Budget transfer relating to return of pandemic flu and historic child abuse enquiry funding to consolidated fund

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.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

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

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 24 January 2011 regarding: Budget transfer relating to return of pandemic flu and historic child abuse enquiry funding to consolidated fund.

Decision Reference: MD-TR-2011-0007
Decision Summary Title:	Return of Pandemic Flu and Historic Child Abuse Enquiry funding to the Consolidated Fund		Date of Decision Summary:	13th January 2011
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Return of Pandemic Flu and Historic Child Abuse Enquiry funding to the Consolidated Fund		Date of Written Report:	13th January 2011
Written Report Author:	Decision Support Officer		Written Report : Public or Exempt?	Public
Subject: The return of a portion of the remaining funds for both Pandemic Flu preparations and the Historic Child Abuse Enquiry (HCAE), currently held in Treasury and Resources Department (T&R) contingency funds, to the consolidated fund.
Decision(s): The Minister approved a budget transfer in 2010 of £1,162,015 from the appropriate T&R contingency fund to the consolidated fund, representing a portion of the remaining funds originally allocated by the States and the Council of Ministers for Pandemic Flu preparations. The Minister also approved a budget transfer in 2010 of £346,416 from the appropriate T&R contingency fund to the consolidated fund, representing a portion of the remaining funds originally allocated by the States for HCAE.
Reason(s) for Decision: Article 15(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.
Resource Implications: The appropriate T&R contingency fund balances to decrease by £1,162,015 and £346,416 respectively, and the balance of the consolidated fund to increase by £1,508,431. This decision does not change the total amount of expenditure approved by the States for 2010.
Action required: Head of Decision Support to inform the Head of Financial Performance Reporting that the budget transfers have been approved.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer relating to return of pandemic flu and historic child abuse enquiry funding to consolidated fund

Treasury and Resources

Ministerial Decision Report

RETURN OF PANDEMIC FLU AND HISTORIC CHILD ABUSE ENQUIRY FUNDING TO THE CONSOLIDATED FUND

Purpose of Report

To enable the Minister for Treasury and Resources to approve budget transfers of £1,162,015 and £346,416 from the appropriate Treasury and Resources Department (T&R) contingency funds to the consolidated fund, to return a portion of the remaining funds for both Pandemic Flu preparations and the Historic Child Abuse Enquiry (HCAE).

Pandemic Flu Funding

Funding for a potential influenza pandemic has been previously approved.

A sum of £936,000 was earmarked from the then General Reserve by the Council of Ministers prior to the introduction of the Public Finances (Jersey) Law 2005, of which £665,985 was spent.

In P67/2008 the States allocated £1.23 m to the contingency and in P174/2009 a further £5.547 m was allocated. P174/2009 determined that funds would be allocated to Departments retrospectively by the Minister for Treasury and Resources.

The States also agreed that the Minister for Treasury and Resources would provide a detailed and comprehensive breakdown to the Public Accounts Committee (PAC) as soon as practicable detailing exactly how the funds were spent in order to confirm that funds were used only for pandemic-specific costs.

In MD-TR-2010-0018, the Minister for Treasury and Resources approved reimbursements of £1.399 m to the H&SS Department and the Home Affairs Department for pandemic flu preparations costs incurred between 1st January and 31st December 2009.

In TR-2011-DD05, the Treasurer of the States (under delegated authority) approved reimbursements of £628,000 to the H&SS Department for pandemic flu preparations costs incurred between 1st January and 30th September 2010. No further costs were incurred between 1st October and 31st December 2010.

