Economic, Social and Health-related Recovery from the COVID-19 pandemic.

25 September 2023

jerseyauditoffice.je  

R.145/2023

Contents

Summary  3 Introduction  3

Key findings  5

Conclusions  6 Objectives and scope of the review 8 Detailed findings – Economic recovery schemes 9

Co-Funded Payroll Scheme 9

Economic recovery schemes 12

Economic stimulus  19

Economic support schemes 21

Fiscal stimulus schemes 22

Overall impact of economic recovery schemes 29 Detailed findings – Social recovery schemes 31

Establishment of social recovery schemes 31

Social recovery – education  32

Social recovery – further education 34

Social Recovery – community dentistry   35

Social Recovery – Long COVID  36

Children's mental health and wellbeing 36

Schools catch up  38 Detailed findings – Health-related recovery schemes 40

Establishment of scheme objectives 40

Controls over the delivery of the schemes and achievement of

scheme objectives 42 Appendix One – Audit Approach  43

Appendix Two – Summary of Recommendations and Work planned that should be prioritised  46

Summary

Introduction

1. The rapidly evolving nature of the COVID-19 pandemic, particularly during 2020 and 2021, called for an extraordinary response from Government as it has sought to save lives and protect health and livelihoods in Jersey. During 2020 and 2021 the primary focus of Government was on implementing emergency measures to protect Islanders. Towards the later stages of 2021 the focus shifted to include recovery and, in particular, addressing the impact of the COVID-19 pandemic on the economy, on social issues and on health-related issues.
2. The total projected costs of the Government response to the COVID-19 pandemic between 2020 and 2026 is estimated as £363 million as shown in Exhibit 1.

Exhibit 1: COVID-19 related projected expenditure

£200,000,000 £400,000,000 £180,000,000

£350,000,000 £160,000,000

£300,000,000 £140,000,000

£250,000,000 £120,000,000

£100,000,000 £200,000,000

£80,000,000

£150,000,000 £60,000,000

£100,000,000 £40,000,000

£50,000,000 £20,000,000

£0 £0

2020 2021 2022 2023 2024 2025 2026

In year expenditure Cumulative expenditure

Source: Jersey Audit Office analysis of States of Jersey Accounts and Government Plans

3. The key elements of the expenditure that relate to economic, social and health - related recovery from the COVID-19 pandemic between 2020 and 2023 are summarised in Exhibit 2.

Exhibit 2: Costs relating to economic, social and health-related recovery from the COVID-19 pandemic

* excluding projects undertaken by Government departments and States of Jersey Group entities. The total expenditure on fiscal stimulus projects including internal projects was £19.6 million

** Health and Community Services Department (HCS)

Source: Jersey Audit Office analysis of States of Jersey Accounts and Government Plans

4. This review builds on previous reports I have issued relating to the COVID-19 pandemic. It evaluates:

• whether clear and measurable objectives were set out for schemes and funds established to achieve economic, social and health-related recovery from the COVID-19 pandemic

• whether appropriate controls were put in place to implement the schemes and funds in an effective way

• how the Government managed and monitored the delivery of the schemes and funds; and

• whether the schemes and funds have achieved their stated aims.

Key findings

5. The key findings from my review are as follows: Economic measures

• the Government moved at pace to introduce a range of measures aimed at supporting economic recovery from the COVID-19 pandemic. These measures included schemes to support businesses directly, the Spend Local Scheme and the Fiscal Stimulus Fund (FSF)

• there is a high rate of overclaims for two of the schemes introduced (Visitor Accommodation Support Scheme: 24% and the Fixed Cost Support Scheme: 22%). The rate of overclaims for the Co-Funded Payroll Scheme was lower at 7.87%. At the time of my review £6.4 million of overclaimed money was still to be recovered. The significant time lag between payment of claims and audit of claims has increased the risk of non-recovery of overpayments. These lessons should be taken into future schemes established by Government to support businesses and individuals. In particular, where post payment audit testing forms a key part of scheme controls, the timely completion of that testing and subsequent recovery action are imperative; and

• strong governance procedures were put in place for the FSF. Less than 40% of the agreed FSF was eventually utilised. While all submissions had a business case, the evidence supporting the rationale for decisions taken was not always clear and the alternative options were not always well presented. Many of the schemes undoubtedly resulted in improved facilities and buildings although some were delivered outside of the target timeframe.

Social recovery measures

• the Government decided very early in the COVID-19 pandemic that it needed to invest in schemes to improve the chances of recovering social welfare quickly, and also to do as much as possible to prevent the gap widening between those who were at a greater disadvantage in society and those who were deemed to be less at risk. Working under significant pressure the Children, Young People, Education and Skills Department (CYPES) succeeded in establishing schemes and distributing the initial support to relevant delivery organisations quickly

• overall, the funding and scheme delivery responsibilities allocated to CYPES were well managed. Each of the projects which I examined was supported by a business case or agreement. There were good controls and documentation on the projects; and

• HCS was responsible for two social recovery schemes –the children's dentistry scheme and the Long COVID clinic. HCS was successful in attracting dental practices to take part in the children's dentistry scheme, and about 1,300 appointments have been generated since the start of the scheme. Since January 2021 the Long COVID clinic has reviewed and managed affected Islanders, with over 450 appointments in 2022. This has led to many Islanders being successfully managed, treated and subsequently discharged from the service.

Health-related measures

• I have been provided with limited financial information and evidence of performance for some of the health-related measures managed by HCS. For some schemes, how the funding was spent and how well the schemes' objectives were achieved were not monitored. I am therefore unable to assess how well some of the schemes were managed and what resources the funding was spent on.

Conclusions

6. The measures put in place to protect businesses and individuals from the economic impact of the COVID-19 pandemic appear to have achieved the objectives established by Government. There have been relatively few business failures and employment has remained at or is better than pre-pandemic levels. There are early signs that the economy is recovering. It is however difficult to assess what would have happened to businesses without the support from the Government.
7. The education-related schemes put in place to stimulate social recovery from the COVID-19 pandemic have achieved the objectives set to date. In particular, the education outcomes to date demonstrate no deterioration from what would have been expected if there had been no pandemic. This compares favourably with the performance in England.
8. The COVID-19 pandemic recovery monies have helped to add capacity to Child and Adolescent Mental Health Services which has enabled the service to maintain waiting times at a fairly consistent level despite a significant increase in the level of referrals.

9. I have not been able to assess the results of some of the health-related schemes managed by HCS due to the lack of sufficient financial and performance information.

Objectives and scope of the review

10. The review has evaluated:

• whether clear and measurable objectives were set out for schemes and funds established to achieve economic, social and health-related recovery from the COVID-19 pandemic

• whether appropriate controls were put in place to implement the schemes and funds in an effective way

• how the Government managed and monitored the delivery of the schemes and funds; and

• whether the schemes and funds have achieved their stated aims.

11. The review has also included a follow up on the recommendations made in the following Comptroller and Auditor General (C&AG) reports:

• The COVID-19 Related Emergency Support Scheme

• Government support to businesses during the COVID Funded Payroll Scheme (November 2021); and

• Government support to businesses during the COVID schemes (November 2021).

(June 2021)

-19 pandemic – Co-

-19 pandemic – other

12. In addition, it has touched on some of the relevant key findings referred to in the following C&AG reports:

• Child and Adolescent Mental Health Services (September 2022); and

• Grants to Arts, Heritage and Culture Organisations (December 2022).

