Social Security, Health Insurance, Social Security (Reserve) and Long Term Care Funds: Accounts Preparation

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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
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A decision made 8 May 2014:

Decision Reference: MD-S-2014-0053
Decision Summary Title :	Accounts of the Social Security, Health Insurance, Social Security (Reserve) and Long Term Care Funds		Date of Decision Summary:	8 May 2014
Decision Summary Author:	Management Accountant, SSD		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Accounts of the Social Security, Health Insurance, Social Security (Reserve) and Long Term Care Funds		Date of Written Report:	8 May 2014
Written Report Author:	Management Accountant, SSD		Written Report : Public or Exempt?	Public
Subject: To determine that the newly consolidated States of Jersey Financial Report and Accounts and the Social Security Funds pages within fulfil the requirements for accounts to be prepared for the Social Security Fund (SSF), Health Insurance Fund (HIF), Social Security (Reserve) Fund (SS(R)F) and Long Term Care Fund (LTCF) as set out in legislation.
Decision(s): The Social Security Minister is recommended to determine that the newly consolidated States Financial Report and Accounts and the Social Security Funds pages within fulfil the requirements for accounts to be prepared for the SSF, HIF, SS(R)F and LTCF as set out in legislation.
Reason(s) for Decision: The Social Security (Jersey) Law 1974, the Health Insurance (Jersey) Law 1967 and the Long Term Care (Jersey) Law 2012 require accounts to be prepared for the SSF, HIF and SS(R)F in a manner determined by the Minister for Social Security. The Funds are now consolidated into the States of Jersey Financial Report and Accounts, which is considered to fulfil the requirements of the above legislation.
Resource Implications: None.
Action required: The SSD Director of Finance and Governance to notify the Head of Financial Control and Accounting, Treasury and the SSD Finance Manager that this decision has been approved. Copy of signed decision to be submitted to the Treasury Department.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Social Security, Health Insurance, Social Security (Reserve) and Long Term Care Funds: Accounts Preparation

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Social Security

Ministerial Decision Report

accounts OF the SOCIAL SECURITY, SOCIAL SECURITY (RESERVE), HEALTH INSURANCE AND LONG TERM CARE funds

Purpose of Report

To enable the Minister for Social Security to determine that the newly consolidated States of Jersey Financial Report and Accounts and the Social Security Funds pages within fulfil the requirements for accounts to be prepared for the Social Security Fund (SSF), Social Security (Reserve) Fund (SS(R)F), Health Insurance Fund (HIF) and Long Term Care Fund (LTCF) as set out in legislation.

Background

Under legislation, accounts must be prepared for the Social Security Funds:

Social Security (Jersey) Law 1974, Article 30

(4) Accounts of the Social Security Fund shall be prepared in such form, manner and at such times as the Minister may determine, and the Comptroller and Auditor General shall examine and certify every such account, and copies thereof together with the report of the Comptroller and Auditor General thereon shall be laid as soon as may be before the States.

Social Security (Jersey) Law 1974, Article 31

(2) Article 30(4), (5), (5A), (5B), (5C), (5D), (6), (7), (8) and (9) shall apply to the Social Security (Reserve) Fund as they apply to the Social Security Fund.

Health Insurance (Jersey) Law 1967, Article 21

(2) Accounts of the Health Insurance Fund shall be prepared in such form, in such manner and at such times as the Minister may determine, and the Comptroller and Auditor General shall examine and certify every such account, and copies thereof (together with the report of the Comptroller and Auditor General thereon) shall be laid before the States.

Long Term Care (Jersey) Law 2012, Article 11

(1) Annual accounts of the Fund shall be prepared in such form, in such manner and at such times as the Minister may determine, and the Comptroller and Auditor General shall examine and certify every such account, and copies thereof (together with the report of the Comptroller and Auditor General thereon) shall be laid before the States.

In previous years the Social Security Department have produced separate sets of Financial Statements for the SSF, HIF and SS(R)F which have been audited separately from the States of Jersey Financial Report and Accounts.

On the recommendation of the Comptroller and Auditor General (C&AG) the funds (including the new LTCF) have been consolidated into the States of Jersey Financial Report and Accounts and their details including Statement of Comprehensive Net Expenditure and Statement of Financial Position set out in the Annex to the states of Jersey Financial Report and Accounts.

It is proposed that the Minister for Social Security could determine that this fulfils the requirement to produce accounts for the funds.

The C&AG will arrange for the audit and issue of a certificate on the States Accounts in the usual way and this would obviate the need for two audit opinions at two different levels of materiality. This has been discussed with the current States external auditors with no objection.

To action this change Treasury has modified the JFReM (which will be enacted via a Ministerial Order in accordance with the Public Finances Law) to include these funds within the Accounting Boundary for the States of Jersey Financial Report and Accounts. An Annual Performance Report that reports upon the performance of the Funds will reference to the relevant statements in the States Accounts.

3. Recommendation

The Social Security Minister is recommended to determine that the newly consolidated States Financial Report and Accounts and the Social Security Funds pages within fulfil the requirements for accounts to be prepared for the SSF, HIF, SS(R)F and LTCF as set out in legislation.

4. Reason for Decision

The funds are now consolidated into the States of Jersey Financial Report and Accounts, which is considered to fulfil the requirements under the Social Security (Jersey) Law 1974, Health Insurance (Jersey) Law 1967, and the Long Term Care (Jersey) Law 2012.

5. Resource Implications

None

Report author : Management Accountant, SSD	Document date : 28th April 2014
Quality Assurance / Review : Finance Director, SSD	Ref: L:\Finance & Governance\Finance\Ministerial Decisions\2014
MD sponsor :Treasurer of the States