Budget transfer from Central Contingencies to Community and Constitutional Affairs Department: Costs associated with Charities Commissioner including set-up of Charities Register

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A decision made 13 July 2018;

Decision Reference: MD-TR-2018-0094
Decision Summary Title:	Contingency funding to the Department for Community and Constitutional Affairs for costs associated with the Charities Commissioner in 2018		Date of Decision Summary:	6th July 2018
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:	Contingency funding of to the Department for Community and Constitutional Affairs for costs associated with the new Charities Commissioner in 2018		Date of Written Report:	6th July 2018
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: A non-recurring transfer of £147,715 in 2018 from Central Contingencies to the Community and Constitutional Affairs Department (CCA) revenue head of expenditure in respect of interim costs associated with the Charities Commissioner including the set-up of the Charities Register.
Decision(s): The Minister approved a non-recurring transfer of £147,715 in 2018 from Central Contingencies to the CCA revenue head of expenditure.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. It is envisaged that management costs associated with the Charities Commissioner will be met from income from dormant bank accounts. The Dormant Bank Accounts (Jersey) Law 2017 enables balances from dormant bank accounts to be used for charitable and other related causes including the costs of the Charities Commissioner. Until the appropriate arrangements are in place to release funding, the costs of the Charities Commissioner will be met from Central Contingency as originally agreed by CoM. As the responsibility for Social Policy was transferred to the Department for CCA with effect from 1st January 2016 contingency funding of £66,379 has already been approved by Ministerial Decision (MD-TR-2018-0014) dated 18th January 2018 to meet costs associated with the Charities Commissioner in 2017. Additional funding of £147,715 in 2018 is now required for the interim costs associated with the Charities Commissioner including the set-up of the Charities Register. The current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from Contingency over £100,000 to be considered by the Council of Ministers prior to submission to the Minister for approval. The Council of Ministers approved the above approach at their meeting of 26th June 2013.
Resource Implications: The Department for Community and Constitutional Affairs revenue head of expenditure will increase by £147,715 in 2018 and Central Contingencies will decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2017-2019 in the Medium Term Financial Plan.
Action required: Head of Decision Support to advise the Community and Constitutional Affairs Finance Director once this decision has been approved.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Central Contingencies to Community and Constitutional Affairs Department: Costs associated with Charities Commissioner including set-up of Charities Register

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Treasury and Resources

Ministerial Decision Report

CONTINGENCY FUNDING OF TO THE DEPARTMENT FOR COMMUNITY AND CONSTITUTIONAL AFFAIRS FOR COSTS ASSOCIATED WITH THE NEW CHARITIES COMMISSIONER IN 2018

Purpose of Report

To approve a non-recurring transfer of £147,715 in 2018 from Central Contingencies to the Community and Constitutional Affairs (CCA) revenue head of expenditure in respect of interim costs associated with the Charities Commissioner including the set-up of the Charities Register.

Background

At its meeting on 26th June 2013 the Council of Ministers discussed the proposals for a 3-phased approach to the development of a Jersey Charities Law and a proportionate, supportive regulatory regime for charities including the establishment of a Charities Commissioner. It was noted that the 2014 and 2015 management costs associated with the law and regulation were not included in the Medium Term Financial Plan (MTFP) 2013-2015 and that funding would need to be provided possibly from Central Contingency.

On 18th July 2014 the States Assembly approved P108/2014 – Draft Charities (Jersey) Law which included the Management costs (phase 1 of the Charities Law). The proposition stated the following: - “The management costs for the Charities Law are set out below. The costs for 2014 and 2015 will be met from contingency provisions (£307,000 for 2014 and £222,000 for 2015). Management costs for 2016 onwards will need to be included in the next MFTP planning process”.

However, the management costs for 2016 and beyond were not included in the 2016-2019 MTFP as it was envisaged that these would be met from income from dormant bank accounts. The Dormant Bank Accounts (Jersey) Law 2017 enables balances from dormant bank accounts to be used for charitable and other related causes including the costs of the Charities Commissioner.

The Charities Commissioner was appointed in July 2017 (R74/2017).

Until the appropriate arrangements are in place to release funding, the costs of the Charities Commissioner will be met from Central Contingency as originally agreed by CoM. As the responsibility for Social Policy was transferred to the Department for CCA with effect from 1st January 2016 contingency funding of £66,379 has already been approved by Ministerial Decision (MD-TR-2018-0014) dated 18th January 2018 to meet costs associated with the Charities Commissioner in 2017. Additional funding of £147,715 in 2018 is now required for the interim costs associated with the Charities Commissioner including the set-up of the Charities Register.

3. Recommendation

The Minister for Treasury and Resources is recommended to approve a non-recurring transfer of £147,715 in 2018 from Central Contingencies to the CCA revenue head of expenditure.

4. Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

It is envisaged that management costs associated with the Charities Commissioner will be met from income from dormant bank accounts. The Dormant Bank Accounts (Jersey) Law 2017 enables balances from dormant bank accounts to be used for charitable and other related causes including the costs of the Charities Commissioner.

The current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from Contingency over £100,000 to be considered by the Council of Ministers prior to submission to the Minister for approval. The Council of Ministers approved the above approach at their meeting of 26th June 2013.

5. Resource Implications

The CCA revenue head of expenditure will increase by £147,715 in 2018 and Central Contingencies will decrease by an identical amount.

This decision does not change the total amount of expenditure approved by the States for 2017-2019 in the Medium Term Financial Plan.

Report author : Head of Decision Support	Document date 6th July 2018
Quality Assurance / Review : Director of Financial Planning and Performance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2018-0094 - C37 Contingency funding for Charities Commissioner £147,715
MD Sponsor: Director of Financial Planning and Performance