States of Jersey Financial Report and Accounts 2013

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.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

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

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 12 May 2014:

Decision Reference: MD-TR-2013-0040
Decision Summary Title:	Presentation of the 2013 Financial Report and Accounts to the States Assembly		Date of Decision Summary:	8 May 2014
Decision Summary Author:	Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	Presentation of the 2013 Financial Report and Accounts		Date of Written Report:	8 May 2014
Written Report Author:	Manager - Financial Accounting and Control		Written Report : Public or Exempt?	Public
Subject: Presentation of the 2013 Financial Report and Accounts to the States Assembly.
Decision(s): The Minister decided to present the 2013 Financial Report and Accounts to the States Assembly as soon as practicable.
Reason(s) for Decision: The Public Finances (Jersey) Law 2005 requires the Minister for Treasury and Resources to present the Annual Report and Accounts to the States Assembly.
Resource Implications: None.
Action required: The Manager – Financial Accounting and Control to send the 2013 Annual Report and Accounts to the Publications Editor, at the States Greffe, and to request the Greffier of the States to arrange for it to be presented to the States.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

States of Jersey Financial Report and Accounts 2013

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Treasury and Resources

Ministerial Decision Report

Presentation of the 2013 Financial Report and Accounts to the States Assembly

Purpose of Report

Presentation of the 2013 Financial Report and Accounts to the States Assembly.

2013 Financial Report and Accounts

The 2013 Financial Report and Accounts have been prepared and audited. The report and accounts are currently being printed and will be available for presentation to the States Assembly shortly.

The 2013 Accounts show a small operating surplus of £0.5 million with General Revenue Income of £636.7 million and Departmental Expenditure of £636.2 million.

General Revenue Income

General Revenue Income for 2013 was £636.7 million, compared with £627.7 million in 2012. This consisted of revenues gained from taxation such as personal income tax and goods and services tax (£529.3 million), Impôts, Stamp Duty and the Island Rate (£83.3 million) and other income (£24.1 million). Total income was £9.3 million less than anticipated in the Budget Statement, with lower amounts of Personal Tax and Stamp Duty being offset by additional Company Tax collected.

Departmental Revenue Expenditure

Departments Net Revenue expenditure for 2013 was £636.2 million. Departments ended the year with an underspend of £22.8 million against budgets. £19.9 million of these approvals have been carried forward into 2014 so that Departments can fund projects spanning multiple years and other spending pressures.

In addition, £20.7 million of the contingency amounts allocated by the States to deal with unforeseen pressures were not needed in 2013, and will be used to provide a buffer against spending pressures in 2014 and beyond.

Balance Sheet Management

During the year, States Departments spent £43.2 million on Capital projects to develop the fixed assets base, including improvements to Social Housing and the Island’s Infrastructure. The value of States Fixed Assets is now £3.3 billion.

The Treasury has also operated as an active shareholder with regards to Jersey Post, Jersey Telecoms, Jersey Water, Jersey Electricity and SOJDC. Together, the four utilities contributed £11 million in dividends to the States in 2013, reducing the need for that funding to be raised by taxes.

Investment Performance

The majority of the States’ Investments are managed through the Common Investment Fund (CIF), which enables States Funds to pool resources and benefit from greater investment opportunities, economies of scale and improve risk management.

The performance of the States’ investments in the CIF in 2013 was £251.0 million, a rate of return of 15.9%, exceeding benchmarks by 1.3%. In particular equity returns were 26.5% against a benchmark of 22.9%. The total value of investments held in the CIF stands at £2.4 billion, £2.0 billion of which relates to funds in the States Accounts.

Recommendation

The Public Finances (Jersey) Law 2005 requires the Minister for Treasury and Resources to present the Annual Report and Accounts to the States Assembly.

Reason for Decision

In accordance with the Public Finances (Jersey) Law 2005 the Minister for Treasury and Resources is required to present to the States Annual Report and Accounts to the Assembly.

Resource Implications

None

Report author : Manager – Financial Accounting and Control	Document date : 8/05/13
Quality Assurance / Review : Business Manager	File name and path: l:\treasury\sections\accounting services\fact\new filing structure\states accounts\2013\issue and communication\wr - tr 2013 financial report and accounts - ah.doc
MD sponsor : Director of Accounting Services