Public Finances Manual

2. Accountable Officers should ensure that employees do not place themselves in any situation where an actual or a perceived conflict of interest can or may happen.  If such a situation arises, or may arise, an employee must notify their line manager as soon as the situation becomes apparent.  If the employee is the Principal Accountable Officer, an Accountable Officer or a Chief Officer in a Department (excluding Crown and other excluded officers), the Treasurer should be notified as soon as possible.

This section of the manual applies to all States Bodies, including States Funds and Trust Assets, as defined in th​e Public Finances (Jersey) Law, 2019 and relates to all land and property assets, including leased and donated land and property assets, and the management and disposal of land and property assets.  

Accountable Officers are personally accountable for the proper financial management of resources as defined in their letters of appointment. The majority of land and property assets are the responsibility of the Accountable Officer for the Infrastructure and Environment department.

This section does not apply to the Viscount’s Department, which seizes, manages and maintains Jersey properties subject to court order and leases its own storage facilities. These activities do not involve Jersey Property Holdings.

Certain land and property transactions are required to be notified to the States Assembly under Standing Order 168, which can be found​ ​on Standi​ng Order​s of the States of Jersey​.

Leases

Introduction and background

This section provides guidance on leased assets, hire purchase contracts, sale and leaseback transactions and any other similar arrangements (together “lease transactions”) that the States of Jersey may enter into and it applies to all States Bodies as defined in the Public Finances Law. Some leases are economically equivalent to financing and should be treated as such. The section addresses how the States of Jersey may enter into lease arrangements, the procedures to be followed before entering into a lease contract and accountability in relation to leases.

Guidance on how lease contracts should be accounted for and disclosed within each States Body’s and the States of Jersey’s annual financial statements is covered in the Jersey Finance Reporting Manual issued under the Public Finances Manual, which is based on the UK Treasury Financial Reporting Manual and is periodically updated for changes in UK endorsed International Financial Reporting Standards as adapted for the Public Sector in Jersey. States Bodies contemplating such arrangements should consult with Treasury and Exchequer.

The Jersey Financial Reporting Manual defines a lease as “a contract between a lessor and a lessee for the hire of a specific asset”. The States of Jersey currently acts in the capacity of a lessor or a lessee for a variety of specific assets.​

Users of this section should refer to other sections of the Public Finances Manual that are relevant, including:

• assets
• financing
• expenditure
• lending 
• major projects

In addition to the common risks identified in the background and introduction section of the manual a number of significant risks relating to this section include:

• leases may be entered into without appropriate approval
• leases may be entered into that result in the States or Government of Jersey’s aggregate borrowing or lending limits being exceeded
• the length of the lease term as well as other clauses within it might mean that it does not represent the best value for money for the States or Government of Jersey. Such lease arrangements may be entered into based upon attractive terms, but these may become increasingly onerous over the period of the contract.”
• lease agreements may be entered into which carry penalties and clauses which might have negative long-term implications for the States or Government of Jersey
• leases may not be accounted for in accordance with the Jersey Financial Reporting Manual standards
• lease agreements may be inadequately documented
• there is an increase in credit risks due to ineffective customer due diligence
  

Principles

1. Adequate assessment should be carried out prior to entering any leases arrangement to ensure that such arrangements represent best value for money compared to other options. In assessing leases against other options, consideration should also be given to which option allows the States of Jersey to better share or transfer risk; in particular in the case of technology, the risk of obsolescence.

2. Leases should be properly approved and documented. They must be accounted for in accordance with the Jersey Financial Reporting Manual.

3. Finance Leases should be included within the States of Jersey’s financing and lending limits. Although legally finance leases are not borrowing they count towards the limits set in both the Public Finances Law for financing approved by the Minister and those set by the States Assembly in the Government Plan.

4. There should be proper means of monitoring and controlling leases in accordance with the requirements of this section, the Jersey Financial Reporting Manual and States Bodies’ policies or procedures in relation to leases, if any.

5. The terms of all lease agreements should be clearly assessed and documented to ensure that they do not lead to losses or poor value for money which could have been avoided by the States of Jersey.

Requirements

1. Name on lease

All leases which relate to immovable property must legally be in the name of the Public of the Island or in the case of Specified Organisations, the company itself. Leases relating to property are governed by separate arrangements within Standing Orders.

2. Further guidance

In situations where the States of Jersey acts as lessee or lessor for lease transactions (excluding operating leases), the requirements are the same as those covered by the borrowing and lending provisions of the Public Finances (Jersey) Law 2019. Therefore, reference must be made to the following sections for further guidance:

• financing
• lending
  

3. Approval from States Treasurer

All lease transactions (excluding operating leases) as defined in the Jersey Financial Reporting Manual, regardless of limit, must be referred to the States Treasurer for approval. The Treasurer, in turn, must seek advice from the Law Officers’ Department.

4. Financial appraisal

States Bodies must carry out a full financial appraisal before authorisation is sought regarding any potential leasing arrangement. This should include consideration of penalty clauses and their potential impact on the overall commerciality of the transaction.

5. Leasing costs

All costs of leases must be met by the States Body on whose behalf the lease is obtained and should include all associated and incidental costs including potential penalties. The cost of leases must be accurately reflected in the appropriate States Body’s financial statements.

6. Reporting by the Minister

Lease transactions must be included in the six monthly update report of the Minister for Treasury and Resources to the States Assembly on financing and other matters.

7. Documentation

For all leases, the Accountable Officer must be able to provide documentation which indicates that:

• the leasing agreements entered into are competitive
• the cost and terms relating to the leasing are comparative with the outright funding option
• the benefits (tangible and intangible) of using this leasing route outweigh the outright purchase route

Where approval by the Treasurer of the States is required sufficient documentation must be provided to the Treasurer, in order to allow for proper assessment and consideration of the full cost before making a decision to approve or reject the proposal.

8. Provision of contracts to Treasury and Exchequer

Copies of all signed lease contracts to which the Public of the Island, States of Jersey or Minister as a corporation sole are party to, must be forwarded by the relevant Accountable Officer to Treasury and Exchequer.

9. Reporting - Accountable Officers

Accountable Officers must report lease arrangements for both capacities of lessor and lessee in a form specified by Treasury and Exchequer.

10. Concessionary leases of property

Where a lease of States property is agreed at less than market value, approval of the relevant Accountable Officer (or an officer formally delegated in the Accountable Officer’s Scheme of Delegation) must be documented. The Accountable Officer (or delegated officer) must consider and document whether the reasons for agreeing a concessionary charge are justifiable in light of the Accountable Officer’s statutory obligations for ensuring that the resources of the States Body are used economically, efficiently and effectively.

Cash and bank

Cash

Introduction and background

This section applies to all States Bodies as defined in the Public Finances Law and applies to Accountable Officers and officers directly involved in the cash handling process.

In the context of this section, cash means notes and coins, cheques and card receipts, including cash refunds against card receipts. Recognised cash like items such as stamps are also included in this definition. However, cryptocurrencies, digital currencies and other online tokens are not covered within this definition and should not currently be accepted by a States Body (or Specified Organisation) as a form of payment for services.

In view of the diversity of cash systems operating across the States of Jersey, such as cash floats, school, student funds or patients’ funds, it is not practical to provide specific requirements on all aspects of cash handling. The requirements of this section should be supplemented with States Body specific procedures where necessary.

Users of the Public Finances Manual should refer to other sections that are relevant. Specifically these include:

• assets
• banking
• expenditure
• fraud
• income

In addition to the common risks identified in the Background and Introduction section of the manual a number of significant risks relating to this section include:

• the States or Government of Jersey is unable to achieve its Strategic Priorities due to poor cash management
• the personal safety of staff and unsecured cash might be compromised
• the States or Government of Jersey could become involved in incidents of money laundering
• cash received is incorrectly recorded
• cash is used unnecessarily, where electronic payments would be better suited

Principles

1. The use of cash to settle transactions is expensive compared to other methods, such as standing orders, bank transfers or direct debits, and poses a greater risk of losses due to fraud, theft or error. Cash handling should, therefore, be kept to a minimum as a method of payment accepted by the States of Jersey. Debit or credit cards should be the preferred option for one off payments, with cheques and cash only to be used where there is no feasible alternative. In the event that cash is used as a method of payment, such payments should be restricted to a maximum sum to be specified by the States Treasurer. For recurring receipts, Accountable Officers should encourage customers to use bank transfers, direct debits and standing orders to reduce the need for cash handling and encourage timely remittance.

2. Cash balances should only be held for petty cash and float purposes, and should be limited to the lowest practicable amount (as agreed with Treasury and Exchequer) to reduce risk of loss or theft. These limits should be periodically reviewed to ensure that they remain as low as feasibly possible. Treasury and Exchequer must be made aware of these balances and any changes to limits. Any proposed changes to these limits should be communicated in advance and agreed with Treasury and Exchequer.

3. Accountable Officers should ensure that the number of keys issued, security codes and officers having access to cash are kept to a minimum to reduce the risk of theft. Furthermore, a register of authorised key holders should be kept and maintained at all times, and staff should be aware of the security requirements

4. Accountable Officers should ensure that control and assurance frameworks are in place and that they are tailored to cash handling within their States Bodies.

