Treasury and Resources
Ministerial Decision Report
TRANSFER OF ADDITIONAL Ofcom INCOME TO THE FINANCIAL SERVICES, DIGITAL, innovation AND COMPeTITION DIVISION OF THE cHIEF MINISTER’S DEPARTMENT
- Purpose of Report
To approve windfall income of £272,528 in relation to wireless telegraphy licence fees and the use of additional income in 2016 to be added to the Chief Minister’s Department Revenue Head of Expenditure.
- Background
Fees are collected by OFCOM on behalf of the States of Jersey, under authority of various pieces of legislation, most notably the Communications (Jersey) Order 2003, SI 2003/3197, arts 6, 7, Sch 2, para 91 (as amended by SI 2006/3324, art 4(2), Sch 2, Pt 2) and SI 2003/3197, arts 1(3)–(5), 2.
Following the transfer of responsibility for Digital Policy to the Chief Minister’s Department in 2016, the Department receives income from OFCOM in respect of wireless telegraphy licences fees. The amount received is subject to significant fluctuations so only a conservative estimate is accounted for in the MTFP.
In 2016 a total of £575,528 was received, of which £303,000 was budgeted for in the MTFP. The Department is requesting to bring the remaining £272,528 into its 2016 revenue head of expenditure. The use of additional income will be considered by the Minister as part of the 2016 carry forward process.
The amount that will be received can only be confirmed by OFCOM late in the year so it is not possible to make effective use of the funding in-year. As a result, it is established practice that funding received above the amount that has been budgeted for – in this case £272,528 – is requested as carry forward into the subsequent financial year and subject to the Treasury’s carry forward process.
3. Recommendation
The Minister is recommended to approve the additional income of £272,528 in relation to wireless telegraphy licence fees be added to the Chief Minister’s Department Revenue Head of Expenditure for 2016.
4. Reason for Decision
Article 19(1) of the Public Finances (Jersey) 2005 states that If, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure
(a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income; or
(b) the Minister may, either within or after the end of the financial year, with the agreement of the person responsible for the States funded body, transfer all or part of the excess income to contingency expenditure.
A decision (MD-CMD-2017-0001) was signed by the Chief Minister on 6th January 2017.
5. Resource Implications
Use of additional income of £272,528 to be added to the Chief Minister’s Department revenue Head of Expenditure for 2016.
Report author : Head of Decision Support | Document date 9th January 2016 |
Quality Assurance / Review : Head of Decision Support | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2016- 0116 - Ofcom Windfall Income |
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