Treasury and Resources
Treasurer’s Decision Report
Transfer in 2016 from Treasury and Resources Insurance revenue head of expenditure to HSSD and DFI revenue heads of expenditure for increases in insurance premiums from 2016
- Purpose of Report
Transfer in 2016 from the Treasury and Resources revenue head of expenditure to the Health and Social Services Department (HSSD) and Department for Infrastructure (DFI) revenue heads of expenditure in respect of unforeseen increases in commercial insurance premiums from 2016.
- Background
In 2016 the States of Jersey incurred an aggregate 24.06% increase in its general insurance premiums. This increase was mainly attributable to the actuarial revaluation of insurance risk exposures by Reinsurers and the States’ Insurers, based on assets and liabilities declared.
At its meeting on 24th March 2016, the Council of Ministers approved an additional £500,000 to be provided in 2016 to offset the impact of unforeseen insurance premium increases.
The funds identified for transfer are to offset the increased insurance recharges to Health and Social Services Department (HSSD) and to the Department for Infrastructure (DFI).
as follows:
- Health and Social Services Department (HSSD) ….. £200,000
Specifically in relation to abuse liability insurance cover
- Department for Infrastructure (DFI)………………….. £97,500
Specifically in relation to property insurance cover for the Energy From Waste (EFW) plant
- Recommendation
The Treasurer approved transfer in 2016 of £297,500 from the Treasury and Resources revenue head of expenditure to the HSSD and DFI revenue heads of expenditure – apportioned as follows:
- HSSD ……. £200,000
- DFI .………. £97,500
- Reason for Decision
The transfer is required to fund increased annual insurance recharges to the Health and Social Services Department for £200,000 in relation to abuse liability insurance cover and to the Department for Infrastructure for £97,500, specifically in relation to property insurance cover for the Energy From Waste plant.
Article 18(1)(c) 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 transferred from one head of expenditure to another head of expenditure for any purpose not otherwise specified.
Delegation 1.2 delegates authority to agree non-contentious transfers between heads of expenditure up to £1,000,000 to the Treasurer of the States.
- Resource Implications
The Treasury and Resources Insurance revenue head of expenditure to decrease by £297,500 and the Health and Social Services Department and Department for Infrastructure revenue heads of expenditure to increase by £200,000 and £97,500 respectively in 2016.
Report author : Senior Accountant for Insurance Management | Document date : 26th May 2016 |
Quality Assurance / Review : Head of Decision Support | Filename and path: LDrive/Treasury/Sections/Treasury Operations/ TreasuryManagementFolder/Insurance/2016/BudgetTransfers/TR-2016-DD00X |
MD sponsor : Director of Treasury Operations |