Treasury and Resources
Ministerial Decision Report
Treasury and Resources delegated Authority – October 2010
1 Purpose of Report
To update the delegation of Ministerial powers detailed in the Public Finances (Jersey) Law 2005 including those in Regulations approved under that Law, Financial Directions and other areas of administration.
2 Background
2.1 Under Article 27 of the States of Jersey Law a Minister may delegate, wholly or partly, functions conferred upon them by any Law to either an Assistant Minister or an officer.
2.2 Ministerial decision MD-TR-2008-0147 delegated powers to the Assistant Minister for Treasury and Resources, Deputy John Le Fondre of St Lawrence, the Treasurer of the States and other officers.
2.3 Ministerial decision MD-TR-2009-0018 delegated Powers to the Assistant Minister for Treasury and Resources, Deputy Edward James Noel of St Lawrence
2.4 This report seeks to delegate further functions to the Deputy Treasurer and amend the Treasurer of the States’ authority for approving non-contentious budget transfers.
3. Additional delegations
3.1 Approval is sought for a new delegation 2.2 in this report to allow the Deputy Treasurer of the States to approve individual commemorative currency designs.
Currently the Minister approves each individual commemorative currency design as they are produced. It is proposed that a delegation be made to the Deputy Treasurer of the States to approve individual commemorative currency designs.
3.2 Approval is sought to amend delegation 1.3 – Non-contentious transfers - to increase the current limit of the Treasurer’s approval to £1,000,000.
A number of Ministerial decisions have been placed before the Minister requesting budget transfers due to accounting treatment as a result of the move to GAAP. By amending the delegation to increase the limit to £1,000,000 the majority of these non-contentious transfers can be dealt with by delegated authority. All budget transfers including those that have been signed using delegations will be reported to the States under Article 15 (2) of the Public Finances (Jersey) Law 2005 as has previously been the case in a twice yearly report.
The revised delegations are set out as complete list as an appendix to this report.
4. Recommendation
The Minister is asked to approve the delegations as set out in Appendix 1 and request that the attached supporting document is presented to the States at the earliest opportunity.
5. Reason for Decision
To make appropriate delegations to enable the efficient and effective management of public finances and operation of the Treasury & Resources department.
6. Resource Implications
None.
Report author : Business Manager | Document date : 05/10/2010 |
Quality Assurance / Review : Head of Decision Support | File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2010-0146 - t&r delegated authority – october 2010 - jmb\wr - t&r delegated authority – october 2010 - jmb.doc |
MD sponsor : Interim Treasurer of the States |
MINISTER FOR TREASURY AND RESOURCES – DELEGATIONS OCTOBER 2010
Unless otherwise stated, any reference to an Article in this section is a reference to the Article so numbered in the Public Finances (Jersey) Law 2005. Likewise any reference to a Regulation in this section is a reference to the Regulation so numbered in the Public Finances (Transitional Provisions) (No.2) (Jersey) Regulations 2005.
1 Public Finances (Jersey) Law 2005 delegations
1.1 Annual Business Plan Estimates
Article 8 - Estimates to be provided; and Article 10 - Estimates for the States Assembly and its services | To enable the preparation of the Annual Business Plan and Budget, the Law enables the Minister to request that estimates be provided by States funded bodies (including ministerial and non-ministerial bodies and the States Assembly) in respect of the following financial year for revenue expenditure, income, and capital projects scheduled to start or continue in that year. In addition, the Minister can request details of income that may arise from the disposal of assets, and for any other income of the States. The Minister may request information for other time periods and is able to specify the format and time scale to which the aforementioned estimates be provided within. |
Delegation | Authority is delegated to the Treasurer of the States, or in his absence, another person as nominated by the Treasurer. |
1.2 Retention of Income
Article 14 - Expenditure Approval, heads of expenditure and withdrawals from the consolidated fund Sub-paragraph 14 (6) (7) refers | This sub-paragraph of the Law empowers the Minister to authorise a States funded body (Sfb) to use any additional income it may generate over and above the estimate approved by the States in the Annual Business Plan. |
Delegation | The Minister agreed that States funded bodies be allowed to retain and use additional income in instances where: a) any such income and associated additional expenditure match; and the additional income is in excess of increased expenditure required to generate that income but the excess income is not more than 10% (or £500,000 for a States trading operation and £100,000 for all other States funded bodies) of the estimated income notified to the States for that particular service area - this additional income should not be used to fund recurring expenditure for which no future funding is secured. |
1.3 Non-Contentious Transfers
Article 15 – Permitted variations Sub-paragraph 15(1)(a) refers | This sub-paragraph of the Law enables the Minister to approve the transfer of funds from one head of expenditure to another head of expenditure a head of expenditure being either: · the annual net revenue budget of a States funded body; or · the amount allocated for each capital project. |
Delegation | Authority is delegated to the Treasurer of the States, or in his absence, another person as nominated by the Treasurer, to agree any non-contentious transfers between expenditure heads up to £1,000,000. The Minister agreed that funds can be transferred, without further approval by the Minister, in instances where there is a transfer of responsibility and administration of a service which has been agreed by the States and the relevant ministers agree in respect of the funds to be transferred. Such decisions must be notified to the Treasurer. |
