Criminal Offences Confiscation Fund & Drug Trafficking Confiscation Fund: Authorisations and budget transfers for projects

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[THIS DECISION HAS BEEN RECINDED BY MD-HA-2014-0058] A decision made 4 September 2014:

Decision Reference: MD-HA-2014-0052
Decision Summary Title:	Application of COCF and DTCF Funding to Home Affairs Projects in 2014		Date of Decision Summary:	2 September 2014
Decision Summary Author:	Finance Director Home Affairs		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Projects Funded from the COCF and DTCF – Drawdown of Funds in 2014		Date of Written Report:	2 September 2014
Written Report Author:	Finance Director Home Affairs		Written Report : Public or Exempt?	Report – Public Appendix A - Exempt Category 3.2.1(a)(vi)
Subject: The financial transactions required to facilitate the transfer of funds from the COCF (and the previous DTCF) to the Home Affairs Department for projects which have already been approved.
Decision(s): The Minister: agreed to seek the approval of the Treasurer to use the income of £498,839 received from the COCF in 2014; agreed to seek the approval of the Treasurer to use deferred income of £53,939.90 previously received from the DTCF; approved a non-recurring budget transfer of £458,876 from the HAD revenue head of expenditure to the Home Affairs minor capital head of expenditure; agreed to seek the approval of the Treasurer of a non-recurring budget transfer of £458,876 from the Home Affairs revenue head of expenditure to the Home Affairs minor capital head of expenditure.
Reason(s) for Decision: Applications for funding have previously been approved for Home Affairs projects from the COCF and the DTCF. the Drug Trafficking Offences (Jersey) Law 1988 was repealed on 4 August 2014 by the Proceeds of Crime and Terrorism (Miscellaneous Provisions) (Jersey) Law 2014. Article 50(5) states that any monies remaining in the DTCF should be transferred to the COCF. Article 19(1)(a) of the Public Finances (Jersey) Law 2005 states that if, during a financial year, the Minister is satisfied that the income of a States funded body is likely to exceed its estimated income, the Minister may authorise the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income. 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: Once the HAD income target budget and the HAD revenue head of expenditure have been increased by £552,779 an amount of £458,876 is to be transferred from the HAD revenue head of expenditure to the Home Affairs minor capital head of expenditure. There are no manpower implications.
Action required: Finance Director to seek the necessary approvals from the Treasurer of the States.
Signature:		Position: Minister for Home Affairs
Date Signed:		Date of Decision (if different from date signed):

Criminal Offences Confiscation Fund & Drug Trafficking Confiscation Fund: Authorisations and budget transfers for projects

Home Affairs Department

Report for Minister

Subject: Projects Funded from the COCF and DTCF – Drawdown of Funds in 2014

Exempt Category: Report n/a : Appendix A 3.2.1(a)(vi) Date: 2 September 2014

Author: Finance Director

Introduction

The purpose of this report is to ask the Minister to:

a) seek the approval of the Treasurer to use the income of £498,839 received from the Criminal Offences Confiscation Fund (COCF) in 2014;

b) seek the approval of the Treasurer to use deferred income of £53,939.90 previously received from the DTCF;

c) approve a non-recurring budget transfer of £458,876 from the Home Affairs revenue head of expenditure to the Home Affairs minor capital head of expenditure;

d) seek the approval of the Treasurer of a non-recurring budget transfer of £458,876 from the Home Affairs revenue head of expenditure to the Home Affairs minor capital head of expenditure.

Background

The COCF and DTCF (Drug Trafficking Confiscation Fund) were established under the Proceeds of Crime (Jersey) Law 1999 and the Drug Trafficking Offences (Jersey) Law 1988 respectively. These Funds hold monetary amounts confiscated under the relevant laws and asset sharing agreements following successful legal action before they are distributed in accordance with applicable legislation. The Drug Trafficking Offences (Jersey) Law 1988 was repealed on 4 August 2014 by the Proceeds of Crime and Terrorism (Miscellaneous Provisions) (Jersey) Law 2014. Article 50(5) states that any monies remaining in the DTCF should be transferred to the COCF.

Responsibility for administering the Funds rests with the Treasury and Resources Department which manages the application process.

Applications may be made to the COCF for projects which:

prevent, suppress or otherwise deal with criminal conduct;
deal with the consequences of criminal conduct;
facilitate the enforcement of any enactment dealing with criminal conduct.

Applications were made to the DTCF for projects which:

prevent or suppress drug trafficking or the misuse of controlled drugs;
deal with the consequences of the misuse of controlled drugs;
facilitate the enforcement of any enactment dealing with drug trafficking or the misuse of controlled drugs.

The Treasurer’s approval is required for the financial transactions to facilitate the transfer of funds from the COCF (and the previous DTCF) to the HAD for projects which have already been approved. Details of the projects and expenditure are attached at Appendix A.

Income from the COCF and DTCF

Article 19(1)(a) of the Public Finances (Jersey) Law 2005 states that if, during a financial year, the Minister [for Treasury and Resources] is satisfied that the income of a States funded body is likely to exceed its estimated income, the Minister may authorise the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income.

Approval of the non-contentious use of additional income of more than 10%, or £100,000, has been delegated to the Treasurer.

Other Income

The accounting for capital grants changed in 2013, The Capital Grants Reserve is no longer used and grants are now recognised as revenue income, and then applied to expenditure and transferred to capital. A sum of £ 53,939.90 allocated from the DTCF under the previous accounting arrangements now needs to be released into the Home Affairs revenue accounts.

In accordance with paragraph 5.12 of Financial Direction 3.6, Variations to Heads of Expenditure, ‘Income of States funded bodies over and above the estimated income notified to the States in the Annual Business Plan may be used automatically for additional expenditure over and above that approved in the Annual Business Plan as follows:-

• Where any such income and associated additional expenditure match in terms of purpose and/or amount.’

Recommendations

It is recommended that the Minister:

a) seeks the approval of the Treasurer to use the income of £498,839 received from the Criminal Offences Confiscation Fund (COCF) in 2014;

b) seeks the approval of the Treasurer to use deferred income of £53,939.90 previously received from the DTCF;

c) approves a non-recurring budget transfer of £458,876 from the Home Affairs revenue head of expenditure to the Home Affairs minor capital head of expenditure;

d) seeks the approval of the Treasurer of a non-recurring budget transfer of £458,876 from the Home Affairs revenue head of expenditure to the Home Affairs minor capital head of expenditure.