Community Savings Limited: Grant Authorisation

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A decision made 29 July 2014:

Decision Reference: MD-TR-2014-0083
Decision Summary Title:	Grant to Community Savings Ltd		Date of Decision Summary:	25th July 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:	Grant to Community Savings Ltd		Date of Written Report:	25th July 2014
Written Report Author:	Treasurer of the States		Written Report : Public or Exempt?	Public
Subject: Authorisation of a grant of £50,000 to Community Savings Ltd.
Decision(s): The Minister approved a grant of £50,000 to Community Savings Ltd from the Treasury and Resources revenue head of expenditure.
Reason(s) for decision: To enable the Treasurer of the States, as Accounting Officer for the Treasury and Resources Department, to award a grant of £50,000 to Community Savings Ltd from the Treasury and Resources revenue head of expenditure.
Resource Implications: To enable the Treasurer of the States, as Accounting Officer for the Treasury and Resources Department, to award a grant of £50,000 to Community Savings Ltd from the Treasury and Resources revenue head of expenditure. This decision does not change the total amount of expenditure approved by the States.
Action required: Head of Financial Management, Accounting and Reporting to progress the grant of £50,000 to Community Savings Ltd.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Community Savings Limited: Grant Authorisation

Treasury and Resources

Ministerial Decision Report

Grant to Community Savings Ltd

Purpose of Report

To enable the Minister to authorise a grant of £50,000 to Community Savings Ltd

Background

Community Savings Ltd is a Jersey incorporated company established along the lines of a UK Credit Union, and specifically exempted as a deposit taking business as defined under the Banking Business (Jersey) Law 1991. The enterprise is a not for profit organisation, funded by charitable donations.

The principal objectives for 2014 - 2015 are:

i) To provide self-help opportunities to those in need of financial support

ii) To raise three year’s running costs to drive forward the expansion of the organisation

iii) To set up a number of new interest groups and establish a parish network

iv) To expand its education programme, especially into schools

v) To raise the Partner’s profile in the community

vi) To become the organisation of choice for all States’ initiatives involving a banking element

vii) To recruit and train more volunteer supporters

The concept of establishing Community Savings Ltd in Jersey started in 1996 following the UN Eradication of Poverty initiative. A great deal of hard work has already been undertaken, leading to the concept being finally approved by the Jersey Financial Services Commission in 2001. Since then but particularly since 2007, following being allowed to operate at the Parish of St. Helier’s premises at Seale Street, business has expanded by around 100% year on year.

Last year the Minister met with staff and volunteers at their premises which gave him the opportunity to discuss and understand their barriers and difficulties as well as see first-hand the good work they are doing.

In 2013 Community Savings received a grant of £50,000 to cover a potential shortfall in income for 2013. This shortfall arose as a result of income loss from previous charitable sources (in particular the cessation of a large family trust that had supported them).

The organisation has identified two conflicting issues affecting its present financial position on ongoing basis. One is a 50% increase in demand for the Community Savings services and the second one is a decline in funding as a result of the recession in the previous years.

The biggest concern is the lack of financial stability but the grant being proposed by the States of Jersey will help considerably to alleviate this concern and will help to meet 2014 objectives of Community Savings.

Recommendation

The Minister is recommended to approve a grant of £50,000 from the Treasury and Resources Department to Community Savings Ltd to assist with their shortfall in 2014.

Reason for Decision

To enable the Treasurer of the States, as Accounting Officer for the Treasury and Resources Department, to award a grant of £50,000 to Community Savings Ltd from the Treasury and Resources revenue head of expenditure. This decision does not change the total amount of expenditure approved by the States.

5. Resource Implications

This decision authorises a grant of £50,000 to be made from the Treasury and Resources revenue head of expenditure payable to Community Savings Ltd. This decision does not change the total amount of expenditure approved by the States.

Report author : Treasurer of the States	Document date : 25/07/2014
Quality Assurance / Review : Business Manager	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2014-0083 - Grant to Community Savings Ltd\WR - Grant to Community Savings Ltd v1.doc
MD Sponsor: Treasurer of the States