Transfer of Windfall Income from Wireless Telegraphy Licences to Chief Minister's Department

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A decision made 8 December 2017:

Ministerial decision reference: MD-C-2017-0143
Decision summary title: Transfer of windfall income from the Department for Treasury and Resources to the Chief Minister’s Department
Decision summary author	Management Accountant - Corporate Group	Is the decision summary public or exempt?		Public
Report title: Transfer of Additional Income to the Financial Services, Digital, Innovation and Competition Division of the Chief Minister’s Department
Report author or name of person giving report:	Management Accountant - Corporate Group	Is the report public or exempt?		Public
Decision and reason for the decision The Chief Minister requested that additional income of £412,638 in relation to wireless telegraphy licence fees is added to the Chief Minister’s Department Revenue Head of Expenditure in Financial Services, Digital, Innovation and Competition Division (CPC400) and recognised as income for 2017. The funding will be subject to a carry forward request and utilised to support a financial services sector review through funding the project management and other resource requirements of the McKinsey implementation across the financial services and digital work streams. 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;
Resource implications Recognition of income of £412,638 in 2017 added to the approved income budget and the approved revenue expenditure for 2017.
Action required The Finance Manager to inform the Head of Decision Support that this decision has been approved.
Signature			Position: Senator Ian Gorst Chief Minister

Date signed			Effective date of the decision

Transfer of Windfall Income from Wireless Telegraphy Licences to Chief Minister's Department

Chief Minister’s Department

Chief Minister’s Report

TRANSFER OF ADDITIONAL INCOME TO THE FINANCIAL SERVICES, DIGITAL, innovation AND COMPeTITION DIVISION OF THE cHIEF MINISTER’S DEPARTMENT

Purpose of Report

The purpose of this report is to enable the Chief Minister to request that windfall income of £412,638 is added to the Chief Minister’s Department Revenue Head of Expenditure and recognised as income in 2017.

Background

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 2017 a total of £715,938 was received of which £303,300 was budgeted for in the MTFP. The Department is requesting to retain the remaining £412,638.

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 £412,638 – is requested as carry forward into 2018 and subject to the Treasury’s carry forward process.

3. Recommendation

It is recommended that the Chief Minister requests that the unbudgeted income of £412,638 is added to the Chief Minister’s Department revenue Head of Expenditure for 2017.

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;

5. Resource Implications

Recognition of £412,638 income in 2017 added to the approved income budget and £412,638 to the approved revenue expenditure for 2017.The income is to be added to the approved budget for 2017.

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