Annual Financial Report and Accounts 2006

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A decision made (09.02.07) to approve the 2006 Annual Financial Report and Accounts

Subject:	Annual Financial Report and Accounts 2006
Decision Reference:	MD-HA-2007-0017	Exempt clause(s):		Report N/A Appendices 3.2 (a)(xiv)
Type of Report (oral or written):	Written	Person Giving Report (if oral):		N/A
Telephone or e-mail Meeting?	N/A	Report File ref:		Finance/LizMiddleton/Accounts/2006
Written Report – Title:	Annual Financial Report and Accounts 2006	Written report – Author:		Liz Middleton – Finance Director
Decision(s): The Minister approved: · the submission to the 2006 Annual Financial Report and Accounts; · the amount to be carried forward to 2007 (£178,778).
Reason(s) for decision: To ensure compliance with Treasury requirements.
Action required: Advise the Treasury and Resources Minister that: · the Department requires the full amount of the unspent balance of £178,778 to be carried forward from 2006 to 2007. · all additional income received has been utilised to support the Department’s expenditure during 2006. Forward the Departmental submission to the Annual Financial Report and Accounts 2006 to the Treasury and Resources Department.
Signature: (Minister/ Assistant Minister)			Date of Decision:

Annual Financial Report and Accounts 2006

Home Affairs Department Report for Minister
Subject:	Annual Financial Report and Accounts 2006
Exempt Clause:	Report – N/A Appendices :3.2(a)( xiv)	Date:	5 February 2007

Authors:	Liz Middleton – Finance Director

1. Introduction

The purpose of this report is to:

(i) ask the Minister to approve the Department’s submission to the States Annual Financial Report and Accounts 2006;

(ii) ask the Minister to approve the amount to be carried forward into 2007.

2. Background

Officers of the Treasury are currently preparing the States Annual Financial Report and Accounts 2006 to be completed for Audit purposes by 30 March 2007. As in previous years Departments have been asked to provide information for inclusion in the Report.

In order to achieve consistency through the document the Departmental narrative should focus on:

· core strategic objectives, as per the Business Plan;

· financial overview for 2006;

· key financial results for the six highest spending service areas;

· performance measures;

· capital expenditure;

· manpower;

· other developments.

3. Submission to the Annual Financial Report and Accounts 2006

Appendix A details the narrative submission to the Annual Financial Report and Accounts 2006.

Appendices B and C provide an objective expenditure analysis (by service area) and a subjective expenditure analysis (by income and expenditure category).

Appendix D provides an analysis of the total amount voted to the Department during 2006 (reconciling the original budget as per the 2006 Budget Book to the year end voted amount).

Appendix E shows details of the graphic information that will be published.

4. 2006 Carry Forward Balance

The final year end balances show a net underspend of £178,778 which constitutes 0.45% of the Department’s 2006 final cash limit. This amount is after the transfer of budget from the Treasury and Resources Department to meet the shortfall on court and case costs and excludes the balance on the Safety Grants Fund which will be transferred to the Transport and Technical Services Department.

The accounts have been prepared in accordance with the new Finance Law (the Public Finances (Jersey) Law, 2005). Financial Direction 6.2 (Year End Procedures) which has been issued under Article 34 of the Law states that there is a presumption that departments will be able to carry forward positive net balances of up to £500,000 or 3%; whichever is the larger. However, departments are only permitted to automatically carry forward positive net balances of up to £200,000 or 1% of their gross revenue head of expenditure; whichever is the larger. Positive net balances in excess of 1% or £200,000 will be considered by the Council of Ministers.

The Department has been projecting a net carry forward balance throughout 2006 and has indicated to the Treasury and Resources Department and the Council of Ministers that the balance would, in the first instance, be utilised to fund shortfalls in the Prison and Jersey Field Squadron’s base budgets for 2007. As at 30 September 2006 the projected year end underspend was £196,529.

Given the actual amount of the net underspend and the additional funds that were agreed for the Department by the Council of Ministers on 14 December 2006 the allocation of the 2006 carry forward balance will be determined once Service spending plans have been reviewed in the light of the ‘Emerging Financial Pressures’ submitted to the Treasury and Resources Department and Council of Ministers. Ministerial approval will be required for the allocation of the carry forward balance shortly.

5. Recommendations

It is recommended that the Minister:

(i) approves the attached submissions to the 2006 Annual Financial Report and Accounts;

(ii) advises the Treasury and Resources Minister that all additional income received has been utilised to support the Department’s expenditure during 2006;

(iii) advises the Treasury and Resources Minister that the Department requires the full amount of the unspent balance of £178,778 to be carried forward from 2006 to 2007.