Covid-19: Provision and Supply of PPE: Allocation of Reserve Funding

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A decision made on 22 December 2021

Decision Reference: MD-TR-2021-0150
Decision Summary Title:	Allocation of Covid-19 Reserve Funding for the provision and supply of PPE		Date of Decision Summary:	15th December 2021
Decision Summary Author:	Specialist – Special Project Assurance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	Allocation of Covid-19 Reserve Funding for the provision and supply of PPE		Date of Written Report:	15th December 2021
Written Report Author:	Specialist – Special Project Assurance		Written Report: Public or Exempt?	Public
Subject: Allocation of funding from the General Reserve (Covid-19 Contingency) to the Covid-19 Response Head of Expenditure for Personal Protective Equipment (PPE) consumed in 2021.
Decision(s): The Minister approved the allocation of up to £380,000 from the General Reserve (Covid-19 Contingency) to the Covid-19 Response Head of Expenditure to fund the provision and supply of the PPE.
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 Policy for Allocations from the Reserve, presented to the States Assembly as R.60/2021, sets the requirement for all allocations from the General Reserve (Covid-19 Contingency) once recommended for approval by the Treasurer of the States, to be referred for review to either the Council of Ministers or the relevant Competent Authorities Ministers and to seek comments from the Principal Accountable Officer (PAO) prior to submission to the Minister for approval. This decision has been circulated to the Council of Ministers in accordance with the requirements of the policy. The Investment Appraisal Team has reviewed the business case for funding the supply and provision of PPE and recommended it for approval. Following this review, the Treasurer, taking into account comments from the PAO, recommends that the Minister allocates funding from the General Reserve. The Treasurer of the States, under delegation from the Principal Accountable Officer, will appoint the Director General for Health and Community Services as the Accountable Officer for the allocation to the Covid-19 Head of Expenditure.
Resource Implications: The Covid-19 Response Head of Expenditure to increase by £380,000 and the General Reserve (Covid-19 Contingency) to decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States Assembly in the Government Plan 2021-24.
Action required: The Head of Financial Governance to advise the Specialist – Business Cases and the Head of Finance Business Partnering for HCS that this decision is approved.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Covid-19: Provision and Supply of PPE: Allocation of Reserve Funding

Treasury and Exchequer

Ministerial Decision Report

ALLOCATION of Reserve Funding for the provision and supply of Ppe

Purpose of Report

To enable the Minister to approve an allocation of up to £380,000 from the General Reserve (Covid-19 Contingency) to the Covid-19 Response head of expenditure to fund the provision and supply of Personal Protective Equipment (PPE).

Background

PPE has been essential to ensuring that critical frontline services could be provided safely during the pandemic. HCS and Commercial Services established a PPE cell to coordinate the provision of PPE across Government departments, wider healthcare settings including the care sector, and charities that are involved in the delivery of services to the public.

At the onset of the pandemic surging international demand for PPE led to significant supply shortages. In response, Ministers authorised the purchase of significant volumes of PPE to ensure that the Government had sufficient equipment in stock to meet the Island’s essential PPE requirements for 90-days.

Anticipating the potential for changes to policy around stock holdings and for PPE usage requirements to evolve, the Government Plan 2021-24 did not allocate additional funding for PPE usage, or for the write-down of stock that is now expired or not fit for purpose and cannot be used or sold on.

It was expected that the HCS should first seek to make use of existing resources and to make an application to the Covid-19 Reserve once it became clear that costs in relation to PPE usage could not be absorbed within existing budgets. Accordingly, it is now forecast that expenditure on PPE will require an additional budget allocation in 2021.

Recommendation

The Minister is recommended to approve an allocation of up to £380,000 from General Reserve (Covid-19 Contingency) to the Covid-19 Response head of expenditure to fund the provision and supply of the PPE.

Reason 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 Policy for Allocations from the Reserve, presented to the States Assembly as R.60/2021, sets the requirement for all allocations from the General Reserve (Covid-19) once recommended for approval by the Treasurer of the States, to be referred for review to either the Council of Ministers or the relevant Competent Authorities Ministers and to seek comments from the Principal Accountable Officer (PAO) prior to submission to the Minister for approval.

This decision has been circulated to the Council of Ministers in accordance with the requirements of the policy.

The Investment Appraisal Team has reviewed the business case for funding the supply and provision of PPE and recommended it for approval. Following this review, the Treasurer, taking into account comments from the PAO, recommends that the Minister allocates funding from the General Reserve.

The Treasurer of the States, under delegation from the Principal Accountable Officer, will appoint the Director General for Health and Community Services as the Accountable Officer for the allocation to the Covid-19 Head of Expenditure.

Resource Implications

The Covid-19 Response Head of Expenditure to increase by £380,000 and the General Reserve (Covid-19 Contingency) to decrease by an identical amount.

This decision does not change the total amount of expenditure approved by the States Assembly in the Government Plan 2021-24.

Report author: Specialist – Special Project Assurance

Document date: 15th December 2021

Quality Assurance / Review:

Group Director, Strategic Finance and the Head of Financial Governance

File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2021-0150 - Reserve funding to HCS for PPE

MD sponsor: Treasurer of the States