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Public Accounts Committee - Approved Committee Minutes - 17 September 2012

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Public Accounts Committee

Record of Meeting

Date:   17th September 2012 Meeting No:  8

 

Present

Deputy T. Vallois, Chairman Senator S. C. Ferguson, Deputy R. Rondel

Mr S. Haigh

Mr I. Ridgway

Mr J Mills

Absent

Deputy S. Pitman

In attendance

Mr M. Robbins, Scrutiny Officer

 

Ref Back

Agenda matter

Action

 

1. New Members

The Chairman observed that Mr I. Ridgway and Mr J. Mills had their names approved by the States on 11th September 2012 and welcomed

them to the Committee.

 

 

2. Records of Meetings

th July 2012.

The Committee approved the record of its meetings of 9

MR

 

3. Conflict of Interest:

Senator Ferguson reminded the Committee that she had a conflict of interest on the issue of Lime Grove House and would be taking no part in those proceedings.

In relation to the Financial Report and Accounts Review, Mr. Ridgway declared being a member of PECRS and Mr. Mills declared receipt of a PECRS Pension. Deputy Rondel declared being in receipt of a grant to Rondel Farms.

 

Item  3 09.07.12

4. Comptroller and Auditor General.

The  Chairman  provided  the  Committee  with  an  oral  update  on  the position relating to the post of Comptroller and Auditor General. Article 41(1) of the Public Finances (Jersey) Law 2005 placed a responsibility on  the  Chairman  of  the  Public  Accounts  Committee  and  the  Chief Minister  to  present  a  proposition  to  the  States  recommending  the appointment of a Comptroller and Auditor General. Discussions were underway as to whether it was more appropriate to engage a temporary post holder or a permanent post holder. The Committee recommended the appointment of a permanent post holder.

 

 

The Committee discussed the consideration of using the National Audit Office to support the Comptroller and Auditor General and decided that this was not the most appropriate way forward as the post held the ability to create an office in Jersey as required.

It was agreed that the post was key to rigorous financial governance in the Island and that decisions needed to be made expeditiously to allow the recruitment process to begin.

 

Item  4 09.07.12

5. Constitution of the Committee.

The  Committee  discussed  the  constitution  of  the  Committee  and considered the benefits or otherwise of extending the Committee by one more States Member and one more non-elected member. It was agreed that  the  Committee  was  the  correct  size  as  currently  constituted, however,  full  commitment  was  required  from  every  member.  The Chairman  was  to  discuss  the  matter  of  attendance  with   Deputy  S. Pitman who, whilst it was recognized had been ill, was absent from the meeting.

It was further recognized that should any current States Member wish to stand down, there was interest being shown from other States Members to join the Committee.

TV

Item  5 09.07.12

512/17

6.  Lime  Grove  House:  failure  to  acquire  for  use  of  Police Headquarters

The Committee recalled the background relating to Lime Grove' and agreed that there were issues that fell within the remit of the Committee which needed public examination. Due to the political nature of the problems surrounding this subject, the Committee was to focus on the unresolved issues of process, not the personalities involved. It was agreed that a review would be undertaken by the Committee. It was also  noted  that  the  lead  support  officer  in  this  case  would  be  the Scrutiny Manager.

The Committee agreed that the Chairman was to inform the Chairmen's Committee of that decision at its meeting on 18th September 2012.

Following that, scoping documents and Terms of Reference were to be drafted and the Chairman was to report back to the Committee at its next meeting.

TV

Item  6 09.07.12

512/15

7. Compromise Agreements: Review of the C&AG Reports

The Committee noted the response to the recommendations within its report from the Chief Ministers Department and noted that most of the recommendations were agreed.

It was noted that recommendation 3.10:

"The  Chief  Minister  must  provide  the  Corporate  Services Scrutiny Panel with a timeline as to when he intends to change his policies in respect of the recommendations contained within the reports of the Comptroller and Auditor General"

had a response from the Chief Minister's Department stating:

"A plan will be presented to the SEB on 18/9/12 which will provide  for  integrated  transition  planning  of  the

 

 

recommendations  that  have  been  accepted  contained  in  the report. This will facilitate future monitoring of activity by CSSP."

