Disclosure of Financial Planning.

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

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demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

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The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made (24/04/2008) regarding: Disclosure of Financial Planning.

Decision Reference: MD-TR-2008-0051
Decision Summary Title:	Disclosure of financial planning		Date of Decision Summary:	4th April 2008
Decision Summary Author:	Nick Collins - Finance Manager - Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Report on the disclosure requirements relating to Financial Planning		Date of Written Report:	4th April 2008
Written Report Author:	Nick Collins, Finance Manager - Decision Support		Written Report : Public or Exempt?	Public
Subject: Financial planning disclosures for the 6 month period ended 31st December 2007
Decision(s): The Minister approved the report detailing financial planning disclosures for the six month period ending 31st December 2007 and requested that it be laid before the States.
Reason(s) for Decision: The Public Finances (Jersey) Law 2005 and its associated financial directions require the Minister for Treasury and Resources to report to the States twice yearly on a number of issues relating to States finances.
Resource Implications: Other than those detailed in the report there are no further financial or manpower Implications.
Action required: Head of Decision Support to send the attached report to the States Greffe and to request that it be laid before the States at the earliest possible opportunity.
Signature:		Position: Senator T A Le Sueur, Minister for Treasury and Resources
Date Signed: 24th April 2008		Date of Decision: 24th April 2008

Disclosure of Financial Planning.

TREASURY & RESOURCES MINISTER

Report on the disclosure requirements relating to Financial Planning

1. The administration of the public finances of Jersey

In accordance with the Public Finances (Jersey) Law 2005 (the ‘Law’) (including Regulations approved under that Law and Financial Directions) certain matters are required to be reported to the States twice yearly by the Minister for Treasury and Resources (the ‘Minister’).

This report sets out those matters for the 6 month period ended 31st December 2007.

2. Financial Directions

Matters to be reported by the Minister twice yearly relate solely to financial planning. The Financial Directions (‘FD’) referred to in this report – which have all been issued under certain Articles of the Law and provide instructions and guidance on the Law and any Regulations that are in place – are all relevant.

FD 3.1 – Financial administration of Trading Operations (Article 26)

This Direction supports paragraphs (2) and (3) of Regulation 22, which states that the Minister may in certain circumstances approve the use of money standing to the credit of the trading fund of a States trading operation for a capital project, or for a purpose other than one approved as part of an annual business plan (FD sections 5.13-5.15 refer).

FD 3.2 – Borrowing (Article 21)

Under Regulation 9, the Minister may authorise certain borrowings in the name of, and on behalf of the States. The ‘Borrowing by the Minister for Treasury & Resources’ section of this Direction provides guidance on the aforementioned. This function has partly been delegated to the Treasurer of the States (the Treasurer) – as permitted by Regulation 10 -, and FD sections 5.12 and 5.18 refer.

FD 3.3 – Lending (Article 23)

Sections 5.6 and 5.7 of this Direction support Regulation 13, which authorises the Minister to lend certain money of the States. ‘Lending by the Treasurer of the States’ (FD section 5.9) relates to Regulation 14, which authorises the Minister to delegate to the Treasurer, wholly or partly, a function vested in the Minister by Regulation 13.

FD 3.6 – Variations to heads of expenditure (Article 15)

This Direction specifies how and when an application for the Minister’s approval under paragraph (1) of Article 15 (a) of the Law may be made. Transfers between heads of expenditure are covered in FD sections 5.7-5.13, and the carry forward of revenue balances is referred to in section 5.15 and FD 6.1 Carry forward of revenue balances. Separate rules relate to designated States trading operations.

3. Reporting on Ministerial and delegated approvals

The areas of administration which are to be reported on for the period ended 30th June include the use of trading funds, borrowing, and variations to heads of expenditure.

Use of trading funds

The Minister approved (MD-TR-2008-0009) the increase of Airport’s £500,000 Ground Water Remediation Project budget by £19,936 to fund unforeseen issues.

Borrowing

The giving of loan guarantees in the States’ name falls within the remit of FD 3.2, and during the 6 month period the Treasurer approved one guarantee under the Small Firms Loan Guarantee Scheme (‘SFLGS’) with a total value of £151,200. Under the terms of the scheme, Economic Development Department underwrites up to 75% of the value of a loan. The total amount guaranteed to date under the SFLGS is £375,900. The Jersey Student Loan Scheme commenced in September 2007 with 117 students taking out a loans totalling £167,875. Terms with the intermediaries require the States of Jersey to underwrite 100% of the value of the loan.

3.3 Variations to heads of expenditure

Direction 3.6 identifies requirements and provides advice on the procedures when variations to revenue and capital heads of expenditure are being considered.

A ‘head of expenditure’ is defined in section 5.1 of the FD as either:-

the annual net revenue budget of a States funded body 1 ; or
the amount allocated for each capital project.

Please note that unless otherwise indicated in the Appendices, transfers have been approved via delegated authority.

3.3.1 Transfers between revenue heads of expenditure

Transfers between revenue heads are categorised in section 5.7 as:-

non-contentious transfers of up to £100,000, in which case the approval of the Treasurer of the States, or in his absence another person nominated by the Treasurer is required; and

all other instances, where the approval of the Minister is required.

Revenue transfers during the period ended 31st December 2007 amounted to £1,247,806 (Appendix A refers).

3.3.2 Transfers between capital heads of expenditure

Capital to capital transfers are categorised in sections 5.8-5.10 as:-

non-contentious transfers of up to £100,000 (5.8), which require the approval of the Treasurer of the States, or in his absence another person nominated by the Treasurer is required;

all other transfers between existing capital heads (5.9), in which case the approval of the Minister is required; and

transfers to new capital heads2 of expenditure (5.10), which require the approval of the Council of Ministers (‘CoM’) and the Minister.

Transfers between existing capital heads of expenditure amounted to £3,818,942 for the period (Appendix B refers).

3.3.3 Transfers between revenue and capital heads of expenditure

Transfers between revenue and capital heads are categorised in sections 5.11-5.13 as:-

non-contentious transfers of up to £100,000 (5.11), in which case the approval of the Treasurer of the States, or in his absence another person nominated by the Treasurer is required;

all other transfers (5.12), which require the approval of the Minister; and

transfers to new capital heads of expenditure (5.13), in which case the approval of the CoM and the Minister are required.

Transfers between revenue and capital heads of expenditure amounted to £6,589,710 (Appendix C refers). There were no transfers to new capital heads of expenditure during the period.

1 NMSFB – Non-Ministerial States Funded Body.

2 ‘New’ capital heads of expenditure refers to capital projects that have been initiated without States approval.