Budget Management disclosures for 6 month period ending 30 June 2011

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

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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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 9 December 2011:

Decision Reference: MD-TR-2011-0149
Decision Summary Title:	Budget Management Report for the Six Month Period Ended 30th June 2011		Date of Decision Summary:	30th November 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:	Budget Management Report for the Six Month Period Ended 30th June 2011		Date of Written Report:	30th November 2011
Written Report Author:	Decision Support Officer		Written Report : Public or Exempt?	Public
Subject: Report on Budget Management disclosures for the 6 month period ended 30th June 2011.
Decision(s): The Minister approved the report detailing Budget Management disclosures for the 6 month period to 30th June 2011and requested that it be presented to the States.
Reason(s) for Decision: The Public Finances (Jersey) Law 2005 (and the Finance Regulations approved under that Law and Financial Directions) require the Minister for Treasury and Resources to report to the States twice yearly on a number of issues relating to States Finances.
Resource Implications: There are no financial or manpower implications as a direct result of this decision.
Action required: Head of Decision Support to request the Greffier of the States to arrange for the attached Report on Budget Management disclosures 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:

Budget Management disclosures for 6 month period ending 30 June 2011

TREASURY & RESOURCES MINISTER

Budget Management Report for the Period Ended 30th June 2011

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 relating to budgeting and to the financial control and administration of States Trading Operations are required to be reported to the States twice yearly by the Minister for Treasury and Resources (the ‘Minister’).

This report summarises all decisions made during the 6 month period to 30th June 2011, the majority of which have been previously published. Where decisions have not previously been published, this is due to one of two reasons:

The decisions were exempted under the States of Jersey (‘SoJ’) Code of Practice on Public Access to Official Information; or
The decisions were taken by the Treasurer of the States under delegated authority from the Minister.

Reporting on Decisions

The areas of administration which are to be reported on are as follows:

The use of trading funds by States Trading Operations;
Borrowing;
Budget transfers (including Fiscal Stimulus Plan allocations); and
Carry forward of revenue balances from 2010

2.1 Use of Trading Funds

The following Ministerial Decisions on the use of trading funds were approved in the 6 month period ended 30th June:

MD-TR-2011-0006 – Re-instatement of Jersey Airport revenue budget originally transferred from capital in 2009 Shadow Budget as no expenditure was made until 2010.

MD-TR-2011-0018 - Use of £590,000 from the Harbours Trading Fund in order to expedite works on Elizabeth Harbour Breakwater and the Albert and Victoria Piers.

2.2 Borrowing

2.2.1 Small Firms Loan Guarantee Scheme

During the 6 month period to 30th June, the Treasurer of the States did not guarantee any new loans under the Small Firms Loan Guarantee Scheme (SFLGS). Under the terms of the Scheme, the Economic Development Department underwrites up to 75% of the value of a loan. As at 30th June 2011, the total amount loaned under the SFLGS was £600,102, of which £450,076 was guaranteed by the States.

2.2.2 Jersey Student Loan Scheme

The Jersey Student Loan Scheme commenced in September 2007. As at 30th June 2011, 460 students had taken out a loan under the Scheme, and the total amount borrowed was £1,204,620. Terms with the intermediaries require the States of Jersey to underwrite 100% of the value of the loan.

2.3 Budget Transfers

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, be used for the purposes of another head of expenditure.

Budget transfers under Article 15(1)(a) are reported on the following basis:-

Transfers between revenue heads of expenditure;
Transfers between capital heads of expenditure; and
Transfers between revenue and capital heads of expenditure.

Budget transfers between departments vary the budgets of individual departments but are net nil in total.

Fiscal Stimulus Plan allocations are reported separately in section 2.3.4 below.