1.4 Carry Forwards
Article 15 – Permitted variations Sub-paragraph 15(1)(b) and 2 refers | This sub-paragraph empowers the Minister to allow a States funded body, in the case of revenue expenditure, to carry funds forward to the following financial year and report to the States, the approval given, in periods no longer than six months. |
Delegation | The Minister agreed that Departments can automatically carry forward to the following financial year up to 1% of their gross revenue head of expenditure or £200,000 (whichever is the larger). |
1.5 Income from Asset Sales
Article 15 – Permitted variations Sub-paragraph 15(3) refers | This sub-paragraph of the Law empowers the Minister to authorise a States funded body to make use of income from the sale of an asset for the acquisition of a replacement or other asset. |
Delegation | Authority is delegated to the Treasurer of the States, or in his absence another officer nominated by the Treasurer of the States, to agree non-contentious requests for the use of sale proceeds where the net balance over the residual value of the asset sold is less than £100,000. |
Delegation | Authority is delegated to Accounting Officers to make use of up to £5,000 of income from the sale of an asset where the net balance over the residual value of the asset sold is less than £5,000. |
1.6 Borrowing
Article 22 – Minister and Treasurer may be authorized to borrow; and Regulation 9 - authorizes the Minister to make certain borrowings in the name of, and on behalf of the States. Regulation 10 - allows the Minister to delegate his or her power to borrow on behalf of the States to the Treasurer. | Both the Law and Regulations allow the Minister to delegate (where they so wish) to the Treasurer minor borrowing transactions which, in summary, include: · short-term bank overdrafts/overdraft facilities and temporary loans (these must not exceed more than 25% of the previous year’s income from taxation); · other minor borrowing – up to £1 million in any one transaction in a financial year so long as the total amount borrowed does not exceed £3 million in that year, the total amount outstanding in this way does not exceed £20 million and with all such borrowing having a maximum repayment period of 10 years; · borrowing for a States trading operation where additional income or tangible savings arising from the underlying expenditure meet the costs of the borrowing; · other parameters specifically agreed by the States. |
Delegation | Authority is delegated to the Treasurer of the States to agree short-term bank overdrafts/overdraft facilities and temporary loans within the parameters set in the Law up to £10 million. |
Delegation | Authority is delegated to the Treasurer of the States to agree minor borrowing up to £100,000 in any one financial year (up to a maximum of £500,000), with no transaction to exceed £10,000 and repayment periods of 5 years or less. (Treasurer is not able to delegate his borrowing responsibilities to any other officers). |
1.7 Trading Operations
Article 27 - Returns of States trading operations to be agreed sub-paragraphs (1) and (2)(a)(b)(c)(d) refer | These sub-paragraphs empower the Minister to request States trading operations to enter into discussions and provide estimates in respect of the business activities during the succeeding financial year. The estimates should include income and expenditure, estimated contribution to the income of the States, estimate of any surplus of income over expenditure or estimated deficit, to be debited to trading fund and shall take into account capital expenditure details. |
Delegation | Authority is delegated to the Treasurer of the States, or in his absence, another person as nominated by the Treasurer of the States, to request the necessary estimates from the States trading operations. |
1.8 Bank Accounts
Article 33 – Treasurer to open bank accounts Sub-paragraphs 33(1) and (4) refer | These sub-paragraphs allow the Treasurer to open, operate and maintain bank accounts with a bank(s) approved by the Minister for the operation of the consolidated fund and for the proper administration of this or any other Law. |
Delegation | Authority is delegated to the Treasurer of the States to carry out this function without recourse to the Minister, provided that any bank selected is licensed for banking services in Jersey by the Jersey Financial Services Commission. |
1.9 Recharge Accounts
Article 33 – Treasurer to open bank accounts Sub-paragraph 33 (3) refer | This sub-paragraph empowers the Minister to agree that money in the consolidated fund may be used to incur expenditure that will subsequently be recharged – for example the approval of stock accounts and other rechargeable accounts. |
Delegation | Authority is delegated to the Treasurer of the States, or in his absence another officer as nominated by the Treasurer of the States, to approve all rechargeable and stock accounts. |
1.10 Financial Directions
Article 34 - Financial directions | This Article enables the Treasurer of the States to issue financial directions with the approval of the Minister. |
Delegation | Authority is delegated to the Treasurer of the States, or in his absence another person as nominated by the Treasurer, to issue Financial Directions that he deems to be required. (This authority shall not extend to those financial directions which propose the delegation of responsibility from the Minister to an officer without the Minister having already agreed those delegations). |
1.11 Trust Assets – Bank Accounts
Regulation 18 - prescribes the bank accounts that may be used for trust money. | This Regulation states that Trust money should be held in a bank account with a bank(s) approved by the Minister (unless a Trust document specifies a certain bank). |
Delegation | Authority is delegated to the Treasurer of the States to carry out this function without recourse to the Minister, provided that any bank selected is licensed for banking services in Jersey by the Jersey Financial Services Commission. |
1.12 Trading Funds
Article 22 Public Finances (Transitional Provisions) (No2) ( Jersey) Regulations 2005 | “Money standing to the credit of the trading fund of a States trading operation may also be used, with the approval of the Minister, for a capital project of the trading operation if – (a) the amount approved by the States for the project as part of an annual business plan has proved to be insufficient; or (b) the project arises from a contingency that could not have been reasonably foreseen at the time the estimates of the States trading operation were submitted to the Minister in accordance with Article 8 of the 2005 Law for inclusion as part of an annual business plan.” |
Delegation | Authority be delegated to the Treasurer of the States, or in his absence, another person as nominated by the Treasurer of the States for any further approvals under Article 22(2) of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005 where the amount concerned is less than £100,000. |
1.13 Public Finances Law – General
Powers under the Public Finances (Jersey) Law 2005 | Functions conferred on or vested in the Minister by or under the Public Finances (Jersey) Law 2005. |
Delegation | The Minister delegated of all of the functions conferred on or vested in the Minister by or under the Public Finances (Jersey) Law 2005 including those in Regulations approved under that Law and financial directions to the Assistant Minister for Treasury and Resources, Deputy Edward James Noel of St Lawrence. |
2 Administrative delegations
2.1 States Charges
Anti-Inflation Strategy (P125/2000) | The States in the Anti-Inflation Strategy agreed that increases in States charges should be limited to a maximum of 2.5 per cent a year, with any exceptions, in extremely compelling cases only, to be subject to prior approval by the Finance and Economics Committee (now the Minister for Treasury and Resources). |
Delegation | Authority is delegated to the Treasurer of the States, or in his absence, another person as nominated by the Treasurer to agree non-contentious fee/charge increases which do not require subsequent States approval; or in instances where fees are being increased in line with the “User Pays” principle. The Minister agreed that approval for increases which are in line with statute or with a formula which has already received States or his approval do not require further approval. |
2.2 Coin designs
Decimal Currency (Jersey) Law 1971 – Article 3 – Coinage of the new currency | This delegation enables the Deputy Treasurer of the States to approve individual commemorative currency designs as and when they are produced. |
Delegation | The Minister delegated approvals of individual commemorative currency designs to the Deputy Treasurer of the States. |
2.3 Non-Contentious States Manpower
P67/1999 - Regulation of Public Sector Employees | This proposition charges the Minister for Treasury and Resources to regulate the number of persons that may be employed by the States of Jersey in any area of the States administration, excluding those States’ departments that report to The States trading operations, in accordance with the principles contained within the Regulation of Undertakings legislation and the policy statement issued by the then Finance and Economics Committee in respect of the application of the Regulation of Undertakings to the private sector, effective from 10th November 1998. |
Delegation | Authority is delegated to the Treasurer of the States, or in his absence, another person as nominated by the Treasurer of the States for agreeing non-contentious increases to States manpower. |
3 States Standing Orders delegations
3.1 Standing Order 168
Standing Order 168 | This standing order applies to the following actions – (a) the disposal, acquisition, letting or rental of land on behalf of the public of Jersey; (b) the grant or acquisition of rights or servitudes over land on behalf of the public of Jersey; (c) the renewal, extension or variation of any lease of land on behalf of the public of Jersey; (d) the approval of plans for the construction or alterations of buildings where the work is to be funded wholly or partly by money voted by the States. |
Delegation | Authority is delegated to the Assistant Minister, Treasury and Resources (Deputy Le Fondré of St Lawrence) all powers and responsibilities arising under Standing Order 168; and |
Delegation | Authority is delegated to the Director, Property Holdings, and in his absence the Assistant Director - Finance and Investment, the power to approve: · Any acquisition or disposal of land or property on behalf of the public for a consideration of less than £150,000; · Any grant or acceptance on behalf of the public of any servitude or right in, on, over or under land by way of gift or for a sum of less than £50,000 or £12,500 a year; · The letting on behalf of the public to any person or body for a term certain of any land or property for a rent payable on commencement of less than £50,000 a year; · The rent on behalf of the public from any person or body for a term certain of any land or property for a rent payable on commencement of less than £50,000 a year; and · The renewal, extension or variation of any lease where the value is less than £50,000 a year. |
3.2 Contract Signing
Standing Order 168 – Land transactions Contract signing | Signing of contract on behalf of the Minister for Treasury and Resources. |
Delegation | For work commissioned by Property Holdings responsibility for signing the contract is delegated to: · The Assistant Minister, Treasury and Resources (Deputy Le Fondré of St Lawrence), for contracts between £1,000,000 and £5,000,000; · The Director of Property Holdings, or in his absence the Assistant Director - Finance and Investment for contracts with a value up to £1,000,000. |
Delegation | Power to authorise the Attorney General and the Greffier of the States to pass any contracts on behalf of the public of Jersey that may be necessary in regard to land transactions approved by the Minister or his delegates under Standing Order 168 is delegated to the Assistant Minister, Treasury and Resources (Deputy John Le Fondré of St Lawrence) and to the Director, and in his absence the Assistant Director - Finance and Investment, Property Holdings. |
Delegation | For non Property Holdings contracts the Minister delegated responsibility for signing contracts to the Treasurer of the States. |