Budget Management Report for the period ended 31st December 2013

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 26 June 2014:

Decision Reference: MD-TR-2014-0058
Decision Summary Title:	Finance Law Delegation Report for the Six Month Period Ended 31st December 2013		Date of Decision Summary:	18th June 2014
Decision Summary Author:	Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Finance Law Delegation Report for the Six Month Period Ended 31st December 2013		Date of Written Report:	18th June 2014
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Report on Finance Law Delegation disclosures for the six month period ended 31st December 2013.
Decision(s): The Minister approved the report detailing Finance Law Delegation disclosures for the six month period to 31st December 2013 and requested that it be presented to the States.
Reason(s) for Decision: The Public Finances (Jersey) Law 2005 (and the Finance Regulations approved under that Law and Financial Directions) require the Minister for Treasury and Resources to report to the States twice yearly on a number of issues relating to States Finances.
Resource Implications: There are no financial or manpower implications as a direct result of this decision.
Action required: Business Manager to request the Greffier of the States to arrange for the attached Report on Finance Law Delegation disclosures to be presented to the States at the earliest opportunity.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget Management Report for the period ended 31st December 2013

TREASURY & RESOURCES MINISTER

Finance Law Delegation Report for the Period Ended 31st December 2013

The Administration of the Public Finances of Jersey

In accordance with the Public Finances (Jersey) Law 2005 (the ‘Law’) (including Regulations approved under that Law and Financial Directions) certain matters relating to budgeting and to the financial control and administration of States Trading Operations are required to be reported to the States twice yearly by the Minister for Treasury and Resources (the ‘Minister’).

This report summarises all decisions made during the 6 month period to 31st December 2013, the majority of which have been previously published. Where decisions have not previously been published, this is due to one of two reasons:

The decisions were exempted under the States of Jersey (‘SoJ’) Code of Practice on Public Access to Official Information; or
The decisions were taken by the Treasurer of the States under delegated authority from the Minister.

Reporting on Decisions

The areas of administration which are to be reported on are as follows:

2.1 The use of trading funds by States Trading Operations;

2.2 Borrowing and Lending;

2.3 Budget transfers.

2.1 Use of Trading Funds

The following Ministerial Decisions in the use of trading funds were approved in the 6 month period that ended 31st December 2013:

MD-TR-2013-0105 – Use of Jersey Airport Trading Fund in 2013 for Jersey Airport Cargo Centre relocation (£4,653,000).
MD-TR-2013-0114 – Use of Jersey Harbours Trading Fund for Elizabeth Harbour Trailer Park (£865,000).

2.2 Borrowing and Lending

2.2.1 Borrowing

The 2014 Budget (P.122/2013) was approved by the States on the 5th December 2013, which also approved the borrowing of up to a maximum of £250,000,000 for Housing purposes.

2.2.2 Jersey Student Loan Scheme

During the 6 month period to 31st December 2013, 139 new loans with a collective value of £209,254.65 were guaranteed by the Treasurer of the States under the Jersey Student Loan Scheme. As at 31st December 2013, the total amount loaned under the Jersey Student Loan Scheme was £2,308,600.73. Terms with the intermediaries require the States of Jersey to underwrite 100% of the value of the loans.

2.2.3 Pilot Starter Home Deposit Loan Scheme

During the 6 month period to 31st December 2013, 31 new loans were issued with a total value of £1,587,300.

2.2.4 Infrastructure Investments

During the 6 month period to 31st December 2013, the Minister approved the issuance of a £13,000,000 infrastructure investment from the Currency Fund to provide the States of Jersey Development Company with financing for part of the underground car park, subject to conditions (MD-TR-2013-0095). Note that at present it is not planned that this investment will proceed.

2.3 Budget Transfers

Articles 17 and 18 of the Public Finances (Jersey) Law 2005 permit contingency expenditure and variations between heads of expenditure with the approval of the Minister.

Budget transfers under Articles 17 and 18 of the Public Finances (Jersey) Law 2005 are reported on the following basis:-

Transfers from contingency expenditure to heads of expenditure;
Transfers between revenue heads of expenditure;
Transfers between capital heads of expenditure;
Transfers between revenue and capital heads of expenditure; and
Transfers between revenue and capital heads of expenditure where the transfer is required in order to comply with Generally Accepted Accounting Principles (GAAP)

All transfers between departments vary the budgets of individual departments but are net nil in total.