Economic recovery schemes

13. The Government implemented a number of measures aimed at economic recovery from the COVID-19 pandemic, as summarised in Exhibit 3.

Exhibit 3: Economic Measures

2020  2021  2022  2023 £000  £000  £000  £000

COVID-19 income  106,120  30,690  5,301  - support and Co-Funded

Payroll Scheme

Economic recovery*  -  12,448  3,703  - Economic stimulus  11,638  -  -  - Economic support  1,997  -  -  - Fiscal stimulus projects*   -  4,467  6,961  -

* values shown exclude project funding provided to Government Departments and States of Jersey Group entities

Source: Jersey Audit Office analysis of States of Jersey Accounts and Government Plans

Co-Funded Payroll Scheme

14. The most significant measure put in place by Government was the Co-Funded Payroll Scheme (CFPS). I reported on this scheme in my November 2021 report Government support to businesses during the COVID-19 pandemic – Co-Funded Payroll Scheme and made six recommendations, all of which were accepted by Government. Progress in implementing these recommendations is summarised in Exhibit 4.

Exhibit 4: Progress in implementing previous C&AG recommendations

Recommendation Current position  Evaluation R1 Introduce enhanced  The CFPS was extended twice  Implemented

controls to ensure that  after the period covered by my

public announcements  previous report:

provide clarity as to the  October 2021 (MD-TR-

status of the announcement  2021-0123); and  

and related Ministerial

Decisions.  for the months of

December 2021 and

January 2022 (MD-TR-

2021-0155).

The public announcements correlated with related Ministerial Decisions for the two further extensions.

The Ministerial Code of Conduct has been updated to enhance procedures around public announcements. In addition, enhanced controls now exist between officers, private secretaries and Ministers.

R2 Introduce a clear and  The two further scheme  Not applicable transparent process to  extensions were not

provide and consider  announced in draft and

feedback on scheme  therefore this recommendation

proposals that are  was not relevant to them.

announced in draft' in

advance of final decisions

being taken. Ensure that

the announcement is clear

in such instances that the

scheme is draft' and is

open for consultation

comments.

R3 Enhance the  The Ministerial Decisions for  Implemented documentation supporting  the two further extensions

Ministerial Decisions to  included a forecast of

include clear forecasts of  expenditure against previous

expenditure against  funding allocations.

previous funding

allocations.

Recommendation Current position  Evaluation R4 Prioritise the completion  Reconciliations of contribution  Implemented

of the reconciliation of  schedules to CFPS claims were

CFPS claims made to other  carried out by the Customer

records held in respect of  and Local Services Department

the employers making the  (CLS) for 539 firms (31.3% of

claims. These  firms receiving payments).

reconciliations should be  Seventeen firms required

carried out as soon as  further investigation and where

possible.  necessary the firms were

instructed to update their

schedules and to re-submit

their claims.

R5 Prioritise the completion  Post payment audit testing was  Partially implemented of post payment audit  completed with two separate

testing of claims and ensure  reports issued in May 2022,  Tbheetw signeenific paymenant time lagt of  

that final audit reports are  one for payments for  claims and audit of issued promptly relative to  September to December 2020

the month of the claims  and the other for payments for  clarisk of nims honas in-recovcreaesery ofd th e tested.  January 2021 to January 2022.  overclaims. There is a

The overall error rate identified  need to ensure that

was 7.87%.  The total of  lessons are learned for overclaims was £11.12 million  any future schemes.

of which £4.46 million was still  Where post payment

to be recovered at the time of  audit testing forms a key my fieldwork.  part of scheme controls,

the timely completion of Aaga proinst recovcess for apery ofpeal oinveg rclaims  that testing and

was introduced by the  subsequent recovery Government in October 2022. action are imperative.

R6 Reduce the time lag in  Final data for the whole period  Implemented publishing data on  of the scheme has been

payments made and jobs  published.

supported under the CFPS.

Source: Jersey Audit Office analysis

15. Most of the recommendations made in 2021 have been implemented by Government. There is one recommendation from my previous report that was partially implemented. As a consequence, there remains a risk that payments relating to overclaims made will be harder to recover. There are clear lessons to be learned from the implementation of the CFPS. These lessons should be taken into future schemes established by Government to support businesses and individuals.

Recommendations

R1  Enhance procedures to ensure that post payment audit checks take place on a

timely basis for all benefits, grants and support schemes that rely on such checks as a key element of internal control.

R2  Document the lessons learnt from the implementation of the Co-Funded Payroll

Scheme in a final report and ensure they are used when considering the design of future benefits and other schemes established by Government to support businesses and individuals.

Economic recovery schemes

16. In addition to the CFPS, other economic recovery schemes were established and other grants were awarded and paid to individual entities. These included the schemes and grants summarised in Exhibit 5.

Exhibit 5: Economic recovery schemes

* original scheme expenditure gross of subsequent overclaims identified ** part of CYPES. Awarded in 2022 but carried forward to 2023 Source: Jersey Audit Office analysis

17. I reported on the VASS, FCSS and VAES in my November 2021 Report Government support to businesses during the COVID-19 pandemic – other schemes and made nine recommendations. Progress in implementing these recommendations is summarised in Exhibit 6.

Exhibit 6: Progress in implementing previous C&AG recommendations

Recommendation Current position  Evaluation R1 Introduce  The Ministerial Code of Conduct has  Implemented

enhanced controls  been updated to enhance procedures

to ensure that  around public announcements. In

public  addition, enhanced controls now exist

announcements  between officers, private secretaries

provide clarity as to  and Ministers.

the status of the

announcement and

related Ministerial

Decisions.

R2 Review the  The Business Disruption Loan  Implemented criteria for  Guarantee Scheme (BDLGS) ended on

preparing a  31 December 2021. Two loan defaults

business case to  have occurred to date (1.5% of total

include schemes  loans).

which expose the  Operational procedures for business

States to a potential  case requirements have been

liability of more  updated.

than £100,000 (such

as guarantee

schemes).

R3 Introduce a  The VASS, FCSS and VAES were  Not implemented requirement for a  extended to 31 March 2022. There  Officers have stated that formal Ministerial  were no formal documented  amending the Public Decision to be  Ministerial Decisions approving the  Finances Manual to taken to extend  extensions.  include such a

schemes that have

been established  There is a Ministerial Decision (MD-E- requconsidiremeeredn impt was ractical with a fixed end  2in0clu21d-0e0 ad48d) eitioxpnanal sdeinctog trs inhe F CSS to  and that they consider

date.  December 2021 and January 2022.  there to be sufficient

This Ministerial Decision did not  safeguards to prevent a include formal costings. support scheme operating without

AD requecisionireme to bnet f taork a foen torma extl Men ind isterial  formal Ministerial schemes that have been established  approval.

with a fixed end date has not been

introduced.

R4 Prioritise the  The report on the audit of claims from  Not implemented completion of VASS  October 2020 to April 2021 was  The significant time lag post payment  issued in May 2022. The audit of  between payment of claims testing and  claims from May 2021 to March 2022  claims and audit of recovery of  was issued in February 2023.  claims has increased the overclaims.  The error rate in relation to the  risk of non-recovery of

calculation of detriment was so high  overclaims. There is a (24%) that all claims were checked.  need to ensure that

The total of overclaims was £2.15  lessons are learned for million and £1.6 million was still to be  any future schemes. recovered at the time of my fieldwork.  Where post payment

audit testing forms a key part of scheme controls, the timely completion of that testing and subsequent recovery action are imperative.