2.3.1 Transfers Between Revenue Heads of Expenditure

Revenue transfers during the 6 month period to 30th June 2011 are shown below:

Department		£	Funding of:-
To	From	£	Funding of:-
T&R	CMD	155,000	Transfer of Director of International Taxation and team
Soc Sec	ESC	84,846	Withdrawal of one Voluntary Redundancy (VR) application
Bailiff's Chambers	Viscounts	98,856	To fund shortfall in Bailiff’s Chambers budget
Soc Sec	Home Affairs	10,610	Withdrawal of one Voluntary Redundancy (VR) application
H&SS	T&R contingency	365,000	Restructuring Provision - 1st Tranche
T&R	H&SS	22,540	Transfer of one Human Resources Officer FTE and budget
Lt Gov. Rev	T&R contingency	27,100	Restructuring provision – restructuring of Housekeeping
Home Affairs	T&R contingency	54,600	Restructuring provision – closure of Police Canteen
CMD	T&R	78,132	Transfer of Head of Strategic Planning
T&R	CMD	25,000	Tax Policy Team - transfer of non-staff costs
H&SS	T&R contingency	486,000	Restructuring Provision - 2nd Tranche
ESC	T&R contingency	1,326,0001
TTS	T&R contingency	135,000
DoE	T&R contingency	85,000
CMD	T&R contingency	79,000
Judicial Greffe	Soc Sec	168,300	Transfer of Jersey Employment Tribunal budget
ESC	T&R contingency	500,000	Teachers’ Terms & Conditions
EDD	CMD	140,700	Transfer of budget for International Finance
	Total	£3,841,684

1N.B. Actual amount transferred was £616,700 (see MD-TR-2011-0118)

2.3.2 Transfers Between Capital Heads of Expenditure

Transfers between existing capital heads of expenditure during the 6 month period to 30th June are shown below:

Department		£	Funding of:-
To	From	£	Funding of:-
T&R (JPH)	H&SS	2,231,905	Transfer of A&E / Radiology extension capital project
CMD	CMD	325,400	Web Development project
Harbours	Harbours	2,124,949	Amalgamation of three Cap HoE for Elizabeth Harbour East/West Walkways
TTS	TTS	2,258,312	Sludge Thickener
Housing Rolling Vote	Housing	132,352	Le Marais Low Rise Phase 2 & The Cedars: unspent budget
Housing	T&R (JPH)	531,725	Pomme D'Or Farm Refurbishment
Housing	T&R contingency	3,250,000	Pomme D'Or Farm Refurbishment
ESC	ESC	538,558	ICT Phase 3 Strategy
	Total	£11,393,201

2.3.3 Transfers Between Revenue and Capital Heads of Expenditure

Transfers between revenue (Rev) and capital (Cap) during the 6 month period to 30th June are shown below:

Department		£	Funding of:-
To	From	£	Funding of:-
H&SS Rev	T&R contingency	600,000	Brig-Y-Don refurbishment
ESC Rev	ESC Cap	6,274	Youth Service Mobile Project
H&SS Rev	H&SS Cap	1,200,000	ICR Project
TTS Cap	TTS Rev	375,000	Ash Pit
H&SS Rev	T&R contingency	628,000	Flu Pandemic reimbursements
LOD Rev	T&R contingency	92,318	HCAE Q4 2010 reimbursements
Home Affairs	T&R contingency	127,600	HCAE Q4 2010 reimbursements
Judicial Greffe Rev	T&R contingency	455,082	Additional Court & Case Costs
ESC Rev	ESC Cap	650,000	ICT Strategy Phase 2
T&R (JPH) Cap	T&R (JPH) Rev	89,906	Indoor Market Surplus
CMD Rev	CMD Cap	176,6022	IS/IT Projects
TTS Rev	TTS Cap	2,400,000	Asbestos disposal and liquid waste strategy from In-vessel composting funds no longer needed
TTS Cap	TTS Rev	450,000	Jersey Harbours Repayment
ESC Rev	ESC Cap	139,300	Secondary School Catering Improvements
CMD Rev	T&R contingency	546,338	To meet funding shortfall
T&R contingency	CMD Rev	59,426	VR Clawbacks
T&R contingency	Judicial Greffe Rev	78,588
T&R contingency	ESC Rev	194,521
T&R contingency	T&R Rev	268,030
T&R contingency	DoE Rev	223,947
T&R contingency	Home Affairs Rev	55,234
T&R contingency	H&SS Rev	28,848
T&R contingency	Housing Rev	220,990
T&R contingency	TTS Rev	244,419
ESC Rev	T&R contingency	89,988	Partial return of VR Clawback
H&SS Cap	H&SS Rev	445,000	Transfer to align budgeting and accounting treatment (GAAP)*
Office of the Lieut. Governor Cap	Office of the Lieut. Governor Rev	17,000	Transfer to align budgeting and accounting treatment (GAAP)*
Official Analyst Cap	Official Analyst Rev	46,855	Transfer to align budgeting and accounting treatment (GAAP)*
Probation Cap	Probation Rev	21,563	Transfer to align budgeting and accounting treatment (GAAP)*
Airport Cap	Airport Rev	1,185,209	Transfer to align budgeting and accounting treatment (GAAP)*
Harbours Rev	Harbours Cap	110,000	Transfer to align budgeting and accounting treatment (GAAP)*
T&R Cap	T&R Rev	13,000	Transfer to align budgeting and accounting treatment (GAAP)*
TTS Cap	TTS Rev	2,005,000	Transfer to align budgeting and accounting treatment (GAAP)*
Airport Rev	Airport Cap	1,291,403	Transfer to align budgeting and accounting treatment (GAAP)*
LOD Cap	LOD Rev	75,000	Transfer to align budgeting and accounting treatment (GAAP)*
Home Affairs Cap	Home Affairs Rev	13,600	Transfer to align budgeting and accounting treatment (GAAP)*
ESC Rev	ESC Cap	600,000	Transfer to align budgeting and accounting treatment (GAAP)*
	Total	£15,224,040

