Treasury and Resources: Delegation of Functions

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.

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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

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A decision made 28 November 2011:

Decision Reference: MD-TR-2011-0143
Decision Summary Title:	Treasury and Resources delegated Authority – November 2011		Date of Decision Summary:	25th November 2011
Decision Summary Author:	Director of Financial Planning and Performance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Treasury and Resources delegated Authority – November 2011		Date of Written Report:	25th November 2011
Written Report Author:	Decision Support Officer		Written Report : Public or Exempt?	Public
Subject: Treasury and Resources updated delegations as at 25th November 2011.
Decision(s): The Minister decided to delegate functions detailed in the attached report (replacing 4th November 2011 delegations) and to request that the supporting document be presented to the States at the earliest opportunity.
Reason(s) for Decision: To amend and replace those delegations as at 4th November 2011 with delegations as detailed in the attached report to enable the efficient and effective management of public finances and operation of the Treasury & Resources department.
Resource Implications: None.
Action required: The Greffier of the States to be requested to arrange for the attached supporting document to be presented to the States at the earliest opportunity.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Treasury and Resources: Delegation of Functions

Treasury and Resources

Ministerial Decision Report

Treasury and Resources delegated Authority – November 2011

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-2010-0146 delegated further functions to the Deputy Treasurer and amended the Treasurer of the States’ authority for approving non-contentious budget transfers.

2.3 Ministerial decision MD-TR-2010-0188 replaced those powers delegated to Deputy John Le Fondre with Connétable John Martin Refault, the new Assistant Minister for Treasury and Resources as well as extending to Connétable John Martin Refault responsibility for all matters relating to the Resources division. It also clarified the parameters by which States funded bodies be allowed to retain and use additional income.

2.4 Ministerial decision MD-TR-2011-0011 amended delegations relating to GAAP budget transfers and States charges.

2.5 Ministerial decision MD-TR-2011-0136 amended delegations relating to Jersey Property Holdings specifically Standing Order 168 powers and contract signing.

2.6 This report seeks to replace those powers delegated to Connétable John Martin Refault of St Peter with Deputy Edward James Noel of St Lawrence, following his re-appointment as Assistant Minister for Treasury and Resources.

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.

Reason for Decision

To amend and replace those delegations as at 4th November 2011 with delegations as detailed in the attached report to enable the efficient and effective management of public finances and operation of the Treasury & Resources department.

Resource Implications

None.

Report author : Decision Support Officer	Document date : 25th November 2011
Quality Assurance / Review : Director of Financial Planning and Performance	File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2011-0143 - delegations 18th nov - asst ministers - dlg\wr - t&r delegated authority - november 2011 - dlg.doc
MD sponsor : Treasurer of the States

- 1 -

MINISTER FOR TREASURY AND RESOURCES – DELEGATIONS NOVEMBER 2011

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 their 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 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

b) the additional income is in excess of increased expenditure (i.e. additional surplus income) required to generate that income but the excess income is not more than 10% (up to a maximum of £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.

Delegation

Authority is delegated to the Treasurer of the States, or in their absence, another person as nominated by the Treasurer, to approve the use of additional surplus income of more than 10% (or in excess of £500,000 for a States trading operation and £100,000 for all other States funded bodies) of the estimated income notified to the States and of a non-contentious nature may be used for additional expenditure.

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 their absence, another person as nominated by the Treasurer, to agree any non-contentious transfers between heads of expenditure with no financial limit where the transfer is solely to ensure that financial transactions are accurately reflected in the States’ Accounts in accordance with GAAP.

Authority is delegated to the Treasurer of the States, or in their absence, another person as nominated by the Treasurer, to agree any other non-contentious transfers between heads of expenditure 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 their 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 their 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 their 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 their 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 their 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 their absence another person as nominated by the Treasurer, to issue Financial Directions that the Treasurer 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 their 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 their 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 Treasurer of the States will be able to give “blanket” approval to groups of charges in a particular year, or a single charge over a period of a number of years.

The Minister agreed that approval for increases which are in line with statute or with a formula which has already received States or their 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 their absence, another person as nominated by the Treasurer of the States for agreeing non-contentious increases to States manpower.

2.4 Responsibility for Resources

Delegation

Responsibility for all matters relating to the Resources division, including Information Services, Human Resources, Property Holdings and Procurement is delegated to the Assistant Minister, Treasury and Resources, Deputy Edward James Noel of St Lawrence.

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;

(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 Edward James Noel of St Lawrence, all powers and responsibilities arising under Standing Order 168 up to the value of £3 million; and

Delegation

Authority is delegated to the Accounting Officer or, in their absence, to the Director of Jersey Property Holdings or the Business and Programme Manager, Property Holdings the power to approve the following actions:

Any acquisition or disposal of land or property on behalf of the public for a consideration up to £500,000;
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 amounts up to £500,000;
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 Jersey Property Holdings responsibility for signing the contract is delegated to: The Assistant Minister, Treasury and Resources, Deputy Edward James Noel of St Lawrence, for contracts between £1,000,000 and £3,000,000; The Accounting Officer for contracts up to £1,000,000 or, in their absence, the Director of Jersey Property Holdings or the Programme and Business Manager, Property Holdings for contracts with a value up to £1,000,000. The Director of Jersey Property Holdings or, in their absence, the Programme and Business Manager, Property Holdings for contracts with a value up to £500,000.
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 their delegates under Standing Order 168 is delegated to the Assistant Minister, Treasury and Resources, Deputy Edward James Noel of St Lawrence, or the Accounting Officer or, in their absence, the Director of Jersey Property Holdings or the Programme and Business Manager, Property Holdings.
Delegation	For non Property Holdings contracts the Minister delegated responsibility for signing contracts to the Treasurer of the States.