2.3.1 Transfers from contingency expenditure to heads of expenditure

Transfers from contingency expenditure to heads of expenditure during the 6 month period to 31st December 2013 are shown below –

Department		£	Funding of:-
To	From	£	Funding of:-
**Health and Social Services (H&SS)	Contingency	140,000	Doctors' Pay Award for 2013
Education, Sports and Culture (ESC)	Contingency	315,000	Jersey Heritage Trust (JHT) annual capital requirements
**Chief Minister's Department (CMD)	Contingency	250,000	Implementation of the recommendations of the Financial Services Sector Review
CMD	Contingency	210,000	London Representative Office
**H&SS	Provision for restructuring	8,000	Public Sector Reform Programme (Creation of Integrated Reform programme)
*Department of the Environment (DoE)		32,000	Public Sector Reform Programme (Eco Active States)
*Housing		425,000	Public Sector Reform Programme (Housing Transformation Programme)
ESC	Contingency	738,000	JHT to acquire and restore the Coin Hoard
**Home Affairs (HA)	Contingency	83,300	Fire Fighters’ Pay Award
Treasury and Resources (T&R)	Contingency	50,000	T. McDonald Ex-Gratia Payment
DoE Cap	Contingency	50,000	Countryside Infrastructure
DoE Rev	Contingency	200,000	Environmental Protection
**H&SS Rev	Contingency	1,240,000	Nurses’ Pay Award
T&R - Insurance	Contingency – Insurance	1,029,837	HCAE Costs
Total transfers		4,771,137

* Decision with multi-year budget transfers for 2013 and 2014. The budget transfer approval for 2013 is reflected above with the budget transfer for 2014 reflected under 2.3.6.

** Decisions with multi-year budget transfers for 2013, 2014 and 2015. The budget transfer approval for 2013 is reflected above with the budget transfers for 2014 and 2015 reflected under 2.3.6.

2.3.2 Transfers between revenue heads of expenditure

Revenue transfers during the 6 month period to 31st December 2013 are shown below –

Department		£	Funding of –
To –	From –	£	Funding of –
**Housing	Social Security Department (SSD)	148,700	To fund shortfall in the forecast rental income
H&SS	T&R	89,819	Additional finance resource
**CMD	T&R	13,035	To support with the funding of 2 additional Law Draftsman posts
**CMD	EDD	15,303
**Judicial Greffe	SSD	45,000	Jersey Employment Tribunal
H&SS	T&R	110,000	Energy Reduction Programme Costs
**CMD	Housing	131,880	Strategic Housing Unit
CMD	T&R Corporate Contingency	60,000	Party Conferences
**Housing	T&R	30,135	99 Year Lease Properties Insurance
ESC	EDD	20,000	Jersey Arts Trust
ESC	CMD	20,000	Jersey Arts Trust
Total transfers		683,872

** Decisions with multi-year budget transfers for 2013, 2014 and 2015. The budget transfer approval for 2013 is reflected above with the budget transfers for 2014 and 2015 reflected under 2.3.6.

2.3.3 Transfers between capital heads of expenditure

Transfers between existing capital heads of expenditure during the 6 month period to 31st December 2013 are shown below –

Department		£	Funding of:-
To	From	£	Funding of:-
TTS Replacement Assets	TTS Gas Engine Bellozanne Vote	4,165	Transfer of the remaining balance
HA	HA Fire and Rescue and HM Prison	151,003	Transfer of the remaining balance
H&SS	HA	43,749	Upgrade of the Fire and Ambulance combined control centre
T&R (JPH)	T&R (JPH) Cap (Mont-a-l'Abbe)	540,000	Office Rationalisation Programme
T&R (JPH)	Central Planning Vote (CPV)	320,000	Les Quennevais replacement School
Total transfers		1,058,917

2.3.4 Transfers between revenue and capital heads of expenditure

Transfers between revenue (Rev) and capital (Cap) heads of expenditure during the 6 month period to 31st December 2013 are shown below –

Department		£	Funding of:-
To	From	£	Funding of:-
**HA Rev	T&R Corporate Contingency	7,700	Jersey Community Relations
ESC Cap	ESC Rev	15,753	Caretakers Van for Victoria College Preparatory
ESC Cap	ESC Rev	17,388	Router for Jersey College for Girls and Victoria College
DoE Rev	Central Environment Vote Cap	42,000	Study on the security of Jersey's energy supply
ESC Cap	ESC Rev	130,000	For capital works at Victoria College (refurbishment of the Great Hall and building classrooms)
T&R Cap	T&R Rev	30,378	Opera house
T&R (JPH) Cap	SSD Rev	926,000	Silver Jubilee Crabbe works
T&R (JPH) Cap	T&R (JPH) Rev	1,179,260	Office Rationalisation Programme
Total transfers		2,348,479

** Decision with multi-year budget transfer for 2013, 2014 and 2015. The budget transfer approval for 2013 is reflected above with the budget transfers for 2014 and 2015 reflected under 2.3.6.

2.3.5 Transfers between revenue and capital heads of expenditure where the transfer is required in order to comply with Generally Accepted Accounting Principles (GAAP)

The States of Jersey implemented Generally Accepted Accounting Principles (GAAP) in 2009. GAAP accounting requires that expenditure should be accounted for as capital only if it meets the GAAP accounting definition of capital expenditure and as revenue otherwise.