Requirements

1. Scheme of Delegation

Accountable Officers must operate a documented Scheme of Delegation which segregates duties appropriately for their States Body in respect of cash handling. These duties include custody of the cash, transactions involving cash, reconciliations and reporting of cash flows and balances. The Scheme of Delegation must be submitted to the Treasurer for approval.

2. Securing cash

Cash must be held securely in a locked cash box or safe and appropriately protected at all times. Safes are recommended to be of a Eurograde specification appropriate to the value of cash that is expected to be stored. Security arrangements should be communicated to members of staff as appropriate, and only authorised officers should have access to safes and cash boxes. Cash must not be reconciled or stored within the view of the general public. Cash must never be left loose or unattended to and must not be kept in storage cupboards or desk drawers.

3. Recording cash

Accountable Officers must ensure that all cash is appropriately recorded and reconciled, with swift and appropriate actions to be taken where variances occur. Reporting should be undertaken on a timely basis and in the form prescribed by Treasury and Exchequer.

4. Refunds

Where required, refunds to credit and or debit cards must only be made to the original card used, and not in the form of cash or cash equivalents (such as vouchers).

5. Banking cash

Banking of cash must be undertaken frequently to ensure that the limits for sums insured are not exceeded.

6. Proper usage of cash

Accountable Officers must ensure that cash is not used for personal or private purposes and no advances or loans should be given to any member of staff for such purposes, except in accordance with the requirements of the Lending section of the Public Finances Manual.

7. Anti money laundering

Accountable Officers must ensure that staff within their area of responsibility are aware of the States’ policy.

8. Personal cash

The States’ insurance policy does not cover the loss of personal cash, for example staff collections or lottery syndicates.

Banking

Introduction and background

This section applies to all States Bodies as defined in the Public Finances Law and provides guidance on the creation, operation and management of bank accounts belonging to the States of Jersey.

Users of this section should refer to other sections of the Public Finances Manual that are relevant. Specifically these include:

• cash
• expenditure
• funds
• fraud
• income

Principles

1. The number of bank accounts as well as balances in commercial banks should be kept to the most economic minimum to minimise the risk of idle funds, error, fraud or theft and allowing for ease of reconciliation.

2. Overdrawn balances in bank accounts are not allowed, except by explicit permission from Treasury and Exchequer.

3. States Bodies should take appropriate steps to prevent acts of fraud being committed on their bank accounts and transactions.

4. Banking operations should be regularly reviewed to reassess the objectives, cost and benefits of maintaining the various bank accounts, diversification and exposure to different banks, rate of returns and credit risk.

5. Banking reconciliations should be performed regularly and promptly, and independently reviewed and approved.

6. There should be hierarchical controls on transactions, such as making or reviewing payments, and these duties should all be segregated.

7. These principles also apply to bank accounts used for trust funds and bequest funds, unless these funds specify otherwise.

8. In addition to the common risks identified in the Background and Introduction section of the manual a number of significant risks relating to this section include:

• bank accounts are not serving the Strategic Priorities of the States or Government of Jersey for which they were created
• the States or Government of Jersey is not making the best possible use of balances held in bank accounts to enhance returns
• the States or Government of Jersey’s bank accounts are used to carry out money laundering activities
• the banking arrangements are not efficient or effective and creates inefficiencies in reconciliations, reporting and the use of funds
• bank accounts are operated on terms which are not competitive
• bank accounts are unnecessarily created with a lack of appropriate experience, resulting in avoidable oversights
• the use of banks is not appropriately diversified

Requirements

1. Treasury approval

Opening and closing of bank accounts must only be undertaken by Treasury and Exchequer, and these should only be with banks registered with the Jersey Financial Services Commission or with banks holding a recognised credit rating and as defined by the States Treasurer.

In limited cases, States Bodies can request that Treasury and Exchequer open or alter a bank account. Such requests should demonstrate the value to the States of Jersey and explain why the purpose cannot be achieved through the use of existing bank accounts.

The Minister for Treasury and Resources can arrange a bank overdraft or overdraft facility (the value of all overdrafts or overdraft facilities cannot exceed 25% of the estimated income of the States derived from taxes and duties during the previous financial year).

2. Frameworks

Each States Body should establish and maintain a suitable framework for monitoring and control of its cash balances and its transmission of funds. The framework should cover, but is not limited to the following:

• the bank accounts operated within the States Body, their purposes, terms (which should be as approved by Treasury and Exchequer) and justification for continuation
• how the different bank accounts are operated, including details such as the acceptable methods of payment
• how the risk of error and fraud are to be managed and prevented
• record keeping, reconciliation and review of bank accounts
• key personnel and authorisation

Specific charges for money transmission and other banking services for States Bodies should be subject to negotiation by the States Treasurer. This ensures that costs are transparent and assists in making comparisons between service providers in order to attain the best terms possible, in line with the overriding principle of best value.

3. Scheme of Delegation

Accountable Officers must operate a documented Scheme of Delegation, which segregates duties appropriately for their States Body in respect of bank accounts. These duties include the recording, reconciliation and reporting of bank balances. The Scheme of Delegation must be submitted to the States Treasurer for approval.

4. Transmitting funds

States Bodies should adopt the most economical, secure and quickest means of transmitting funds or operating their bank accounts. Examples generally include the use of internal transfers, electronic methods and cards. However, on a case by case basis, consideration should be given to security and the need to obtain best value for the States of Jersey. As much as possible, transmission of funds should not be done using cash, cheques, order books or other similar methods involving high security risk.

5. Bank reconciliations and reporting

Accountable Officers must ensure that reconciliation is carried out on all bank accounts, (at least monthly for those accounts which have more than 10 transactions per month otherwise on a quarterly basis), with appropriate actions to be taken where discrepancies are recorded. This should be reported on a timely basis and in the format and frequency prescribed by Treasury and Exchequer. As a general rule reconciling discrepancies should be cleared within one month.

6. Bank account reviews

Periodic reviews must also be conducted, at least annually, on all bank accounts maintained to determine the exposure of the States to individual banks, the rate of returns being obtained and their credit risk. In addition, to ensure that they are being used solely and efficiently for their authorised purposes. The outcome of these reviews should be reported to States Treasurer. Dormant or unauthorised accounts identified by these reviews must be closed immediately.

7. Overdrafts

Bank accounts are not permitted to be overdrawn without the express permission of Treasury and Exchequer. If any bank account, including those administered by Treasury and Exchequer, becomes overdrawn the negative balance must, as far as possible, be cleared by the end of the next working day by the transfer or deposit of funds. If it’s not possible to address a negative balance the States Treasurer must be notified.

Foreign currency

Introduction and background

This section applies to all States Bodies as defined under the Public Finances Law and provides guidance on the planning and undertaking of financial transactions in any foreign currency. The States of Jersey has receipts and payments in foreign currency, which could be regular or occasional in nature. In addition some States Bodies may have overseas operations which give rise to longer term foreign currency exposures. This section sets out the principles for the management of these cash flows and exposures.

The aim of this section is to provide guidance as to how to insulate the States of Jersey, as far as practically possible, from the material adverse impact of foreign exchange movements on its receipts and payments. Additionally, it is also designed to aggregate the overall impact of various expenditure and income so that these can be offset against each other and the net cash flows appropriately managed.

Foreign exchange movements can be favourable or unfavourable, and on small transactions will have a negligible impact on the States of Jersey's finances. This section, therefore, focuses primarily on larger transactions. However, the classification of transactions into small and large will be different for each States Body.

It is also important to note that the States of Jersey will make gains and losses on foreign currency in the normal course of business which will be reported in the financial statements.

Users of this section should refer to other sections of the Public Finances Manual that are relevant. Specifically this includes:

• Arm’s Length Organisations
• expenditure
• income
• investments
• major projects

In addition to the common risks identified in the Background and Introduction section of the Manual a number of significant risks relating to this section include:

• the States or Government of Jersey could be vulnerable to sudden weakness in Sterling relative to other currencies
• the States or Government of Jersey may be incurring higher than necessary transaction costs for foreign currency transactions
• the States or Government of Jersey may be over exposed to currency transactions if holdings are not at an optimum level
• States Bodies may be undertaking transactions in foreign currency to the disadvantage of, or detriment to, the States or Government of Jersey
• the States Treasury and Exchequer may have incorrect or insufficient documentation of foreign currency exposures
• the levels of foreign currency or positions taken are insufficient to meet foreign currency obligations, resulting in losses or additional costs to the States or Government of Jersey
• the States or Government of Jersey incurs costs in hedging foreign currency exposure that are excessive in comparison with the exposure itself
• overseas operations may accumulate significant foreign currency reserves exposing them to operational risk in the event of currency fluctuations

Principles

1. Foreign currency transactions should only be entered into where they represent best value for money to the States.

2. Where possible, foreign currency receipts should be matched with payments to reduce exposure to foreign currency fluctuations.

3. Where matching is not feasible, other means of managing foreign currency transaction risk (hedging) should be considered. Only the States Treasurer can be authorised to enter into hedging arrangements.

4. Wherever possible foreign currency transactions should be dealt with through cash balances in Euros (€) and US Dollars ($) held by the States Treasurer.

5. Foreign currency obligations and transactions as well as balances on foreign currency accounts should be monitored by the States Treasurer on a regular basis, at least monthly. 

