Strategic Policy, Planning and Performance: Allocation of Reserve Funding in 2020 for additional Covid-19 testing kits

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A decision made on 7 April 2020

Decision reference: MD-TR-2020-0039
Decision Summary Title:	Allocation of Reserve Funding to SPPP in 2020 for additional COVID-19 testing kits		Date of Decision Summary:	7th April 2020
Decision Summary Author:	Head of Financial Governance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Allocation of Reserve Funding to SPPP in 2020 for additional COVID-19 testing kits		Date of Written Report:	7th April 2020
Written Report Author:	Head of Financial Governance		Written Report : Public or Exempt?	Exempt (Article 35)
Subject: The allocation of up to £718,000 in 2020 from the General Reserve to SPPP (Strategic Policy, Planning and Performance) as detailed in the attached report, to purchase additional COVID-19 testing kits.
Decision(s): The Minister approved the allocation of up to £718,000 in 2020 from the General Reserve to SPPP (Strategic Policy, Planning and Performance) as detailed in the attached report, to purchase additional COVID-19 testing kits.
Reason(s) for Decision: Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a government plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan. The current Contingency Allocation Policy (published as R.23/2020) sets the requirement for all allocations from contingency to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval, however it also states that ‘Where a request is made for £100,000 or less, or where the Minister is satisfied that there is an urgent need to provide funding in the public interest, an allocation may be made by the Minister on the recommendation of the Treasurer.’ The Minister previously signed MD-TR-2020-0033 to purchase Serology Testing Kits for up to £1.7 million. The opportunity has arisen to purchase an additional supply of Rapid Test Cassettes. The Treasurer recommends this allocation to the Minister for approval on the basis of: the recommendation of the Medical Officer of Health and associated paper, unanimously approved by the Competent Authorities at their meeting of 6 April; a summary commercial risk analysis; draft addendum to the original business case; the imperative need for a community testing regime; the significant benefits that such a regime could have for the economy and individuals; the ability to begin testing earlier, particularly for healthcare workers and then other frontline staff.
Resource Implications: The SPPP head of expenditure to increase by up to £718,000 in 2020 and the General Reserve to decrease by the same amount. This decision does not change the total amount of expenditure approved by the States in the Government Plan 2020-2023. The transfers and requirements are detailed in the attached report.
Action required: The Head of Financial Governance to advise the Specialist – Business Cases and the Head of Finance Business Partnering of SPPP that this decision is approved.
Signature:		Position: Deputy S J Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision: