Treasury and Exchequer: 2020 End of Year Report

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 5 February 2021

Decision Reference: MD-TR-2021-0013
Decision Summary Title:	2020 End of Year Report		Date of Decision Summary:	3 February 2021
Decision Summary Author:	Specialist – Business Cases		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	2020 End of Year Report		Date of Written Report:	3 February 2021
Written Report Author:	Specialist – Business Cases		Written Report: Public or Exempt?	Public
Subject: 2020 End of Year Report detailing budget movements as part of the end of year process.
Decision(s): The Minister approved: a non-recurring transfer of £903,288 and £140,000 from Non-Ministerial departments and the Office of the Chief Executive respectively to the Smoothing Reserve – Court & Case Costs in 2021; a non-recurring transfer of £20,088 from Infrastructure, Housing and Environment to the Smoothing Reserve – Markets surplus in 2021; a non-recurring transfer of £9.7 million from departmental heads of expenditure in 2020 to Reserves in 2021 (Appendix 1) with an allocation of £407,411 from Reserves to Jersey Overseas Aid in 2021; a non-recurring transfer of up to £84.3 million from various capital project Heads of Expenditure in 2020 to Reserves in 2021; a non-recurring transfer of up to £64.5 million from Reserves to various capital project Heads of Expenditure in 2021; a non-recurring transfer of up to £55.1 million from the Reserves in 2020 to 2021; and that as a result of all the above approvals, £50 million will be released to the Consolidated Fund to minimise the borrowing requirement from the revolving credit facility. For further details see attached report.
Reason(s) for Decision: In light of known and potential funding pressures for 2021 the Minister approves the transfer of net departmental underspend and unspent sums on the Reserve in 2020 to the Reserve in 2021 whilst also allowing an amount to be released to the Consolidated Fund to minimise the borrowing requirement from the revolving credit facility. Following further reviews of heads of expenditure the Minister approves certain other transfers, as described above. 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. Article 19 of the Public Finances (Jersey) Law 2019 states that despite an approved Government Plan, the Minister may direct that an unspent amount appropriated for a head of expenditure in one financial year be deemed to be appropriated for a reserve head of expenditure for the following financial year. Article 20 of the Public Finances (Jersey) Law 2019 states that despite an approved Government Plan, the Minister may direct that an unspent amount appropriated for a head of expenditure for a major project in one financial year is deemed to be appropriated for a head of expenditure for that major project for the following year. Article 59(1)(a) and (b) of the Public Finances (Jersey) Law 2019 states that a) the capital head of expenditure is deemed to be a head of expenditure in the approved government plan for each financial year until the related capital project is finished; and b) if there are amounts appropriated under the previous Law for a capital head of expenditure that are unspent at the end of the financial year in which this Law comes into force; any amounts that remain unspent are deemed to be appropriated for that head of expenditure in the next financial year. P.130/2020 (Amd 14) was adopted and states that the Minister for Treasury and Resources should prioritise the application of any unspent funds in 2020, be these in respect of spending related to COVID, departmental revenue expenditure or capital expenditure, to be returned to the Consolidated Fund, and used to minimise the borrowing requirement from the revolving credit facility.
Resource Implications: This decision will result in various transfers and in 2020 the revenue and capital heads of expenditure will decrease by a total of up to £95,038,391 and the Reserves will decrease by £105,047,462. In 2021 following all the transfers, the Reserves will increase by £85,217,251 of which £21,293,148 will be available for COVID pressures, Jersey Overseas Aid will increase by £407,411 and capital heads of expenditure will increase by £64,461,191. This will leave a balance of £50,000,000 which will be released to the Consolidated Fund to assist with the commitment to minimise the borrowing requirement from the revolving credit facility.
Action required: The Head of Financial Governance to advise the Specialist - Business Cases that this decision is approved.
Signature:		Position: Deputy Susie Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision: