Approval and Delegation of Spending Powers.

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A decision made (30/01/2007) regarding: Approval and Delegation of Spending Powers.

Subject:	Approval and Delegation of Spending Powers
Decision Reference:	MD-HA-2007-0015	Exempt clause(s):		Written Report - n/a Appendices – 3.2.1 (a) (x)
Type of Report (oral or written):	Written	Person Giving Report (if oral):
Telephone or e-mail Meeting?		Report File ref:		Finance/Liz Middleton/MD Delegations
Written Report – Title:	Approval and Delegation of Spending Powers	Written report – Author:		Liz Middleton Finance Director
Decision(s): The Minister approved: (i) the existing spending powers for the Home Affairs Department; (ii) the delegation of any changes to existing spending powers, and new spending powers to the Chief Executive Officer and Finance Director.
Reason(s) for decision: From 1st January 2006 (when the Public Finances (Jersey) Law 2005 and Financial Directions came into effect) all previous spending delegations became invalid. This is due to the fact that the new Law makes the Accounting Officer primarily responsible for spending sums approved by the States. Previously money had been allocated to Committees, who needed to delegate the ability to spend to officers. It is therefore necessary for all departments to have a new scheme of delegations in place in 2006, clearly showing to whom the accounting officer has delegated spending powers and to what limits.
Resource Implications There are no additional financial or manpower implications for the Home Affairs Department.
Action required: Advise Treasury and Resources Department.
Signature: (Minister/ Assistant Minister)			Date of Decision: 30 January 2007

Approval and Delegation of Spending Powers.

Home Affairs Department Report for Minister
Subject:	Approval and Delegation of Spending Powers
Exempt Clause:	Report - n/a Appendices – 3.2.1 (a) (x)	Date:	22 January 2007

Author:	Liz Middleton – Finance Director

Introduction

The purpose of this report is to seek the Minister’s approval of:

(i) existing spending powers;

(ii) the delegation of any changes to existing spending powers, and approval of new spending powers to the Chief Executive Officer and Finance Director.

Background

From 1st January 2006 (when the Public Finances (Jersey) Law 2005 and Financial Directions came into effect) all previous spending delegations became invalid. This is due to the fact that the new Law makes the Accounting Officer primarily responsible for spending sums approved by the States. Previously money had been allocated to Committees, who needed to delegate the ability to spend to officers. It is therefore necessary for all departments to have a new scheme of delegations in place in 2006, clearly showing to whom the accounting officer has delegated spending powers and to what limits.

In particular, Section 5.12 of Financial Direction 5.7 – Purchasing of Goods and Services states that ‘Departments must maintain a scheme of delegation which must show those delegated the responsibility for signing off contracts and to what value. This must be approved by the minister responsible for the department.’

Section 5.12 also refers to a list of authorised signatories for all expenditure but this has been dealt with separately during 2006 with the Minister approving all changes.

JDE Procurement

Departments on JDE procurement with spending limits built into the system still require evidence of accounting officer approval for these limits. Spending limits for the Home Affairs Department are attached at Appendix A.

Purchase Cards

Purchase cards are designed to reduce the costs associated with processing low value, high volume purchase transactions.

The States’ objective is to introduce purchase cards into those areas where it will reduce the administration process, improve the efficiency of obtaining goods and develop and improve preferred supplier relationships, without compromising financial or accounting integrity.

Officers issued with a States purchase card are issued with transaction and credit limits and allowable categories of purchase. The existing credit limits for the Home Affairs Department are attached at Appendix B.

Way Forward

Following the Minister’s approval of the limits attached at Appendices A and B it is recommended that the authority to agree changes to existing spending powers and the approval of any new spending powers should be delegated to the Chief Executive Officer and Finance Director.

Resource Implications

There are no additional financial or manpower implications for the Home Affairs Department.

Recommendations

It is recommended that the Minister approves:

(i) the existing spending powers for the Home Affairs Department;

(ii) the delegation of any changes to existing spending powers, and approval of new spending powers to the Chief Executive Officer and Finance Director.

Appendix A

Exempt Clause 3.2.1 (a) (x)

JDE Procurement Spending Limits

Appendix B

Exempt Clause 3.2.1 (a) (x)

Purchase Card Credit Limits