6. Where States Bodies have overseas operations, Accountable Officers should give consideration to the most appropriate way to manage longer term foreign exchange exposure arising from the operations, seeking advice from Treasury and Exchequer.

Requirements

1. Duties of Accountable Officers

Accountable Officers are responsible for:

• submitting details of planned foreign currency receipts and payments in excess of £50,000 to Treasury and Exchequer when requested as part of the financial planning cycle and as soon as any likely additional payments above this value become known
• informing Treasury and Exchequer, in writing, as soon as they become aware of any unplanned foreign currency receipts or payments greater than £50,000
• notwithstanding the amount stated above, States Bodies should apply these requirements to transactions which are individually, or on an aggregate basis, material to their operations
• regardless of the amount, ensuring that all foreign currency payments are clearly identified as such when requesting payment to be processed by Treasury and Exchequer
• ensuring that sufficient approvals are in place relating to the income or expenditure and its total sterling value, and that the expenditure is proper and represents good value for money
• providing a quarterly estimate of foreign currency requirements to Treasury and Exchequer

2. Hedging

The Minister for Treasury and Resources is responsible for deciding whether to hedge foreign currency transactions. The Minister for Treasury and Resources can delegate the decision to enter into hedging transactions to an Assistant Minister or an Accountable Officer. The States Treasurer is responsible for entering into hedging arrangements in accordance with this section and the decisions of the Minister for Treasury and Resources.

3. Reporting hedging

The States Treasurer must:

• prepare an Aggregated Foreign Currency Cash Flow for consideration by the Treasury Advisory Panel
• inform Accountable Officers of hedging arrangements

4. Treasury Advisory Panel responsibilities hedging

The Treasury Advisory Panel should:

• consider and decide on hedging arrangements based on the Aggregated Foreign Currency Cash Flow provided
• determine the most appropriate form(s) of hedging based on individual and aggregated planned cash flows

5. States Treasurer responsibilities

The States Treasurer must:

• if hedging appears to be an appropriate option, refer such receipts or payments to the Treasury Advisory Panel, who will advise upon appropriate hedging arrangements
• require the foreign currency receipts or payments to be translated into Pound Sterling (£) on the day of receipt or payment if they are not covered by a hedging arrangement
• require the receipt or payment to be paid into or from an account specified by Treasury and Exchequer
• inform the Accountable Officer of the appropriate action required

6. Minor Foreign Currency Receipts and Payments

Where relatively small foreign currency transactions occur (i.e. less than £50,000) the transaction will not routinely be hedged(unless the amount forms part of a series of smaller transactions which when totalled meet the £50,000 threshold), and the Accountable Officer need not inform the States Treasurer in advance of this type of foreign currency expenditure. Minor receipts and payments in Euros and US Dollars must be processed through foreign currency accounts. Minor transactions in other currencies must be translated at the time of the Transaction.

7. Cash Management

• all currency receipts, unless hedged, must be changed into Sterling upon receipt, unless the States Treasurer believes that such currencies are likely to be needed for payments in the near future. All currency payments, not hedged, must be translated from Sterling into the relevant currency prior to the payment being made
• Accountable Officers must report to Treasury and Exchequer their expected foreign currency transactions at the beginning of each quarter in order that the overall foreign currency requirements can be considered
• the States Treasurer must:
• monitor the balances on the foreign currency accounts and report them to the Treasury Advisory Panel at least quarterly
• maintain foreign currency accounts in (as a minimum) US Dollars and Euros
• the Treasury Advisory Panel should consider the level of foreign currency holdings and the timing of translation to Sterling

8. Costs

Costs, and gains associated with foreign exchange translation and hedging arrangements associated with a transaction must be borne by or attributed to the States Body (States Fund or Trust Fund) undertaking the transaction.

9. Accounting and budgeting

Accounting for foreign currency transactions must be undertaken in accordance with the Jersey Financial Reporting Manual. The States Treasurer must inform Heads of Finance Business Partnering of the exchange rate to be used in budgeting foreign currency income and expenditure as part of the Government Plan process. The exchange rate applied to un hedged foreign currency transactions for the purposes of calculating the relevant Sterling cost to the relevant budget must be determined by the States Treasurer by reference to current exchange rates and States of Jersey accounting policies. Gains and losses made on foreign exchange must be reported in the States of Jersey annual financial statements.

10. Overseas operations

Accountable Officers responsible for overseas operations should consider foreign exchange exposures as part of their overall strategy for those operations, consulting Treasury and Exchequer for advice if necessary. In particular consideration should be given to whether matching payments and receipts in the same currency provides sufficient mitigation for the exposure or whether additional hedging should be considered. Advices should be sought from Treasury and Exchequer.

Expenditure

Expenditure and procurement

Introduction and background

This section applies to all States Bodies as defined in the Public Finances (Jersey) Law 2019 and applies to all expenditure made by Accountable Officers of States Bodies, or on their behalf. The principles should be applied to all public expenditure by any person authorised by an Accountable Officer to undertake that expenditure.

This section excludes Benefit Payments. However, such payments should be appropriately documented. It also excludes the following, which will be subject to separate, specific guidelines:

• depreciation (see Annual Financial Statements)
• impairments, losses and write offs (see Losses and Write offs)
• finance charges (see Financing)
• special payments (see Special Payments)
• grants (see Grants)
• payments to staff (other than expenses) (see relevant Human Resources guidelines)

Users of this section should refer to other sections of the Public Finances Manual that are relevant. Specifically, these include:

• major, strategic and other projects

Additional guidance can be found in:

• Procurement Best Practice Procedures: User Guide and Toolkit (within supporting documents)
• Travel Policy (within Supporting documents)

In addition to the common risks identified in the Background and Introduction section of the Manual a number of significant risks associated with the goods, work and/or services being procured include: 

• expenditure is not properly authorised
• purchases are made which either do not represent good value for money or fail to leverage the States or Government of Jersey’s buying power
• expenditure is considered irregular i.e. is not spent for the purposes intended
• the States or Government of Jersey does not demonstrate sufficient adherence to the International Agreement related to Procurement and expenditure that the States or Government of Jersey is party to or compliance to our anti-corruption practices
• the States or Government of Jersey’s reputation may be compromised as a result of poor procurement practice and weak governance arrangements
• the competition process and subsequent contract award is not open, fair or transparent or could be at risk of legal challenge
• contract terms and conditions do not provide adequate protection to the States or Government of Jersey
• service and performance targets are not adequately defined
• there is inconsistent application of controls and performance management of suppliers across the States and Government of Jersey
• goods, works or services are paid for more than once in error
• expenses claims are inadequately evidenced or are paid more than once in error
• States or Government of Jersey employees are not protected from unwarranted criticism from not following due process, best practice guidance or adherence to principles
• expenditure is incorrectly recorded
• quote and tendering limits are deliberately circumvented
  

Breaches and Exemptions relating to Expenditure and Procurement must be approved by the Group Director Commercial Services or delegate (using on the on-line breach and exemption process).  For clarity where this section stipulates “must” then the instruction must be followed unless an exemption has been approved by the Group Director, Commercial Services (or delegate). If a mandatory requirement has not been followed, and an exemption was not obtained in advance, then a breach must be formally recorded and noted by the Group Director, Commercial Services. Where the word “should” is used, it is expected that this approach is taken. In the latter instances, departments must record and retain evidence where an alternative approach is taken but there is no need to formally record a breach.

Principles

1. All expenditure should be incurred in accordance with approved Schemes of Delegation.

2. All expenditure should be furthering the Strategic Priorities for which the funding was allocated by the States Assembly. 

3. Accountable Officers should primarily seek to obtain value for money at all times and be able to justify all expenditure within their areas of appointment.

4. Accountable Officers should ensure that all procurement processes are open, fair, transparent, and follow the requirements of all international obligations applicable to the Government of Jersey.

5. All expenditure should be appropriately funded, authorised, recorded and coded. 

6. All expenditure should be approved in advance of goods, works and/or services being received, utilising approved Government/States of Jersey systems and payment should only be made when the supplier has been fully on-boarded and not in advance of receiving the goods, works and/or services without prior approval.

7. All expenditure should be subject to segregation of duties control i.e. no one officer should be able to raise an order, receipt the goods, works or services received, and approve payment of the invoice.

8. All commitments to incur expenditure should have sufficient expenditure approvals in advance to be able to meet those commitments (except as permitted by the long-term contractual agreements or Pre Orders paragraphs in this section).

9. Accountable Officers should take into account the sustainable wellbeing (including the economic, social, environmental and cultural well-being) of the inhabitants of Jersey over successive generations when making expenditure and procurement decisions.

10. Budgets should not be overspent at a Director/Service level. Accountable Officers should explain why this has occurred to the Treasurer of the States on request.

Requirements

1. Achieving Value for Money

Expenditure must be undertaken in accordance with the Procurement Best Practice Procedures: User Guide & Toolkit (including putting contracts out to tender according to the criteria set out in the Toolkit) unless an exemption has been approved (using the online breach and exemption process). For all expenditure Accountable Officers must be able to justify value for money achieved within the head(s) of expenditure for which they are responsible. Accountable Officers should consider recharging expenditure to another Accountable Officer if they are not taking spending decisions relating to that expenditure (see Internal Recharges section of this Manual). 