R5 Undertake a  An end of scheme report was  Implemented review of the  produced in December 2022 and

effectiveness of the  published on the Government

VASS in meeting its  website. The report notes that:

intended objectives

and report publicly  Bedand 2 stock 021, althas redhouguch tedhe bpace atetween 1 which 991

the results of the  this is happening has slowed in recent

review.  years.

Anecdotal evidence suggests that there were no large number of business failures during the past two years and that most hotels continue to operate.

It is difficult to assess the "counterfactual" i.e. what would have happened to these businesses without the support from the Government. However, 61 businesses were reached by the VASS and many also benefitted from the CFPS and other recovery schemes.

R6 Enhance the  One economic recovery scheme  Not implemented procedures for  required Ministerial Instruction. Again,  Officers have

Ministerial  it is difficult to assess the

Instructions to  counterfactual' but the objectives of  conrecommsidereendd thateion and include  the scheme have been achieved to  have taken a view that

documentation and  date.  amending the Public agreement of any

processes to be put  However, procedures for Ministerial  Finintranoduce ances Man aduald itiowounld al

in place to monitor  Instructions have not been enhanced  requirement that would issues raised by  as recommended. be difficult to monitor

Accountable  and audit and would not Officers.  be of sufficient value to

justify the work involved.  

R7 Prioritise the  The scheme ended at the end of  Not implemented completion of FCSS  March 2022. The internal audit  The significant time lag post payment  summary report on post payment

claims testing and  claims testing was issued at the  bclaetims anween pdaymen audit oft o f recovery of  beginning of February 2023 when  claims has increased the

overclaims.  testing was completed.  risk of non-recovery of

The testing undertaken identified a  payments made in

high error rate in the calculation of  respect of overclaims. detriment (22%); however only 21.2%

of claims by value were tested. The  Inlo addw levitioel onf t, a restinelag hatively s errors identified were described as  taken place which

mainly due to insufficient evidence increases the risk that provided by claimants The total of  there are further overpayments identified was £150,868  overclaims or fraudulent of which £36,000 was still to be  claims that may not have recovered at the time of my fieldwork. been identified. There

The total number of claims under the  is a need to ensure that FCSS was 1,753. The average value  lessons are learned for per claim was £1,867. There is a risk  any future schemes. that other overpayments have taken  Where post payment place but have not been identified. audit testing forms a key It is also not clear how claims were  part of scheme controls,

the timely completion of apsuffpicierovent ed invid theen fircest inbeinstg avaance wilaitbhleou tot  that testing and

support the claims. subsequent recovery

action are imperative.

Anecdotal evidence suggests that there were no large number of business failures during the past two years and that visitor attractions in Jersey continue to operate such as La Mare Vineyards and Jersey Pearl.

Source: Jersey Audit Office analysis

18. In addition to the schemes I reported on in November 2021, a further scheme was implemented by Government (the Visitor Hire Car Support Scheme (VHCSS)). Funding was also provided to five arm's-length organisations and a loan was provided to Blue Islands. Exhibit 7 contains more details, including details of the controls put in place.

Exhibit 7: Other economic recovery schemes and funding

Scheme/  Spend  Documentation and  Aims  Commentary on recipient  (£000)  approval of  delivery controls

objectives

VHCSS  391  Business case  Support for visitor car  Good control system

produced with Key  hire business. End of  established. Performance  scheme report

Indicators (KPIs).  produced.

Approval shown in the Economic Recovery Political Oversight Group (ERPOG) minutes 26 March 2021.

Jersey  1,460  Business case  Continued  Reporting Business  produced with KPIs.  administration support  requirements and Ltd  Approval by the  for businesses.  KPIs closely

Economy  monitored. Department (top up

grant) and the

ERPOG minutes 26

March 2021.

Ports of  832  Grant agreement sets  Support for  Conditions of grant Jersey  out conditions of  continuation of ferry  are being met

grant.  services.  currently but will

A Letter of Instruction  require continued was issued by the  close monitoring.

Deputy Chief Minister

to Office of Chief

Scheme/  Spend  Documentation and  Aims  Commentary on recipient  (£000)  approval of  delivery controls

objectives

Executive in accordance with Public Finances Manual.

Jersey  299  Business case  New staff to develop  Reporting Finance  produced with KPIs.  new business in  requirements and Ltd  Approval by  emerging markets and  KPIs closely

Economy  London and to expand  monitored as part of Department (top up  the economy.  half yearly grant grant) and ERPOG  payments.

minutes 16

November 2021.

Highlands  213  Business case  Additional adult  This had been College  produced with KPIs.  education courses re  budgeted to be additional  Approval by  workforce re-skilling  delivered in 2022. grant  Economy  and acquisition of  However due to a award  digital skills.  delay this was carried

Dgraepnartt)  anmedn Et (topRPOG up  forward to 2023 and minutes 5 May 2022.  was included in the

end of year flexibility process.

Approval for all grant draw downs.

Digital  251  Business case  Additional adult  Approval for all grant Jersey  produced with KPIs.  education courses re  draw downs.

Approval by  workforce re-skilling

Economy  and acquisition of

Department (top up  digital skills.

grant) and ERPOG

minutes 5 May 2022.

Blue  10,000  Business case  Support for air travel to  Regular reports Islands  produced with due  and from the Island.  monitoring

Loan  diligence report and  achievement of

loan agreement.  business case and

financial projections. AMpinpisteroval was brial Decisiony   Conditions of loan

MD-TR-2020-0081.  agreement reported

as being met.

Source: Jersey Audit Office analysis

19. Funding for the grants was initially approved by the Economy Department under the Scheme of Delegation and subsequently approved by the ERPOG, which was established under MD-C-2020-0038 and agreed terms of reference on 5 February 2021. Each scheme had clear objectives, good controls over delivery and achieved the aims set out in the initial business case or other agreement.
20. The end of scheme report for the VHCSS acknowledges that it is difficult to assess how many of the businesses supported needed financial aid and what the optimal level would have been, due to lack of counterfactual - that is what would have happened without the support. The report notes that it is likely that the benefiting firms would have survived without the economic support'. However, it was considered by officers within the Economy Department that without Government intervention, there would be insufficient cars available to hire. The report also concludes that this would have had a knock-on effect on both the ability to attract tourists to the Island in the summer of 2021 (car hire is often an integral part of a package holiday) and the associated spend on Island. Without an easy way to travel round the Island, the more remote hotels and visitor attractions may have not be visited as often.'
21. In addition to the economic recovery and economic support schemes, the Government agreed a loan to Blue Islands to support air travel to and from the Island. The business case in support of the loan referred to significant financial support being provided by other government jurisdictions to protect their aviation industry, recognising the critical importance of air connectivity to their economies. My review indicates that the conditions of the loan agreement are being met.
22. Expenditure on economic recovery schemes is continuing in 2023, with clear objectives and satisfactory delivery controls.

Recommendation

R3  Review the lessons learnt from the implementation of all COVID-19 support

schemes when considering the design of future benefits and other schemes established by Government to support businesses and individuals.

Work planned that should be prioritised

P1 Carry out a retrospective review of the VAES final accounts that are submitted for

filing purposes to ensure that the applicants have met all the requirements for the months for which claims were paid.