It was considered that this matter now fell outside the remit of the Committee but within that of the Corporate Services Scrutiny Panel. In the spirit of Scrutiny working together to hold the Executive to account, the Committee required that a letter was sent for the consideration of the Corporate Services Scrutiny Panel.

In relation to recommendation 3.3:

"The States Employment Board must reconsider the role of the Chief Executive Officer so that it is clearly defined in light of the significant  changes  to  that  post  due  to  the  adoption  of P.124/2004 (Amd 3). Alternatively that Amendment should be rescinded."

The Committee was informed that Mr J. Mills was to make a personal submission to the Machinery of Government Review.

All the accepted recommendations were to be noted and the items placed  on  the  agenda  of  future  Committee  meetings  immediately preceding the target dates.

MR

MR

 

8. Financial Report and Accounts 2011.

The Committee welcomed the Treasurer of the States and members of her Treasury who provided a briefing on the preparation and content of the Financial Report and Accounts 2011. The Committee agreed that this had been very useful and it had inspired confidence that good practice and governance of the accounts was at the forefront of the efforts of the Treasurer of the States.

The Committee considered draft scoping documents. It was noted that Standing Orders 132 (1) (a) required the Committee to receive reports from the Comptroller and Auditor General on the results of the audit of the annual financial statement of the States and to report to the States upon any significant issues arising from those reports. This was not possible as the Island did not have a Comptroller and Auditor General in post. It was agreed that the solution lay within Standing Order 132(c), which required the Committee to assess whether public funds have been  applied  for  the  purpose  intended  by  the  States  and  whether extravagance and waste were being eradicated and sound financial practices applied throughout the administration of the States.

However, the draft scoping document was to be amended. The wording of the Type of Review' was to read:

The review will be carried out in order to assess –

  1. Whether  public  funds  have  been  applied  economically, efficiently and effectively.
  1. Whether the accounts represent value for money.
  1. Whether the previous recommendations made by the Public Accounts Committee regarding the States Accounts have been implemented  and  the  problems  identified  satisfactorily

 

 

addressed.

The Terms of Reference were to read:

  1. To consider the States of Jersey Financial Report and Accounts 2011to establish:
  1. Whether public funds have been applied economically, efficiently and effectively; and
  2. whether the accounts represent value for money.
  1. To  establish  if  the  issues  identified  in  the  Public  Accounts Committee's reviews of previous States Accounts have been addressed.
  2. To Report the findings of the review to the States of Jersey.

The Committee agreed that no outside advisor was required for the review and that the budget was to comprise solely of the means to finance hearings. All other costings were to be removed. A budget of £1,200 was approved.

The Chairman informed the Committee that she had been provided with documents  from  the  Treasurer  of  the  States  relating  to  the Comprehensive  Spending  Review  that  were  relevant  to  the  review. They were to be circulated to the Committee.

Despite the confidence from the briefing, the Committee agreed that there  were  definitely  areas  that  needed  examination.  The  areas  of particular interest included:

  • Appendix A of the Annex to the Financial Report and Accounts 2011: Grants.
  • Quality of Budgeting
  • Under spends and Carry Forwards
  • Careful  examination  of  the  ISA  260  provided  by  the external Accountants.
  • PECRS FSR17.
  • Income Support costs to the island.

The Committee continually returned to the same question being asked in each case. "Was that value for money?" It was decided that this was to be the underlying theme for the review.

Witnesses were to include the Chairman of PECRS, a representative of Price Waterhouse Cooper and the Chief Internal Auditor.

The scoping document and Terms of Reference, once amended were to be approved by the Chairman and sent to the Chairmen's Committee for consideration. There was to be no press involvement at this time. The Committee considered that there was nothing of value to inform them of at this time. Hard copies of the review documentation were not expected  to  be  required  and  documents  were  to  be  circulated electronically.

 

 

9. Future Meetings

 

 

The Committee agreed that the next formal scheduled meeting was to be at 12.30 pm on Monday 15th October 2012 in the Blampied Room of

the States Buildings.

MR