Budget disclosures for 6 month period ended 30 June 2010

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A decision made 10 December 2010 regarding: Budget disclosures for 6 month period ended 30 June 2010.

Decision Reference: MD-TR-2010-0177
Decision Summary Title:	Budget Management Disclosures		Date of Decision Summary:	1st December 2010
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:	Report on matters relating to Budget Management for the 6 month period to 30th June 2010		Date of Written Report:	1st December 2010
Written Report Author:	Decision Support Officer		Written Report : Public or Exempt?	Public
Subject: Budget Management disclosures for the 6 month period ended 30th June 2010.
Decision(s): The Minister approved the report detailing Budget Management disclosures for the 6 month period to 30th June 2010 and 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 disclosures for 6 month period ended 30 June 2010

TREASURY & RESOURCES MINISTER

Report on matters relating to Budget Management

for the 6 month period to 30th June 2010

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 decisions made during the 6 month period to 30th June 2010, the majority of which have been previously published.

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 Economic Stimulus Plan allocations); and
Carry forward of revenue balances.

2.1 Use of trading funds

The following Ministerial Decisions on the use of trading funds were taken to 30th June:-

MD-TR-2010-0083 – Transfer of £1.05 million from the Harbours Trading Fund in respect of the St Aubin Remediation Project
MD-TR-2010-0091 – Transfer of £300,000 from Harbours Trading Fund in respect of the Elizabeth East Pier Scour Damage Works.

2.2 Borrowing

2.2.1 Small Firms Loan Guarantee Scheme

During the 6 month period to 30th June, a loan of £150,000 was guaranteed by the Treasurer of the States 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 2010, the total amount loaned under the SFLGS was £758,049, of which £568,536 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 2010, 360 students had taken out a loan under the Scheme, and the total amount borrowed was £895,460. Terms with the intermediaries require the States of Jersey to underwrite 100% of the value of the loan.

2.3 Budget transfers

Budget transfers 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.

Economic 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 period ended 30th June 2010 are shown in Table (1).

Table (1) Transfers between revenue heads of expenditure

Department		£	Funding of:-
To	From	£	Funding of:-
Soc Sec	H&SS	995,992	Boarding Out Budget
Viscounts	Judicial Greffe	77,197	Judicial Greffier Salary split
NMSFB	NMSFB	927,694	Court and Case costs 2009* N.B. See table below
Home Affairs	Soc Sec	1,278,552	Court and Case costs and Police Investigations
CMD	T&R	1,713,312	Resources Department (Procurement / Financial Systems)

(NMSFB: Non-Ministerial States funded bodies)

* Transfers between NMSFB were necessary at the end of 2009 to correctly allocate costs. These transfers were effected as a batch with a net nil overall impact on States spending. The table below details all departments involved.

Department	Transfer from £	Transfer to £
Judicial Greffe	844,141
Law Officers		(879,882)
Viscounts	31,683
Bailiff’s Chambers	50,375
Data Protection		(11,515)
Dean of Jersey	1,495
Official Analyst		(21,295)
Probation Service		(15,002)
Totals	927,694	(927,694)

2.3.2 Transfers between capital heads of expenditure

Transfers between existing capital heads of expenditure are shown in Table (2).

Table (2) Transfers between capital heads of expenditure

Department		£	Funding of:-
To	From	£	Funding of:-
H&SS	H&SS	615	Equipment replacement
T&R Cap (Property Holdings (P/H))	H&SS Cap	2,512,171	Transfer of Building Projects to ensure correct accounting treatment
CMD	T&R	1,288,880	J D Edwards Upgrade and Payroll
TTS	T&R Planning Vote	300,000	Inert Waste Strategy
T&R (P/H)	T&R (P/H)	1,050,000	Prison Phase 4 temporary transfer
T&R (P/H)	Home Affairs	6,902,848	Phase 2 Prison Redevelopment
CMD	CMD	1,281,500	ISD Projects

Transfers between revenue and capital heads of expenditure

Transfers between revenue and capital during the period to 30th June are shown in Table (3).