Economic stimulus

23. The most significant element of the economic stimulus expenditure related to the Spend Local Scheme implemented during 2020. Under this scheme, Spend Local Mastercards were issued to eligible people in Jersey containing a value of £100. The cards were designed to be used in shops, restaurants and other businesses in Jersey.
24. The Public Accounts Committee (PAC) issued a report on the Spend Local Scheme on 11 October 2021. The PAC found that:

• Consideration of the Spend Local Scheme's risk was undertaken by the Investment Appraisal Team, with consideration given to the mitigation of these risks.

• The Spend Local Scheme resulted in a very high level of engagement from Islanders, at 91%.

• Some of the money provided through the Spend Local Scheme was likely to have been used by Islanders to purchase essential goods.

• The exact effectiveness of the Spend Local Scheme is difficult to evaluate due to the lack of available data on whether the Cards contributed to spending above £100, the nature of the Scheme as a standalone' event, and the difficulty in modelling a counterfactual do nothing scenario'.

• Islanders generally appear to have treated the Spend Local Cards as additional spend, leading to a boost for sectors heavily affected by the COVID-19 Pandemic, such as Retail and Hospitality.

• The restriction of expenditure to purchases made physically on Island ensured that Jersey businesses largely retained their mark-up' or profit.

• The Spend Local Scheme is likely to have been a one-off event, despite consideration being given to a second tranche.

• The Spend Local Scheme was not specifically targeted to maximise the positive impact on sectors most affected by the economic downturn.

• The Spend Local Scheme has attracted considerable interest from policymakers in Northern Ireland and Scotland, with the former using Jersey as a model for its equivalent to the Spend Local Scheme.

25. The PAC made four recommendations, three of which were accepted by Government. I have not carried out detailed work on the Spend Local Scheme as part of my review due to the previous work on the Scheme undertaken by the PAC.

Economic support schemes

26. Direct economic support was provided to specific organisations during 2020. Exhibit 8 provides more details.

Exhibit 8: Summary of Economic support schemes 2020

Scheme/ Spend (£)  Documentation  Aims  Delivery controls Recipient  and approval of

objectives

Jersey  1,100,000  Grant agreement  The aim was going  Monitoring of Heritage  supported by  concern support for  achievement of five

business case.  Jersey Heritage. My  KPIs.

2022 Report Grants to

ADpepproartval byment f thore  Arts, Heritage and

the Economy  Culture Organisations

(top up grant).  comments on this in

more detail.

Jersey  438,500  Business case  Continued  Performance report Business  includes KPIs.  administration support  and monitoring of

Ltd  Approval by the  for businesses.  achievement of KPIs.

Department for

the Economy

(top up grant).

Blue  180,786  Business case  Maintenance of air  Reconciliation of Islands  includes KPIs.  travel to and from  invoices to air travel Travel  Approval was  Island for key workers.  schedules and

granted in three  passengers. Ministerial

Decisions:

MD-TR-2020 - 0037

MD-TR-2020 - 0074

MD-TR-2020 - 0147.

Fisheries  252,600  Business case  Grants for fishermen to  Grants made to Support  includes KPIs  protect their  known boats using

MD-TR-2020- livelihood.  independent 0069.  evidence.

Scheme/ Spend (£)  Documentation  Aims  Delivery controls Recipient  and approval of

objectives

Blue  25,000  Assessment of  Report used for  Report produced. Islands  Blue Islands.  decision making.

due  MD-TR-2020 -

diligence  0081financial

report  position.

Total  1,996,886

Source: Jersey Audit Office analysis

27. Two schemes were top up grants to Arm's Length Organisations approved by the Economy Department under the Scheme of Delegation. The remaining schemes were approved by Ministerial Decisions. Each scheme had clear objectives, good controls over delivery which were implemented and achieved the aims set out in the initial business case or other agreement.
28. My report Grants to Arts, Heritage and Culture Organisations issued on 23 December 2022 concluded that Jersey Heritage Trust had a clear business plan for 2022. The report also concluded that the documented grant appraisal should be based on an assessment of need which includes an analysis and interpretation of reserves as one of the factors in determining grant need. The top up grant of

£1.1 million to support going concern replaced the shortfall in commercial income for 2020, contributing to £2 million of unrestricted funds held by Jersey Heritage Trust at 31 December 2020 (£1.4 million at 31 December 2019).

Fiscal stimulus schemes

29. The Fiscal Stimulus Package, including the establishment of the Fiscal Stimulus Fund (FSF), was proposed to the Council of Ministers and approved on 8 July 2020. The Treasurer recommended to his Minister the lodging of the report and proposition to request the States Assembly to allocate £50 million, funded by borrowing, to establish the FSF.
30. The FSF was set up to provide stimulus into the economy as part of a package of measures to enable the economy to recover more quickly than would otherwise be the case. The intention was that the stimulus would be provided on a timely and temporary basis, targeted towards projects that would support local employment and local business and, as a subsidiary aim, further the States Corporate Strategic Priorities. The FSF was established with an initial funding level of £50 million. It was available in two tranches with the first £25 million for projects from November 2020 and the second tranche available for projects from February 2021.

31. The FSF process invited applications for projects up to £5 million each, designed to stimulate the economy through:

• employment support

• business support

• skills training

• infrastructure and property improvements; and

• maintenance and investment in productivity improvements.

32. Each project needed to demonstrate that it could, in the period after the COVID - 19 pandemic:

• assist in reducing the fall in output and employment in the short-term; and

• provide opportunities to assist in reducing the damage to the economy in the medium to long-term.

33. All projects were required to have a completion date of 31 December 2021.
34. The application process and requirements were advertised on the Government of Jersey website. The draft recommendation for prioritisation of fiscal stimulus projects, including those projects not recommended (both those rejected and those withdrawn at the initial stage) was considered and reviewed by the ERPOG and the Corporate Services Scrutiny Panel (CSSP). Both bodies were able to comment on the outcome and this was considered by the Minister for Treasury and Resources before notifying the Council of Ministers.
35. Evaluation criteria determined by the Fiscal Stimulus Oversight Group (FSOG) were as follows:  

• timely – can the project be delivered by 31 December 2021?

• temporary – not recurring and the project must be stand alone, not be reliant on another scheme which may/may not have funding; and

• targeted – does this stimulate the local economy and businesses? How much of the request is for off Island purchases/resources? What are the long-term economic benefits?

