loans  £228,864,024 NB the above table does not total by £1 due to roundings.

  1. 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. There have been no further drawdowns since that date.

  1. Approvals of guarantees under Article 28 (as amended by P.28/2020)
  1. Jersey student loan scheme

During the six month period to 31st December 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.

  1. Disruption Loan Guarantee Scheme

On 30th June 2021, the Minister signed MD-TR-2021-0081 to extend the period that the scheme was open to new applications to 30th September 2021. This window was then further extended to 31st December 2021 by MD-TR-2021-0115.

The application window was not extended beyond 31st December 2021 and therefore no new facilities can be granted after this date. At that date, 169 enquiries had been made to banks, of which 70 had progressed and a facility issued. Whilst £4.3 million of facilities had at one stage or another been approved, by 30th June 2022 fewer than 50 are active with a balance greater than £1,000 and the total remaining outstanding facility value is approximately £2.5 million (including accrued interest).

To date, there has been one confirmed default and no pending defaults have been notified. The claim was paid to a value of £28,645 (reference MD-TR-2021-0144).

2.8 Allocations from the Reserve under Article 15(3)

Department

£

Purpose

From

To

General Reserve

Various departmental heads expenditure

of

4,495,739

Allocation of unspent 2021 approvals. (MD-TR-2022-083)

General Reserve

Inspiring  Active Places project

up  to 3,100,000

Allocation of unspent 2021 approvals to  enable  delivery  of  the  Oakfield Sport Centre project. (MD-TR-2022- 083)

General Reserve

Economy

up  to 2,237,000

Allocation of unspent 2021 approvals to enable delivery of the Jersey Opera House project. (MD-TR-2022-083)

General Reserve

Various  project heads  of expenditure

21,475,737

Allocation of unspent 2021 approvals. (MD-TR-2022-083)

General  Reserve (Restructuring)

Various departmental heads expenditure

of

up  to 1,014,865

To fund the Total Reward Review – Voluntary Release Scheme. (MD-TR- 2022-131)

 

General  Reserve (AME)

CYPES

up  to 2,000,000

To fund Special Educational Needs. (MD-TR-2022-132)

General  Reserve  - Departmental Expenditure  Limit (DEL)

Jersey  Overseas Aid

1,000,000

Providing aid in order to respond to the ongoing humanitarian crisis in the Ukraine. (MD-TR-2022-156)

General  Reserve  - Departmental Expenditure  Limit (DEL)

OCE

up to 250,000

For  potential  costs  relating  to  the immigration  of  Ukraine  nationals eligible  for  a  visa  through  family connections to the Island. (MD-TR- 2022-156)

General  Reserve (Covid-19 Contingency)

Covid-19 Response

up to 500,000

To  fund  the  Covid-19  Helpline  in 2022. (MD-TR-2022-228)

General  Reserve (Covid-19 Contingency)

Covid-19 Response

up  to 2,241,000

To fund CYPES Covid-19 Pressures. (MD-TR-2022-229)

Reserve  for Centrally

Held Items

SPPP

up to 250,000

For  onward  payment  of  a  grant  to Jersey Community Partnership as the delivery partner of the care survivor-led legacy initiatives, and to provide mental health support for the care survivors

participating in the initiatives. (MD- TR-2022-241)

General  Reserve (Covid-19 Contingency)

Covid-19 Response

up to 700,000

Funding for PCR Laboratory. (MD- TR-2022-341)

General  Reserve (Covid-19 Contingency)

Covid-19 Response

up  to 22,643,484

Funding  for  Testing  Programme including  Technology.  (MD-TR- 2022-341)

General Reserve

Various departmental heads expenditure

of

up  to 5,205,005

To fund unforeseen pressures in 2022. (MD-TR-2022-344)

General  Reserve (Covid-19 Contingency)

Covid-19 Response

up to 565,000

To  fund  Ambulance  Services Improvements. (MD-TR-2022-352)

General  Reserve (Covid-19 Contingency)

Covid-19 Response

up  to 6,379,300

To fund the HCS Covid Response in 2022. (MD-TR-2022-352)

General  Reserve (DEL)

Various departmental heads expenditure

of

up  to 8,345,985

To fund unforeseen pressures in 2022. (MD-TR-2022-357)

Reserve  for Centrally  Held

Various departmental

up  to 16,371,702

To fund the budget allocation of the 2022  pay  award  for  various  pay groups. (MD-TR-2022-399)

 

Items   Pay Provision

heads  of expenditure

 

 

Reserve  for Centrally  Held Items   Capital Smoothing Reserve

Discrimination Law  and Safeguarding heads  of expenditure

up to 162,569

To  complete  various  workstreams within  the  Discrimination  Law  and Safeguarding  heads  of  expenditure. (MD-TR-2022-431)

General Reserve

COO

up  to 1,113,567

To  fund  costs  associated  with software  licensing.  (MD-TR-2022- 439)

General Reserve

HCS

up to 375,000

To fund costs associated with legal proceedings.

(MD-TR-2022-453)

Budget Reconciliation

This section provides a breakdown of amounts to be appropriated from the Consolidated Fund (budgets') in 2022 by head of expenditure as approved by the States Assembly in the  Government  Plan  2022   2025  and  all  subsequent  budget  allocations   and movements made during the year, approved by the Minister for Treasury and Resources as detailed in the sections above. It is intended for this section to illustrate the impact of all budget amendments made during the year and how the total allocated budget as at 30 June 2022 compares to the original budget approved in the Government Plan 2022 – 2025.

A similar analysis is provided in the States of Jersey Annual Report and Accounts in the Political Accountability Report section (page 281 in the  2021 Annual Report and Accounts) comparing actual income and expenditure for the year with the original Government Plan budget and final approved budget for the year per head of expenditure.

Minister for Treasury and Resources August 2022

Abbreviations

CLS  Customer and Local Services

COO   Chief Operating Office

CYPES  Children, Young People, Education and Skills Econ   Economy

IHE  Infrastructure, Housing and Environment HCS  Health and Community Services

OCE  Office of the Chief Executive

SoJP  States of Jersey Police

SPPP   Strategic Policy, Performance and Planning T&E  Treasury and Exchequer

  1. – Total Approved Allocated Budget as at June

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. Reserves

 

To 30 June 2022

COVID-19

General Reserve

Centrally Held Items

The Reserves Totals

 

Capital Reserves

 

£000

£000

£000

£000

 

£000

2022 Gov. Plan Allocation

52,085

25,762

22,385

100,232

 

2,700

Carry forward from 2021

-

24,230

51,031

75,261

 

1950

Opening Budget 2022

52,085

4 9,992

73,416

175,493

 

4 ,650

Transfers in to Reserves in 2022

-

-

-

-

 

-

Drawdowns to departments

(31,873)

(21,949)

( 17,334)

(71,156)

 

-

Total Unallocated Budget

20,212

28,043

56,082

104,337

 

4,650

Existing Approvals

(1,156)

(1,956)

-

(3,112)

 

-

Ring fenced

(2,585)

(21,660)

(54,628)

(78,873)

 

(4,650)

Forecast Available Balance

16,471

4,427

1,454

22,353

 

-

Potential calls on Reserves

-

(8,023)

-

(8,023)

 

-

Available Balance

16,471

(3,596)

1,454

14,330

 

-

  1. Projects

 

Major Projects

Department

 2022  Budget  2022 Government  In Year  held  Available

Head of Expenditure Plan Budget  Carryforward Allocations  centrally  Budget

Office of the Chief Executive

Chief Operating Officer

Chief Operating Officer

Chief Operating Officer

Chief Operating Officer

Chief Operating Officer Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Health and Community Services Health and Community Services Health and Community Services