Accountable Offers must ensure that that there are sufficient controls in place to prevent purchases and orders from being artificially or deliberately split to stay under the quotes or tendering limits and requirements as set in the Procurement Best Practice Procedures: User Guide and Toolkit (including putting contracts out to tender).

2. Scheme of Delegation

Accountable Officers must document and operate a Scheme of Delegation for their States Body which segregates duties as appropriate for authorisation relating to expenditure transactions. The Scheme of Delegation must also specify who is able to sign contracts. The Scheme of Delegation must be submitted to the Treasurer for approval.

3. Corporate Procurement Contracts

Corporate procurement contracts (which include Framework Agreements) must be used unless an exception is documented within the Scheme of Delegation and approval (by exemption) has been obtained from the Group Director, Commercial Services (using the online breach and exemption process). In the case of a genuine emergency, the incident must be documented and the Group Director, Commercial Services advised as soon as possible afterwards; this event would be known as a Breach, and the Breach process detailed in the Procurement Best Practice Procedures: User Guide & Toolkit must be followed.

4. Procurement system

The approved Government or States of Jersey procurement system must be used to manage purchasing of goods, works, and services, except where alternative approaches have been approved by the Group Director, Commercial Services through an exemption (an Exemption must be recorded in the online system).

5. Expenditure Controls

Accountable Officers must ensure that there are appropriate controls in place over the expenditure process to ensure effectiveness and efficiency. These should include matching vendor invoices to the purchasing instrument (e.g. purchase order) and receipt before any payment is made as well as segregation of duties 

6. Expenditure Authorisation

Certain expenditure may require specific authorisation, in addition to those required by the Scheme of Delegation. This includes but is not limited to the following:

• Jersey Fleet Management must be consulted prior to any vehicle purchase being agreed 
• the Director of the Civil Division of the Law Officers’ Department must be consulted prior to the purchase of any legal services being agreed 
• Property Holdings must be consulted prior to any property and land transactions being agreed 

In general, it may be appropriate to seek specific authorisation where the expenditure impacts on the activities of another States Body.

7. Expenditure on Technology, Software, Systems and Related Services

(i) All departments intending to undertake any expenditure on technology (Hardware, software, networked devices and software as a service), including any business project with a technology element, must consult with the Government of Jersey Design Authority process to seek direction and approval.

(ii) In addition to expenditure related to (i) above, Departments must make financial provision for the support and maintenance for the life of any technology assets.  Guidance on the financial liabilities related to these investments can also be obtained through the Government of Jersey Design Authority process.

(iii) All procurement by departments of information technology related services (Software Developer, etc) must be pre-approved by the digital category manager in Commercial Services and have consulted the Government of Jersey Design Authority process in Modernisation and Digital before any work is undertaken by external agencies, contractors or consultants. 

The above requirement excludes Operational technology (OT). OT is hardware and software that detects or causes a change, through the direct monitoring and/or control of industrial equipment, assets, processes and events.

8. Finance Lease Agreements

Approval by the Treasurer of the States must be obtained before entering into any finance lease agreement.

9. Long term Contractual Agreements 

In the case of contractual arrangements where the obligation to pay extends beyond the end of the current Government Plan period, other than contractual staff expenditure, Major Projects or Leases, the States Body concerned must obtain approval (using the appropriate Recommend to Award form if required) from Treasury and Exchequer before entering into any such arrangement. Care should be taken where the future source of funding is uncertain e.g. for new initiatives, or where the ability to pay depends upon the future generation of income. The Government Plan will include three years’ worth of indicative expenditure, providing a reasonable indication as to the levels of funding available over the time period.

10. Payments in Advance of Receipt

Payment must not be made in advance of receipt of goods, works and/or services, except where this is a normal condition for the goods, works and/or services being ordered (for example, subscriptions to magazines and periodicals, conference and course fees). If there is doubt about whether this is a normal condition, Commercial Services should be contacted for advice. Exceptions may be made where advance payment represents good value for money e.g. early payment discounts. Such exceptions will require approval by the Group Director Commercial Services except where the States Body’s Scheme of Delegation requires otherwise. 

11. Payments after Receipt

States Bodies must process payments for purchases of goods, works and/or services following receipt in the appropriate financial period (as specified by the Head of Group Reporting). 

12. Online Purchases

When purchases are being made via the internet, Accountable Officers must ensure that States of Jersey I.T. Security Policies are followed including the use of secure checkouts.

13. Goods and Services Tax

Goods and Services Tax and other sales taxes, such as Value Added Tax, must only be paid where legally required (or where suppliers refuse to deduct after discussion).

14. Pre Orders

It may be necessary or expedient for a States Body to order goods, works and/or services towards the end of a financial year for which no provision has been made in that year’s budget allocation. For example, by pre ordering a better price or discount can be achieved or continuance in service provision can be ensured. This type of pre ordering is permissible under the Public Finances Law provided that the goods, works and/or services are neither received nor paid for until the following financial year and the expenditure is included in the indicative budget for the following year as agreed in the Government Plan and reviewed as part of the year end process.

15. Purchase Cards

Accountable Officers must ensure that Purchase Cards are issued and used in accordance with the guidelines outlined in the Purchase card procedures (within Supporting documents).  

16. Travel

All travel must be booked and undertaken in accordance with the Travel Policy (within Supporting documents).

17. Consultants, contingent labour and outsourced service solutions​

All expenditure on consultants, contingent labour and outsourced service solutions must comply with the policy set out by Commercial Services. This is found on their internal website.

Government departments must seek approval from the Chief Executive Officer for such expenditure. Non-Ministerial departments must use the process but requests will be automatically approved.

All reports from consultants and other third parties that are not considered exempt under Freedom of Information legislation must be published on gov.je as soon as is practical after their receipt.

18. Capitalisation of assets 

All purchases of assets for more than £10,000 must be accounted for as capital and the purchased asset added to the Asset Register.

19. Sufficient budget to commit expenditure

Before any commitment is entered into to incur expenditure Accountable Officers must ensure they have sufficient assurance of expenditure approvals to be able to meet those commitments. This assurance can take one or more of the following forms:

• flexibility to reprioritise within an existing approved head of expenditure. Accountable Officers must ensure that reprioritisation meets the regularity test i.e. that the new expenditure still falls within the purposes for which the States Assembly approved the expenditure and:
  
• where funding has specifically been allocated in a Government Plan for a defined purpose (for example, through growth or an approved amendment), any change of use will require an MD from the Minister for Treasury and Resources. This applies only to the year in which that expenditure is separately identified in the Government Plan, and will not apply once funding becomes part of a department’s base budget in subsequent years
  
• any other funding (i.e. “base” budget) can be reallocated within a head of expenditure provided that the new purpose is within the remit of the Minister/Accountable Officer/dept and subject to reporting requirements to Treasury and Exchequer for internal transfers as already set out in the PFM
  
• signed decision of the Minister for Treasury and Resources or Treasurer of the States to allocate additional funding
  
• letter of comfort from the Minister for Treasury and Resources confirming that additional funding will be allocated in that financial year should it appear that the approved head of expenditure will be exceeded
  

For the avoidance of doubt, it cannot be assumed that any commitments entered into without this assurance will be met by additional funding allocations by the Minister for Treasury and Resources or Treasurer of the States. In this event, the Public Finances (Jersey) Law 2019 will have been breached by the Accountable Officer for that head of expenditure, with any excess expenditure open to being identified as irregular and ultra vires by auditors.

Accountable Officers must not commit expenditure beyond the current financial year without the express agreement of the Treasurer of the States except as permitted by the Long term Contractual Agreements or Pre Orders paragraphs above.

20. Monitoring expenditure against budget

Each Accountable Officer must ensure that there are systems within their department to manage their resources within agreed budgets, take the limits into account when entering into commitments, and generally ensure that the department’s spending profile is sustainable. As a minimum, Accountable Officers must monitor expenditure in relation to budget on a monthly basis and prepare monthly reports that compare actual expenditure to estimated expenditure, including an analysis of major variances and including details of budget transfers within heads of expenditure.

21. Approved Business case

Requests for additional funding over and above heads of expenditure approved in the Government Plan of more than £100,000 must be supported by a business case approved by Treasury and Exchequer unless an alternative approval method is set out in the Procedures for allocations from the Reserve published by the Minister for Treasury and Resources or otherwise agreed by the Minister.

22. Recovery of departmental income

Accountable Officers must ensure that heads of expenditure approved by the States and/or supplemented by the Minister for Treasury and Resources are not exceeded and if estimated income levels are not achieved that there is a corresponding reduction in expenditure.  In exceptional circumstances and where all other funding options have been exhausted a submission may be made for funding from the Reserve head of expenditure as detailed in the Section on this.

Use of additional income over and above that approved in a Government Plan must be authorised by the Minister for Treasury and Resources (or delegate) in line with the Public Finances (Jersey) Law 2019.

23. Supplier diligence

The Group Director, Commercial Services must ensure that proportionate and risk-based diligence is carried out on approved suppliers, to include cyber security assurance where appropriate.

24. Controls over standing data

The Director – Finance Hub must ensure that adequate controls exist over changes to supplier standing data, to include bank account details for payments.

