Jersey Audit Office 20th Anniversary Annual Reporting Good Practice Guide
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Contents
Introduction 1 Single Annual Report
Accountability Report
Corporate governance arrangements 34 Accountability 37 Remuneration 40 Staff 43
Performance Report
Purpose, strategic objectives and delivery model 11 Financial Statements 47 Performance analysis 15
Performance context 18 2025 Annual Reporting Award Winners 49 Financial Performance 22
Risk 25
Operating model 28
Environmental, social and governance reporting 30
Introduction
Annual reports are a key means by which an entity tells the story of its year. Public annual reporting, done well, enables stakeholders to understand –with trust and confidence –an entity's strategy and the risks it faces, how much money has been spent and on what, and what has been achieved as a result. It enables stakeholders to hold the entity to account effectively.
In this 20th Anniversary Year of the Jersey Audit Office, we have recognised publicly the best annual reporting by States owned and States our Annual Reporting Awards. Congratulations to all the winners and all those who were shortlisted.
This Good Practice Guide shares some of the good practice we observed in reviewing the 2024 Annual Reports of 43 entities. It i that we consider make a good practice annual report.
If you would like further information about the Guide, or any aspect of annual report and accounts production, please get in
established entities through s structured around the key elements
touch via e[email protected].
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Performance Report | Accountability Report Financial Statements | ||||||||||
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Purpose, strategic objectives and delivery model | Corporate governance Prepared under a suitable arrangements framework | ||||||||||
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Performance context | Remuneration | ||||||||||
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Risk |
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Operating model |
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Environmental, social and |
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governance reporting |
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Transparent
The best reports convey openness and transparency through: Examples
• frank and honest analysis 1. Frank and honest analysis of issues
• realistic consideration of challenges and opportunities 2. Reporting throughout on challenges and opportunities
• appropriate use of data, metrics and quality indicators; and
- Clear reporting on whether targets are
• routinely using comparators (internal and external) to demonstrate the entity's met
relative position and over time.
- Reporting on customer outcomes
Readers should be able to conclude that they have been provided with a clear and
trustworthy picture of the entity's year.
- Clear reporting on income and expenditure
Example 1. Frank and honest analysis of issues
Jersey Development Company includes in its 2024 annual report a reference to health and safety, and what it has done in response to an incident.
Financials | Jersey Development Company
Example 2. Reporting throughout challenges and opportunities
Jersey Post's annual report sets out its challenges and its work to address these throughout its report. This includes identifying things that needed to be changed or enhanced.
jerseypostgroupannualreport2024.pdf
Example 3a. Clear reporting on whether targets are met
Jersey Competition Regulatory Authority notes planned outcomes for 2024 that were partially or not met.
Example 3b. Clear reporting on whether targets are met
Jersey Water sets out its performance against targets, with year on year comparison.
Example 4. Reporting on customer outcomes
Jersey Post includes its customer satisfaction survey outcome in its annual report. It also makes clear what it intends to do to improve stakeholder engagement.
jerseypostgroupannualreport2024.pdf
Example 5. Clear reporting on income and expenditure
Jersey Competition Regulatory Authority makes clear its income and spend by activity.
The best reports are designed and set out to be accessible and to meet the needs of
the entity's stakeholders through: Examples
• use of plain language, including to explain complex concepts 1. Engaging users in accessible ways
• infographics and diagrams to communicate important messages; and 2. Use of plain language to explain complex concepts
• a clearly integrated report structure to help users navigate it effectively.
The highest performing entities go one or more steps further to actively consider and 3. Use of infographics to communicate address the needs of particularly relevant groups. For example, annual reports might important messages
link to:
• information designed to meet the needs of relevant audiences, for example children or young people or those whose first language is not English; and / or
• multi-media presentations of key messages for easy access.
Example 1. Engaging users in accessible ways
Jersey Competition Regulatory Authority has focussed on the needs of those who wish to engage with its annual report in three notable ways:
• sections of document are set out across the top of each page and hyperlinked, so online readers can use a single click to navigate at any time
• activities undertaken in year are set in the context of highlights, linked to objectives and what has been achieved against ambitions; and
• the JCRA website includes a link to a video introducing its annual report and accounts.
In addition, JCRA use infographics throughout its annual report.
Example 2. Use of plain language to explain complex Example 3. Use of infographics to communicate important concepts messages
Jersey Water includes easy to understand information on spend.
The States of Jersey Group annual report sets out activities to deliver strategic priorities and Service Performance Measures against targets.
Purpose, strategic objectives and delivery model
In the best reports the performance report is clearly set out and links purpose, strategy, Examples
risk management and performance to tell the story of the entity's year. It is owned' at
an appropriately senior level – for example through a signed statement by the Chief 1. Purpose, goals and strategic priorities Executive (or equivalent).
2. Linking objectives to outcomes
The performance report makes it clear to any reader: 3. Aligning resources to priorities
• what the entity is constituted to do (its purpose and goals), including strategic
objectives
• how the entity supports wider States (and other) objectives; and
• how the entity operates (delivery model).
Example 1: Purpose, goals and strategic priorities
Jersey Care Commission sets out clearly its purpose, priorities, activities and approach to delivery.
Example 2: Linking objectives to outcomes
Jersey Water summarises its overall outcome objective both as an organisation and in terms of the benefit to the community.
Example 3: Aligning resources to priorities
Jersey Business sets out its key service areas and shows how it aligns its resources to deliver its priorities.
A clear framework reports purpose, performance and impact against targeted themes.
Performance analysis
The best reports include: Examples
• a balanced view of overall progress in achieving the entity's purpose and goals 1. Using KPIs aligned to strategic objectives
2. Interpretation of implications and actions
• a statement from the lead Minister, Accountable Officer, Chief Executive or equivalent setting out their perspective on how the entity has performed
• analysis using key performance indicators (KPIs) aligned to strategic objectives; and
• interpretation of performance implications, including actions to manage shortfalls / build on success.
Example 1: Using KPIs aligned to strategic objectives
Andium Homes' annual report provides an easy to follow link between strategic aims and progress, including in comparison to the previous year. The report also sets out the performance measures for each strategic aim.
Andium-Homes-Annual-Report-2024.pdf
Example 2: Interpretation of implications and actions
Jersey Care Commission sets out activities undertaken to achieve its objectives, in-year progress, next steps and performance against related Key Performance Indicators.
Performance context
The best reports ensure that the performance narrative is set out in the context of:
Examples
• an analysis of key in year risks to meeting strategic objectives 1. Showing the financial impact of the operating environment
• financing / other resourcing; and
- Analysing and responding to stakeholder needs
• the overall operating environment (including external factors).
- Disclosing the operating environment context
The reader should be able to understand the risks and opportunities the entity has
faced in year and how these have affected performance.
Example 1: Showing the financial impact of the operating environment
Visit Jersey summarises the financial impact of its operating environment.
Visit Jersey Annual Reports & Financial Statements | Visit Jersey Trade & Media
Example 2: Analysing and responding to stakeholder needs
Jersey Advisory and Conciliation Service makes clear how the needs of its stakeholders are changing through analysing and presenting data on website searches. It also sets out how it is responding to stakeholder needs.
Example 3: Disclosing the operating environment context
Jersey Development Company includes consideration of the context in which it is and will be operating.
Financial performance
The best reports set out financial performance so that it is: Examples
• consistent with the underlying financial statements; and 1. Using infographics to show financial performance
• clear how the entity actually performed against finance plans / budgets. 2. Showing the financial performance against targets
Readers should be able to easily understand the entity's spend against how it set out its
budget for the year.
Example 1: Using infographics to show financial performance
The States of Jersey Group's annual report includes a useful summary of financial performance, presenting complex information in a straightforward way.
States of Jersey Group 2024 Annual Report
Example 2: Showing financial performance against targets
Jersey Water summarises its financial position against targets, followed by an explanation of the position.
Risk
The best reports demonstrate that the entity has a focus on risk management by:
Examples
• clearly setting out its risk identification and management processes 1. Risk framework, risks and heat map
• quantifying risks 2. Changing risk profile
• establishing risk treatment criteria (for example, tolerance or mitigation)
• reflecting the external environment in risk consideration
• ensuring the narrative makes clear how risks and opportunities are taken into account in setting strategic objectives; and
• consideration of how the risk profile has changed or might change over time.
Example 1: Risk framework, risks and heat map
Jersey Electricity sets out its risk management framework alongside its risk appetite, principal risks and uncertainties, and a heat map of current risks.
annual-report-and-accounts-2024-web.pdf
Example 2: Changing risk profile
Jersey Care Commission sets out its key risks and includes trends and commentary on the changing risk profile.
The best reports make clear how the entity is set up to delivers its purpose.
Examples:
Where relevant, this includes:
- Narrative description of the operating
• for significant contracted-out services, how contracts are awarded and how the entity model and how it delivers value for money
manages the ongoing contract; and
- Description of significant outsourced
• consideration of capital investment and how it achieves value for money. services
Example 1: Narrative description of the operating Example 2: Description of significant outsourced model and how it delivers value for money services
The Public Employees Pension Fund annual report provides a The Jersey Resolution Authority provides a clear description of description of both the operating model and how value for money significant outsourced services.
is sought.