36. There were strong governance procedures in place with a project manager for the scheme and clear guidelines on how the scheme would operate. Key controls were in place over the expenditure. It is less clear from the minutes how different projects were ranked and then supported. Many of the schemes undoubtedly resulted in improved facilities and buildings although some were delivered outside of the target timeframe. Less than 40% of the agreed fund was eventually utilised.  
37. All submissions had a business case. However the evidence supporting the rationale for decisions taken was not always clear and the alternative options were not always well presented. The evaluation of submissions was undertaken by a Board with cross Government and external representation, which challenged submissions where appropriate. However, the documented evidence of decisions was more limited and it is not particularly clear from the minutes why some projects were awarded funding and not others, particularly as compliance with the criteria seemed to be weak in a number of instances. It was also apparent in places that some schemes were dependent on planning permission and so risked not be completed by the target date.
38. A high percentage of tranche one schemes related to construction, refurbishment and improvement – seen to be important in supporting the construction industry. However, given the obvious constraints imposed by the COVID-19 pandemic, it is difficult to see how these schemes would be delivered in the timescales needed to inject resources into the economy quickly. The FSOG tried to address the balance of schemes across industries in tranche two.
39. My report Grants to Arts, Heritage and Culture Organisations (December 2022) included a review of FSF grants awarded in those sectors. I concluded that quantifiable benefits for the preferred option were limited and alternative options were dismissed with minimal analysis in most cases. The minutes of key meetings indicate that many projects were agreed by FSOG in a short space of time.
40. Declarations of interest were requested at the start of every FSOG meeting, but these are not documented in the minutes. FSOG members were asked for declarations of interest by separate email in advance of the first FSOG meeting. I understand that, where relevant, conflicted parties removed themselves from decision making and/or discussions of the relevant bids. While there is no suggestion that members were not transparent, recording this in minutes would be beneficial for open and transparent governance.
41. FSF awards of £22.8 million were allocated in tranche one and £6.8 million in tranchetwo, leaving £20.4 million unallocated. The States Assembly then decided to limit the total available to the FSF to the amounts allocated in the first two tranches. The actual spend over the two tranches was £19.2 million (including

amounts awarded to Government Departments) - less than 40% of the original sum allocated to the FSF. In total 47 projects were granted funding although four projects were subsequently withdrawn due to no longer meeting the criteria for the FSF:

• Oakfield community sports centre

• Jersey Spartans Athletics Club

• Jersey Arts Centre Association (JACA); and

• Jersey Opera House.

42. As noted in my Grants to Arts, Heritage and Culture Organisations Report (December 2022) although the funding for JACA was withdrawn in early 2022 as the timing criterion could not be met, a sum of £2.1 million from the FSF was advanced to JACA in November 2021. At the time, it would not have been possible for a project of this nature to be completed by the deadline of 31 December 2021 and I fail to understand why it was advanced. The JACA accounts for 2021 disclose the amount held as a liability to be paid to the States and this was repaid in March 2022.
43. Exhibit 9 illustrates the controls in place over the 14 schemes I have reviewed and the outcomes achieved. All of the schemes I reviewed followed proper approval processes.

Exhibit 9: Summary of sample of FSF schemes reviewed

Scheme  FSF  Objectives  Delivery  Commentary on achievement

Spend  controls  of aims  

(£000)

Acorn  808  Construction of  Contract and  The project helped local collections  an additional  PRINCE2  construction companies and and  processing  methodology  supported those who had processing  facility to  used to  disabilities and have been out of facility  maintain  monitor  work for some time. It also

construction  delivery.  created jobs and will provide industry jobs  additional employment in the and provide a  future. The increased revenue is facility to assist  showing promising signs but is business in the  not yet at the anticipated level. future.

Spend  controls  of aims  (£000)

Unemploy- 673  This was one of  Agreement in  The project created subsidised ment  many schemes  place and  labour for over 100 employers, support –  to help the long  monitoring  supporting them through the Recruit Local  term  meetings.  recovery. It also provided the campaign  unemployed  opportunity for 118 long term

jobseekers. The  jobseekers to gain employment. scheme was  It is unclear whether there is designed to  duplication in all the

help 190  employment support schemes jobseekers.  with the same people being the The money was  focus of different schemes.

awarded to

CLS.

Beaulieu  1,500  To build an  Tendered  This was a construction project Convent  additional  contract.  with the aim of helping local school  facility at the  builders. The scheme overran.

school to make  While this scheme was approved the school  it is unclear as to how the

more inclusive  scheme fulfilled the FSF criteria. and improve

ease of access.

First Tower  1,500  To improve and  Tendered  This was a construction project Youth  enhance  contract.  that improved and enhanced project  facilities.  facilities. The scheme overran by develop- five months.

ment

Retrain skills  1,700  To enable many  Awarded to  The scheme delivered in excess young people  Highlands  of forecast and helped hundreds

to retrain and  College, Skills  of young people obtain skills. gain additional  Jersey and  The scheme ran into 2022 but skills.  Digital Jersey.  was closely managed and controlled over a six month

period.

Refurbish- 51  To improve  Quarterly KPIs  This was a construction project ment of the  facilities.  to  which was mainly about Kenneth  Accountable  improving the building. Faucon Hall –  Officer.  The scheme overran.

Jersey

Scouts

Scheme  FSF  Objectives  Delivery  Commentary on achievement

Spend  controls  of aims  

(£000)

Jersey  50  To improve  Quarterly KPIs  This was a construction project Scouts –  facilities.  to  which was mainly about Refurbish- Accountable  improving the building.

ment of St  Officer.  The scheme overran into late Lukes Hall  2022.

Jersey  244  To improve  Tendered  The scheme was completed Scouts  facilities.  contract.  much later than planned as it Association –  needed planning permission. Refurbish -

ment of

Jersey Scout

Centre, St

Ouen

Help at  207  To stimulate the  Monthly KPIs  The aim was to create an Home  market through  to  environment which encourages Scheme  recruitment and  Accountable  domiciliary care providers to (Domiciliary  training.  Officer  recruit and train new staff

Care Market  through  members to provide home care Stimulation)   steering  services. The estimate was that group.  around 100 new posts could be

Weekly  created through this scheme. shortlisting of  The scheme completed later candidates  than planned. 57 applicants with  came though the recruitment providers.  scheme with 38 offered

employment. 28 accepted the

role.

Recruitment  45  To appoint and  Monthly KPI  The scheme aimed to train five and Training  train staff.  meeting and  individuals who had never

of five Health  The money was  monthly  worked in healthcare and bring Care  awarded to  invoices on  as new members of staff into the Assistants  Jersey Hospice  delivery.  system- only three were recruited

Care.  and trained. The appointment and training seem to have

followed normal processes. As such, it is unclear how this achieves the aims of the FSF.

Coronation  750  To renovate a  Tendered  The new facility was opened on Park  facility that had  contract.  time and was within budget. Paddling  been unused

Pool  for over 20

years.

Spend  controls  of aims  

(£000)

Oakfield  403  Replacement of  Full tender  This project was awarded  

Fort Regent  process.  £3.2 million from the FSF. facilities.  However, the complexity of the

project and the impact of the delays due to the planning process meant that the project ceased to meet the requirements of the FSF and alternative funding mechanisms were then sought. £403,000 was spent from the FSF.

Source: Jersey Audit Office analysis

Recommendations

R4  Enhance procedures to ensure that the existence of potential conflicts of interest

and the mitigation actions taken are recorded in minutes of all oversight and decision making groups.

R5  Enhance procedures for awarding grants, to document clearly how the criteria for

the grant award are met or are expected to be met.

Overall impact of economic recovery schemes

44. The Government Plan for 2023-26 refers to the early signs of improvement in the economy. Since a pandemic peak in the lockdown of spring 2020, the number of people Actively Seeking Work (ASW) in Jersey has fallen from 2,290 to just over a quarter of that figure at 620, at 30 June 2022, the lowest number on record. This, combined with approximately 1,000 job positions being available, places the economy in a position of near-full employment and suggests a strong recovery from the pandemic. The number of people ASW at 31 March 2023 was 610.
45. The Business Tendency Survey (June 2022) provides strong evidence for economic recovery post-pandemic. The proportion of businesses reporting an increase in activity was 20% higher than those reporting a decrease. Where previously the hospitality industry was lagging behind other areas on a return to trend business activity' levels, due to extended periods of inactivity through the

pandemic, it has now caught up with other sectors. In March 2023, the all-sector business activity indicator was moderately positive, with a value of +12%.

