Additional Ofcom Income

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

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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
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

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A decision made on 13 January 2017:

Decision Reference: MD-TR-2016-0116
Decision Summary Title:	Additional Ofcom income within the Financial Services, Digital, Innovation and Competition Division of the Chief Minister’s Department		Date of Decision Summary:	9th January 2017
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Additional Ofcom income within the Financial Services, Digital, Innovation and Competition Division of the Chief Minister’s Department		Date of Written Report:	9th January 2017
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Request for windfall income of £272,528 in relation to wireless telegraphy licence fees and the use of additional income in 2016 to be added to the Chief Minister’s Department Revenue Head of Expenditure.
Decision(s): The Minister agreed that the additional income of £272,528 in relation to wireless telegraphy licence fees be added to the Chief Minister’s Department Revenue Head of Expenditure for 2016. Use of additional income will be considered as part of the 2016 carry forward process.
Reason(s) for Decision: Article 19(1) of the Public Finances (Jersey) 2005 states that If, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure (a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income; or (b) the Minister may, either within or after the end of the financial year, with the agreement of the person responsible for the States funded body, transfer all or part of the excess income to contingency expenditure. A decision (MD-CMD-2017-0001) was signed by the Chief Minister on 6th January 2017.
Resource Implications: Use of additional income of £272,528 to be added to the Chief Minister’s Department revenue Head of Expenditure for 2016.
Action required: The Head of Decision Support to inform the Digital Policy Adviser – Chief Minister’s Department that this Decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Additional Ofcom Income

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Treasury and Resources

Ministerial Decision Report

TRANSFER OF ADDITIONAL Ofcom INCOME TO THE FINANCIAL SERVICES, DIGITAL, innovation AND COMPeTITION DIVISION OF THE cHIEF MINISTER’S DEPARTMENT

Purpose of Report

To approve windfall income of £272,528 in relation to wireless telegraphy licence fees and the use of additional income in 2016 to be added to the Chief Minister’s Department Revenue Head of Expenditure.

Background

Fees are collected by OFCOM on behalf of the States of Jersey, under authority of various pieces of legislation, most notably the Communications (Jersey) Order 2003, SI 2003/3197, arts 6, 7, Sch 2, para 91 (as amended by SI 2006/3324, art 4(2), Sch 2, Pt 2) and SI 2003/3197, arts 1(3)–(5), 2.

Following the transfer of responsibility for Digital Policy to the Chief Minister’s Department in 2016, the Department receives income from OFCOM in respect of wireless telegraphy licences fees. The amount received is subject to significant fluctuations so only a conservative estimate is accounted for in the MTFP.

In 2016 a total of £575,528 was received, of which £303,000 was budgeted for in the MTFP. The Department is requesting to bring the remaining £272,528 into its 2016 revenue head of expenditure. The use of additional income will be considered by the Minister as part of the 2016 carry forward process.

The amount that will be received can only be confirmed by OFCOM late in the year so it is not possible to make effective use of the funding in-year. As a result, it is established practice that funding received above the amount that has been budgeted for – in this case £272,528 – is requested as carry forward into the subsequent financial year and subject to the Treasury’s carry forward process.

3. Recommendation

The Minister is recommended to approve the additional income of £272,528 in relation to wireless telegraphy licence fees be added to the Chief Minister’s Department Revenue Head of Expenditure for 2016.

4. Reason for Decision

Article 19(1) of the Public Finances (Jersey) 2005 states that If, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure

(a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income; or

(b) the Minister may, either within or after the end of the financial year, with the agreement of the person responsible for the States funded body, transfer all or part of the excess income to contingency expenditure.

A decision (MD-CMD-2017-0001) was signed by the Chief Minister on 6th January 2017.

5. Resource Implications

Use of additional income of £272,528 to be added to the Chief Minister’s Department revenue Head of Expenditure for 2016.

Report author : Head of Decision Support	Document date 9th January 2016
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2016- 0116 - Ofcom Windfall Income
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