Allocation of Reserve Funding to Health and Community Services: Personal Protective Equipment: COVID-19

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A decision made 7 April 2020:

Decision reference: MD-TR-2020-0038
Decision Summary Title:	Allocation of Reserve Funding to HCS in 2020 for additional PPE		Date of Decision Summary:	7th April 2020
Decision Summary Author:	Head of Financial Governance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Allocation of Reserve Funding to HCS in 2020 for additional PPE		Date of Written Report:	7th April 2020
Written Report Author:	Head of Financial Governance		Written Report : Public or Exempt?	Public
Subject: The allocation of up to £5 million in 2020 from the General Reserve to HCS (Health and Community Services) to purchase additional PPE (Personal Protective Equipment).
Decision: The Minister decided to allocate to £5 million in 2020 from the General Reserve to HCS (Health and Community Services) to purchase additional PPE (Personal Protective Equipment), and to delegate drawdowns of this amount for individual orders to the Treasurer of the States.
Reason(s) for Decision: Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a government plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan. The current Contingency Allocation Policy (published as R.23/2020) sets the requirement for all allocations from contingency to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval, however it also states that ‘Where a request is made for £100,000 or less, or where the Minister is satisfied that there is an urgent need to provide funding in the public interest, an allocation may be made by the Minister on the recommendation of the Treasurer.’ There are an increasing number of requests to order essential PPE (Personal Protective Equipment) to protect frontline staff. Supply lines are stretched and orders often need to be placed quickly to avoid losing that supply, often requiring payment up-front. This allocation will enable essential orders to be placed quickly. Individual drawdowns against the £5 million will be made by documented Treasurer decisions following confirmation of requirement for individual stock lines from Senior management of HCS and/or the Medical Officer of Health and approval of any required procurement exemptions by the Group Director, Commercial Services where necessary. The Treasurer recommends this allocation to the Minister for approval on the basis of the imperative need to protect frontline staff. Further allocations may be necessary for this purpose as the extent of the pandemic’s impact unfolds.
Resource Implications: The HCS head of expenditure to increase by up to £5 million in 2020 and the General Reserve to decrease by the same amount. This decision does not change the total amount of expenditure approved by the States in the Government Plan 2020-2023.
Action required: The Head of Financial Governance to advise the Specialist – Business Cases and the Head of Finance Business Partnering of HCS that this decision is approved.
Signature:		Position: Deputy S J Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision:

Allocation of Reserve Funding to Health and Community Services: Personal Protective Equipment: COVID-19

Treasury and Exchequer

Ministerial Decision Report

Allocation of Reserve Funding to HCS in 2020 for additional PPE

Purpose of Report

To enable the Minister to approve the allocation of up to £5 million in 2020 from the General Reserve to HCS (Health and Community Services) to purchase additional PPE (Personal Protective Equipment), and to delegate drawdowns of this amount for individual orders to the Treasurer of the States.

Background

Funding provisions were made in the Government Plan 2020-2023 in the General Reserve for funding needs that cannot be met from existing heads of expenditure in 2020. The Minister has increased the amount available in the General Reserve by transferring £65.3 million for the Treasury and Exchequer head of expenditure (MD-TR-2020-0035).

The Minister previously signed MD-TR-2020-0033 to purchase Serology Testing Kits for up to £1.7 million.

There are an increasing number of requests to order essential PPE (Personal Protective Equipment) to protect frontline staff. Supply lines are stretched and orders often need to be placed quickly to avoid losing that supply. This allocation will enable essential orders to be placed. Individual drawdowns against the £5 million will be made by fully documented Treasurer decisions following review of business cases and approval of procurement exemptions by the Group Director, Commercial Services where necessary.

Recommendation

The Minister is recommended to approve the allocation of up to £5 million in 2020 from the General Reserve to HCS (Health and Community Services) to purchase additional PPE (Personal Protective Equipment), and to delegate drawdowns of this amount for individual orders to the Treasurer of the States.

Reasons for Decision

Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a government plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan.

The current Contingency Allocation Policy (published as R.23/2020) sets the requirement for all allocations from contingency to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval, however it also states that ‘Where a request is made for £100,000 or less, or where the Minister is satisfied that there is an urgent need to provide funding in the public interest, an allocation may be made by the Minister on the recommendation of the Treasurer.’

There are an increasing number of requests to order essential PPE (Personal Protective Equipment) to protect frontline staff. Supply lines are stretched and orders often need to be placed quickly to avoid losing that supply, often requiring payment up-front. This allocation will enable essential orders to be placed quickly. Individual drawdowns against the £5 million will be made by documented Treasurer decisions following confirmation of requirement for individual stock lines from Senior management of HCS and/or the Medical Officer of Health and approval of any required procurement exemptions by the Group Director, Commercial Services where necessary.

The Treasurer recommends this allocation to the Minister for approval on the basis of the imperative need to protect frontline staff. Further allocations may be necessary for this purpose as the extent of the pandemic’s impact unfolds.

5. Resource Implications

The HCS head of expenditure to increase by up to £5 million in 2020 and the General Reserve to decrease by the same amount.

This decision does not change the total amount of expenditure approved by the States in the Government Plan 2020-2023. The transfers and requirements are detailed in the attached report.

Report author : Head of Financial Governance	Document date : 7th April 2020
Quality Assurance / Review: Group Director, Strategic Finance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2020-0038 - Reserve funding for PPE
MD sponsor : Treasurer of the States