Budget Management Report for the 6 month period ended 31 Dec 2010

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.

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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

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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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 31 May 2011:

Decision Reference: MD-TR-2011-0058
Decision Summary Title:	Budget Management Report for the Period Ended 31st December 2010		Date of Decision Summary:	20th May 2011
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Budget Management Report for the Period Ended 31st December 2010		Date of Written Report:	20th May 2010
Written Report Author:	Decision Support Officer		Written Report : Public or Exempt?	Public
Subject: Budget Management disclosures for the 6 month period ended 31st December 2010.
Decision(s): The Minister approved the report detailing Budget Management disclosures for the 6 month period to 31st December 2010 and requested that it be presented to the States.
Reason(s) for Decision: The Public Finances (Jersey) Law 2005 (and the Finance Regulations approved under that Law and Financial Directions) require the Minister for Treasury and Resources to report to the States twice yearly on a number of issues relating to States Finances.
Resource Implications: There are no financial or manpower implications as a direct result of this decision.
Action required: Head of Decision Support to request the Greffier of the States to arrange for the attached Report on Budget Management disclosures to be presented to the States at the earliest opportunity.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget Management Report for the 6 month period ended 31 Dec 2010

TREASURY & RESOURCES MINISTER

Budget Management Report for the Period Ended 31st December 2010

The administration of the public finances of Jersey

In accordance with the Public Finances (Jersey) Law 2005 (the ‘Law’) (including Regulations approved under that Law and Financial Directions) certain matters relating to budgeting and to the financial control and administration of States Trading Operations are required to be reported to the States twice yearly by the Minister for Treasury and Resources (the ‘Minister’).

This report summarises decisions made during the 6 month period to 31st December 2010, the majority of which have been previously published.

Reporting on decisions

The areas of administration which are to be reported on are as follows:-

The use of trading funds by States Trading Operations;
Borrowing; and
Budget transfers (including Economic Stimulus Plan allocations and Voluntary Redundancy)

2.1 Use of trading funds

The following Ministerial Decisions on the use of trading funds were taken to 31st December :-

MD-TR-2010-0163 – Transfer of £382,000 from the Harbours Trading Fund in respect of the St Aubin Remediation Project.

2.2 Borrowing

2.2.1 Small Firms Loan Guarantee Scheme

During the 6 month period to 31st December, the Treasurer of the States did not guarantee any new loans under the Small Firms Loan Guarantee Scheme (SFLGS). Under the terms of the Scheme, the Economic Development Department underwrites up to 75% of the value of a loan. As at 31st December 2010, the total amount loaned under the SFLGS was £686,203, of which £514,652 was guaranteed by the States.

2.2.2 Jersey Student Loan Scheme

The Jersey Student Loan Scheme commenced in September 2007. As at 31st December 2010, 468 students had taken out a loan under the Scheme, and the total amount borrowed was £1,284,195. Terms with the intermediaries require the States of Jersey to underwrite 100% of the value of the loan.

2.3 Budget transfers

Budget transfers are reported on the following basis:-

Transfers between revenue heads of expenditure;
Transfers between capital heads of expenditure; and
Transfers between revenue and capital heads of expenditure.

Budget transfers between departments vary the budgets of individual departments but are net nil in total.

Economic Stimulus Plan allocations are reported separately in section 2.3.4 below.

2.3.1 Transfers between revenue heads of expenditure

Revenue transfers during the period ended 31st December 2010 are shown in Table (1).

Table (1) Transfers between revenue heads of expenditure

Department		£	Funding of:-
To	From	£	Funding of:-
T&R	Soc Sec	500,000	Restructuring and 4FTE taxes
EDD	T&R (JPH)	250,000	Transfer of La Collette Fuel Farm responsibilities
EDD	TTS	(100,000)	Transfer of La Collette Fuel Farm responsibilities
T&R (JPH)	Housing	9,090	Crisis properties
Soc Sec	Housing	214,000	Lost rental income arising from CSR
CMD	T&R (JPH)	300,000	Corporate Savings
	Total	£1,173,090

2.3.2 Transfers between capital heads of expenditure

Transfers between existing capital heads of expenditure are shown in Table (2).

Table (2) Transfers between capital heads of expenditure

Department		£	Funding of:-
To	From	£	Funding of:-
Judicial Greffe	Judicial Greffe	27,228	Magistrate's Court Cell Improvements
Probation	Judicial Greffe	1,721	Probation and Aftercare
Jersey Airport	Jersey Airport	879,000	Hold Baggage and Telebag System
Jersey Harbours	Jersey Harbours	150,000	Elizabeth Harbour East Pier Project
TTS	T&R (JPH)	145,000	Howard Davis Farm Animal Incinerator Works
TTS	TTS	900,000	EFW Contingency
TTS	T&R	10,779,051	EFW Contingency
T&R (JPH)	T&R Planning Vote	90,000	Design work on New Oncology Unit
	Total	£12,972,000

2.3.3 Transfers between revenue and capital heads of expenditure

Transfers between revenue and capital during the period to 31st December are shown in Table (3).

