Financial planning disclosures for the 6 month period ending 30 June 2006.

Information about the publication of Ministerial Decisions

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A decision made (18/12/2006) regarding: Financial planning disclosures for the 6 month period ended 30^th June 2006.

Subject:	Financial planning disclosures for the 6 month period ended 30th June 2006.
Decision Reference:	MD-TR-2006-0128	Exempt clause(s):		n/a
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		n/a
Telephone or e-mail Meeting?	n/a	Report File ref:		MG/1/11/12/06
Written Report – Title	TREASURY & RESOUCES MINISTER - Report on the disclosure requirements relating to Financial Planning	Written report - author		Mel Gault – Finance Manager, Decision Support
Decision(s): To approve the report detailing financial planning disclosures for the six month period ending 30th June 2006 and to request that it be laid before the States.
Reason(s) for decision: The Public Finances (Jersey) Law 2005 and its associated financial directions require the Minister for Treasury and Resources to report to the States twice yearly on a number id issues relating to States finances.
Action required: To send the attached report to the States Greffe and to request that it be laid before the States at the earliest possible opportunity.
Signature: (Minister/ Assistant Minister)			Date of Decision: 18th December 2006

Financial planning disclosures for the 6 month period ending 30 June 2006.

TREASURY & RESOURCES MINISTER

Report on the disclosure requirements relating to Financial Planning

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 are required to be reported to the States twice yearly by the Minister for Treasury and Resources (the ‘Minister’).

This report sets out those matters for the 6 month period ended 30th June 2006.

2. Financial Directions

Matters to be reported by the Minister twice yearly relate solely to financial planning. The Financial Directions (‘FD’) referred to in this report – which have all been issued under certain Articles of the Law and provide instructions and guidance on the Law and any Regulations that are in place – are all relevant.

2.1 FD 3.1 – Financial administration of Trading Operations (Article 26)

This Direction supports paragraphs (2) and (3) of Regulation 22, which states that the Minister may in certain circumstances approve variations to capital and/or revenue expenditure (FD sections 5.13-5.15 refer).

2.2 FD 3.2 – Borrowing (Article 21)

Under Regulation 9, the Minister may authorise certain borrowings in the name of, and on behalf of the States. The ‘Borrowing by the Minister for Treasury & Resources’ section of this Direction provides guidance on the aforementioned. This function has partly been delegated to the Treasurer of the States (the Treasurer) – as permitted by Regulation 10 -, and FD sections 5.12 and 5.18 refer.

2.3 FD 3.3 – Lending (Article 23)

Sections 5.6 and 5.7 of this Direction support Regulation 13, which authorises the Minister to lend certain money of the States. ‘Lending by the Treasurer of the States’ (FD section 5.9) relates to Regulation 14, which authorises the Minister to delegate to the Treasurer, wholly or partly, a function vested in the Minister by Regulation 13.

2.4 FD 3.6 – Variations to heads of expenditure (Article 15)

This Direction specifies how and when an application for the Minister’s approval under paragraph (1) of Article 15 (a) of the Law may be made. Transfers between heads of expenditure are covered in FD sections 5.7-5.13, and the carry forward of revenue balances is referred to in section 5.15 and FD 6.1 Carry forward of revenue balances.

2.5 Reporting on Ministerial and delegated approvals

With the exception of variations to heads of expenditure, there is nothing to report in any of the abovementioned areas of administration.

3. Variations to heads of expenditure

Direction 3.6 identifies requirements and provides advice on the procedures when variations to revenue and capital heads of expenditure are being considered.

A ‘head of expenditure’ is defined in section 5.1 of the FD as either:-

§ the annual net revenue budget of a States funded body; or

§ the amount allocated for each capital project.

3.1 Transfers between revenue heads of expenditure

Transfers between revenue heads are categorised in section 5.7 as:-

§ non-contentious transfers of up to £100,000, in which case the approval of the Treasurer of the States, or in his absence another person nominated by the Treasurer is required; and

§ all other instances, where the approval of the Minister is required.

Revenue transfers during the period ended 30th June 2006 amounted to £3,055,569 (Appendix A refers).

3.2 Transfers between capital heads of expenditure

Capital to capital transfers are categorised in sections 5.8-5.10 as:-

§ non-contentious transfers of up to £100,000 (5.8), which require the approval of the Treasurer of the States, or in his absence another person nominated by the Treasurer is required;

§ all other transfers between existing capital heads (5.9), in which case the approval of the Minister is required; and

§ transfers to new capital heads [1] of expenditure (5.10), which require the approval of the Council of Ministers (‘CoM’) and the Minister.

Transfers between existing capital heads of expenditure amounted to £585,000 for the period (Appendix B refers).

3.3 Transfers between revenue and capital heads of expenditure

Transfers between revenue and capital heads are categorised in sections 5.11-5.13 as:-

§ non-contentious transfers of up to £100,000 (5.11), in which case the approval of the Treasurer of the States, or in his absence another person nominated by the Treasurer is required;

§ all other transfers (5.12), which require the approval of the Minister; and

§ transfers to new capital heads of expenditure (5.13), in which case the approval of the CoM and the Minister are required.

