Chief Minister’s Department
Chief Minister’s Report
TRANSFER OF ADDITIONAL INCOME TO THE FINANCIAL SERVICES, DIGITAL, innovation AND COMPeTITION DIVISION OF THE cHIEF MINISTER’S DEPARTMENT
- Purpose of Report
The purpose of this report is to enable the Chief Minister to request that windfall income of £272,528 is added to the Chief Minister’s Department Revenue Head of Expenditure and recognised as income in 2016.
- Background
Fees are collected by OFCOM on behalf of the States of Jersey, under authority of various pieces of legislation, most notably the Communications (Jersey) Order 2003, SI 2003/3197, arts 6, 7, Sch 2, para 91 (as amended by SI 2006/3324, art 4(2), Sch 2, Pt 2) and SI 2003/3197, arts 1(3)–(5), 2.
Following the transfer of responsibility for Digital Policy to the Chief Minister’s Department in 2016, the Department receives income from OFCOM in respect of wireless telegraphy licences fees. The amount received is subject to significant fluctuations so only a conservative estimate is accounted for in the MTFP.
In 2016 a total of £575,528 was received of which £303,000 was budgeted for in the MTFP. The Department is requesting to retain the remaining £272,528.
The amount that will be received can only be confirmed by OFCOM late in the year so it is not possible to make effective use of the funding in-year. As a result, it is established practice that funding received above the amount that has been budgeted for – in this case £272,528 – is requested as carry forward into 2017 and subject to the Treasury’s carry forward process.
3. Recommendation
It is recommended that the Chief Minister requests that the unbudgeted income of £272,528 is added to the Chief Minister’s Department revenue Head of Expenditure for 2016.
4. Reason for Decision
Article 19(1) of the Public Finances (Jersey) 2005 states that If, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure
(a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income; or
(b) the Minister may, either within or after the end of the financial year, with the agreement of the person responsible for the States funded body, transfer all or part of the excess income to contingency expenditure.
5. Resource Implications
Recognition of £272,528 as income in 2016 added to the Chief Minister’s Department revenue Head of Expenditure for 2016.
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