Table (3) Transfers between revenue and capital heads of expenditure

Department		£	Funding of:-
To	From	£	Funding of:-
TTS Cap	EDD Rev	255,000	Transfer of La Collette Fuel Farm responsibilities
P&E Rev	P&E Cap	23,628	Transfer to align budgeting and accounting treatment
HA Rev	T&R Contingency	221,500	HCAE Q2 2010
Law Officer's Department	T&R Contingency	129,004	HCAE Q2 2010
TTS Cap	TTS Rev	450,000	Jersey Harbours Repayment
ESC Rev	ESC Cap	600,000	Interim Funding for Jersey Heritage Trust
TTS Cap	TTS Rev	512,000	Transfer to align budgeting and accounting treatment
HA Rev	T&R Contingency	186,300	HCAE Q3 2010
Law Officer's Department	T&R Contingency	75,227	HCAE Q3 2010
T&R Cap (JPH)	T&R Rev (JPH)	710,000	CSSD Stores and Backlog Maintenance
Home Affairs Cap	Home Affairs Rev	11,068	Transfer to align budgeting and accounting treatment
P&E Rev	P&E Cap	125,356	Transfer to align budgeting and accounting treatment
TTS Cap	TTS Rev	658,140	Transfer to align budgeting and accounting treatment
Home Affairs Cap	Home Affairs Rev	44,500	Transfer to align budgeting and accounting treatment
T&R Cap (JPH)	Soc Sec Rev	300,000	Acorn Enterprises
H&SS Rev	H&SS Cap	68,500	Transfer to align budgeting and accounting treatment
Home Affairs Cap	Home Affairs Rev	100,000	Passport Income to Biometric Passports
	Total	£4,470,223

2.3.4 Economic Stimulus Plan allocations

The States agreed the transfer of £44 million from the Stabilisation Fund to the Consolidated Fund in order to provide funding for the proposed economic stimulus package (P55/2009 refers).

During the period to 31st December 2010, the Minister approved the re-allocation of £7,541,511 from the Consolidated Fund (see Table (4) below).

Table (4) Economic stimulus budget allocations

Department	£	Purpose of allocation:
EDD	1,500,000	Grant to Durrell Wildlife Conservation Trust
Housing	1,714,793	Building Maintenance Works at Social Housing Estates
Housing	464,107	Refurbishment of 80 St Mark’s Road
T&R (JPH)	1,891,202	Refurbishment of Rosewood House
H&SS	162,963	Refurbishment of Rosewood House
ESC	112,000	Jersey Opera House
Housing	427,664	Replacement Heating Systems at Social Housing Estates
ESC	125,000	Major restoration and refurbishment of St Matthew’s (Glass) Church
ESC	67,500	Beaulieu School renovation project
ESC	496,380	Additional Student Places at Highlands College (Skills and Training)
TTS	69,402	West Park to Cheapside (Phase 2) Project
ESC	510,500	Beaulieu School – Facilities for Students with Learning Support Needs
Total	7,541,511

2.3.5 Voluntary Redundancy (VR)

The States agreed the withdrawal of an additional £6 million from the Consolidated Fund for a voluntary redundancy scheme (P64/2010 refers). In order to comply fully with the proposition, the money was transferred to, and distributed from, the Chief Minister’s Department.

When it became apparent that the approved funding would be insufficient, it was agreed by the Council of Ministers to use a portion of the Social Security Department’s underspend for 2010. This proved a timely opportunity to deliver savings over and above those previously put forward.

During the period to 31st December 2010, the Minister approved the following transfers in relation to VR, (via MD-TR-2010-0159, MD-TR-2010-0186 and MD-TR-2010-0189) (see Table (5) below).

Table (5) Voluntary Redundancy allocations

Department	From T&R Contingency £	From Soc Sec £	To CMD (for redistribution) £	To Depts £	Actuarial valuations £
	6,000,000
First Tranche
	(5,760,373)		5,760,373
			(5,760,373)
Judicial Greffe				155,018
ESC				712,844
Lieutenant Governor's				96,673
Resources (IS)				364,888
P&E				605,774
JPH				135,081
EDD				43,610
Home Affairs				385,684
H&SS				1,761,212
Housing				360,048
Human Resources				179,087
TTS				960,454
Total	239,627		0	5,760,373
Returned from Depts for VR applications no longer going ahead			266,412	(266,412)
To Depts for 2% uplift			(58,093)	58,093
Transfer remainder of 11(8) funding to CMD	(239,627)		239,627
Actuarial valuations			(11,550)		11,550
Total	0		436,396	5,552,054	11,550
Second Tranche
		(470,841)	(436,396)
CMD				247,488
ESC				84,846
Resources (IS)				285,280
T&R				177,725
Home Affairs				111,898
Total	0	(470,841)	0	6,459,291	11,550

Further funds totalling £318,536.12 were returned from Departments in 2011 for VR applications no longer going ahead and to correct original calculation errors. These budget transfers will be reported in the next Budget Management Report.

The total funding used by Departments for VR was £6,140,754.88.