Transfer from Corporate Contingency to Treasury and Resources Department to facilitate Grant to Community Savings Ltd.

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A decision made 13 July 2015:

Decision Reference: MD-TR-2015-0085
Decision Summary Title:	Grant to Community Savings Ltd		Date of Decision Summary:	2nd July 2015
Decision Summary Author:	Finance Manager – Corporate Group		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:	2ndJuly 2015
Written Report Author:	Finance Manager – Corporate Group		Written Report : Public or Exempt?	Public
Subject: Transfer from Corporate Contingency into the Treasury and Resources Department (T&R) revenue head of expenditure in the amount of £50,000 and onward authorisation of a grant in the same amount to Community Savings Ltd.
Decision(s): The Minister approved a transfer from Corporate Contingency into the T&R revenue head of expenditure in the amount of £50,000 and onward authorisation of a grant in the same amount to Community Savings Ltd.
Reason(s) for decision: To enable the Treasurer of the States, as Accounting Officer for T&R, to award a grant of £50,000 to Community Savings Ltd from the T&R revenue head of expenditure further to a transfer from Corporate Contingency in the same amount. Article 18(1) (c) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.
Resource Implications: T&R Corporate Contingency to decrease by £50,000 and the T&R revenue head of expenditure to increase by an identical amount to enable an onward grant payment to Community Savings Ltd. This decision does not change the total amount of expenditure approved by the States.
Action required: Finance Manager – Corporate Group to progress the grant of £50,000 to Community Savings Ltd.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Transfer from Corporate Contingency to Treasury and Resources Department to facilitate Grant to Community Savings Ltd.

Treasury and Resources

Ministerial Decision Report

Grant to Community Savings Ltd

Purpose of Report

To enable the Minister to transfer £50,000 from Corporate Contingency into the Treasury and Resources Department (T&R) revenue head of expenditure and an onward authorisation of a grant in the same amount 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.

In 2013 the Treasury and Resources Minister met with staff and volunteers at their Seale Street premises. The Minister was given the opportunity to understand and discuss the barriers and difficulties as well as see first-hand the good work being done.

In each of the years 2013 and 2014 Community Savings received a grant of £50,000 to cover shortfalls in income. These 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 2015 objectives of Community Savings.

Recommendation

The Minister is recommended to approve a transfer from Corporate Contingency into the Treasury and Resources Department (T&R) revenue head of expenditure in the amount of £50,000 and an onward authorisation of a grant in the same amount to Community Savings Ltd to assist with their shortfall in 2015.

Reason for Decision

To enable the Treasurer of the States, as Accounting Officer for T&R, to award a grant of £50,000 to Community Savings Ltd from the T&R revenue head of expenditure further to a transfer from Corporate Contingency in the same amount.

Article 18(1) (c) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.

5. Resource Implications

T&R Corporate Contingency to decrease by £50,000 and the T&R revenue head of expenditure to increase by an identical amount to enable an onward grant payment to Community Savings Ltd. This decision does not change the total amount of expenditure approved by the States.

Report author : Finance Manager – Corporate Group	Document date : 7th July 2015
Quality Assurance / Review : Head of Decision Support	File name and path : L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\MD-TR-2015-0085 - Grant to Community Savings Ltd
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