Transfers between revenue and capital heads of expenditure amounted to £646,270 (Appendix C refers [2]). There were no transfers from revenue heads to new capital heads of expenditure during the period.

3.4 Carry forwards

Total carry forwards of £9,739,053 were approved during the 2005 annual Accounts process, of which £5,786,564 had been allocated by departments as at 30thJune 2006 (Appendix D refers).

APPENDIX A – TRANSFERS BETWEEN REVENUE HEADS OF EXPENDITURE TO 30TH JUNE 2006

CMD

ESC

H&SS

Home Affairs

Housing

P&E

TTS

T&R

Comments:-

(i) Non-contentious transfers of up to £100k

Project Trident

(3,500)

3,500

Service transfer of Project Trident.

CSC

48,700

(48,700)

Centralisation of resources to Customer Service Centre (CSC).

(ii) All remaining instances

PECRS

2,424,900

(235,000)

(1,314,400)

(485,200)

(46,900)

(100,600)

(242,800)

To centralise PECRS debt repayments.

CSC

116,791

(116,791)

Part of Corporate Support Service Transformation Project.

Population Office

105,217

(105,217)

Service transfer of Population Office.

Control Room

245,561

(245,561)

Combined Control Room for Ambulance and Fire and Rescue Services.

Property Holdings

(110,900)

110,900

For the Chief Executive of Property Holdings.

APPENDIX B – TRANSFERS BETWEEN CAPITAL HEADS OF EXPENDITURE TO 30TH JUNE

H&SS

Housing

T&R

Comments:-

(i) Non-contentious transfers of up to £100k

(ii) Other transfers (between existing capital heads)

Refurbishment of Le Geyt Flats

390,000

Continuation of the rolling refurbishment programme, with funds having been transferred from the Housing Rolling Vote.

(390,000)

CSSD Phase 2

195,000

(195,000)

Inflation funding of the upgrade of the Central Sterile Supplies Department (CSSD).

APPENDIX C – TRANSFERS BETWEEN REVENUE AND CAPITAL HEADS OF EXPENDITURE TO 30TH JUNE 2006

	ESC	Housing	T&R	CMD
	£	£	£	£	Comments:-

(i) Non-contentious transfers of up to £100k
Housing Chief Officer		23,500			To facilitate the transfer of the previous CEO to Property Holdings.
				(23,500)	From the Change budget.

Office Strategy			40,000		Funding to review office use in T&TS and Soc Sec.
			(40,000)		From the Planning Vote.


(ii) Other transfers
Waterfront Enterprise Board	217,640				Funding to meet potential liabilities.
			(217,640)		From the Leisure Pool Provision.

Property Holdings Department			152,500		To support the implementation of PHD as agreed by the States.
				(152,500)	From the Change budget.

VR/VER				163,130	VR/VER.
			(163,130)		From the Contingency Fund.

Court and Case Costs			49,500		Funding for Court and Case Costs investigation agreed by States 2 November 2004 - P138/2004.
			(49,500)		From the Contingency Fund.

APPENDIX D – CARRY FORWARDS TAKEN TO 30TH JUNE 2006

Carry Forwards

<--------------------------------------Carry Forwards Approved-------------------------------------->

Input to 30/06/06

Department

Amt Available

3% Carry Forward

Amt Returned

Reallocated

Total C/Fwd

Reallocated

Outstanding

Chief Minister

675,803

336,000

339,803

336,000

Economic Development

1,830,557

1,260,960

569,597

1,260,960

1,256,400

4,560

Education, Sport and Culture

140,448

1,273,000

1,413,448

140,448

1,273,000

Health and Social Services

(47,162)

936,000

888,838

(47,162)

936,000

Home Affairs

(82,848)

1,153,365

1,070,517

(82,848)

1,153,365

Housing

(152,717)

153,000

283

Planning and Environment

1,158,919

286,400

872,519

286,400

Social Security

2,088,270

885,000

1,203,270

853,646

1,738,646

Transport and Technical Services

612,600

Treasury and Resources

2,738,089

1,691,840

1,046,249

1,691,840

Non Ministerial States Funded Bodies

268,604

States Assembly

508,490

170,917

337,573

170,917

9,739,053

5,370,042

4,369,011

9,739,053

4,633,199

1,153,365

3,952,489

[1] ‘New’ capital heads of expenditure refers to capital projects that have been initiated without States approval.

[2] All transfers shown in Appendix C are transfers from capital to revenue heads of expenditure.

Financial planning disclosures for the 6 month period ending 30 June 2006.

Information about the publication of Ministerial Decisions

A decision made (18/12/2006) regarding: Financial planning disclosures for the 6 month period ended 30th June 2006.

A decision made (18/12/2006) regarding: Financial planning disclosures for the 6 month period ended 30^th June 2006.