Arm’s Length Organisations

Introduction and background

This section applies to all States Bodies as defined in the Public Finances Law and all States Funds created in accordance with the Public Finances Law. It provides advice and guidance on their interactions with Arm’s Length Organisations. This section does not apply where the financial relationship between the Government and/or States of Jersey and an external organisation is on a contractual basis. This section does not apply to Grants to organisations (see Grants and Sponsorship section).

The public service provides an increasing range of services both through the traditional ministerial department delivery model and indirectly through other organisations such as Arm’s Length Organisations. Arm’s Length Organisations are typically established by, and either substantially funded or economically dependent on, the States of Jersey. Some Arm’s Length Organisations are given statutory powers to levy charges for services to cover part or all of their expenditure.

The overriding consideration in any Arm’s Length Organisation arrangement is the achievement of the States' Strategic Priorities in the most effective, efficient and economic manner, ensuring the imposition of robust controls over governance including probity and regularity in the use of public funds.

For the purposes of this section, the definition of an ‘Arm’s Length Organisation’ is an organisation substantially funded by, or economically dependent on, the States and/or Government of Jersey which fulfils a role or function the States and/or Government of Jersey would otherwise perform and is bound by a written agreement that governs the relationship.

For guidance purposes the following organisations fall into the definition of an Arm’s Length Organisation for the purposes of the Public Finances Manual. The list may be amended from time to time by the Treasurer of the States (or delegate).

• Digital Jersey
• Visit Jersey Limited
• Jersey Sport
• Jersey Arts Trust
• Jersey Arts Centre Association
• Jersey Opera House
• Jersey Heritage Trust
• Employ Jersey
• Jersey Finance Limited
• Jersey Business Limited
• Jersey Advisory and Conciliation Service
• Jersey Consumer Council
• Jersey Citizens Advice Bureau

The definition does not extend to organisations which receive funding from the Government or States of Jersey of less than £75,000 per year.

The definition also excludes the following Specified Organisations listed in schedule 2 of the Public Finances Law:

• Andium Homes Limited and its subsidiaries (if any)
• Jersey Overseas Aid Commission
• Jersey Post International Limited and its subsidiaries (if any)
• JT Group Limited and its subsidiary companies (if any)
• Ports of Jersey Ltd.
• States of Jersey Development Company Limited and its subsidiary companies (if any)

Whilst these organisations are required to comply with the principles set out in this section, they are guided by specific arrangements. This includes the ability for the Principal Accountable Officer to appoint and determine the functions of the Accountable Officer for these organisations, and to ensure the propriety and regularity of their finances.

These Specified Organisations also have Memoranda of Understanding (and associated documents) in place, setting out their relationship with the States of Jersey. They should give consideration to whether, where relevant, their own policies and procedures should conform to the requirements of this Manual.

Accountable Officers of sponsor departments (i.e. the Government or Non Ministerial department which has the relationship with the Arm’s Length Organisation, and accounts for expenditure on that Arm’s Length Organisation within its head of expenditure) can elect to treat a grant receiving body as an Arm’s Length Organisation and apply the more strict requirements of this section (as compared to the Grants section) even if the body does not meet the full definition of an Arm’s Length Organisation as specified above.

Users of this section should refer to other sections of the Public Finances Manual that are relevant. Specifically this includes:

• expenditure
• funds
• grants
  

In addition to the common risks identified in the Background and Introduction section of the manual a number of significant risks relating to this section include:

• Arm’s Length Organisation's service priorities are not fully aligned with corporate and States Bodies’ priorities
• Arm’s Length Organisations do not represent the most effective mode of service delivery, in terms of value for money against alternative service provision options
• the business case for an Arm’s Length Organisation is based on inadequate or inaccurate assumptions and not properly evaluated
• service and performance targets are not adequately defined
• construction of the Service Level and Funding Agreement is not comprehensive, does not deal with non performance, and does not include the required information requirements and governance issues
• there is inconsistent application of controls and performance management of Arm’s Length Organisations across the States or Government of Jersey, with inconsistent frequency in performance assessment and absence of commonality in information requirements and documentation
• oversight from States Bodies of the Arm’s Length Organisation is sub optimal and that inadequate challenges are being applied in the tracking of operational and financial performance management
• there is a lack of agility in States Bodies’ responses to sub standard Arm’s Length Organisation performance
• there is inadequate rigour within governance controls covering the management of the relationship between the States or Government of Jersey and Arm’s Length Organisations
• service delivery risks are not properly managed
• there is conflict of interest between those representatives of the States or Government of Jersey involved in decision making and Arm’s Length Organisation performance management
• there is inadequate corporate oversight of Arm’s Length Organisation strategy and performance management
• Arm’s Length Organisations do not have sufficient understanding of the States’ insurance programme and their own insurance requirements, resulting in their being under insured or incurring excessive and or unnecessary premiums
  

Principles

1. All Arm’s Length Organisation activity should contribute towards the strategic priorities of the States of Jersey and optimise independence, flexibility, skills and funding capability associated with Arm’s Length Organisation based provision.

2. Service delivery should be aligned to the priorities of the States of Jersey and the sponsor department.

3. The merits of establishing a relationship with an Arm’s Length Organisation should be well defined and based on robust assumptions.

4. Sponsor departments should exercise a risk based approach to assurance, governance and the oversight of operational and financial performance. 

5. There should be a consistent approach to the utilisation of Arm’s Length Organisations across the States of Jersey and a continuous challenge required on both the Arm’s Length Organisation performance and the utilisation of Arm’s Length Organisations as representing the most optimal mode of service delivery against viable alternative options.

Requirements

1. Accountable Officers

There must be an Accountable Officer responsible for each Arm’s Length Organisation (normally the Accountable Officer for the department funding the Arm’s Length Organisation, the Principal Accountable Officer will have ultimate responsibility for appointing an Accountable Officer) who will ensure accountability for the use of resources and that the States' Strategic Priorities in relation to the Arm’s Length Organisation are achieved. The responsibilities and interaction with the Accountable Officer of the sponsoring States Body, and other guidelines on Accountable Officers for Arm’s Length Organisations are covered in the Accountable Officers section.

2. Creation of an Arm’s Length Organisation

The Accountable Officer for the States Body must prepare a business case for consideration by the States Assembly for any new Arm’s Length Organisation. Any assumptions contained within the business case must be robust and provide evidence that creation of an Arm’s Length Organisation provides the most advantageous position over other existing methods of service provision in terms of value for money.

3. Checks and reporting

The Accountable Officer must have documented arrangements in place that include:

• a six monthly assessment of operational and financial performance. This should focus on the aims and priorities of the Arm’s Length Organisation and how these are being met, whether the standards set by the States of Jersey have been met, other key performance measures and targets and (where applicable) disclosure of future Arm’s Length Organisation planning initiatives and how they are likely to impact upon the achievement of the States of Jersey’s corporate and States Bodies’ priorities. The Accountable Officer’s review should also consider issues of efficiency, including the potential for efficiency savings, and make relevant recommendations. They should examine whether the Arm’s Length Organisation could provide better value for money, including where appropriate, the organisation’s contribution to economic growth. A pragmatic and risk based approach should be adopted in meeting this requirement, with consideration given to the size of the Arm’s Length Organisation and the nature of its activities
  
• an annual assessment, that each relevant Arm’s Length Organisation under the States Body’s oversight remains the optimal route to service delivery given current and or expected performance against alternative modes
  

When assessing whether an Arm’s Length Organisation remains the optimal route to service delivery, an Accountable Officer should give specific consideration to the following:

• does the Arm’s Length Organisation perform a technical function, which requires external expertise to deliver?
• does the Arm’s Length Organisation perform a function which needs to be, and be seen to be, delivered with absolute political impartiality?
• does the Arm’s Length Organisation perform a function that needs to be delivered independently of ministers to establish facts and or figures with integrity?
  

The six monthly and annual assessments must be carried out in sufficient time to enable the relevant Accountable Officer approving the grant to be provided with the results of the assessments. Where the Accountable Officer has concerns these should be brought to the attention of the relevant Minister or Treasurer (for the Non Ministerial Departments) and discussed prior to the Accountable Officer deciding whether the next grant payment should be approved.

4. Documentation

The Accountable Officer must ensure that there is a written agreement governing the relationship with each Arm’s Length Organisation for which they are accountable, which contains robust controls and specific service measures to enable rigorous and effective performance management. Agreements must be considered at least annually and either revised or confirmed.

5. Further considerations

In normal instances and depending on the size and risk associated with the Arm’s Length Organisation, the Accountable Officer must consider:

• ensuring that, wherever possible, officers involved in developing policy with an Arm’s Length Organisation are different from those tasked with monitoring the relationship with the Arm’s Length Organisation
• ensuring that suitable sanctions can be put in place for non or sub standard performance including the withdrawal of funding and that suitable alternative service provision options are available to be activated if required
• ensuring the effective management of risks associated with Arm’s Length Organisation service delivery and relationship management
• ensuring that States Member or Government officer membership of the Arm’s Length Organisation Board (if applicable) is defined in line with relevant Government of Jersey policies
• ensuring that no Accountable Officer shall be a member of any Arm’s Length Organisation Board (if applicable) or decision making forum within an Arm’s Length Organisation
• certifying that effective arrangements are in place for compliance with the requirements of this section on an annual basis
  

6. Corporate oversight

Accountable Officers must ensure that an appropriate and proportionate ALO Governance Checklist (see Supporting Documents – one for bodies receiving £1 million or over of States or Government funding annually, and one where that funding is under £1 million) is completed for each Arm’s Length Organisation at intervals no greater than every 12 months. Accountable Officers must provide any information requested by an officer or group exercising corporate oversight when requested, and in the form requested.

