Public Accounts Committee – Approved Committee Minutes - 27 July 2015

Present

Deputy A.D. Lewis , Chairman Connétable C.H. Taylor Deputy J.A. Martin

Deputy S.M. Wickenden

Mr. G. Drinkwater

Mr. M.J. Robinson

Apologies

Mr. R.J. Parker

Absent

In attendance

Mrs. K. McConnell, Comptroller and Auditor General Mr. I. Clarkson, Clerk to the Public Accounts Committee

Ref Back

Agenda matter

Action

A1.  Minutes

The minutes of the meetings held on 6th July and 8th July 2015 were approved.  

512/1/1(8)

A2.  Conflicts of Interest

No new conflicts of interest were declared.

The Committee noted that, in the event of a decision by the Committee to pursue a review of the JT Group shareholder relationship with the States,  Mr.  G.  Drinkwater  would  declare  a  conflict  of  interest  and withdraw from Committee proceedings.

Item A4 06.07.15

512/1/1(1)

A3.  Work Programme

The Committee noted an updated report concerning the status of its work programme for 2015 and beyond.

The Committee revisited the reports entitled, Car Parks Trading Fund' (PAC.3/2013 refers) and Health and Social Services: Integrated Care Records Programme' (PAC.2/2014 refers), which had been produced by the Committee as previously constituted. It was noted that both reports had made recommendations designed to improve the content and clarity of information within the next Medium Term Financial Plan. Having considered the content of the Draft medium Term Financial Plan 2016 – 2019, the Committee remained to be convinced that the relevant recommendations  had  been  implemented.   On  that  basis  the Committee instructed its officer to prepare a draft comment to the Draft Medium Term Financial Plan for consideration by the Committee at its next scheduled meeting. Committee members resolved to familiarise themselves with the detailed findings of PAC.3/2013 and PAC.2/2014 in the intervening period.

The Committee agreed that it should give consideration to the States of

Officer Cttee

Jersey Financial Report and Accounts 2014 during the latter part of 2015. In this regard, it agreed that contact should be made with the States of Jersey external auditors with a view to securing a presentation regarding the process of compiling the Independent Auditors' Report.

The Committee, having recalled its decision of 6th July 2015 to defer a follow-up  review  of  R.109/2014,  noted  that  the  Corporate  Services Scrutiny Panel had yet to launch a review of the offer by the owner of the Airtel telecommunications business to purchase a partial stake in JT Global. It was agreed that the Chairman should make contact with the Chairman  of  the  Corporate  Services  Scrutiny  Panel  and  establish whether that Panel intended to launch such a review.

Officer

Chair

A4.  Terms of Reference (Standing Order 132)

The  Committee  received  a  report  concerning  Standing  Order  132 (Public Accounts Committee: Terms of Reference').

The  Committee  deferred  consideration  of  the  report  to  its  next scheduled meeting.

Officer

Item A8 06.07.15

512/27

A5.  Public Sector Reform

The Committee gave further consideration to the transcript of the public hearing  held  on  15th  June  2015  and  considered  a  breakdown  of budgets allocated to, and monies expended on, specific elements of the Public Sector Reform programme.

The  Committee  considered  the  extent  to  which  the  programme appeared to be being managed as a discrete and auditable change programme  with  readily  identifiable  key  milestones  and  a  clear programme end date. It further considered how or whether specific change projects were being progressed separately from activities which might ordinarily be classified as business as usual.

The Committee recalled the restrictions placed on the Committee by the Chief Minister's Department regarding the alleged confidential status of certain documents supplied during the course of the review.

Certain provisional concerns were expressed regarding the manner in which the programme was being coordinated and regarding indications that  the  original  vision  for  the  programme  had  been  or  was  being overtaken by recent developments concerning the relative strength of public finances. In this regard, the Committee considered whether the programme  vision  and  key  objectives  had  been  refined  or  reset accordingly.

The Committee agreed –

1. that a draft report reflecting the Committee's views should be prepared for subsequent consideration by the Committee, and
2. that it would be minded to invite the Comptroller and Auditor General  to  consider  undertaking  a  review  of  one  or  more aspects of the Public Sector Reform programme in relatively early course.

Officer Cttee

Item A1 08.07.15

A6.  Financial Directions

The Committee considered a written response from the Treasurer of the

512/25

States to the Committee's draft report entitled: Financial Directions.' The Committee welcomed the Treasurer of the States.

The  Treasurer  of  the  States  expressed  various  concerns  regarding aspects of the Committee's draft report and invited the Committee to consider amending its draft report accordingly. He summarized certain implications that the planned development of revised, principles-based Financial Directions might have for the organization and he outlined the workload of the Treasury and Resources Department since the summer of 2014 relative to the resource available. The Committee was advised that  the  Department  had  somewhat  unexpectedly  experienced  the highest number of applications for information made since the Freedom of Information (Jersey) Law 2011 had come into force. The Treasurer explained that a plan for the necessary work had been devised, albeit that the plan could not yet be supplied to the Committee in documentary form. A report describing the outcomes of an Internal Audit review of the implementation  of  previously  agreed  audit  recommendations  would assist the planned work.

The Treasurer withdrew from the meeting following further discussion of aspects of the Committee's draft report.

The Committee agreed that a series of minor amendments to its draft report  should be made and that a suitably revised draft should be circulated for Committee approval in early course.

Officer

Item A9 06.07.15

512/1/1(1)

A7.  Comptroller and Auditor General – Work Programme

The Committee –

1. received a briefing on the status of the Jersey Audit Office Audit Plan, and
2. received an oral briefing on the status of the following ongoing follow-up reviews being undertaken by the Jersey Audit Office –

1. Internal Audit,
2. Management Information in Health and Social Services Department Operating Theatres, and
3. Procurement.