Table (3) Transfers between revenue and capital heads of expenditure

Department		£	Funding of:-
To	From	£	Funding of:-
HA Rev	T&R Cap	16,101	GST Implementation
T&R Cap	T&R Rev	87,952	Transfer to align budgeting and accounting treatment
T&R Rev	T&R Cap	354,200	Transfer to align budgeting and accounting treatment
T&R Rev (P/H)	T&R Cap (P/H)	211,562	Indoor market surplus 2009
P&E Cap	P&E Rev	34,000	Transfer to align budgeting and accounting treatment
ESC Rev	T&R Cap (P/H)	403,000	JCG / Vic College project works
H&SS Rev	T&R Contingency	2,598,540	End of Reciprocal Health Agreement
H&SS Rev	T&R Contingency	315,710	Williamson recommendations
P&E Rev	P&E Minor Cap	30,000	Reverse previous budget transfer for work not undertaken
T&R Cap	T&R Rev	267,305	Transfer to align budgeting and accounting treatment
H&SS Rev	H&SS Cap	181,036	Transfer to balance Completed Works ledger
CMD Cap	CMD Rev	707,933	Transfer to align budgeting and accounting treatment
ESC Rev	ESC Cap	3,106	Transfer to align budgeting and accounting treatment
H&SS Rev	T&R Contingency	170,770	Historic Child Abuse Enquiry (HCAE) (2009 Q4)
HA Rev	T&R Contingency	185,315	HCAE (2009 Q4)
Law Officer's Department	T&R Contingency	168,644	HCAE (2009 Q4)
H&SS Rev	T&R Contingency	1,392,000	Pandemic Flu preparations
HA Rev	T&R Contingency	7,000	Pandemic Flu preparations
EDD Rev	EDD Cap	400,000	Transfer to align budgeting and accounting treatment
ESC Rev	T&R Contingency	370,000	Jersey Heritage Trust
CMD Rev	T&R Contingency	1,577,000	Integrated Business Improvement Plan
HA Rev	T&R Contingency	143,200	HCAE (2010 Q1)
Law Officer's Department	T&R Contingency	71,568	HCAE (2010 Q1)
CMD Rev	CMD Cap	186,000	HR Transformation Programme
HA Cap	HA Rev	10,500	IT Equipment purchase

2.3.4 Economic 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 stimulus package (P55/2009 refers).

During the period to 30th June 2010, the Minister approved the re-allocation of £22,088,341 from the Consolidated Fund (see Table (4) below).

Table (4) Economic stimulus budget allocations

Department	£	Purpose of allocation:
Housing (Rev)	70,000	Heating replacement programme
T&R (P/H) (Rev)	2,600,000	Jersey Hospice Care grant
ESC (Rev)	134,900	Careers Service Strengthening
EDD (Rev)	80,000	St Aubin's Pier repairs
TTS (Cap)	346,792	Queen's Road to Midvale Road surface water separation project
TTS (Cap)	485,155	Railway Walk foul sewer upgrade
Housing (Rev)	210,229	Door replacement at Les Cinq Chenes and Brighton Close windows
T&R (P/H) (Rev)	203,990	General Hospital asbestos remediation and works on public conveniences and States' owned cafes
CMD (Rev)	1,550,000	Finance Industry support
EDD (Rev)	867,000	Finance Industry support
T&R (P/H) (Rev)	476,673	Le Pouquelaye School
T&R (P/H) (Rev)	52,500	Building maintenance works
Housing (Rev)	498,708	Heating Installation Projects - Les Cinq Chenes and St Peters' School Estate
TTS (Cap)	550,000	Rozel rising mains upgrade project
Housing (Rev)	185,004	Heating Installation Projects - Vincent Court and Albert Villas
T&R (P/H) (Cap)	803,440	Backlog maintenance projects within States owned properties
ESC (Rev)	620,500	Highlands College additional full time student places
T&R (Rev)	100,000	Programme management costs
TTS (Cap)	400,000	Cheapside Urban Renewal
T&R (P/H) (Rev)	235,020	McKinstry Ward project
Housing (Rev)	1,046,855	Backlog maintenance projects at Social Housing Estates
Housing (Cap)	8,137,962	Le Squez development project, Phase 2a
Housing (Rev)	637,000	Building maintenance works at Social Housing Estates
EDD (Rev)	100,000	Finance Industry support
ESC (Rev)	966,613	Advance to Work scheme and new skills initiative for the 20+
EDD (Rev)	230,000	Jersey Finance Ltd grant 2011
EDD (Rev)	500,000	Muilti-media marketing campaign
Total	£22,088,341

2.4 Carry forwards

Total 2009 Year End Carry Forwards of £5,812,205 were approved by the Minister (MD-TR-2010-0067), following discussions with the Council of Ministers (Table (5) below refers).

Table (5) Carry forwards

Department	Approved amount
	£
Chief Minister’s	418,900
EDD	796,840
ESC	1,159,000
HSS	1,742,060
Home Affairs	311,951
Housing	776,500
P&E	76,342
Soc Sec	100,000
TTS	133,871
T&R	100,000
NMSFB	196,741
States Assembly	0
Total	£5,812,205