Dormant Bank Accounts (Jersey) Law 2017: Payment of Charity Commissioner Costs for 2021

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A decision made on 16 December 2021

MINISTERIAL DECISION REFERENCE: MD-ER-2021-0070
DECISION SUMMARY TITLE: Dormant Bank Accounts (Jersey) Law 2017 – Payment of Charity Commissioner Costs for 2021
DECISION SUMMARY AUTHOR:	Associate Director, Financial Services	IS THE DECISION SUMMARY PUBLIC OR EXEMPT?		Public
REPORT TITLE: Dormant Bank Accounts (Jersey) Law 2017 – Payment of Charity Commissioner Costs for 2021
REPORT AUTHOR OR NAME OF PERSON GIVING REPORT:	Associate Director, Financial Services	IS THE REPORT PUBLIC OR EXEMPT		Public
DECISION AND REASON FOR THE DECISION: The Minister for External Relations and Financial Services, having been provided with detail of the costs incurred by the Charity Commissioner for the calendar year 2021 and advice that those costs had been properly incurred, approved the payment of £208,000 (two hundred and eight thousand pounds) from the Jersey Reclaim Fund in respect of the said costs of the Charity Commissioner for the year 2021, pursuant to the provisions of Article 20 of the Dormant Bank Accounts (Jersey) Law 2017 and the Dormant Bank Accounts (Distribution of Fund Money) (Jersey) Order 2021. Recognising a potential for a conflict of interest in this decision by virtue of the Minister holding responsibility also for the Charities (Jersey) Law 2014, and thus holding Ministerial Responsibility as payer and payee, the Minister sought the approval of the Minister for Treasury and Resources who was in agreement that this payment should be approved and made.
RESOURCE IMPLICATIONS: There are no resource implications for the Government of Jersey as a result of this decision, although it should be noted that no further investment return will now be earned on these funds.
ACTION REQUIRED: The Associate Director, Financial Services is to give notice to the Head of Treasury and Investment Management to make the relevant transfers from the Jersey Reclaim Fund as are required to satisfy these costs and to amend the records accordingly.
SIGNATURE: SENATOR IAN GORST			POSITION: MINISTER FOR EXTERNAL RELATIONS AND FINANCIAL SERVICES

DATE SIGNED:			EFFECTIVE DATE OF THE DECISION (if different)

Dormant Bank Accounts (Jersey) Law 2017: Payment of Charity Commissioner Costs for 2021

REPORT – Payment of costs of Charity Commissioner for 2021

The Law

Article 20 of the Dormant Bank Accounts (Jersey) Law 2017 states that “the purposes for which the monies [in the Jersey Reclaim Fund] may be distributed are – (a) to defray the costs of the remuneration or other payment for the services of the Commissioner due under the terms of his or her appointment and the costs of providing staff, accommodation or equipment that are required for the proper and effective discharge of the Commissioner’s functions; and (b) charitable purposes in accordance with paragraph (4).”

The Dormant Bank Accounts (Distribution of Fund Money) (Jersey) Order 2020 states that:-

“3. Policy in respect of amount of distribution

(1) In determining the amount to be distributed from the Fund for the purposes of Article 20 of the Law in any year, the Minister must, in addition to the matters considered under Article 2, act in accordance with the following provisions of this Article.

(2) Despite anything in this Article, an amount equating to approximately half of the amount that could be reclaimed from the Fund must be preserved.

(3) Out of the remaining portion of the Fund the Minister must meet the anticipated Charity Commissioner costs for the year in question up to and including the year 2023.

(4) Once the costs mentioned in paragraph (3) have been met the Minister may make a sum available for distribution for charitable purposes in accordance with Article 20(4) of the Law that will leave such monies in the Fund as the Minister considers appropriate.

(5) However, the minimum sum that the Minister must make available for distribution for charitable purposes under paragraph (4) is £250,000 or, if it is less than £250,000, the balance of the remaining portion of the Fund.

(6) Nothing in paragraphs (3) to (5) limits the Minister in determining the amount to be distributed from the Fund, nor the number of times an amount is determined, if the Minister considers that an emergency has arisen in Jersey that justifies any additional distribution being made for charitable purposes to assist with that emergency and its aftermath.

(7) Any amount determined for additional distribution, as described in paragraph (6), is to be taken into account towards the amount of £250,000 for the purpose of paragraph (5).”

(underline added)

The Costs

The Charity Commissioner has provided details of his costs for 2021 as follows:-

Cost	To end 2020
Charity Commissioner staffing costs including - 1 full time Executive Officer - 1 full time Administration Officer - Charity Commissioner	£171,518
Office Premises including rates	£13,951
Other Overheads including stationery, telephone, electricity	£3,644
Register and Website costs including annual charges and development costs for update	£18,707
TOTAL	£207,820 Rounded up to £208,000

These costs have in fact been met in the first instance from the Strategic Policy, Planning and Performance Department of the Government of Jersey (“SPPP”) budget and authorised by SPPP who manage the relationship with the Charity Commissioner on behalf of the Government of Jersey and payment is thus to be made to reflect this. Relevant officers in SPPP have confirmed that, the relevant invoices in support of the items of expenditure have been made available to them (where above de minimis levels) and that they have considered that the expenditure is reasonably and properly incurred and is in line with the requirements of the Law and the anticipated budget and the expectations of the services to be provided by the Charity Commissioner.

The position of the Reclaim Fund

The Minister has previously decided to make an emergency distribution of up to £2 million for distribution to charitable purposes due to the Covid-19 pandemic which continues to be delivered by way of grants. Payment of the Charity Commissioner’s costs is part of the distribution process and now that payment of these costs has been requested should now been made.

Treasury has confirmed that the current balance within the Fund is some £25 million so that there is more than sufficient to meet this payment from the available portion of the Fund whilst preserving an amount equating to approximately half of the amount that could be reclaimed from the Fund.

Recommendation

It is therefore recommended that the sum of £208,000 be transferred from the Jersey Reclaim Fund in respect of the Charity Commissioner’s costs.

9 December 2021