Major, strategic and other projects

Introduction and background

This section applies to all States Bodies as defined in the Public Finances (Jersey) Law 2019 and provides guidance and requirements to be followed for projects, including Major projects, as designated in the Government Plan and strategic projects as defined by the Corporate Portfolio Management Office.

A Major project is defined in the Public Finances (Jersey) Law 2019 as:

• a major capital project the duration of which, from start to finish, is planned to be of more than one year with a total estimated cost of more than £5 million; or
• a project that has been designated as a major project in an approved government plan.

The total funding for a Major Project must be approved as part of the Government Plan process before a Major Project can be commenced. Annual cash allocations to reflect the agreed spending profile for the Major Project then need to be agreed as part of the relevant Government Plan. The funding strategy for a Major Project should also include an assessment of the impact on both revenue and capital funding costs. Whole-life cycle cost assessment techniques should be used. The impact on Jersey Performance Framework outcome measures should be considered.

A Strategic project is defined as a project which satisfies two or more of the following criteria:

• is of significant strategic value, in that it will deliver transformative outcomes for, or mitigate significant risks to the States of Jersey and/or the Island’s economy or community
• has a total estimated cost of more than £2 million 
• is highly complex to deliver due to operational, technical, stakeholder or other delivery complexities
• carries risks of a community or corporate risk level (as defined by Enterprise Risk Management).
• Where projects are grouped together under one head of expenditure departments are expected to follow the required process for each project.
  

This Section does not apply to the purchase of new/replacement equipment which must follow normal procurement processes.

It is also expected that States Bodies follow the principles and requirements of this section for those projects included in Departmental Business Plans. For the purpose of this section of the Manual, the word ‘Project’ covers both projects and programmes.

Major and strategic projects represent those projects with the most significant expenditure, strategic alignment, risk and complexity. Other projects, which are not major or strategic are defined as either key, local or mini. These projects tend to be less complex and risky in nature and follow a reduced requirement for governance and control as set out in the Project Delivery Framework (within the Manual’s Supporting document - Corporate Portfolio Management Office - Frameworks for Major, Strategic and other projects).

The purpose of this Section is to provide States Bodies with guiding principles and requirements for the control of all projects. These principles and requirements are not exhaustive but indicate some of the most pertinent points relating to project delivery and signpost to required standards and frameworks which are applicable to all projects.

Any departure from the requirements set out in this section will require the approval of the Treasurer of the States. Deviations from the appropriate Project Delivery Framework (within the Manual’s Supporting document - Corporate Portfolio Management Office - Frameworks for Major, Strategic and other projects) will require an exemption, and the approval of the Head of Corporate Portfolio Management Office and the Chief Operating Officer. (Where the Chief Operating Officer is the Accountable Officer for a project any deviations will need to be approved by the Treasurer of the States and vice versa).

It is recommended that where a project is funded from a States grant to an Arm’s Length Body full consideration is given to including appropriate references to this Section of the Manual in the relevant grant agreements.

All projects must be accounted for in accordance with the Jersey Financial Reporting Manual, and the capital cost elements of such projects must follow the requirements of the Capital Accounting Manual.

Users of this section should refer to other sections of the Public Finances Manual that are relevant including:

• financing
• Government Plan and budgeting
• expenditure and procurement
• funds
• internal audit
• losses and write offs
• acceptance of gifts and hospitality

Additional guidance can be found within the following documents:

• Procurement Best Practice Procedures Toolkit (within Supporting documents)
• Retention of Financial documents
• Corporate Portfolio Management Office – Frameworks for Major, Strategic and other projects

In addition to the common risks identified in the Background and Introduction section of the Manual a number of significant risks relating to this section include:

• the cost of projects is not controlled
• projects are not delivered on time and/or to the required level of quality
• projects are not appropriately selected, authorised and/or managed
• the States’ reputation may be compromised as a result of poor procurement practice and weak governance arrangements
• the States do not demonstrate sufficient adherence to International Agreements related to Procurement and expenditure that the States or Government of Jersey is party to or compliance with our anti-corruption practices
• the States do not adhere to the use of ethical supply chain principles
• the competition process and subsequent contract award is not open, fair or transparent or could be at risk of legal challenge
• States or Government of Jersey employees are not protected from unwarranted criticism from not following due process, best practice guidance or adherence to principles
• contract terms and conditions do not provide adequate protection to the States or Government of Jersey
• expenditure is not properly authorised
• purchases are made which do not represent good value for money or leverage the States or Government of Jersey’s purchasing power

Principles

1. Outcome based projects: All projects should be outcome based and be supported by a business case, in line with Treasury and Exchequer guidance. This should set out tangible deliverables and measurable benefits with a well-considered plan for the realisation of these benefits (to include the impact on Jersey Performance Framework outcome measures) which considers both funding and other resources required to deliver.

2. Effective project selection: The selection process for projects should consider the viability of successful delivery and constraints on such delivery including both internal and external factors.

3. Clearly defined accountability: Responsibilities and accountabilities for projects should be appropriately and transparently authorised and recorded with the appropriate segregation of responsibilities. Where both a Sponsoring and Supplying States Body are involved, the relevant responsibilities should be clearly defined and agreed at the outset. It should be clear from the outset who has responsibility for signing contracts including, where appropriate, delegations from the appropriate Minister to cover contract signing.

4. Realistic and thorough planning: Time should be invested up-front to develop realistic and suitably thorough plans taking into consideration the need for contingency planning and an awareness of optimism bias in delivery. This should align to levels of planning required at each stage in the business case process.

5. Project resource and skills planning: Projects should plan ahead for the diversity of people, skills and experience needed to deliver and build a strong, properly resourced and competent team, evolving as necessary through the project lifecycle.

6. Regular project reporting: There should be regular project reporting on performance and Senior Responsible Officers should challenge assumptions made, and the accuracy of data presented to ascertain whether the project still represents value for money against the approved business case.

7. Project risk management: The risk and complexity of a project should be reduced where possible, and where this is not possible, plans should be developed which are realistic and responsive to unexpected events. Any variations to budgets should be appropriately and transparently authorised and recorded.

8. Project dependency management: Internal and external dependencies should be identified, assessed, and managed throughout the lifecycle of a project.

9. Subject matter expertise: Projects should co-ordinate with relevant internal functions to ensure subject matter expertise is sought both in the planning stages and throughout delivery of the project. The Project Governance Framework (within the Manual’s Supporting document Corporate Portfolio Management Office – Frameworks for Major, Strategic and other projects) and supporting guidance provides an overview of such functions and indicative criteria for their level of engagement.

10. Project commercial management: Those responsible for delivering projects should build a clear understanding of user needs, the business case and delivery models, consider the whole supply chain (in terms of market appetite, capacity and capability). This should include a comparison of all available commercial and contractual models to deliver the project, considering the optimal value-for-money solution and the management of all risks.

11. Stakeholder Engagement and Communication: Appropriate stakeholder engagement, consultation and communication should take place throughout the development of a project to ensure that it meets the end users’ needs.

12. Lessons learned: Lessons learned from other similar projects should be sought at the outset of a project and used to inform the planning and delivery of the project.

13. Consultation: If a project has a sponsoring (client) and supplying (delivery) department it is important that the client department is consulted by the delivery department on a regularised basis.

Requirements

3. Projects not beginning

Where it becomes apparent that a project included as indicative within a Feasibility grouped head of expenditure in an approved Government Plan will not commence in the expected year, the Accountable Officer for the department which would have incurred the expenditure must inform the Accountable Officer for the Feasibility grouped head of expenditure (i.e. the Treasurer of the States) and the relevant Minister(s) within one month. The Group Director, Strategic Finance, Treasury and Exchequer must also be informed.

4. Projects exceeding indicative amounts – prior to allocation

Prior to approval for spending to commence, where the indicative cost of a project within the Feasibility grouped head of expenditure in an approved Government Plan is likely to exceed the indicative amount included in the Government Plan either:

• within a financial year
• across all financial years

the Accountable Officer for the department which would incur the expenditure must inform the Treasurer of the States, the Group Director, Strategic Finance, Treasury and Exchequer and the relevant Minister(s) within one month. The Accountable Officer must not begin incurring expenditure until informed by the Treasurer that they can proceed.

The Treasurer must then inform Accountable Officers for the departments which would incur expenditure and the relevant Minister(s) which other projects (if any) may incur reduced expenditure, be delayed or be cancelled as a result to ensure the amount approved for the Feasibility grouped head of expenditure in the Government Plan is not exceeded.

5. Projects exceeding allocated amounts

Once an allocation has been made by the Treasurer of the States from the Feasibility grouped head of expenditure to an Accountable Officer, that total cannot be exceeded. If it appears that allocated funding may be insufficient the Accountable Officer concerned must immediately seek a further allocation of funding from the Treasurer of the States (or a transfer of funding from another head of expenditure by the Minister for Treasury and Resources).

