Ports of Jersey Limited: Trading Fund Balance: Cash transfer as at 1 October 2015

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A decision made 1 October 2015:

Decision Reference: MD-TR-2015-0105
Decision Summary Title:	Ports of Jersey Limited: Trading Fund Balance – Cash Transfer as at 1st October 2015.		Date of Decision Summary:	1st October 2015
Decision Summary Author:	Head of Shareholder Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Ports of Jersey Limited: Trading Fund Balance – Cash Transfer as at 1st October 2015.		Date of Written Report:	1st October 2015
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Public
Subject: Ports of Jersey Limited: Trading Fund Balance – Cash Transfer as at 1st October 2015.
Decision(s): The Minister for Treasury and Resources approved the transfer of £17,571,427 from the Consolidated Fund to Ports of Jersey Limited, in accordance with the principles of the Air and Sea Ports(Incorporation) (Jersey) Law 2015 and the Air and Sea Ports Incorporation (Transfer) (Jersey) Regulations 2015.
Reason(s) for decision: In accordance with the principles of the Air and Sea Ports (Incorporation) (Jersey) Law 2015 and the Air and Sea Ports Incorporation (Transfer) (Jersey) Regulations 2015.
Resource Implications: The sum of £17,571,427 will be transferred from the Consolidated Fund to the bank account of Ports of Jersey Limited. This represents 95% of the total estimated sum due to Ports of Jersey Limited as at the close of business on 30th September 2015. This sum is subject to further adjustments and final verification. This final verification will take place as part of the year end procedures and production of the States Accounts as at 31st December 2015. At this point any residual sum due to Ports of Jersey Limited will be transferred to them.
Action required: The Treasurer of the States to authorise the transfer of the funds to Ports of Jersey Limited. Head of Shareholder Relations to advise the Finance Director of Ports of Jersey Limited of this decision and to confirm the date on which funds will be transferred.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Ports of Jersey Limited: Trading Fund Balance: Cash transfer as at 1 October 2015

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Treasury and Resources

Ministerial Decision Report

Ports of Jersey Limited: Trading Fund Balance – Cash Transfer as at 1st October 2015

Purpose of Report

To provide background information in support of the request for the Minister for Treasury and Resources, to transfer £17,571,427 to Ports of Jersey Limited, being 95% of the estimated Trading Fund Balance as at 30th September 2015.

Background

The States of Jersey on 9th October 2012 formally adopted P.70/2012: Incorporation of Ports of Jersey, giving in-principle approval for incorporation of the Ports. The States subsequently approved the Air and Sea Ports (Incorporation) (Jersey) Law 2015 and the Air & Sea Ports (Incorporation) (Jersey) Regulations 2015 were approved by the States in P.80/2015 on 8th September 2015. The Appointed Day Act P.81/2015 was also approved on 8th September 2015.

Ports of Jersey Limited will be formally established and start trading on 1st October 2015. As a consequence of these decisions it is necessary to transfer a cash sum to Ports of Jersey Limited which represents their Trading Fund balance as at the close of business on 30th September 2015. This sum is effectively represented by the Ports “inter-company balance” with the Consolidated Fund. This transfer will take effect on 1st October 2015.

Whilst a States Trading Operation this Trading Fund balance was managed as part of the States Consolidated Investment Fund (“CIF”) and the Ports received a monthly investment return as a result. As a fully incorporated body Ports of Jersey Limited are prohibited under current rules from remaining in the CIF and are responsible for their own surplus funds and how they are managed. Funds need therefore to be transferred on the day of incorporation.

In doing so there are some practical issues to be addressed. The sum to be transferred is that calculated at the close of business on 30th September 2015. In reality there will be transactions (positive and negative to the Trading Fund balance) that will occur after that date which will affect the actual balance at 30th September 2015. For the investment reasons mentioned above, Ports of Jersey Limited need these funds to be transferred on 1st October 2015.

It has therefore been agreed between both parties that a sum representing 95% of the value of the Trading Fund “inter-company balance” at the close of business on 30th September 2015, will be transferred on 1st October 2015. The remainder, based on a full year end reconciliation at financial year end 31st December 2015, will be paid to Ports of Jersey Limited in early 2016.

This calculated sum is £17,571,427. See Appendix A for calculation of this sum.

Recommendation

The Minister for Treasury and Resources is recommended to approve the transfer of £17,571,427 to Ports of Jersey Limited on 1st October 2015.

Resource Implications

The sum of £17,571,427 will be paid from the Consolidated Fund to the bank account of Ports of Jersey Limited on 1st October 2015. This represents 95% of the estimated sum due. The balance will be paid to Ports of Jersey Limited in early 2016, once the sum has been verified as part of the States year-end procedures.

Report author : Head of shareholder Relations	Document date: 1st October 2015.
Quality Assurance / Review : Head of Decision Support	File name and path:
MD sponsor :	File name and path: