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Social Security Fund, Health Insurance Fund, and Long Term Care Fund: Management Charges 2016 - 2019

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 8 January 2016:

Decision Reference: MD-S-2016-0001

Decision Summary Title :

Agreement of management charge from Social Security Department to the Funds

Date of Decision Summary:

6 January 2016

Decision Summary Author:

Finance Manager

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title :

Agreement of  management charge from Social Security Department to the Funds

Date of Written Report:

16 December 2015

Written Report Author:

Finance Manager

Written Report :

Public or Exempt?

 

Public

Subject: Agreement of the level of management charge from the Social Security Department to the Social Security Fund, Health Insurance Fund and Long term Care Fund for 2016 -2019.

Decision(s):  The Minister approved the level of the management charge to be paid to the Department from the three Funds to apportion the operational and management costs of running the Department. This is a change from previous practice, where non-staff costs were apportioned across the funds.

 

The management charge is agreed for the period of the MTFP (2016-19) agreed in advance of the first year of its operation (2016), and incorporating a 2% reduction per year to reflect anticipated efficiency savings. The first year’s charge will be £5.18m to the Social Security Fund, £1.54m to the Health Insurance Fund and £1.42m to the Long Term Care Fund.

 

 

2016

2017

2018

2019

Social Security Fund

5,180,000

5,080,000

4,980,000

4,880,000

Health Insurance Fund

1,540,000

1,510,000

1,480,000

1,450,000

Long Term Care Fund

1,420,000

1,390,000

1,360,000

1,330,000

Total

8,140,000

7,980,000

7,820,000

7,660,000

 

The level of Management Charge will be fully reviewed in 2019 to establish the levels for the next MTFP reporting period, and sooner if there are substantial changes to the operations of the department.

Reason(s) for Decision: Under Article 30 (2) of the Social Security (Jersey) Law 1974, Article 21 (1) of the Health Insurance (Jersey) Law 1967 and Article 2 of the Long-Term Care (Jersey) Law 2012, and the Minister can make payments from the fund for expenses incurred by the Minister in carrying the Law into effect.

 

 

Resource Implications: There is no change to the Social Security Department’s revenue head of expenditure for 2016-2019 caused by this decision. As the original MTFP submission only included a management charge for Staff (£4.0m), there will be an increase in income of £4.1m within the tax funded Department which will be matched by a corresponding increase in expenditure

 

Section 5 of Financial Direction 3.6 Variations to Heads of Expenditure states that Income of States funded bodies over and above the estimated income notified to the States in the MTFP may be used automatically for additional expenditure over and above that approved in the MTFP as follows:-

Where any such income and associated additional expenditure match in terms of purpose and/or amount.

 

There is no change to the Department’s total FTE.

 

Action required: Finance Manager to make adjustments to the 2016 loaded budgets and reflect changes to income and expenditure breakdown shown in the MTFP 2016 – 2019 Addition.

Signature:

 

 

Position: Minister

 

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

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