GAAP transfers between revenue (Rev) and capital (Cap) during the 6 month period to 31st December 2013 are shown below –

Department		£	Funding of:-
To	From	£	Funding of:-
H&SS Cap	H&SS Rev	320,251	Purchase of Operations Suite and the Ambulance and Fire priority Dispatch System
HA Cap	HA Rev	130,000	Equipment for the prison stores
HA Cap	HA Rev	215,000	Purchase of IT and Communications equipment for the States of Jersey Police (1st Tranche)
HA Cap	HA Rev	200,000	Purchase of IT and Communications equipment for the States of Jersey Police (2nd Tranche)
H&SS Cap	H&SS Rev	89,400	Boiler house controls and burners
*TTS rev	TTS cap	31,446	Ash Strategy
TTS Cap	TTS Rev	36,886	Road Panels' Les Quennevais and Trinity Hill
HA Rev	HA CAP	48,216	Purchase of goods and services for the TETRA project
TTS Cap	TTS Rev	25,000	DVS garage doors
H&SS Rev	H&SS Cap	284,651	Purchase of defibrillators
Viscount's Cap	Viscount's Rev	27,735	Desastre Software upgrade
TTS Cap	TTS Rev	19,459	Leica Equipment
Total transfers		1,428,044

* Decision with multi-year budget transfers for 2013 and 2014. The budget transfer approval for 2013 is reflected above with the budget transfer for 2014 reflected under 2.3.6.

2.3.6 Transfers over multiple years between various heads of expenditure

Multi Year transfers between the various heads of expenditure during the 6 month period to 31st December 2013 are shown below –

Department		£	Funding of	Transfer between heads of expenditure	Year(s) of transfer
To	From	£	Funding of	Transfer between heads of expenditure	Year(s) of transfer
**H&SS	Central Contingency	378,000	Recurring effect of the Doctors' Pay Award from 2013	Contingency to revenue head of expenditure	2014 to 2015
**CMD	Central Contingency	1,000,000	Implementation of the recommendations of the Financial Services Sector Review	Contingency to revenue head of expenditure	2014 to 2015
**Housing	SSD	1,222,500	To fund shortfall in the forecast rental income	Revenue heads of expenditure	2014 to 2015
**H&SS	Provision for restructuring	1,112,000	Public Sector Reform Programme (Creation of Integrated Reform programme and Provision of Leadership Training)	Contingency to revenue head of expenditure	2014 to 2015
*DoE	Provision for restructuring	33,000	Public Sector Reform Programme (Eco Active States)	Contingency to revenue head of expenditure	2014
*Housing	Provision for restructuring	260,000	Public Sector Reform Programme (Housing Transformation Programme)	Contingency to revenue head of expenditure	2014
**HA	Contingency	166,600	Recurring effect of the Fire Fighters Pay Award	Contingency to revenue head of expenditure	2014 to 2015
***ESC	Contingency	1,500,000	Sports Strategy	Contingency to revenue head of expenditure	2014 to 2015
***ESC	Contingency	461,000	Expansion of the Prince's Trust	Contingency to revenue head of expenditure	2014 to 2015
**HA	T&R Corporate Contingency	51,600	Jersey Community Relations	Capital to Revenue head of expenditure	2014 to 2015
**CMD	T&R	122,428	To support with the funding of 2 additional Law Draftsman posts	Revenue heads of expenditure	2014 to 2015
**CMD	EDD	122,428		Revenue heads of expenditure	2014 to 2015
**Judicial Greffe	SSD	100,000	Jersey Employment Tribunal	Revenue heads of expenditure	2014 to 2015
***ESC	EDD	240,000	Trackers Apprenticeship Programme	Revenue heads of expenditure	2014 to 2015
**CMD	Housing	373,580	Strategic Housing Unit	Revenue heads of expenditure	2014 to 2015
**Housing	T&R	62,548	99 Year Lease Properties Insurance	Revenue heads of expenditure	2014 to 2015
***DoE	CMD	33,000	Geospatial Information Systems Service	Revenue heads of expenditure	2014 to 2015
*TTS Cap	TTS Rev	113,554	Ash Strategy	Revenue to Capital head of expenditure	2014
**H&SS Rev	Contingency	3,200,000	Recurring effect of the Nurses’ Pay Award	Contingency to revenue head of expenditure	2014 to 2015
Total transfers		10,552,238

* Decisions with multi-year budget transfers for 2013 and 2014. The budget transfer approval for 2014 is reflected above with the budget transfer for 2013 reflected on the relevant section on the body of the report.

** Decisions with multi-year budget transfers for 2013, 2014 and 2015. The budget transfer approval for 2014 and 2015 is reflected above with the budget transfer for 2013 reflected on the relevant section on the body of the report.

*** Decisions with multi-year budget transfer approvals for 2014 and 2015 reflected above.