6. Addition of new projects

Where it is proposed to commence a new project to be funded from within the Feasibility grouped head of expenditure in an approved Government Plan, the Accountable Officer for the department proposing to incur the expenditure must seek the approval of the Accountable Officer for the Feasibility grouped head of expenditure (i.e. the Treasurer of the States) and relevant Minister(s). A business case must be submitted and approved.

The Accountable Officers and relevant Minister(s) for the departments which would incur expenditure must be informed by the Treasurer which other projects (if any) may incur reduced expenditure, be delayed or be cancelled as a result.

7. Abandonment of projects - not started

Where it becomes apparent that a project that has been approved to commence spending included within the Feasibility grouped head of expenditure in an approved Government Plan is to be abandoned (i.e. never commenced), approval must be obtained in advance from the Accountable Officer for the department which would have incurred the expenditure, the Treasurer of the States and relevant Minister(s). The Group Director, Strategic Finance, Treasury and Exchequer must also be informed.

8. Abandonment of projects - in progress

Where it becomes apparent that a project that has been approved to commence spending within the Feasibility grouped head of expenditure in an approved Government Plan is to be abandoned after it has commenced, approval to abandon must be obtained in advance from the Accountable Officer for the department incurring the expenditure, the Treasurer of the States and relevant Minister(s). The Accountable Officer, the Treasurer and Minister(s) must be informed which other projects (if any) could incur additional expenditure as a result. The Accountable Officer for the department incurring the expenditure must then ensure expenditure concerned is accounted for in accordance with the Jersey Financial Reporting Manual, and that any other approvals for abandonment are sought in accordance with the Major, Strategic and Other Projects section of this Manual. The Group Director, Strategic Finance, Treasury and Exchequer must also be informed.

9. Consultation

The Accountable Officer for the department incurring the expenditure must ensure that consultation takes place with any affected Accountable Officer or Minister in advance of a decision being taken to accelerate, decelerate, add or abandon a project within the Feasibility grouped head of expenditure, and it is reasonably foreseeable that the other Accountable Officer or Minister may have views which should be taken into account.

10. Major projects

Funding projects from within the Feasibility grouped head of expenditure must not be used to circumvent controls within the Public Finances Law over major projects. If at any time the total expenditure on a project from within a rolling vote, grouped head of expenditure or the Feasibility grouped head of expenditure is forecast to meet or exceed the Public Finances Law definition for a major project, then the Group Director, Strategic Finance must be informed. That officer must take steps to ensure the project is then classified accordingly in a Government Plan and the Annual Report and Accounts.

Rolling votes, replacement assets and minor capital

Introduction and background

This section applies to all States Bodies as defined in the Public Finances Law and to all expenditure made by Accountable Officers of States Bodies, or on their behalf. The principles should be applied to all public expenditure by any person authorised by an Accountable Officer to undertake that expenditure. 

Projects within the Government Plan covered by this section of the Manual are:

• Infrastructure rolling vote
• Replacement assets
• Minor capital

For the purpose of this section of the Manual, all of the above are included within the term “rolling vote”.

A rolling vote is a head of expenditure which provides ongoing annual funding that will be used for a programme, comprising a range of projects, and it can be repeated (in rolls) over successive Government Plans.

The Infrastructure Rolling Vote is a programme of continual improvements to maintain key infrastructure such as roads, drains and sea defences, which face a continual threat of damage or erosion over time. This is critical ongoing activity that will continue long into the future as part of the continual maintenance of critical areas of the Island’s infrastructure.

A rolling vote can fund capital or revenue expenditure.

Replacement assets and minor capital heads of expenditure focus on the replacement of current equipment that is due to reach the end of its safe useful life and require replacing for newer equipment, to ensure assets are maintained for the ongoing delivery of services. Several departments have their own replacement asset and minor capital budgets. Specific funding is also provided for one-off investments such as fisheries vessels and new equipment for the Fire and Rescue Service.

Normally a single Accountable Officer is responsible for a rolling vote, replacement assets or minor capital head of expenditure.

The Public Finances Law includes specific controls over major projects. Using a rolling vote to fund a project cannot be used to circumvent these controls.

Users of this section should refer to other sections of the Public Finances Manual that are relevant. Specifically, these include:

• Expenditure and procurement
• Major, strategic and other projects
• Role of the Senior Responsible Officer
• Feasibility
• Changes to head of expenditure
• Assets
• Expenditure and procurement 
• Reserve head of expenditure
• Fraud
• Losses and write offs
• Grouped heads of expenditure
• Government Plan and budgeting

In addition to the common risks identified in the Background and Introduction section of the manual a number of significant risks relating to this section include:

• The selection of Individual projects within a rolling vote may not be prioritised to areas of greatest risk or need.
• Individual projects within a rolling vote may not be subject to the same business case discipline as if they were project heads of expenditure in their own right.
• Individual projects within a rolling vote may not be subject to the same cost control discipline as if they were project heads of expenditure in their own right.
• Individual projects within a rolling vote may not be subject to the same project governance discipline as if they were project heads of expenditure in their own right.
• Accountable Officers and Ministers may be unaware of how resources within rolling votes are being prioritised and spent.
  

Principles

1. Accountable Officers for rolling votes should ensure that available resources are prioritised to areas of greatest need.

2. Accountable Officers for rolling votes should ensure that individual projects within a rolling vote are subject to the same business case discipline (for the corresponding level of expenditure and complexity) as if they were project heads of expenditure in their own right.

3. Accountable Officers for rolling votes should ensure that individual projects within a rolling vote are subject to the same cost control discipline as if they were project heads of expenditure in their own right.

4. Accountable Officers for rolling votes should ensure that individual projects within a rolling vote are subject to the same project governance as if they were project heads of expenditure in their own right.

5. Officers with delegated responsibility for planning and incurring expenditure from rolling votes should ensure that Accountable Officers and Ministers are fully aware of how resources within rolling votes are being prioritised and spent.

6. Funding projects from within rolling votes should not be used to circumvent controls within the Public Finances Law over major projects.

Requirements

​1. Planning

Accountable Officers must ensure that documented, rolling plans are in place to show how funding available within rolling votes will be prioritised. These plans must be approved at least annually by the Accountable Officer and responsible Minister and made available to the Treasurer of the States on request.

2. Business cases

Accountable Officers must ensure that a robust process is in place within their department or area of responsibility to ensure that business cases (of proportionate detail and complexity) are prepared and evaluated for all expenditure from within a rolling vote.

3. Prioritisation

Accountable Officers must ensure that a robust process is in place within their department or area of responsibility to ensure that any changes to the programme of planned projects within a rolling vote are approved at an appropriate level, which is set out in the Accountable Officer’s Scheme of Delegation.

4. Cost control

Accountable Officers must be informed if the cost of an individual project within a rolling vote is likely to the exceed the planned cost by 25% (or £100,000 whichever is the lower) or more. The Accountable Officer must also be informed of which other projects are proposed to be decelerated or abandoned as a result. The Accountable Officer must approve any such changes to the planned programme, or delegate such approval to other officers in the Scheme of Delegation.

5. Project governance

Accountable Officers must define the level of project governance expected for each project within the programme of planned projects within a rolling vote, complying with the requirements in the Major, strategic and other projects section.

6. Reporting

Accountable Officers and responsible Ministers must be provided with a report at least quarterly detailing all projects planned, completed and in progress within a rolling vote, together with actual costs to date and forecast costs to completion. The report must also detail any significant changes to the planned programme approved by the Accountable Officer or delegated officers. This report must be made available to the Treasurer of the States on request.

7. Consultation

The Accountable Officer for a rolling vote head of expenditure must ensure that consultation takes place with any affected Accountable Officer or Minister in advance of a decision be​ing taken to accelerate, decelerate, add or abandon a project within the programme, and it is reasonably foreseeable that the other Accountable Officer or Minister may have views which should be taken into account.​

8. Major projects

Funding projects from within a rolling vote must not be used to circumvent controls within the Public Finances Law over major projects. If at any time the total expenditure on a project from within a rolling vote, grouped head of expenditure or feasibility is forecast to meet or exceed the Public Finances Law definition for a major project, then the Group Director, Strategic Finance must be informed. That officer must take steps to ensure the project is then classified accordingly in a Government Plan and the Annual Report and Accounts.

Special payments

Introduction and background

This section provides advice and guidance on how States Bodies, including the States Employment Board, manage payments, including those made from States Funds, but especially those transactions which are outside of the usual planned range of the Body’s activity and where payments are made where there is no legal obligation to do so. These payments referred to as Special Payments should only be authorised after careful appraisal of the facts and when those responsible for authorising the payments are fully satisfied that the best course of action has been identified.

In all cases the relevant Accountable Officer is accountable for the decision to make a payment. The Accountable Officer is answerable to the Public Accounts Committee and must be prepared to justify any payment if questioned unless a Letter of Instruction was provided by the responsible Minister. Special payments may also be subject to Scrutiny such as Internal Audit, States Questions and FoI questions and an Accountable Officer must always have the relevant documentation and authorisation to support such payments. 

