TREASURY & RESOURCES MINISTER
Report on the disclosure requirements relating to Financial Planning
1. The administration of the public finances of Jersey
In accordance with the Public Finances (Jersey) Law 2005 (the ‘Law’) (including Regulations approved under that Law and Financial Directions) certain matters are required to be reported to the States twice yearly by the Minister for Treasury and Resources (the ‘Minister’).
This report sets out those matters for the 6 month period ended 31st December 2006.
2. Financial Directions
Matters to be reported by the Minister twice yearly relate solely to financial planning. The Financial Directions (‘FD’) referred to in this report – which have all been issued under certain Articles of the Law and provide instructions and guidance on the Law and any Regulations that are in place – are all relevant.
2.1 FD 3.1 – Financial administration of Trading Operations (Article 26)
This Direction supports paragraphs (2) and (3) of Regulation 22, which states that the Minister may in certain circumstances approve variations to capital and/or revenue expenditure (FD sections 5.13-5.15 refer).
2.2 FD 3.2 – Borrowing (Article 21)
Under Regulation 9, the Minister may authorise certain borrowings in the name of, and on behalf of the States. The ‘Borrowing by the Minister for Treasury & Resources’ section of this Direction provides guidance on the aforementioned. This function has partly been delegated to the Treasurer of the States (the Treasurer) – as permitted by Regulation 10 -, and FD sections 5.12 and 5.18 refer.
2.3 FD 3.3 – Lending (Article 23)
Sections 5.6 and 5.7 of this Direction support Regulation 13, which authorises the Minister to lend certain money of the States. ‘Lending by the Treasurer of the States’ (FD section 5.9) relates to Regulation 14, which authorises the Minister to delegate to the Treasurer, wholly or partly, a function vested in the Minister by Regulation 13.
2.4 FD 3.6 – Variations to heads of expenditure (Article 15)
This Direction specifies how and when an application for the Minister’s approval under paragraph (1) of Article 15 (a) of the Law may be made. Transfers between heads of expenditure are covered in FD sections 5.7-5.13, and the carry forward of revenue balances is referred to in section 5.15 and FD 6.1 Carry forward of revenue balances.
3. Reporting on Ministerial and delegated approvals
With the exception of borrowing and variations to heads of expenditure, there is nothing to report in any of the abovementioned areas of administration.
3.1 Borrowing
In accordance with the requirements of FD 3.3, the Minister approved borrowing (by way of Loan guarantees) of up to £2,000,000 in the form of four separate £500,000 agreements, each of which is with a different bank (MD-TR-2006-0127 refers).
3.2 Variations to heads of expenditure
Financial Direction 3.6 identifies requirements and provides advice on the procedures when variations to revenue and capital heads of expenditure are being considered.
A ‘head of expenditure’ is defined in section 5.1 of the FD as either:-
§ the annual net revenue budget of a States funded body; or
§ the amount allocated for each capital project.
3.2.1 Transfers between revenue heads of expenditure
Transfers between revenue heads are categorised in section 5.7 as:-
§ non-contentious transfers of up to £100,000, in which case the approval of the Treasurer of the States, or in his absence another person nominated by the Treasurer is required; and
§ all other instances, where the approval of the Minister is required.
Revenue transfers during the period ended 31st December 2006 amounted to £13,986,741 (Appendix A refers).
3.2.2 Transfers between capital heads of expenditure
Capital to capital transfers are categorised in sections 5.8-5.10 as:-
§ non-contentious transfers of up to £100,000 (5.8), which require the approval of the Treasurer of the States, or in his absence another person nominated by the Treasurer is required;
§ all other transfers between existing capital heads (5.9), in which case the approval of the Minister is required; and
§ transfers to new capital heads[1] of expenditure (5.10), which require the approval of the Council of Ministers (‘CoM’) and the Minister.
Transfers between capital heads of expenditure amounted to £5,191,000 for the period (Appendix B refers). The transfer of £300,000 in respect of the Development and Regeneration Strategy was from an existing head of expenditure to a new head. Prior approval from the Council of Ministers had been received.
3.2.3 Transfers between revenue and capital heads of expenditure
Transfers between revenue and capital heads are categorised in sections 5.11-5.13 as:-
§ non-contentious transfers of up to £100,000 (5.11), in which case the approval of the Treasurer of the States, or in his absence another person nominated by the Treasurer is required;
§ all other transfers (5.12), which require the approval of the Minister; and
§ transfers to new capital heads of expenditure (5.13), in which case the approval of the CoM and the Minister are required.
Transfers between revenue and capital heads of expenditure amounted to £8,558,762 (Appendix C refers[2]). There were no transfers from revenue heads to new capital heads of expenditure during the period.
3.3 Carry forwards
Total carry forwards of £9,739,053 were approved during the 2005 annual Accounts process. These are detailed in Appendix D.
APPENDIX A – TRANSFERS BETWEEN REVENUE HEADS OF EXPENDITURE TO 31ST DECEMBER 2006 |
APPENDIX A (…continued) – TRANSFERS BETWEEN REVENUE HEADS OF EXPENDITURE TO 31ST DECEMBER 2006 |
APPENDIX B – TRANSFERS BETWEEN CAPITAL HEADS OF EXPENDITURE TO 31ST DECEMBER 2006 |
APPENDIX C – TRANSFERS BETWEEN REVENUE AND CAPITAL HEADS OF EXPENDITURE TO 31ST DECEMBER 2006 |
APPENDIX D – CARRY FORWARDS TAKEN TO 31ST DECEMBER 2006 |
[1] ‘New’ capital heads of expenditure refers to capital projects that have been initiated without States approval.
[2] All transfers shown in Appendix C are transfers from capital to revenue heads of expenditure.
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