The funds remaining at 31st December 2010 are summarised in Table 1 below:

Table 1	States Funding Approved	Actual expenditure	Actual expenditure 2009 - Reimbursed via MD-2010-TR-0018	Actual expenditure 2010 Reimbursed via DD-2011-05	Balance remaining at 1st January 2011
	£		£	£	£
Sum earmarked from General Reserve	936,000	(665,985)			270,015
P67/2008 – Article 11 (8)	1,230,000		(566,000)	(458,000)	206,000
P174/2009 – Article 16 (3)	1,725,000		(833,000)	-	892,000
P174/2009 – Article 11 (8)	3,822,000		-	(170,000)	3,652,000
Total	7,713,000	665,985	1,399,000	628,000	5,020,015

It is proposed that a sum of £1,162,015 is returned to the consolidated fund. This represents the balance remaining from the sum originally earmarked from the General Reserve (£270,015) and the balance remaining of P174/2009 Article 16 (3) allocation (£892,000).

Article 16 of the Public Finances (Jersey) Law 2005 authorises contingency expenditure where “the Minister is satisfied that there . . . exists an immediate threat to the safety of all or any of the inhabitants of Jersey”. It is deemed that the immediate threat from pandemic flu which led to the original States approval of £1.725 m in 2009, has now passed.

Subsequent to the return of £1,162,015, a balance of £3,858,000 will remain in the appropriate T&R contingency fund. Article 11 (8) of the Public Finances (Jersey) Law 2005 authorises the States to approve expenditure “on the grounds that . . . there is an urgent need for expenditure”.

Based on the prevailing medical situation, it has been deemed appropriate at this time to retain funding in case the need for urgent expenditure for future flu pandemics arises. The need for retention of these funds will be reviewed on a periodic basis (likely to be at six monthly intervals).

3. HCAE Funding

In September 2008, the States approved P91/2008 which allocated up to £7.5 million for unbudgeted costs associated with HCAE. During 2008, actual expenditure totalled £6.11 million, leaving a roll forward available of £1.39 million.

Including this sum and States approval in July 2009 of P83/2009 (£4.25 million), the total approved expenditure for 2009 was £5.64 million, of which £4.12 million was spent leaving a roll forward available for 2010 of £1.52 million.

Actual expenditure for 2010 has now been claimed by departments and is summarised in Table 2 below:

Table 2	Roll Forward Available 2010	Forecast Expenditure 2010	Actual Expenditure 1/1/10 – 31/12/10	Actual Balance Remaining at 31/12/10
	£	£	£	£
Law Officers’ Department	(64,082)	350,000	368,117	(432,199)
Home Affairs	194,985	732,000*	678,600	(483,615)
Health and Social Services	791,560	-	-	791,560
Education Sport and Culture	-	-	-	-
Property Holdings	427,807	-	-	427,807
	1,350,270	826,799	1,046,717	303,553
Contingency to allow flexibility	166,263	-	-	166,263
Total	1,516,533	826,799	1,046,717	469,816

*The original Home Affairs forecast costs of £802,000 for 2010 were reviewed in Q3 2010 and amended to £732,000. The Home Affairs Department anticipate costs of £123,400 for 2011.

The Law Officers Department have confirmed that any further expenditure relating to HCAE in 2011 will not be requested from this contingency fund.

It is proposed that a sum of £346,416 is returned to the consolidated fund. This represents the balance remaining, less £123,400 which Home Affairs predict will be required during 2011, and claimed in the usual way.

4. Recommendation

The Minister for Treasury and Resources is recommended to approve a budget transfer of £1,508,431 from the appropriate T&R contingency funds to the consolidated fund, to return a portion of the funding originally allocated by the States for both Pandemic Flu preparations and the Historic Child Abuse Enquiry.

5. Reason for Decision

Article 15(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.

6. Resource Implications

The appropriate T&R contingency fund balances to decrease by £1,162,015 and £346,416 respectively, and the balance of the consolidated fund to increase by £1,508,431. This decision does not change the total amount of expenditure approved by the States for 2010.

Report author : Decision Support Officer	Document date : 13th January 2011
Quality Assurance / Review : Head of Decision Support	File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2011-0007 - return of pandemic flu and hcae funding - kh\wr - return of pandemic flu and hcae funding - lmr.doc
MD Sponsor : Treasurer of the States