Environmental, social and governance reporting
The best reports show that the entity considers Environmental, Social and Governance (ESG) sustainability (its non-financial risks and opportunities), including external factors by:
• identifying relevant ESG objectives
• setting metrics and targets to assess and manage its ESG sustainability ambitions
• adopting a recognisable and relevant sustainability framework to evaluate its contribution – for example the Jersey Performance Framework, UN Sustainable Development Goals
• evaluating and reporting, in a balanced way, its sustainability performance; and
• establishing action plans to improve performance and to manage future risks and opportunities.
Readers should be able to understand the extent to which the entity considers its impact on the environment, how it can benefit communities and the need for openness. It should also be made clear how the entity integrates ESG goals within its strategic objectives and its operating model.
Examples:
- Defining sustainability for the entity
- Reporting against metrics and targets
- Setting out the sustainability journey and key actions
Example 1: Defining sustainability for the entity
The Ports of Jersey describes its Planet and People Plan, launched in March 2022, which establishes priorities, goals and initiatives aligned to the UN SDGs and the Jersey Performance Framework. It sets out four priority pillars that define sustainability at Ports of Jersey.
Ports-of-Jersey-Annual-Report-2024.pdf
Example 2: Reporting against metrics and targets
JT has reviewed and updated its ESG commitments to align to both the Jersey Performance Framework (and Island Outcome Indicators) and the UN Sustainable Development Goals. The progress report for each of its objectives demonstrates this alignment.
Andium Homes shares its ESG improvement ambitions and makes clear it has sought external, expert advice to support the Sustainability Strategy.
Andium-Homes-Annual-Report-2024.pdf
Jersey Post uses an infographic to engage people in its sustainability journey.
jerseypostgroupannualreport2024.pdf
33
Corporate governance arrangements
The best reports explain the entity's corporate governance arrangements by setting Examples: out:
• its corporate governance structure 1. Corporate governance structures
• the names of accountable individuals – in most cases the Chair and Chief Executive 2. Statement of responsibilities
• a statement of responsibilities of accountable individuals
• the composition of the board of directors (or equivalent)
• how the entity assures its governance arrangements - for example by committing to /
implementing relevant best practice principles / standards; and
• information on personal data related incidents that have been formally reported to the Jersey Office of the Information Commissioner, or confirmation that no incidents have been reported.
Example 1: Corporate governance structures
The States of Jersey describe their accountability framework succinctly. Jersey Sport shows how it is structured to support the Island
community.
a5wgqiub2024-annual-report.pdf States of Jersey Group 2024 Annual Report and Accounts.pdf 35
Example 2: Statements of responsibilities
Jersey Post very clearly sets out its Directors' responsibilities and statement of compliance
jerseypostgroupannualreport2024.pdf
Ports of Jersey notes in one place who does what in terms of governance. It also sets out the
Accountability
The best accountability reports include adequate information about: Examples:
• the board's (or equivalent) performance, for example through an assessment of its effectiveness or where relevant against corporate governance codes 1. Board performance evaluations
• the board (or equivalent) committee structure and the responsibilities of each 2. Board attendance committee (or a statement that there are no committees)
• attendance records for board (or equivalent) meetings and, where relevant, committee meetings
• details of directorships and other significant interests held by members of the board (or equivalent) which may (or may be perceived to) conflict with their management responsibilities, or a statement that there are none; and
• highlights of key board committee (or equivalent) activities in year, for example audit, risk and remuneration committees.
The Jersey Office of the Information Commissioner's annual report includes its process for Board performance evaluation.
Jersey Development Company publishes its approach to performance assessment of the Board.
joic-annualreport-2024-12-6.pdf Financials | Jersey Development Company
The Digital Jersey annual report includes a focus on attendance at
both Board meetings and meetings of its Remuneration and
Nominations, Audit and Risk, and Impact Jersey Steering
Committees across the year. There is a useful breakdown of what each committee does.
Remuneration
The best reports set out remuneration information for the board of directors (or Examples: equivalent), including:
1. Remuneration reporting
• the level of remuneration of board members (or equivalent)
1. Pay policy reporting
• the level of remuneration of senior (for example board level) staff
• the policy on the remuneration of directors (or equivalent) for the current and future years
• components and the overall single total remuneration figure for each director (or equivalent); and
• an explanation for any significant changes from previous years, or a statement that there have not been any.
Remuneration
Example 1: Remuneration reporting
Jersey Development Company clarifies all parts of its Board Directors' remuneration.
Financials | Jersey Development Company
Remuneration
Example 2: Pay policy reporting
The States of Jersey Group annual report makes
clear the principles underpinning staff reward. JT makes clear in its annual
report how it intends its pay policy to work in retaining staff.
