Transfer of Windfall Income from Wireless Telegraphy Licences to Chief Minister's Department

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A decision made 15 December 2017:

Decision Reference: MD-TR-2017-0151
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:	12th December 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:	Head of Decision Support		Date of Written Report:	12th December 2017
Written Report Author:	Additional Ofcom income within the Financial Services, Digital, Innovation and Competition Division of the Chief Minister’s Department		Written Report : Public or Exempt?	Public
Subject: Request for additional income of £412,638 in relation to wireless telegraphy licence fees in 2017 to be added to the Chief Minister’s Department Revenue Head of Expenditure.
Decision(s): The Minister approved the additional income of £412,638 in relation to wireless telegraphy licence fees in 2017 to be added to the Chief Minister’s Department Revenue Head of Expenditure in the Financial Services, Digital, Innovation and Competition Division (CPC400) in 2017.
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. The funding will be subject to a carry forward request to support a financial services sector review through funding the project management and other resource requirements of the McKinsey implementation across the financial services and digital work streams.
Resource Implications: Use of additional income of £412,638 to be added to the Chief Minister’s Department Revenue Head of Expenditure in 2017.
Action required: Head of Decision Support to advise the Management Accountant - Corporate Group once this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Transfer of Windfall Income from Wireless Telegraphy Licences to Chief Minister's Department

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Treasury and Resources

Ministerial Decision Report

Additional Ofcom income within the Financial Services, Digital, Innovation and Competition Division of the Chief Minister’s Department

Purpose of Report

To approve the request for additional income of £412,638 in relation to wireless telegraphy licence fees in 2017 to be added to the Chief Minister’s Department Revenue Head of Expenditure.

Background

Following the transfer of responsibility for Digital Policy to the Chief Minister’s Department in 2016, CMD 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 2017 a total of £715,938 was received of which £303,300 was budgeted for in the MTFP. The Chief Minister’s Department is requesting to retain the remaining £412,638.

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 £412,638 – is requested as carry forward into the following financial year and will subject to the Treasury and Resources Department carry forward process.

3. Recommendation

The Minister is recommended to approve the additional income of £412,638 in relation to wireless telegraphy licence fees in 2017 to be added to the Chief Minister’s Department Revenue Head of Expenditure in the Financial Services, Digital, Innovation and Competition Division (CPC400).

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.

The funding will be subject to a carry forward request to support a financial services sector review through funding the project management and other resource requirements of the McKinsey implementation across the financial services and digital work streams.

5. Resource Implications

Use of additional income of £412,638 to be added to the Chief Minister’s Department Revenue Head of Expenditure in 2017.

Report author : Head of Decision Support	Document date 12th December 2017
Quality Assurance / Review : Director of Financial Planning and Performance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2017-0151 - CMD OFCOM Windfall Income £412,638
MD sponsor : Director of Financial Planning and Performance