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Government Support to Business during the Covid-19 Pandemic - Other Schemes (R.178/2021): Executive Response with comments of the Public Accounts Committee

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STATES OF JERSEY

GOVERNMENT SUPPORT TO BUSINESS DURING THE COVID-19 PANDEMIC - OTHER SCHEMES (R.178/2021): EXECUTIVE RESPONSE WITH COMMENTS OF THE PUBLIC ACCOUNTS COMMITTEE

Presented to the States on 21st January 2022 by the Public Accounts Committee

STATES GREFFE

2022  R.178 Res.

2

REPORT

In accordance with paragraphs 63–66 of the Code of Practice for Engagement between Scrutiny Panels and the Public Accounts Committee' and the Executive', the Public Accounts Committee presents the Executive Response to the Comptroller and Auditor General's ("C&AG") Report on the Government support to businesses during the Covid-19 pandemic - Other Schemes' (R.178/2021, presented to the States on 24th November 2021).

Comments of the Public Accounts Committee

The PAC welcomes the response to the C&AG's report from the Chief Executive and Director General of the Treasury and Exchequer. In particular, the Committee is pleased to see that the response includes a timeline for delivery of each recommendation and an indication of the Responsible Officer taking the matter forward.

The PAC notes that all of the recommendations have been accepted in their entirety and will be integrated into the Executive's work programme and Recommendations Tracker. The PAC will monitor the progress of the delivery of the recommendations through its review of the Response to Covid-19.

R.178/2021 Res.

The Chief Executive and Director General of Treasury and Exchequer's response to Comptroller and Auditor General's (Covid-19) Review: Government Support to Businesses – Other Schemes

January 2022

Glossary of Terms

C&AG – Comptroller and Auditor General

VAES – Visitor Attractions and Events Scheme CFPS – Co Funded Payroll Scheme

VASS – Visitor Accommodation Support Scheme FCSS - Fixed Costs Support Scheme

Chief Executive and Treasurer's Response to C&AG (Covid-19) Review: Government Support to Businesses – Other Schemes - Executive Response to PAC by 4th January 2022 please.

Summary of response:

We welcome this review of business support schemes (excluding Co-funded Payroll Scheme) by the Comptroller & Auditor General. These schemes  were  introduced  at pace  and  were without  precedent  and overall  we  are  pleased  to  note their  resilience  and  effectiveness.  

The Recommendations comprise a mix of planned or in-train actions as well as some new Recommendations to consider e.g. R1. The Recommendations are accepted in their entirety and will be integrated to our work programme and separate Recommendations Tracker.  

Action Plan

 

Recommendations

Action

Target date

Responsible Officer

R1 Introduce enhanced controls to ensure that public announcements provide clarity as to the status of the announcement and related Ministerial Decisions.

Accepted – it is agreed that decisions should be communicated with sufficient assurance. The alignment of Ministerial Decisions and associated formal communication will be undertaken where appropriate in the relevant circumstances. (While also incorporating the importance of speedily communicating during a pandemic (and other urgent situations)).

31 January 2022

Head of Ministerial Support Unit in consultation with the Director of Communications.

R2 Review the criteria for preparing a business case to include schemes which expose the States to a potential liability of more than £100,000 (such as guarantee schemes).

Accepted. In December 2021 the criteria were reviewed and changed as part of the extensions of VAES and CFPS. The new operational procedure is in place and will continue going forward.

Further additional standard operating procedures maybe implemented in 2022 to ensure higher levels of internal controls.

The Public Finances Manual will be updated to reflect the recommendation that business cases are completed for initiatives that expose the Government of Jersey to a liability of more than £100,000.

Complete

Ongoing 30.06.22

Head of Investment Appraisal, T&E

 

R3 Introduce a requirement for a formal Ministerial Decision to be taken to extend schemes that have been established with a fixed end date.

Accepted. In December 2021 this was implemented as part of the extensions of VAES and CFPS.

This operational procedure will continue going forward and the requirement will be included in the Public Finances Manual.

Complete

30.06.22

Director General Economy. & Head of Ministerial Support Unit,

Head of Financial Governance, T&E

R4 Prioritise the completion of VASS post payment claims testing and recovery of overclaims.

Accepted. Work is underway but due to the scheme extension, this won't be completed until after the scheme closes at the end of Q1 2022.

Ongoing - complete end of 30.06.22

Senior Manager, Pensions & care, CLS

R5 Undertake a review of the effectiveness of the VASS in meeting its intended objectives and report publicly the results of the review.

Accepted. The review of the effectiveness of the VASS in meeting its intended objectives will commence when the scheme ends.

A report summarising the results of the review will be made public.

31.07.22

Senior Manager, Pensions & Care, CLS

Head of Business Management & Governance, Economy

R6 Enhance the procedures for Ministerial Instructions to include documentation and agreement of any processes to be put in place to monitor issues raised by Accountable Officers.

Accepted

Consideration will be given to whether this requirement is able to be incorporated into the Public Finances Manual – if so the benefits must clearly outweigh the costs of administration.

Immediate 30.06.22

Head of the Ministerial Business Unit, OCE

Head of Financial Governance, T&E

R7 Prioritise the completion of FCSS post payment claims testing and recovery of overclaims.

Accepted and underway.

However, due to the scheme extension this won't be completed until after the scheme closes at the end of Q1 2022

Underway and to be completed 30.06.22

Senior Manager, Pensions & Care, CLS

 

R8 Undertake a review of the effectiveness of the FCSS in meeting its intended objectives and report publicly the results of the review.

Accepted.

The review of the effectiveness of the FCSS in meeting its intended objectives will commence when the scheme ends at the end of March 2022.

A report summarising the results of the review will be made public.

31.10.22

Head of Business Management & Governance, Economy

Senior Manager, Pensions & Care, CLS

R9 Undertake a review of the effectiveness of the VAES in meeting its intended objectives and report publicly the results of the review.

Accepted.

The review of the effectiveness of the VAES in meeting its intended objectives will commence when the scheme ends at the end of March 2022.

A report summarising the results of the review will be made public.

31.10.22

Head of Business Management & Governance, Economy

Recommendations not accepted  

Recommendation  Reason for rejection NA