Central Contingency allocation for costs associated with Independent Jersey Care Inquiry (IJCI)

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 11 July 2016:

Decision Reference: MD-TR-2016-0056
Decision Summary Title:	Independent Jersey Care Inquiry – allocation from Contingency for costs incurred in 2016		Date of Decision Summary:	27th June 2016
Decision Summary Author:	Financial Performance Reporting Manager		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Independent Jersey Care Inquiry – allocation from Contingency for costs incurred in 2016		Date of Written Report:	27th June 2016
Written Report Author:	Financial Performance Reporting Manager		Written Report : Public or Exempt?	Public
Subject: Non-recurring Central Contingency allocation of up to £5,366,708 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI) in 2016.
Decision(s): The Minister approved the allocation of up to £5,366,708 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI) in 2016.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. On 10th February 2016, the Council of Ministers approved the revised forecasts for 2016 with Panel costs being up to £15.3 million and £7.7million for States departments and agreed that the Minister for Treasury and Resources should draw-down the remaining balance from Contingency of the total funding recognising that a contingency of less than £10,000 would remain. Amounts to be allocated will be drawn down for June, September and finalised once actual expenditure is known to the end of December 2016.
Resource Implications: The following revenue heads of expenditure to increase in 2016 by up to the amounts shown: States Assembly (for the independent Panel) – £2,719,726 Law Officers’ Department – £494,634 Home Affairs Department (States of Jersey Police) - £458,792 Health and Social Services - £208,500 Chief Minister’s Department - £1,485,056 Central Reserves (Central Contingencies) to decrease by up to £5,366,708 in 2016. This decision does not change the total amount of expenditure approved by the States for the period of the current MTFP 2016 to 2019.
Action required: The Head of Decision Support to notify the Head of Financial Performance Reporting – Treasury and Resources that the decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Central Contingency allocation for costs associated with Independent Jersey Care Inquiry (IJCI)

- 1 -

Treasury and Resources

Ministerial Decision Report

Independent Jersey Care Inquiry – allocation from contingency for costs incurred in 2016

Purpose of Report

Request for non-recurring Central Contingency allocation of up to £5,366,708 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI).

2. Background

On 25th March 2015 the States approved P.20/2015 Committee of Inquiry: Historical Child Abuse – additional funding, which proposed that up to a further £14,000,000 should be made available in order to provide additional funding in relation to the Committee of Inquiry into Historical Child Abuse (now known as ‘the Independent Jersey Care Inquiry’).

P.20/2015 was implemented on 8th October 2015 when the States approved:

P.76/2015 Strategic Reserve Fund: funding for Independent Jersey Care Inquiry and transfers from and to the Consolidated Fund (as amended) and
P.75/2015 Strategic Reserve Fund: funding for Independent Jersey Care Inquiry and transfers from and to the Consolidated Fund (as amended).

These propositions made available up to an additional £10 million to the IJCI in 2015 and up to an initial £4 million in 2016 for the same purpose (the latter being included within the MTFP 2016-2019) from the Strategic Reserve. These funds were to be held in the Allocation for Contingency (“Contingency”) pending their need to meet actual expenditure.

On 8th October 2015 the Minister for Treasury and Resources published R.114/2015 Independent Jersey Care Inquiry: Memorandum of Understanding and Directions. This set out how costs for the Inquiry, incurred both by the Panel and States departments, would be managed.

On 30th January 2012 the Minister for Treasury and Resources published R.10/2012 Contingency allocation: policy. This set out a requirement for the Council of Ministers to approve all transfers from Contingency to spending departments.

On 9th December 2015 Council of Ministers approved forecasts for 2016 with panel costs being up to £13.7million and Departmental costs up to £7.1million from Contingency to meet actual costs incurred on the Inquiry in 2016. These allocations include an amount to the States Assembly, whose Accounting Officer is also the Accounting Officer for spending by the Inquiry Panel.

On 10th February 2016, the Council of Ministers approved the revised forecasts of £15,291,032 for the IJCI Panel and £7,699,472 for States departments in 2016 and agreed that the Minister for Treasury and Resources should draw-down the remaining balance from Contingency of the total funding approved by the States in order to meet the increase in the forecast.

The attached table shows for all departments:

The expenditure forecasts set out in P.20/2015
The updated expenditure forecasts as at the date of this report
The increase in forecasts since the approval of P.20/2015
Funding drawn down by departments in 2014 and 2015
Forecast funding required to be drawn down in 2016.

The total forecast expenditure for the Inquiry is now £22,990,504. This is against available funding of £23 million.

The amounts to be drawn down from Contingency for departments in 2016 to meet actual expenditure are forecast to be up to:

States Assembly (for the Panel) – £2,719,726
Law Officers’ Department – £494,634
Home Affairs Department (States of Jersey Police) - £458,792
Health and Social Services - £208,500
Chief Minister’s Department - £1,485,056

Amounts to be allocated will be drawn down in June and September to meet actual expenditure incurred, and finalised once actual expenditure is known to the end of December 2016.

3. Recommendation

The Minister is recommended to approve the non-recurring Central Contingency allocation of up to £5,366,708 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI).

4. Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

On 10th February 2016, the Council of Ministers agreed to the request to allocate up to £22.99 million from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI).

Amounts to be allocated will be finalised once actual expenditure is known to the end of June, September and December 2016.

5. Resource Implications

The following revenue heads of expenditure to increase in 2016 by up to the amounts shown:

States Assembly (for the Panel) – £2,719,726
Law Officers’ Department – £494,634
Home Affairs Department (States of Jersey Police) - £458,792
Health and Social Services - £208,500
Chief Minister’s Department - £1,485,056

Central Reserves (Central Contingencies) to decrease by up to £5,366,708 in 2016. This decision does not change the total amount of expenditure approved by the States for the period of the current MTFP 2016 to 2019.

Report author : Head of Decision Support	Document date: 27th June 2016.
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2016 - 0056 - IJCI Contingency Request
MD sponsor : Treasurer of the States

Appendix 1