2N.B. Actual amount transferred was £168,734

*The States of Jersey implemented Generally Accepted Accounting Principles (GAAP) in 2009. GAAP accounting requires that expenditure should be accounted for as capital only if it meets the GAAP accounting definition of capital expenditure, and as revenue otherwise. These budget transfers are to correctly align expenditure with GAAP.

2.3.4 Fiscal Stimulus Plan Allocations

The States agreed the transfer of £44 million from the Stabilisation Fund to the Consolidated Fund in order to provide funding for the proposed Economic (Fiscal) Stimulus Plan (P55/2009 refers).

During the 6 month period to 30th June 2011, the Minister approved the re-allocation of £3,477,419 from the Consolidated Fund as shown below:

Department	£	Purpose of allocation:
ESC	393,650	Advance to Work an Careers Strengthening
T&R (JPH)	921,493	Jersey Opera House
ESC	2,162,276	Skills and Training Projects
Total	£3,477,419

2.4 Carry forwards

Revenue Carry Forwards

Total 2010 Year End Departmental Revenue Carry Forwards of £11,918,867 were approved by the Minister (MD-TR-2011-0042) as shown below:

Department	Approved amount
	£
Chief Minister’s	750,210
Overseas Aid	4,902
EDD	712,200
ESC	2,628,040
HSS	3,520,000
Home Affairs	655,500
Housing	757,953
DoE	283,340
Soc Sec	-
TTS	122,340
T&R	751,953
NMSFB	1,732,429
States Assembly	-
Total	£11,918,867

In the same Ministerial Decision, the Minister also approved funding of £1.21m from underspends of spending pressures to Departments as shown below:

Department	£	Reason:
Bailiff’s Chambers	125,000	Address the findings from the staff costs review.
Resources	236,000	Unachievable corporate savings in relation to the Joint Fraud Office.
CMD	84,000	To fund Deputy Director International post in response to recent changes at UK Ministry of Justice who will no longer act as intermediary with other UK departments.
DoE	150,000	IT improvements as recommended by Committee of Enquiry following Reg’s Skips review.
TTS	250,000	Bus Contract - £500K is required to conduct a full review of bus contract and service network to improve the service in relation to the Strategic Transport Policy.
T&R	143,000	Additional fraud investigations within Taxes Office.
T&R	223,000	Taxes Office implementation programme based on recommendations of Deloitte Review.
Total	£1,211,000

Fiscal Stimulus and 11(8) Carry Forwards

In a separate Ministerial Decision, Fiscal Stimulus Carry Forwards of £2,811,703 were approved by the Minister (MD-TR-2011-0040) as shown below:

Department	£	Reason:
CMD	657,112	Finance Industry Support
EDD	791,517	Finance Industry Support
H&SS	7,194	Rosewood House
Housing	950,373	Social Housing Maintenance Projects
T&R	405,507	Jersey Hospice
Total	£2,811,703

In the same Ministerial Decision, the Minister also approved P64/2010 Article 11(8) Year End Carry Forwards of £232,100 as shown below:

Department	£	Reason:
CMD	123,000	Improved Procurement
Home Affairs	109,100	Court and Case Costs
Total	£232,100