TREASURY & RESOURCES MINISTER
Finance Law Delegation Report for the Period Ended 31st December 2013
- 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 31st December 2013, 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:
2.1 The use of trading funds by States Trading Operations;
2.2 Borrowing and Lending;
2.3 Budget transfers.
2.1 Use of Trading Funds
The following Ministerial Decisions in the use of trading funds were approved in the 6 month period that ended 31st December 2013:
- MD-TR-2013-0105 – Use of Jersey Airport Trading Fund in 2013 for Jersey Airport Cargo Centre relocation (£4,653,000).
- MD-TR-2013-0114 – Use of Jersey Harbours Trading Fund for Elizabeth Harbour Trailer Park (£865,000).
2.2 Borrowing and Lending
2.2.1 Borrowing
The 2014 Budget (P.122/2013) was approved by the States on the 5th December 2013, which also approved the borrowing of up to a maximum of £250,000,000 for Housing purposes.
2.2.2 Jersey Student Loan Scheme
During the 6 month period to 31st December 2013, 139 new loans with a collective value of £209,254.65 were guaranteed by the Treasurer of the States under the Jersey Student Loan Scheme. As at 31st December 2013, the total amount loaned under the Jersey Student Loan Scheme was £2,308,600.73. Terms with the intermediaries require the States of Jersey to underwrite 100% of the value of the loans.
2.2.3 Pilot Starter Home Deposit Loan Scheme
During the 6 month period to 31st December 2013, 31 new loans were issued with a total value of £1,587,300.
2.2.4 Infrastructure Investments
During the 6 month period to 31st December 2013, the Minister approved the issuance of a £13,000,000 infrastructure investment from the Currency Fund to provide the States of Jersey Development Company with financing for part of the underground car park, subject to conditions (MD-TR-2013-0095). Note that at present it is not planned that this investment will proceed.
2.3 Budget Transfers
Articles 17 and 18 of the Public Finances (Jersey) Law 2005 permit contingency expenditure and variations between heads of expenditure with the approval of the Minister.
Budget transfers under Articles 17 and 18 of the Public Finances (Jersey) Law 2005 are reported on the following basis:-
- Transfers from contingency expenditure to heads of expenditure;
- Transfers between revenue heads of expenditure;
- Transfers between capital heads of expenditure;
- Transfers between revenue and capital heads of expenditure; and
- Transfers between revenue and capital heads of expenditure where the transfer is required in order to comply with Generally Accepted Accounting Principles (GAAP)
All transfers between departments vary the budgets of individual departments but are net nil in total.
2.3.1 Transfers from contingency expenditure to heads of expenditure
Transfers from contingency expenditure to heads of expenditure during the 6 month period to 31st December 2013 are shown below –
Department | £ | Funding of:- |
To | From |
**Health and Social Services (H&SS) | Contingency | 140,000 | Doctors' Pay Award for 2013 |
Education, Sports and Culture (ESC) | Contingency | 315,000 | Jersey Heritage Trust (JHT) annual capital requirements |
**Chief Minister's Department (CMD) | Contingency | 250,000 | Implementation of the recommendations of the Financial Services Sector Review |
CMD | Contingency | 210,000 | London Representative Office |
**H&SS | Provision for restructuring | 8,000 | Public Sector Reform Programme (Creation of Integrated Reform programme) |
*Department of the Environment (DoE) | 32,000 | Public Sector Reform Programme (Eco Active States) |
*Housing | 425,000 | Public Sector Reform Programme (Housing Transformation Programme) |
ESC | Contingency | 738,000 | JHT to acquire and restore the Coin Hoard |
**Home Affairs (HA) | Contingency | 83,300 | Fire Fighters’ Pay Award |
Treasury and Resources (T&R) | Contingency | 50,000 | T. McDonald Ex-Gratia Payment |
DoE Cap | Contingency | 50,000 | Countryside Infrastructure |
DoE Rev | Contingency | 200,000 | Environmental Protection |
**H&SS Rev | Contingency | 1,240,000 | Nurses’ Pay Award |
T&R - Insurance | Contingency – Insurance | 1,029,837 | HCAE Costs |
Total transfers | 4,771,137 | |
* Decision with multi-year budget transfers for 2013 and 2014. The budget transfer approval for 2013 is reflected above with the budget transfer for 2014 reflected under 2.3.6.
** Decisions with multi-year budget transfers for 2013, 2014 and 2015. The budget transfer approval for 2013 is reflected above with the budget transfers for 2014 and 2015 reflected under 2.3.6.
2.3.2 Transfers between revenue heads of expenditure
Revenue transfers during the 6 month period to 31st December 2013 are shown below –
Department | £ | Funding of – |
To – | From – |
**Housing | Social Security Department (SSD) | 148,700 | To fund shortfall in the forecast rental income |
H&SS | T&R | 89,819 | Additional finance resource |
**CMD | T&R | 13,035 | To support with the funding of 2 additional Law Draftsman posts |
EDD | 15,303 |
**Judicial Greffe | SSD | 45,000 | Jersey Employment Tribunal |
H&SS | T&R | 110,000 | Energy Reduction Programme Costs |
**CMD | Housing | 131,880 | Strategic Housing Unit |
CMD | T&R Corporate Contingency | 60,000 | Party Conferences |
**Housing | T&R | 30,135 | 99 Year Lease Properties Insurance |
ESC | EDD | 20,000 | Jersey Arts Trust |
ESC | CMD | 20,000 | Jersey Arts Trust |
Total transfers | 683,872 | |
** Decisions with multi-year budget transfers for 2013, 2014 and 2015. The budget transfer approval for 2013 is reflected above with the budget transfers for 2014 and 2015 reflected under 2.3.6.
2.3.3 Transfers between capital heads of expenditure
Transfers between existing capital heads of expenditure during the 6 month period to 31st December 2013 are shown below –
Department | £ | Funding of:- |
To | From |
TTS Replacement Assets | TTS Gas Engine Bellozanne Vote | 4,165 | Transfer of the remaining balance |
HA | HA Fire and Rescue and HM Prison | 151,003 | Transfer of the remaining balance |
H&SS | HA | 43,749 | Upgrade of the Fire and Ambulance combined control centre |
T&R (JPH) | T&R (JPH) Cap (Mont-a-l'Abbe) | 540,000 | Office Rationalisation Programme |
T&R (JPH) | Central Planning Vote (CPV) | 320,000 | Les Quennevais replacement School |
Total transfers | 1,058,917 | |
2.3.4 Transfers between revenue and capital heads of expenditure
Transfers between revenue (Rev) and capital (Cap) heads of expenditure during the 6 month period to 31st December 2013 are shown below –
Department | £ | Funding of:- |
To | From |
**HA Rev | T&R Corporate Contingency | 7,700 | Jersey Community Relations |
ESC Cap | ESC Rev | 15,753 | Caretakers Van for Victoria College Preparatory |
ESC Cap | ESC Rev | 17,388 | Router for Jersey College for Girls and Victoria College |
DoE Rev | Central Environment Vote Cap | 42,000 | Study on the security of Jersey's energy supply |
ESC Cap | ESC Rev | 130,000 | For capital works at Victoria College (refurbishment of the Great Hall and building classrooms) |
T&R Cap | T&R Rev | 30,378 | Opera house |
T&R (JPH) Cap | SSD Rev | 926,000 | Silver Jubilee Crabbe works |
T&R (JPH) Cap | T&R (JPH) Rev | 1,179,260 | Office Rationalisation Programme |
Total transfers | 2,348,479 | |
** Decision with multi-year budget transfer for 2013, 2014 and 2015. The budget transfer approval for 2013 is reflected above with the budget transfers for 2014 and 2015 reflected under 2.3.6.
2.3.5 Transfers between revenue and capital heads of expenditure where the transfer is required in order to comply with Generally Accepted Accounting Principles (GAAP)
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.