46. One of the main objectives of the economic recovery schemes was to increase Gross Value Added (GVA) to above pre-pandemic levels. The economy contracted sharply in 2020. The 2020 GVA for the Island was £4,636 million compared to £4,972 million in 2019. The next report, 'Measuring Jersey's economy: Gross Value Added (GVA) 2022', will be released on 4 October 2023.
47. I have reviewed the reports issued by the National Audit Office (NAO) on the UK economic recovery schemes. Those schemes had similar objectives and have similar outcomes to date to Jersey's schemes in terms of providing essential support to the economy during the COVID-19 pandemic and achieving their primary objectives of preventing job losses and delivering financial support to businesses quickly during the COVID-19 pandemic. In addition, like Jersey, a risk was identified for the business support grant schemes that some of the support provided to some companies might not be needed or make a difference.
48. Key points from the comparison of the Jersey schemes and the findings of the NAO in respect of the UK schemes are that:

• unlike the Jersey CFPS, the Coronavirus Job Retention Scheme in the UK (CJRS) did not require a calculation of reduction in turnover as part of assessing the benefit payment, which meant that several billion pounds were distributed in grants to employers whose incomes were not significantly affected by the COVID-19 pandemic

• the estimate of CJRS fraud is based on limited data and it is unlikely ever to be known how much was paid incorrectly for furloughed employees. Jersey has carried out a significant amount of audit and testing of its CFPS claims and has a good understanding of the scheme's error and recovery rates; and

• in relation to business support grant schemes, in the UK there was a similar delay to Jersey in conducting follow up checks. The delay in followingup has made the recovery of amounts wrongly paid more difficult to achieve.

Social recovery schemes

Establishment of social recovery schemes

49. The States of Jersey recognised that if they were to recover from the impact of the COVID-19 pandemic, economic measures on their own would not be enough. The States of Jersey recognised that attempting to level up' through physical and economic infrastructure, whilst neglecting social infrastructure, risked making inequality even worse.
50. Therefore social recovery monies were allocated for four years from 2020 to 2023 covering a wide variety of schemes, as shown in Exhibit 10.

Exhibit 10: Social recovery measures

2020  2021  2022  2023 £000  £000  £000  £000

Social recovery  -  -  2,394  2,670 allocation

Children's mental health  214  955  -  - and wellbeing

Schools catch up  199  1,082  -  - package

Source: Jersey Audit Office analysis of States of Jersey Accounts and Government Plans

51. The Government decided very early in the COVID-19 pandemic that it needed to invest in schemes to improve the chances of recovering quickly, at the same time doing as much as possible to prevent the gap widening between those who were at a greater disadvantage in society and those who were deemed to be less at risk.
52. The disparity in how different groups experienced the COVID-19 pandemic has been a stark illustration of the impacts of entrenched inequality. This was particularly evident in the school population where learners had huge disruption to their lives. The pandemic also exacerbated other challenges such as for those experiencing poor mental health and wellbeing, resulting in a greatly increased demand for services.
53. Schemes focussed on children's mental health and wellbeing and on schools catch up covered the 2020 and 2021 financial years. Further social recovery monies

were agreed in the 2022-25 and 2023-26 Government Plans. The largest shares of this social recovery allocation went to CYPES and HCS with some small amounts (not reviewed as part of this work) to other departments.

Social recovery – education

Scheme objectives

54. It was not expected that the disruption to children's learning could be resolved quickly or easily. International reports continue to identify the significant impact that the COVID-19 pandemic has had, and continues to have, on children's education and wellbeing. The Government identified a further £1.4 million for 2022 and £1.9 million for 2023. The programme is still live and the final report will be published in 2024.

55. The social recovery fund is delivering the following programmes:

• Jersey Tutoring Programme (JTP)

• Reading Recovery Training

• Art and Wellbeing Project; and

• Mathematics Recovery Programme.

56. The objectives of the schemes are to continue to support the development of children and young people particularly targeting resources on those who need the most support.

Scheme controls

57. All schools are able to demonstrate how the funding was used to support groups of pupils (Special Educational Needs or Disabilities, Multilingual Learners and those eligible for Jersey Premium funding).  Schools also identified other individual pupils who had been impacted by disruption to schooling and those who were identified as vulnerable.
58. In measuring impact, it is important to measure both quantitative and qualitative data. As the schemes have progressed systems have been developed within schools and there has been a significant increase in gaining pupil, parent and teacher voice'. This has helped to continue to shape the programme for the future.

59. The latest COVID-19: Jersey Education Recovery Report from the School Improvement and Advisory Service (SIAS), published in March 2023 evidences the real and continued impact of the four programmes that have been set up using COVID-19 Recovery funding. All of the schemes have made a positive impact on Jersey's pupils.
60. Pupils in all 34 Government of Jersey non fee-paying and fee-paying schools have been supported by the JTP. The test data used to measure the impact of the JTP programme indicates that all groups have made progress despite the challenges of the COVID-19 pandemic.
61. The Reading Recovery Programme is on target to deliver training to more new teachers in order to have a number of specialist teachers.
62. The success of the Art and Wellbeing Project has been the combining of several component programmes which complement each other and culminated in an exhibition open to the public.
63. The Mathematics Recovery Programme has trained four Numbers Count' teachers and 18 teaching assistants, who can deliver specialist intervention programmes supporting pupils with the greatest needs.
64. These interventions were clearly monitored and the controls that are in place have enabled, and continue to enable, a full evaluation. The performance in Jersey compares favourably to the findings of NAO on similar interventions in England. The NAO found that the schemes in England:

• were inconsistent in addressing pupils' learning loss

• were not particularly successful in closing the attainment gap which had grown since 2019

• did not specify what success would look like; and

• were not clear on whether the resources were targeted to disadvantaged pupils.

65. The funding for Jersey's education schemes is expected to end in 2023. CYPES will need to ensure that there is an on-going plan to maintain the gains made as a result of the interventions.

Social recovery – further education

Scheme objectives

66. The health and the economic impacts of the COVID-19 pandemic have served to reveal and magnify pre-existing social and economic challenges and inequality. This further education project gave financial support to help increase the capacity and capability of Highlands College and its partners to support the anticipated demand from stakeholders for interventions to support social recovery.
67. The following key priorities were expected to be addressed through interventions within this scheme:

• mental health improvement

• child and family wellbeing

• reducing health and economic inequalities; and

• workforce wellbeing.

68. Highlands College was funded to put on a number of different programmes to address these, each one spanning between seven and ten courses, starting in April 2022 and continuing into 2023. The College also received economic support funding to provide additional further education courses for skills and learning for adults under the economic recovery programme.

Scheme controls

69. The College put in place a Social Recovery Board to oversee the governance, development and delivery of the Government funded social recovery programme activity, in line with the decisions of the Political Oversight Group (POG). Progress reports were provided to the Board on a quarterly basis and to CYPES.
70. To streamline the programme and enable the delivery to be managed, a four- tranche delivery approach was adopted:

• Tranche one – March to July 2022

• Tranche two – August to December 2022

• Tranche three – January to March 2023; and

• Tranche four – April to June 2023.

71. At the time of my review, this programme was still in delivery and reported to be on track.

72. To June 2023, the programme has successfully delivered to 384 students over four Tranches, with 146 students engaged in classroom learning until mid-July 2023. The number of students starting courses over Tranches one to three was 238. This grew to the end of Tranche three where 247 students had completed a 12-week class and achieved a completion certificate. The average attendance across the project over Tranches one to three (March 2022 through to March 2023) was 78%, with the highest class attendance sitting at 100% attendance over 12 weeks.
73. Following the course, 15 students sat Mathematics and English exams and 12 students who were not in education or training, were re-engaged in learning.

Social recovery – community dentistry

Scheme objectives

74. In January 2022 a business case totalling £416,000 was submitted to the POG to enable children who had not been able to have a dental appointment to receive the care they required. As most of the children's dentistry was administered through the hospital service, additional capacity needed to be provided to allow for each of these children to have an initial examination.
75. The funding was to enable the 2,800 children that were identified as having missed an appointment to be able to access dental care from a private general dental practitioner. Dental services providers underwent a pre-qualification process and followed a fixed fee pricing schedule.

Scheme controls

76. An open expression of interest to all Jersey registered dental practitioners was published inviting them to be pre-qualified and awarded a framework agreement, with a set fee pricing schedule. This was for 12 months with the objective of completing the project by 31 December 2022 but allowing for any delays or extension of the project into 2023.
77. Contact was attempted by HCS staff with all of the children who had not been able to access dental care, to inform them of their eligibility. Eligible children are recorded as one of opting in / out / un-contactable, to ensure a robust process of inclusion was completed. Data was collected on a weekly basis from all the practices to assess the impact and to monitor how the scheme was being delivered.  

78. HCS was successful in attracting dental practices to take part in the scheme, and about 1,300 appointments have been generated since the start of the scheme. While successful in this regard, the demand continues to outstrip capacity. Consideration needs to be given to how the service addresses this very challenging situation going forward.

Social recovery – Long COVID

79. In October 2020 a joint initiative was established between Public Health and HCS to cater for Islanders affected by Post-Acute Sequelae of COVID-19 (PASC or Long COVID). A clinic was founded at the General Hospital in January 2021 with a lead clinician and an administrative assistant.
80. Since January 2021 the clinic has reviewed and managed affected Islanders, with over 450 appointments in 2022. This has led to many Islanders being successfully managed, treated and subsequently discharged from the service. The service is planned to close in December 2023 when the care of remaining patients will be managed within primary care services.

Children's mental health and wellbeing

Scheme objectives

81. In 2020 a total of £536,000 was allocated to CYPES to help to address the impact of the COVID-19 pandemic on children's mental health and wellbeing. Only £214,000 (40%) of this was spent in 2020 due to difficulties in recruiting professionals. In 2021 the budget allocated was £955,000, all of which was spent. The money was intended to address key wellbeing and mental health issues that had been exacerbated by the pandemic and to enable Child and Adolescent Mental Health Services (CAMHS) to increase capacity to meet the higher number of children and young people requiring support. The money was also intended to implement a system-wide solution that aimed to prevent a further deterioration in service performance at modest cost, through emphasis on early intervention and enhanced resources for assessment.
82. A four-month Children and Young People Wellbeing and Recovery Plan was put in place by CYPES to deliver:

• the immediate emergency funding requirement to increase children's, young people's and families' access to emotional wellbeing and mental health support

• support, tools and techniques for parents, carers, children and young people to promote self-management and to manage their own mental health; and

• a wellbeing support package for front-line services to support practitioners to manage their own mental health and to provide them with the tools to better support both the increase in need and complexity of children, young people and families as they recover from the effects of COVID-19.

83. The 2021 business case focussed on investment in CAMHS in order to respond to a substantial increase in demand for mental health services through 2020 due to the COVID-19 pandemic. It focussed on supporting wellbeing and recovery for children, young people and families.
84. The main objectives of the scheme were to:

• reduce average waiting times from referral to treatment (average 2020 waiting time was 12 weeks)

• avoid a further growth in the number of children on the waiting list (in December 2020 there were 122 children on the waiting list)

• reduce the number of children's mental health related inpatient bed nights by 10% (from 527) by increasing the availability of treatment sessions; and

• increase the availability of treatment sessions.

Scheme controls

85. Expenditure was closely monitored on the schemes and projects with partners such as MIND Jersey and KOOTH (a commissioned online support service for children and young people) were reviewed regularly. Data on CAMHS was collected on a monthly basis with trends monitored.
86. While there was detailed analysis of spend, there was less information on the risks on an on-going basis for both children's and young people's mental health and wellbeing schemes. It was difficult to see the liaison between CYPES and HCS to deliver the expected holistic family' interventions. It was also unclear what the planned and actual outcomes from the wellbeing programme were, as there was no final report produced on the scheme.

87. The COVID-19 pandemic recovery allocated monies have helped to add capacity to CAMHS which has enabled the service to maintain waiting times at a fairly consistent level despite a significant increase in the level of referrals

Schools catch up

Scheme objectives

88. A total of £1.2 million was spent on schools catch up over the 2020/2021 period. This was deployed to address the loss of schooling experienced by pupils and students at primary and secondary school and the resulting impact on their learning. It was also used to establish a tutoring programme in addition to normal schooling as a means of reducing the impact of lost learning and to invest additional funding into tutoring, teacher training and other recovery programmes.
89. The programmes included:

• Jersey Tutoring Programme

• OLEVI Teaching Programme (OLEVI is an awarding organisation for the Accreditation of Educational Coaches and Facilitators)

• Reading Recovery Training; and

• Mathematics Recovery Programme.

90. The four support and training programmes were delivered by teachers, teaching assistants and members of the SIAS. The next phase of the programme was delivered – and continues to be delivered – through the social recovery monies.

Scheme controls

91. Two reports were produced on this scheme which was monitored throughout, both in terms of financial cost and outcomes. The second report was produced in March 2022 which set out clearly what had been achieved by the schools catch up money and recommended that the scheme be continued. This was taken on board by the Government in the allocation of social recovery monies to continue with similar interventions.

92. The schemes were evaluated as they were being implemented and early assessment of effectiveness was undertaken. Progress in Reading Assessment (PiRA) and Progress in Understanding Mathematics (PUMA) tests were undertaken three times during the programme (November 2020 to December 2021). This provided a valuable benchmark within standardised assessments in reading and mathematics. Progress was analysed across the whole primary phase, within individual schools and for different groups of pupils across and within schools. In summary, 4.56% of pupils achieved at greater depth' for their age and there were fewer pupils working towards', meaning they are now working at the required standard.
93. Within Government non fee-paying schools, 30% of pupils have been supported by the JTP. This has targeted those groups identified in the first SIAS report (children eligible for Jersey Premium, English as an Additional Language, and Special Education Needs or Disabilities). As a result, the test data used to measure the impact of the JTP programme indicates that all groups have made progress despite the challenges of the COVID-19 pandemic.
94. The Reading Recovery Programme delivered training to five teachers across the year. This not only provided a short-term solution, but it now means that Jersey has nine specialist reading teachers. This demonstrates the long-term benefits to such an investment. The 2023 programme will continue with this investment so that by the end of 2023, there will be 14 trained Reading Recovery teachers working across Jersey schools.
95. The OLEVI programme intends to assist all teachers through a carefully crafted training and support programme that puts the importance of coaching at its heart. This has received many positive comments and is continuing in 2023.
96. The Mathematics Recovery Programme trained over 200 teachers and teaching assistants in mathematics for children in Early Years/Key Stage 1 across all Government of Jersey schools. The programme aims to address any differences in learning between pupils as early as possible. There were early gains from this investment which continued into 2022 and 2023.

Health-related recovery schemes

Establishment of scheme objectives

97. The COVID-19 pandemic has been and continues to be a major disruptive force this decade, affecting health and care systems worldwide. The virus has increased the influx of patients in hospitals. Healthcare organisations are facing unprecedented constraints and resourcing issues in their operations to deal with increased demand, backlogs and pressed capacity.
98. Jersey is in a similar position to other countries, where the pressure on the service from treating COVID-19 patients along with potential reluctance to come forward for treatment, coupled with a staffing crisis, has resulted in unprecedented challenges for the delivery of health and care. Money has been allocated for health-related COVID-19 pandemic recovery measures from 2021 as shown in Exhibit 11.

Exhibit 11: Health-related measures

2020  2021  2022  2023 £000  £000  £000  £000

HCS service recovery  -  1,716  1,300  2,570 costs due to COVID-19

HCS COVID-19 recovery  6,476

Source: Jersey Audit Office analysis of States of Jersey Accounts and Government Plans

99. In 2021 HCS put forward a business case for service recovery costs. The business case for 2021 was for £1.7 million and for 2022 was for £1.3 million. The requested funding was expected to cover waiting lists and service delivery. Specifically the high-level objectives were:

• recovering from backlog positions created by COVID-19 by end of 2022; and

• reconfiguration of services from COVID-19 configurations, back into sustainable business as usual  positions by end of 2022.

100.  The resources were expected to cover:

• Primary, Preventative and Intermediate Care

• Medical Services

• Surgical Services

• Therapy Services

• Mental Health Services

• Social Care; and

• Support Services.

101.  I have been provided with information on how the priority for application of the

funds was determined, the risks that were associated with the schemes, the controls over delivery of the schemes and limited information on the performance of some of the schemes.

102.  A further business case was put forward and signed in April 2022 for COVID-19

recovery costs relating to 2022 of £6.4 million. The business case set out the objectives which were to:

• start the sustained recovery of elective surgical care and cancer screening through introduction of a different operating model

• continue to provide Islanders with access to emergency and specialist care in the UK; and  

• ensure HCS can maintain flow, safe care and that staff are supported both operationally and in their wellbeing.

103.  The business case also stated that the investment could not be met from existing

budgets. The main headings in the business case are set out in Exhibit 12.

Exhibit 12: HCS business case for 2022 COVID-19 recovery costs

Area  £ Cost Service Recovery:  1,602,422

- Cancer care

- Surgery waiting lists

COVID–19 Services  172,205 Temporary staffing  3,503,486 COVID-19-led demand – Social care beds  800,800

Area  £ Operational management  300,363

 Total  6,379,276

Source: Government of Jersey business case

Controls over the delivery of the schemes and achievement of scheme objectives

104.  I have been provided with information on how the priority for application of the

funds was determined, the risks that were associated with the schemes, the controls over delivery of the schemes and limited information on the performance of some of the schemes. For some schemes, how the funding was spent and how well the schemes' objectives were achieved were not monitored.

105.  I am therefore unable to assess how well some of the schemes were managed and

what resources the funding was spent on.

106.  I am also unable to assess whether some of the schemes achieved the objectives

set out in the approved business cases.

Recommendation

R6   Review current and implement enhanced procedures to improve performance and

financial management information in HCS. Ensure that management information reports that are produced relate finance to service outputs and service outcomes.

Appendix One Audit Approach

The review approach included the following key elements:

• review of relevant documentation provided by the States of Jersey

• interviews with key officers in: Economy; Treasury and Exchequer; Children, Young People, Education and Skills; Health and Community Services; and Customer and Local Services Departments; and

• an interview with the Chief Internal Auditor.

The documents reviewed included:

• Analysis of CFPS payments and jobs supported for phases 6 and 7

• Business cases, documentation on controls and performance reports for all economic support schemes

• Business cases, documentation on controls and performance reports for a sample of fiscal stimulus schemes

• Business cases, documentation on controls and performance reports for social recovery schemes managed by CYPES

• Business cases, documentation on controls, performance reports and relevant loan/grant agreements for all economic recovery schemes

• Covid-19 reports from other Government jurisdictions (mainly NAO reports for UK Government)

• Economic Recovery Political Oversight Group minutes

• End of scheme reports for VASS, FCSS and VAES

• Fiscal Stimulus Oversight Group minutes

• Independent audit firm reports on detriment testing of scheme claims

• Internal audit advisory note on the Technology Accelerator Fund

• Internal audit report on summary of detriment testing for CFPS, VASS and FCSS

• Jersey Government Plan 2023-2026

• Outline Economic Strategy for Jersey - A vision for 2040 published in May 2022

• Relevant Jersey Statistics reports

• Relevant Ministerial Decisions

• States of Jersey Annual Report and Accounts 2020, 2021 and 2022

• The PAC report on the Covid-19 Response: Spend Local Scheme published on 11 October 2021; and

• The report of the Independent Covid-19 Review Panel published in July 2022

The following people contributed information through interviews or by correspondence:

• Associate Director for Innovation, Transformation and Business Support, CYPES

• Chief Economic Advisor  

• Chief Internal Auditor

• Chief Officer, Department for the Economy

• Chief Officer, HCS

• Director of Clinical Services (Interim)

• Director of Improvement and Innovation, HCS

• Director, Treasury and Investment Management

• Head of Business Management and Governance, Department for the Economy

• Head of Finance, HCS

• Head of Investment Appraisal, Treasury Department

• Head of Office of the Chief Executive, Cabinet Office

• Investment Appraisal Advisor

• Manager, Investments

• Senior Business Planner, HCS

• Senior Manager, Pensions and Care

• Treasurer

The fieldwork was carried out by affiliates working for the Comptroller and Auditor General, from March to July 2023.

Appendix Two

Summary of Recommendations and Current work planned that should be prioritised

R1 Enhance procedures to ensure that post payment audit checks take place on a

timely basis for all benefits, grants and support schemes that rely on such checks as a key element of internal control.

R2 Document the lessons learnt from the implementation of the Co-Funded Payroll

Scheme in a final report and ensure they are used when considering the design of future benefits and other schemes established by Government to support businesses and individuals.

R3  Review the lessons learnt from the implementation of all COVID-19 support

schemes when considering the design of future benefits and other schemes established by Government to support businesses and individuals.

R4 Enhance procedures to ensure that the existence of potential conflicts of interest

and the mitigation actions taken are recorded in minutes of all oversight and decision making groups.

R5 Enhance procedures for awarding grants, to document clearly how the criteria for

the grant award are met or are expected to be met.

R6 Review current and implement enhanced procedures to improve performance and

financial management information in HCS. Ensure that management information reports that are produced relate finance to service outputs and service outcomes.

Work planned that should be prioritised

P1 Carry out a retrospective review of the VAES final accounts that are submitted for

filing purposes to ensure that the applicants have met all the requirements for the months for which claims were paid.

47 | Economic, Social and Health-related Recovery from the COVID-19 pandemic