TREASURY & RESOURCES MINISTER
Report on matters relating to Budget Management
for the 6 month period to 31 st December 2009
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 relating to budgeting and to the financial control and administration of States trading operations are required to be reported to the States twice yearly by the Minister for Treasury and Resources (the ‘Minister’).
This report summarises decisions made during the 6 month period to 31st December 2009, the majority of which have been previously published.
2. Reporting on decisions
The areas of administration which are to be reported on for the period are borrowing and budget transfers (including Economic Stimulus Plan allocations).
2.1 Borrowing
2.1.1 Small Firms Loan Guarantee Scheme
During the 6 month period to 31st December, the Treasurer of the States did not guarantee any new loans under the Small Firms Loan Guarantee Scheme (SFLGS). Under the terms of the Scheme, the Economic Development Department underwrites up to 75% of the value of a loan. As at 31st December 2009, the total amount loaned under the SFLGS was £637,000, of which £477,750 was guaranteed by the States.
2.1.2 Jersey Student Loan Scheme
The Jersey Student Loan Scheme commenced in September 2007. As at 31st December 2009, 314 students had taken out a loan under the Scheme, and the total amount borrowed was £857,109. Terms with the intermediaries require the States of Jersey to underwrite 100% of the value of the loan.
2.2 Budget transfers
Budget transfers are reported on the following basis:-
· Transfers between revenue heads of expenditure;
· Transfers between capital heads of expenditure; and
· Transfers between revenue and capital heads of expenditure.
Budget transfers between departments vary the budgets of individual departments but are net nil in total.
Economic Stimulus Plan allocations are reported separately in section 2.2.4 below.
2.2.1 Transfers between revenue heads of expenditure
Approved revenue transfers during the period ended 31st December 2009 are shown in Table (1).
Table (1) Transfers between revenue heads of expenditure
Department | £ | Funding of:- |
To | From |
EDD | Housing | 147,000 | Occupation costs of Jubilee Wharf 2009 |
CMD | Housing | 47,900 | Occupation costs of Jubilee Wharf 2009 |
CMD | EDD | 75,000 | Financial Services Advisory Board (FSAB) Risk Review Monitoring Team |
P&E | EDD | 9,995 | A replacement Land Rover |
T&R | EDD | 42,000 | Tax Policy Advisor 2009 |
Home Affairs | EDD | 200,000 | Court and Case Costs 2009 |
Judicial Greffe | Soc Sec | 1,574,000 | Court and Case Costs 2009 |
Bailiff’s Chambers | Soc Sec | 220,000 | Court and Case Costs 2009 |
Home Affairs | Soc Sec | 606,000 | Police investigations and Court and Case Costs 2009 |
2.2.2 Transfers between capital heads of expenditure
During the 6 month period to 31st December, the Minister approved the transfer of £600,000 from the Chief Minister’s Department (CMD) to Education Sport and Culture (ES&C) in respect of the Education IT Strategy.
2.2.3 Transfers between revenue and capital heads of expenditure
Approved transfers between revenue and capital during the period to 31st December are shown in Table (2) on page 3.
Table (2) Transfers between revenue and capital heads of expenditure
Department | £ | |
To | From |
T&TS | T&TS (Rev) | 450,000 | Transfer to La Collette and Sludge Thickener Phase 1 capital projects |
P&E | T&R (Cap) | 45,619 | Transfer from the Contingency Fund to reimburse legal costs incurred in connection with making a compensation payment |
ES&C | ES&C (Rev) | 68,000 | Youth Service Bus project |
Soc Sec | T&R (Cap) | 2,411,000 | Transfer from the Contingency Fund in respect of Income support and additional staff |
T&R - JPH | Soc Sec (Rev) | 438,000 | Improvement of facilities at Acorn Industries to meet the needs of the Jersey Employment Trust |
ES&C | T&R (Cap) | 135,000 | Transfer from the Contingency Fund to cover Historic Child Abuse Enquiry (HCAE) expenditure |
Home Affairs | T&R (Cap) | 2,120,200 | Transfer from the Contingency Fund to reimburse actual HCAE expenditure incurred to 30.09.09 |
Law Officers’ Department | T&R (Cap) | 950,438 | Transfer from the Contingency Fund to reimburse actual HCAE expenditure incurred to 30.09.09 |
H&SS | T&R (Cap) | 369,300 | Transfer from the Contingency Fund to reimburse actual HCAE expenditure incurred to 30.09.09 |
T&R – JPH | T&R (Cap) | 25,266 | Transfer from the Contingency Fund to reimburse actual HCAE expenditure incurred to 30.09.09 |
Viscount’s Department | Viscount’s Department (Rev) | 44,800 | Transfer to align budgeting and accounting treatment* |
Official Analyst | Official Analyst (Rev) | 37,000 | Transfer to align budgeting and accounting treatment* |
T&TS | T&TS (Cap) | 213,235 | Transfer to align budgeting and accounting treatment* |
T&R | T&R (Rev) | 20,000 | Transfer to align budgeting and accounting treatment* |
ES&C | ES&C (Cap) | 106,077 | Transfer to align budgeting and accounting treatment* |
Home Affairs | Home Affairs (Rev) | 17,000 | Transfer to align budgeting and accounting treatment* |
Home Affairs | Home Affairs (Rev) | 24,000 | Transfer to align budgeting and accounting treatment* |
Probation | Probation (Rev) | 25,500 | Transfer to align budgeting and accounting treatment* |
States Assembly | States Assembly (Rev) | 14,790 | Transfer to align budgeting and accounting treatment* |
EDD | EDD (Rev) | 11,995 | Transfer to align budgeting and accounting treatment* |
Home Affairs | Home Affairs (Rev) | 29,100 | Transfer to align budgeting and accounting treatment* |
* These budget transfers are required as a result of implementing Generally Accepted Accounting Principles (GAAP) in 2009 and do not change the total net expenditure approved by the States.
2.2.4 Economic Stimulus Plan allocations
The States agreed the transfer of £44 million from the Stabilisation Fund to the Consolidated Fund in order to provide funding for the proposed economic stimulus package (P.55.2009 refers).
During the period to 31st December 2009, the Minister approved fiscal stimulus projects totalling £10,179,202 (see Table (3) below). The majority of expenditure in respect of those projects will be incurred in 2010.
Table (3) Economic stimulus budget allocations
Department | £ | Purpose of allocation: |
T&TS (Cap) | 200,000 | Design spend on projects in provisional programme |
T&R (Rev) | 200,000 | Programme management costs |
ES&C (Rev) | 924,200 | A number of skills and training projects |
EDD (Rev) | 500,000 | Expanding activities to support local businesses |
Soc Sec (Rev) | 50,300 | Citizen’s Advice Bureau grant and mortgage arrears protocol |
EDD (Rev) | 972,750 | States Apprenticeships Project |
T&TS (Cap) | 337,000 | Promenade and Cycle Track project |
Soc Sec (Rev) | 1,440,000 | Extension of transitional relief |
EDD (Rev) | 70,000 | Design and planning spend on St Aubin’s Pier project |
T&TS (Cap) | 1,143,452 | Victoria Avenue (Phase 2) project |
T&TS (Cap) | 263,000 | Pre-tender costs of drainage and highways projects |
Housing (Rev) | 133,200 | Backlog maintenance programme planning spend |
EDD (Rev) | 500,000 | Small Firms Loan Guarantee Scheme (SFLGS) |
T&R - JPH (Rev) | 62,000 | Planning and programme management |
ES&C (Rev) | 393,000 | The Advance to Work Scheme |
T&TS (Cap) | 228,000 | West Park to Cheapside (Phase 1) project |
T&TS (Cap) | 2,307,000 | Victoria Avenue (Phase 3) project |
T&R (Rev) | 60,000 | Heating Replacement Programme |
Housing (Rev) | 95,300 | Two backlog maintenance projects – window replacement |
T&R - JPH (Rev) | 300,000 | Backlog maintenance programme |
Total | £ 10,179,202 | |
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