Independent Jersey Care Inquiry: Allocation from Contingency for costs incurred in 2015

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A decision made 29 February 2016:

Decision Reference: MD-TR-2016-0004
Decision Summary Title:	Independent Jersey Care Inquiry – allocation from Contingency for costs incurred in 2015		Date of Decision Summary:	10th February 2016
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:	Independent Jersey Care Inquiry – allocation from Contingency for costs incurred in 2015		Date of Written Report:	10th February 2016
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Non-recurring Central Contingency allocation of up to £595,000 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI) in 2015.
Decision(s): The Treasurer approved the non-recurring Central Contingency allocation of up to £595,000 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI) in 2015.
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 or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. On 9th December 2015, the Council of Ministers agreed to the request to allocate up to £8,760,391 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI). It was also agreed that the Treasurer of the States would have the power to draw down up to the amounts forecast in the attached CoM report. MD-TR-2015-0135, signed on 14th December 2015, approved the allocation of up to £8,760,391 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI). Since that approval, additional expenditure related to the Inquiry of approximately £595,000 in 2015 has been identified; £550,000 for the States Assembly for the IJCI and £45,000 for Community and Constitutional Affairs. The Treasurer of the States was informed by the Secretary to the Inquiry on 22nd January 2016 that their forecast expenditure was likely to increase to £15.15 million, an increase of £1.45 million on the forecast previously notified to the Council of Ministers. The Minister is approving these additional sums with approval from the Council of Ministers, the meeting having taken place on 10th February 2016.
Resource Implications: The States Assembly (for the independent Panel) revenue head of expenditure to increase in 2015 by up to £550,000 and the Community and Constitutional Affairs revenue head of expenditure to increase by £45,000. Central Reserves (Central Contingencies) to decrease by a net amount of up to £595,000 in 2015. This decision does not change the total amount of expenditure approved by the States for the period of the current MTFP 2013 to 2015.
Action required: The Head of Decision Support to inform the Head of Financial Performance that this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Independent Jersey Care Inquiry: Allocation from Contingency for costs incurred in 2015

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Treasury and Resources

Delegated Decision Report

Independent Jersey Care Inquiry – allocation from contingency for costs incurred in 2015

Purpose of Report

Non-recurring Central Contingency allocation of up to £595,000 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI) in 2015.

2. Background

On 25th March 2015 the States approved P.20/2015 Committee of Inquiry: Historical Child Abuse – additional funding, which proposed that up to a further £14,000,000 should be made available in order to provide additional funding in relation to the Committee of Inquiry into Historical Child Abuse (now known as ‘the Independent Jersey Care Inquiry’).

P.20/2015 was implemented on 8th October 2015 when the States approved:

P.76/2015 Strategic Reserve Fund: funding for Independent Jersey Care Inquiry and transfers from and to the Consolidated Fund (as amended) and
P.75/2015 Strategic Reserve Fund: funding for Independent Jersey Care Inquiry and transfers from and to the Consolidated Fund (as amended).

These propositions made available up to an additional £10,000,000 to the IJCI in 2015 and up to an initial £4,000,000 in 2016 for the same purpose (the latter being included within the MTFP 2016-2019) from the Strategic Reserve. These funds were to be held in the Allocation for Contingency (“Contingency”) pending their need to meet actual expenditure.

On 8th October 2015 the Minister for Treasury and Resources published R.114/2015 Independent Jersey Care Inquiry: Memorandum of Understanding and Directions. This set out how costs for the Inquiry, incurred both by the Panel and States departments, would be managed.

On 30th January 2012 the Minister for Treasury and Resources published R.10/2012 Contingency allocation: policy. This set out a requirement for the Council of Ministers to approve all transfers from Contingency to spending departments.

On 09th December 2015, the Council of Ministers agreed to the request to allocate up to £8,760,391 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI) and the return of £250,000 from the Education, Sport and Culture Department (ESC) to Central Contingencies for funding no longer required.

MD-TR-2015-0135, signed on 14th December 2015, approved the allocation of up to £8,760,391 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI).

Since this approval, additional expenditure related to the Inquiry of approximately £595,000 in 2015 has been identified; £550,000 for the States Assembly for the IJCI and £45,000 for Community and Constitutional Affairs.

The Treasurer of the states was informed by the Secretary to the Inquiry on 22nd January 2016 that their forecast expenditure was likely to increase to £15.15 million, an increase of £1.45 million on the forecast previously notified to the Council of Ministers. The Treasurer was also informed of the Panel’s approach to be taken for the remainder of the inquiry. This will add approximately £600,000 to the associated costs for States departments.

The Minister is approving these additional sums with approval from the Council of Ministers, the meeting having taken place on 10th February 2016.

The amounts available for Community and Constitutional Affairs to draw down in 2016 will now reduce to £456,073.

The total forecast for the inquiry is now £22.99 million, £15.29 million for the Panel and £7.7 million for States Departments.

3. Recommendation

The Treasurer is recommended to approve the non-recurring Central Contingency allocation of up to £595,000 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI) in 2015.

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 or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

On 9th December 2015, the Council of Ministers agreed to the request to allocate up to £8,760,391 from the Provision for Central Reserves (Central Contingencies) for costs associated with the Independent Jersey Care Inquiry (IJCI) and the return of £250,000 from the Education, Sport and Culture Department (ESC) to Central Contingencies for funding no longer required.

The Treasurer of the states was informed by the Secretary to the Inquiry on 22nd January 2016 that their forecast expenditure was likely to increase to £15.15 million, an increase of £1.45 million on the forecast previously notified to the Council of Ministers. The Treasurer was also informed of the panel’s approach to be taken for the remainder of the inquiry. This will add approximately £600,000 to the associated costs for States departments.

The Minister is approving these additional sums with approval from the Council of Ministers, the meeting having taken place on 10th February 2016.

5. Resource Implications

The States Assembly (for the independent Panel) revenue head of expenditure to increase in 2015 by up to £550,000 and the Community and Constitutional Affairs revenue head of expenditure to increase by £45,000. Central Reserves (Central Contingencies) to decrease by a net amount of up to £595,000 in 2015. This decision does not change the total amount of expenditure approved by the States for the period of the current MTFP 2013 to 2015.

Report author : Head of Decision Support	Document date: 10th February 2016.
Quality Assurance / Review : Head of Decision Support	File name and path: LDrive/Treasury/Sections/Corporate Finance/Ministeral Decisions/IJCI Allocation from Contingency
MD sponsor : Treasurer of the States