GAAP transfers between revenue (Rev) and capital (Cap) during the 6 month period to 31st December 2013 are shown below –
Department | £ | Funding of:- |
To | From |
H&SS Cap | H&SS Rev | 320,251 | Purchase of Operations Suite and the Ambulance and Fire priority Dispatch System |
HA Cap | HA Rev | 130,000 | Equipment for the prison stores |
HA Cap | HA Rev | 215,000 | Purchase of IT and Communications equipment for the States of Jersey Police (1st Tranche) |
HA Cap | HA Rev | 200,000 | Purchase of IT and Communications equipment for the States of Jersey Police (2nd Tranche) |
H&SS Cap | H&SS Rev | 89,400 | Boiler house controls and burners |
*TTS rev | TTS cap | 31,446 | Ash Strategy |
TTS Cap | TTS Rev | 36,886 | Road Panels' Les Quennevais and Trinity Hill |
HA Rev | HA CAP | 48,216 | Purchase of goods and services for the TETRA project |
TTS Cap | TTS Rev | 25,000 | DVS garage doors |
H&SS Rev | H&SS Cap | 284,651 | Purchase of defibrillators |
Viscount's Cap | Viscount's Rev | 27,735 | Desastre Software upgrade |
TTS Cap | TTS Rev | 19,459 | Leica Equipment |
Total transfers | 1,428,044 | |
* Decision with multi-year budget transfers for 2013 and 2014. The budget transfer approval for 2013 is reflected above with the budget transfer for 2014 reflected under 2.3.6.
2.3.6 Transfers over multiple years between various heads of expenditure
Multi Year transfers between the various heads of expenditure during the 6 month period to 31st December 2013 are shown below –
Department | £ | Funding of | Transfer between heads of expenditure | Year(s) of transfer |
To | From |
**H&SS | Central Contingency | 378,000 | Recurring effect of the Doctors' Pay Award from 2013 | Contingency to revenue head of expenditure | 2014 to 2015 |
**CMD | Central Contingency | 1,000,000 | Implementation of the recommendations of the Financial Services Sector Review | Contingency to revenue head of expenditure | 2014 to 2015 |
**Housing | SSD | 1,222,500 | To fund shortfall in the forecast rental income | Revenue heads of expenditure | 2014 to 2015 |
**H&SS | Provision for restructuring | 1,112,000 | Public Sector Reform Programme (Creation of Integrated Reform programme and Provision of Leadership Training) | Contingency to revenue head of expenditure | 2014 to 2015 |
*DoE | Provision for restructuring | 33,000 | Public Sector Reform Programme (Eco Active States) | Contingency to revenue head of expenditure | 2014 |
*Housing | Provision for restructuring | 260,000 | Public Sector Reform Programme (Housing Transformation Programme) | Contingency to revenue head of expenditure | 2014 |
**HA | Contingency | 166,600 | Recurring effect of the Fire Fighters Pay Award | Contingency to revenue head of expenditure | 2014 to 2015 |
***ESC | Contingency | 1,500,000 | Sports Strategy | Contingency to revenue head of expenditure | 2014 to 2015 |
***ESC | Contingency | 461,000 | Expansion of the Prince's Trust | Contingency to revenue head of expenditure | 2014 to 2015 |
**HA | T&R Corporate Contingency | 51,600 | Jersey Community Relations | Capital to Revenue head of expenditure | 2014 to 2015 |
**CMD | T&R | 122,428 | To support with the funding of 2 additional Law Draftsman posts | Revenue heads of expenditure | 2014 to 2015 |
EDD | 122,428 |
**Judicial Greffe | SSD | 100,000 | Jersey Employment Tribunal | Revenue heads of expenditure | 2014 to 2015 |
***ESC | EDD | 240,000 | Trackers Apprenticeship Programme | Revenue heads of expenditure | 2014 to 2015 |
**CMD | Housing | 373,580 | Strategic Housing Unit | Revenue heads of expenditure | 2014 to 2015 |
**Housing | T&R | 62,548 | 99 Year Lease Properties Insurance | Revenue heads of expenditure | 2014 to 2015 |
***DoE | CMD | 33,000 | Geospatial Information Systems Service | Revenue heads of expenditure | 2014 to 2015 |
*TTS Cap | TTS Rev | 113,554 | Ash Strategy | Revenue to Capital head of expenditure | 2014 |
**H&SS Rev | Contingency | 3,200,000 | Recurring effect of the Nurses’ Pay Award | Contingency to revenue head of expenditure | 2014 to 2015 |
Total transfers | 10,552,238 | |
* Decisions with multi-year budget transfers for 2013 and 2014. The budget transfer approval for 2014 is reflected above with the budget transfer for 2013 reflected on the relevant section on the body of the report.
** Decisions with multi-year budget transfers for 2013, 2014 and 2015. The budget transfer approval for 2014 and 2015 is reflected above with the budget transfer for 2013 reflected on the relevant section on the body of the report.
*** Decisions with multi-year budget transfer approvals for 2014 and 2015 reflected above.