Community Savings Limited: Grant

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A decision made 26 May 2017:

Decision Reference: MD-TR-2017-0069
Decision Summary Title:	Grant Payment to Community Savings Ltd		Date of Decision Summary:	22nd May 2017
Decision Summary Author:	Finance Director, 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 Payment to Community Savings Ltd		Date of Written Report:	22nd May 2017
Written Report Author:	Finance Director, Corporate Group		Written Report : Public or Exempt?	Public
Subject: Transfer from T&R Corporate Contingency into the Treasury and Resources Department (T&R) revenue head of expenditure in the amount of £17,335 and authorisation of a grant in the same amount to Community Savings Ltd.
Decision(s): The Minister approved a transfer from T&R Corporate Contingency into the T&R revenue head of expenditure in the amount of £17,335 and authorised 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 the Treasury and Resources Department, to make a grant payment of £17,335 to Community Savings Ltd from the Treasury and Resources revenue head of expenditure. 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 £17,335 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: The Head of Decision Support to advise the Finance Director of the Corporate Group that this decision is approved.
Signature:		Position: Senator A J H Maclean Minister for Treasury & Resources
Date Signed:		Date of Decision (If different from Date Signed)

Community Savings Limited: Grant

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Treasury and Resources

Ministerial Decision Report

Grant Payment to Community Savings Ltd

Purpose of Report

To request that the Minister approves a transfer from T&R Corporate Contingency into the Treasury and Resources Department (T&R) revenue head of expenditure in the amount of £17,335 and 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 concept of establishing Community Savings Ltd in Jersey started in 1996 following the UN Eradication of Poverty initiative 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.

The principle activity of the company is that of the provision of basic banking facilities, help with budgeting and, in certain circumstances, emergency funding loans and grants to the general public.

In order to operate Community Savings has to maintain a level of financial control acceptable to the Jersey Financial Services Commission and at the same time is obliged to comply with most aspects of UK Credit Union legislation. In addition necessary operating costs are incurred in order to offer an effective service for community groups and customers that it supports; rent; utilities; stationery, staff costs and rent payable to the Parish of St Helier.

The company’s main source of income is charitable donations and it attempts to keep operating expenditure low by using a volunteer workforce where possible. However, it has been accepted that this source of funding remains volatile and to that extent for each of the years 2013, 2014 and 2015 the Minister for Treasury and Resources awarded grants of £50,000 from the Treasury and Resources head of expenditure with the aim of ensuring the company had sufficient funding to enable the expansion of its operations and awareness programme.

For 2016 the Minister agreed to cover any operating deficit up to a maximum of £50,000 for the Company’s financial year to 31 October 2016 with any remaining balance permitted to be carried forward to cover operating deficits associated with the financial year to 31 October 2017.

Community Savings Ltd has furnished Treasury and Resources with signed company accounts for the year to 31 October 2016 in which an operating deficit of £17,335 is offset as a debtor. This means up to £32,665 should be made available for any deficit incurred in 2017.

3. Recommendation

The Minister is recommended to approve:

A transfer from Treasury and Resources Corporate Contingency into the Treasury and Resources Department revenue head of expenditure in the amount of £17,335;
the onward authorisation of a grant payment in the same amount to Community Savings Ltd to assist with their shortfall in 2016; and
the earmarking of up to £32,665, representing the balance of the £50,000 grant budget for 2016 and 2017, to cover any deficit incurred by Community Savings Ltd in their fiscal year 2017.

4. Reason for Decision

To enable the Treasurer of the States, as Accounting Officer for the Treasury and Resources Department, to make a grant payment of £17,335 to Community Savings Ltd from the Treasury and Resources revenue head of expenditure.

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

Treasury and Resources Corporate Contingency to decrease by £17,335 and the Treasury and Resources 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 Director, Corporate Group	Document date 22 May 2017
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-0069 - Community Savings grant
MD sponsor : Director of Financial Planning and Performance