Elizabeth Castle 1  ,250 - -   - 1  ,250 MS Foundation (Major Project) 5  ,546 - -   2,226 7  ,772 Integrated Tech Solution (MP) 19,730 - -   2,533 22,263 Cyber (Major Project) 4  ,370 - -   3,162 7  ,532 ITS Release 3 & 4 4  ,200 - -   - 4  ,200 ITS Release 3 Additional 1  ,264 - -   - 1  ,264 Ambulance and Fire Quarters 500 - -   - 500 Schools Estate 1  ,250 - -   - 1  ,250 Fort Regent 2  ,000 2,777 -   - 4  ,777 Inspiring Active Places SS 814 - 3  ,100 - 3  ,914 Office Modernisation 460 - -   62 522 Sewage Treatment Works 10,740 -   6,373 17,113 Vehicle Testing Centre (Major -   -   - 193 Infrastructure Rolling Vote 13,318 -   630 13,948 Our Hospital 85,000 -   - 85,000 Digital Care Strategy 3  ,900 -   - 6  ,231 Learning Difficulties - Specia 3  ,300 -   826 4  ,126

- 1  93 - - 2,331 -

 Government Plan Major Projects Total

157,642   5,301   3,100   15,812   181,855

 

 

Other Projects

 

Department

Head of Expenditure

 2022  Budget  2022 Government  In Year  held  Available Plan Budget  C/fwds  Allocations  centrally  Budget

Centrally Held

Centrally Held

Chief Operating Officer

Chief Operating Officer

Chief Operating Officer

Chief Operating Officer

Various

Infrastructure, Housing & Environment Children, Young People, Education and Skills Justice and Home Affairs

Justice and Home Affairs

Justice and Home Affairs

Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Infrastructure, Housing & Environment Health and Community Services

Health and Community Services

Health and Community Services Justice and Home Affairs Justice and Home Affairs

States of Jersey Police

Justice and Home Affairs Treasury and Exchequer

Non Ministerial States Bodies

Central Risk & Inflation

Central Planning Reserves Replacement assets

Electronic Document Management Service Digitisation

Customer Relationship Management Replacement Assets

Discrimination law safegaurding - IHE Discrimination law safegaurding - CYPES Dewberry House SARC

Prison Phase 8

Army Sea Cadets Quarters

North Of St Helier YC

School & Educational Development Prison Phase 6

Regulation Digital Assets

New Skatepark

Infrastructure Assets

Jersey Care Model

Health Services Improvements In-patient/support services re

Combined Control IT

Electronic patient records

States of Jersey Police Firear

Next Passport Project

Revenue Transformation Project Non-Ministerial IT

1  ,800 1  ,500 -   3  ,300 2  ,800 450 (1,900) 1  ,350 3  ,000 -   -  3,000 2  ,200 -   -   2  ,200

- -

1  ,750 259 736 - 7  ,851 1,868 1  ,600 614

- -   2  ,009

- -   736

- -  9,719

- 38 2  ,252

- 125 125

- -

882 - 1  ,609 - 494 - 2  ,000 - 10,650 2,031 230 - 1  ,230 - 700 - 2  ,300 - 800 - 5  ,000 1,584 989 - 400 - 130 - 264 - 355 - 3  ,385 - 1  ,413 283

200 -   1  ,082

663 -   2  ,272

- -   494

- -   2  ,000

- -   12,681

3  ,750 -   3  ,980

- -   1  ,230

559 - 1  ,259

- -   2  ,300

1  ,138 -   1  ,938

- -   6  ,584

5  0 -   1  ,039 1  ,352 -   1  ,752 528 658 1  ,022 1  ,286

- - - - -

- 355

- 3  ,385

- 1  ,696

 

 GP Other Projects Total

54,568   11,212  (1,737) 6,639   70,682

 

 

 

 

 GP Total

212,210   16,513   1,363   22,450   252,536

 

 Carryfowards

 

 

 2022  Budget  2022

 

Government  In Year  held  Available

Department Head of Expenditure

Plan Budget  C/fwds  Allocations  centrally  Budget

Chief Operating Officer IT for Migration Services

- 870 - - 8 70

Children, Young People, Education and Skills Victoria College

- 6 - - 6

Children, Young People, Education and Skills ESC Minor Capital / AUCC

- 125 - - 1 25

Children, Young People, Education and Skills School ICT

- 90 - - 9 0

Infrastructure, Housing & Environment Jsy Instrumental Music Service

- 83 - - 8 3

Infrastructure, Housing & Environment VCP Replacement School

- 141 - - 1 41

Infrastructure, Housing & Environment Greenfields

- 76 - - 7 6

Infrastructure, Housing & Environment Victoria College capital proje

- 150 - - 1 50

Infrastructure, Housing & Environment Archive Storage Extension

- 17 - - 1 7

Infrastructure, Housing & Environment Grainville Phase 5

- 49 - - 4 9

Infrastructure, Housing & Environment St Mary School

- 113 - - 1 13

Infrastructure, Housing & Environment Orchard House

- 4,317 - - 4 ,317

Infrastructure, Housing & Environment Automatic Weather Station

- 35 - - 3 5

Infrastructure, Housing & Environment Equipment, Maintenance, Minor

- 19 - - 1 9

Infrastructure, Housing & Environment Sports Division Refurbishment

- 53 - - 5 3

Infrastructure, Housing & Environment Eastern Cycle Network

- 66 - - 6 6

Infrastructure, Housing & Environment Drainage Foul Sewer Ext

- 878 - - 8 78

Infrastructure, Housing & Environment Replacement Assets

- 100 - - 1 00

Health and Community Services Five Oaks Refurbishment

- 58 - - 5 8

Justice and Home Affairs Minor Capital 2021

- 184 - - 1 84

Justice and Home Affairs Police minor capital 2021

- 200 - - 2 00

Justice and Home Affairs Aerial ladder platform

- 97 - - 9 7

Treasury and Exchequer Taxes Office System Renewal

- 1,471 - - 1 ,471

Non Ministerial States Bodies Phoenix Software

- 45 - - 4 5

Non Ministerial States Bodies Conversion Courtroom

- 438 - - 4 38

Non Ministerial States Bodies Non Mins - Minor Capital

- 203 - - 2 03

 Other Projects Total

-   9,884   -   -   9,884

 

 

 TOTAL PROJECTS

212,210   26,397   3,263   22,450   262,420

  1. Covid-19 Response

Covid-19 2022 Budget by Department and Project

Project by Department

Gov Plan 2022 Budget

Allocation from

Reserves

Departmenal Transfers

Budget as at 30 June 2022

Office of the Chief Executive

500

-

-

500

Covid-19 Review

500

-

-

500

Department for the Economy

10,200

-

(500)

9  ,700

Economic Recovery

10,200

-

(500)

9,700

Children, Young People, Education and Skills

-

1,086

1,884

2  ,969

Covid-19 Pressures

-

1  ,086

-

1,086

Covid-19 Social Recovery

-

-

1,884

1,884

Customer and Local Services

672

500

833

2  ,005

Covid-19 Income Support Costs (COVID)

672

500

500

1,672

Covid-19 Social Recovery

-

-

333

333

Infrastructure, Housing and Environment

2,205

-

375

2  ,580

Covid-19 Bus Contract

1,200

-

-

1,200

Covid-19 Social Recovery

-

-

375

375

Support for Sports Infrsutructure

1,005

-

-

1,005

Health and Community Services

9,106

7,079

(3,469)

12,716

Covid -19 PPE Provision and Supply

3,300

-

-

3,300

Covid Recovery

-

6  ,379

-

6,379

Covid-19 Health Service Recovery

1,296

-

-

1,296

Covid-19 PPE Warehousing

407

-

-

407

Covid-19 Social Recovery

-

-

634

634

Covid-19 Vaccine

4,103

-

( 4,103)

-

Test and Trace

-

700

-

700

Justice and Home Affairs

-

565

-

565

Covid-19 Pressures

-

565

-

565

Treasury & Exchequer

7,136

-

-

7  ,136

Covid-19 Revolving Credit Facility

7,136

-

-

7,136

Strategic Policy, Performance and Planning

3,769

22,643

878

27,290

Covid-19 Social Recovery

3,769

-

( 3,225)

544

Covid-19 Vaccine

-

-

4,103

4,103

Test and Trace

-

22,643

-

2  2,643

Total

33,588

31,873

-

65,461

Appendix 1: Ministerial Decisions Approved vs Amounts Allocated

 

 

 

 

 

 

 

 

 

Appendix 2: Additional Fiscal by Department

 

 

 

 

 

 

Appendix 3: Transfers from Reserves by Department

 

 

 

 

 

 

 

Appendix 4: Departmental Transfers