Social Security
Ministerial Decision Report
accounts OF the SOCIAL SECURITY, SOCIAL SECURITY (RESERVE), HEALTH INSURANCE AND LONG TERM CARE funds
- Purpose of Report
To enable the Minister for Social Security to determine that the newly consolidated States of Jersey Financial Report and Accounts and the Social Security Funds pages within fulfil the requirements for accounts to be prepared for the Social Security Fund (SSF), Social Security (Reserve) Fund (SS(R)F), Health Insurance Fund (HIF) and Long Term Care Fund (LTCF) as set out in legislation.
- Background
Under legislation, accounts must be prepared for the Social Security Funds:
Social Security (Jersey) Law 1974, Article 30
(4) Accounts of the Social Security Fund shall be prepared in such form, manner and at such times as the Minister may determine, and the Comptroller and Auditor General shall examine and certify every such account, and copies thereof together with the report of the Comptroller and Auditor General thereon shall be laid as soon as may be before the States.
Social Security (Jersey) Law 1974, Article 31
(2) Article 30(4), (5), (5A), (5B), (5C), (5D), (6), (7), (8) and (9) shall apply to the Social Security (Reserve) Fund as they apply to the Social Security Fund.
Health Insurance (Jersey) Law 1967, Article 21
(2) Accounts of the Health Insurance Fund shall be prepared in such form, in such manner and at such times as the Minister may determine, and the Comptroller and Auditor General shall examine and certify every such account, and copies thereof (together with the report of the Comptroller and Auditor General thereon) shall be laid before the States.
Long Term Care (Jersey) Law 2012, Article 11
(1) Annual accounts of the Fund shall be prepared in such form, in such manner and at such times as the Minister may determine, and the Comptroller and Auditor General shall examine and certify every such account, and copies thereof (together with the report of the Comptroller and Auditor General thereon) shall be laid before the States.
In previous years the Social Security Department have produced separate sets of Financial Statements for the SSF, HIF and SS(R)F which have been audited separately from the States of Jersey Financial Report and Accounts.
On the recommendation of the Comptroller and Auditor General (C&AG) the funds (including the new LTCF) have been consolidated into the States of Jersey Financial Report and Accounts and their details including Statement of Comprehensive Net Expenditure and Statement of Financial Position set out in the Annex to the states of Jersey Financial Report and Accounts.
It is proposed that the Minister for Social Security could determine that this fulfils the requirement to produce accounts for the funds.
The C&AG will arrange for the audit and issue of a certificate on the States Accounts in the usual way and this would obviate the need for two audit opinions at two different levels of materiality. This has been discussed with the current States external auditors with no objection.
To action this change Treasury has modified the JFReM (which will be enacted via a Ministerial Order in accordance with the Public Finances Law) to include these funds within the Accounting Boundary for the States of Jersey Financial Report and Accounts. An Annual Performance Report that reports upon the performance of the Funds will reference to the relevant statements in the States Accounts.
3. Recommendation
The Social Security Minister is recommended to determine that the newly consolidated States Financial Report and Accounts and the Social Security Funds pages within fulfil the requirements for accounts to be prepared for the SSF, HIF, SS(R)F and LTCF as set out in legislation.
4. Reason for Decision
The funds are now consolidated into the States of Jersey Financial Report and Accounts, which is considered to fulfil the requirements under the Social Security (Jersey) Law 1974, Health Insurance (Jersey) Law 1967, and the Long Term Care (Jersey) Law 2012.
5. Resource Implications
None
Report author : Management Accountant, SSD | Document date : 28th April 2014 |
Quality Assurance / Review : Finance Director, SSD | Ref: L:\Finance & Governance\Finance\Ministerial Decisions\2014 |
MD sponsor :Treasurer of the States |