States of Jersey Group 2024 Annual Report and Accounts,pdf
Staff
For entities with paid staff, the best reports include: Examples:
• number of staff 1. Fair pay reporting
• number of staff by grade 2. Gender analysis reporting
• overall staff costs 3. Staff reporting
• relevant fair pay data such as: highest paid director's remuneration compared to average, lower quartile, mid point, upper quartile staff remuneration; and the range of staff remuneration
• a gender analysis of directors, senior and other staff
• sickness absence data
• staff policies applied during the year, for example in respect of disabled persons, diversity, equality of opportunities
• other significant in year employee matters such as employee consultation; and
• exit packages – summary data on the use of exit packages agreed in year.
Staff
Example 1: Fair pay reporting
The States of Jersey Group's annual report includes a well set out Jersey Development Company analyses pay ratios across the fair pay disclosure Company
States of Jersey Group 2024 Annual Report and Accounts.pdf Financials | Jersey Development Company
Staff
Example 2: Gender analysis reporting
The Digital Jersey staff report includes at a glance' information on the gender mix of the Board and of the staff team.
Jersey Electricity notes the diversity of its workforce.
Statistics Jersey makes clear that its priorities include developing staff and supporting the profession.
R-Chief-Statistician-Annual-Report-2024-SJ202507.pdf
Jersey Water includes a range of staff data which might help readers form a view of the organisation as an employer.
The Jersey Office of the Information Commissioner's annual report includes initiatives undertaken to support and develop its workforce.
joic-annualreport-2024-12-6.pdf
46
Financial Statements
For entities required to publish audited financial statements, the best reports include Examples:
declarations from an accountable individual to confirm that:
1. Providing specific assurance
• as far as they are aware, there is no relevant audit information of which the entity's
auditors are unaware, and that the accountable individual has taken all the steps that 2. Being specific on going concern they ought to have taken to make themselves aware of any relevant audit information
and to establish that the entity's auditors are aware of that information
• the annual report and accounts as a whole is fair, balanced, understandable and that they take personal responsibility for the annual report and accounts document and the judgements required for determining that it is fair, balanced and understandable; and
• where relevant, an explanation of the adoption of the going concern basis.
Financial Statements
Example 1: Providing specific assurance Example 2: Being specific on going concern
Jersey Competition Regulatory Authority provides specific The Jersey Resolution Authority makes clear what it means by assurance on its management of its grant from the States of Jersey. going concern'.
2025 Annual Reporting Award Winners
Most improved annual report Best sustainability reporting
Jersey Care Commission JT
Jersey Competition Regulatory Authority Jersey Development Company JT Jersey Electricity
Ports of Jersey
Most accessible and engaging annual report
Going above and beyond in annual reporting Jersey Competition Regulatory Authority
Jersey Advisory and Conciliation Service
Jersey Electricity
Jersey Resolution Authority
JT
Best small and medium entity annual report
Best staff and remuneration reporting for small and medium entities Jersey Development Company
Jersey Development Company Jersey Care Commission
Digital Jersey Jersey Competition Regulatory Authority Jersy Office of the Information Commissioner
Best large entity annual report
Best staff and remuneration reporting for large entities Jersey Water
States of Jersey JT
Jersey Electricity States of Jersey
Ports of Jersey 49
The purpose of the Comptroller and Auditor General (C&AG), fulfilled through the Jersey Audit Office (JAO), is to provide independent assurance to the people of Jersey on the extent to which public money is spent economically, efficiently and effectively and on whether the controls and governance arrangements in place within public bodies demonstrate value for money. The C&AG's remit includes the audit of financial statements and wider consideration of public funds, including internal financial control, value for money and corporate governance.
This Guide can be found on the Jersey Audit Office website at https://www.jerseyauditoffice.je/ If you need a version of this report in an alternative format for accessibility reasons, or any of the exhibits in a different format, please contact enquiries@jerseyauditoffice.je with details of your request.
All information contained in this Guide is current at the date of publication.
The Comptroller and Auditor General and Jersey Audit Office are not responsible for the future validity of external links contained within the report. All information contained in this Guide is © Copyright Office of the Comptroller and Auditor General and the Jersey Audit Office, with the exception of extracts included from external sources, which are © Copyright to those external sources. The information contained in this Guide is for non-commercial purposes only and may not be copied, reproduced, or published without proper reference to its source. If you require the material contained in the report for any other purpose, you are required to contact enqui[email protected] with full details of your request.
LYNN PAMMENT CBE
Comptroller and Auditor General
Jersey Audit Office, De Carteret House, 7 Castle Street, St Helier, Jersey JE2 3BT
T: +44 1534 716800 E: [email protected] W: www.jerseyauditoffice.je