Examples of special payments, being payments, which fall outside the normal day-to-day business of the States or Government, include but are not limited to the following:

• special severance payment: a payment to a departing employee outside contractual parameters as advised by the Law Officers’ Department 
• ex gratia payment: a payment to a third-party individual or organisation where there is no legal obligation or HR policy in place, but there is a sound business or policy reason for making the payment. Examples include:
• payments as part of complaints procedures
• payments to contractors outside a binding contract
• settling a claim on a commercial basis due to the potential costs of defending the claim. Even where a claim is manifestly unfounded and no money is legally due, it may be best to settle
• payments made to meet hardship caused by official failure or delay where there is no legal obligation to pay
• out of court settlements to avoid legal action i.e., settling claims which have no merit, and where the settlement has no commercial basis, but for reputational reasons
• recruitment and retention payments to staff 
• insured payment: a proposed payment where:
• the sum is in excess of the amount to be met by the department concerned and any applicable Insurance Fund layer; or
• the sum is equal to or below the amount to be met by the department concerned and any applicable Insurance Fund layer in a case that has been notified to the States insurers
• obligatory, unquantified and uninsured payment: a proposed payment where the payment sum will not be met by the Insurance Fund or the States’ insurers, but a Court (or equivalent) has established a legal but unquantified liability on the part of the States 
• extra-statutory and extra-regulatory payments: payments are broadly within the limits of the statute or regulation, respectively, but go beyond a strict interpretation of its terms
• precedent for further expenditure: a payment to a member of staff or third-party individual or organisation where there is no legal obligation which creates the risk of further expenditure in other areas of the States if knowledge of the payment becomes more widespread
  

For the avoidance of doubt this does not include one-off gifts such as flowers for ill members of staff or for the spouse of a deceased member of staff, or similar purpose.

In-line with the States of Jersey’s accounting requirements all special payments will be reported in the States of Jersey’s Annual Financial Report and Accounts.

Where a States Body financially supports an Arm’s Length Body, the States Body must consider appropriate references to this section of the Manual in the relevant agreements with these bodies.

Users of this section should refer to other sections of the Public Finances Manual that are relevant. Specifically, this includes:

• Government Plan and budgeting expenditure
• fees and charges
• • reserve head of expenditure
• income
• grants
• losses and write offs

In addition to the common risks identified in the Background and Introduction section of the Manual a number of significant risks relating to this section include: 

• authentic circumstances requiring compensation payments are denied
• reputational damage in cases where novel, contentious and potentially repercussive special payments such as severance payments have been poorly handled
• budget overruns leading to financial burden on the Treasury and Exchequer or departmental heads of expenditure
• fraud risk is increased as special payments could be made through collusion with the recipients
  

Principles

1. States Bodies should have a system for the timely identification, authentication and processing of any special payments and ensure that such payments are fulfilled in the required timeframe in accordance with the relevant policies.

2. Proposals for any special payment should explain the nature, circumstance of the case, amount involved, management procedures followed, assessment of the value for money of the case, any non-financial aspects, the impact of the case, whether budgetary provision is available to meet the payment and if the approach follows legal advice.

3. States Bodies should be proactive in drawing and documenting lessons from special payment cases as they arise in order to establish the soundness of the control system and share the outcomes with Treasury and Exchequer. Necessary steps should also be taken to remedy all failings identified.

4. Sensitive special payment situations should be handled with integrity and focus on avoiding reputational damage to both the States Body and the wider public service.

5. Any proposals to keep special payments confidential must be sufficiently justified to avoid being interpreted adversely by the public or other States Bodies.

Requirements

1. Approval by the Accountable Officer

All special payments, regardless of amount, must be approved by the responsible Accountable Officer. This approval can be delegated in the Accountable Officer’s Scheme of Delegation, as approved by the Treasurer of the States.

2. Payment approvals and endorsements

Accountable Officers must use the following to determine the appropriate approvals, notification and endorsements required for Government and States of Jersey payments. This process must be followed to ensure that all payments, including those classed as special payments are lawful and do not expose the States and/or Government of Jersey to unnecessary claims or losses or create precedents for the future. A Special Payment form must be completed and sent to the Head of Financial Governance in Treasury and Exchequer. The template is attached in Supporting documents.

Category 1

Treasury and Exchequer need not be notified where:

Payments fall within the normal day-to-day business of the entity. This definition will include, but is not limited to where:

(A) an asset is proposed to be acquired for an essential and sound business or policy reason and meets an existing States Strategic policy and:

• funding has been set aside in an approved Government Plan for the asset and the necessary statutory processes and approvals have been gained, or
• the proposed purchase price is lower than the highest independent valuation obtained, or
• there is a material possibility that the asset would incur a higher cost through further negotiation or an alternative process e.g. compulsory purchase, or
• the proposed purchase is at the advertised price, or
• where the seller, who is the only person selling the particular asset, will not accept a lower price, this may be taken as the valuation

(B) items of stock are purchased within stock limits authorised by the Treasurer of the States 

(C) a service is being procured and paid for at an agreed price for an essential and sound business or policy reason and departmental funding is available

(D) a Court (or equivalent) has established a legal and quantified liability on the part of the States

(E) a payment to a member of staff is proposed that is within an approved HR policy, including payments for employment at the contracted rate

(F) an ex gratia payment is proposed of up to £1,000, has been approved by the relevant Accountable Officer (or their delegate) and there is no potential precedent for further expenditure

(G) an ex gratia payment is proposed to a member of staff that is permissible under an approved HR Code of Practice or policy 

(H) the payment is part of a scheme previously approved by the States or a scheme costing up to £10,000 in total previously approved by the Treasurer of the States.

(I) A payment is specifically permissible under legislation.

Category 2

Treasury and Exchequer must be notified, prior to making any binding commitment, using the Special Payment template, but is not required to endorse where:

(A) a special severance payment (i.e., a payment to a departing employee in excess of contractual entitlement) is proposed of up to £10,000

(B) an ex-gratia payment is proposed where there is no potential precedent for further expenditure and the proposed payment is up to £10,000 (and more than £1,000)

(C) an asset is proposed to be acquired for an essential and sound business or policy reason and the proposed purchase price does not exceed the highest independent valuation obtained. Where the seller will not accept a lower price, this may be taken as the valuation.

(D) an asset is proposed to be acquired for a non-essential but sound business or policy reason and the proposed purchase price does not exceed the highest independent valuation obtained, or there is a material possibility that the asset (including any and all associated costs) would incur a higher cost through further negotiation or an alternative process e.g., compulsory purchase. Where the seller will not accept a lower price, this may be taken as the valuation

(E) an insured payment is proposed that is recommended by the Law Officers’ Department and is not more than the maximum amount proposed by the States’ insurers (up to £1m, including costs).

Category 3: special payments

Treasury and Exchequer is required to endorse, prior to making any binding commitment, where:

(A) a special severance payment (i.e., a payment to a departing employee in excess of contractual entitlement) is proposed of £10,000 or more

(B) an ex-gratia payment is proposed of £10,000 or more

(C) an asset is proposed to be acquired for an essential and sound business or policy reason and the proposed purchase price is higher than the highest independent valuation obtained, or where no independent valuation has been obtained, and there is a material possibility that the asset could be acquired at a lower price through further negotiation or an alternative process e.g., compulsory purchase. Where the seller will not accept a lower price, this may be taken as the valuation

(D) an asset is proposed to be acquired for a non-essential but sound business or policy reason, but the proposed purchase price is higher than the highest independent valuation obtained, or where no independent valuation has been obtained, and there is a material possibility that the asset could be acquired at a lower price through further negotiation or an alternative process e.g. compulsory purchase.  Where the seller will not accept a lower price, this may be taken as the valuation.

(E) a payment is proposed that is more than £1,000 and is higher than the amount recommended by the Law Officers’ Department and/or by the States insurers

(F) a high value settlement (above £1m, including costs) is proposed.

The term Treasury and Exchequer means the Treasurer of the States or another officer delegated by the Treasurer of the States in his or her Scheme of Delegation.

3. Consultation, notification and endorsement from Treasurer of the States

In those instances where the Treasurer of the States is unable to endorse any such payment the requesting Accountable Officer must seek a Letter of Instruction from the responsible Minister (the Accountable Officer of a non-Ministerial States body should approach the Minister for Treasury and Resources) prior to any binding commitment to pay being made.  In such cases the Treasurer of the States will consider whether to exercise his or her statutory powers under the Public Finances (Jersey) Law 2019 to make a report to the Council of Ministers or the States Assembly.

Payments proposed from the Treasury and Exchequer head of expenditure which fall into category 3 must be endorsed by the Principal Accountable Officer.  If the Principal Accountable Officer is unable to endorse any such payment, they must seek a Letter of Instruction from the Chief Minister prior to any binding commitment to pay being made.

4. Endorsement from People Services

Any potential special payment(s) to be made to a States employee, within the definition of the Employment of States of Jersey Employees (Jersey) Law 2005, or others filling a similar contractual role must be subject to consultation with the Chief People and Transformation Officer  (or their delegate), who must decide whether the States Employment Board should be notified of, or need to approve, such payments.

5. Legal Advice

Accountable Officers are responsible for ensuring that the appropriate legal advice is secured from the Law Officers’ Department before any offer of payment which may be classed as a special payment is made. Legal advice may not be shared without the prior consent of the Attorney General or his representative.

6. Reporting of Special Payments

All special payments must, in line with requirements in the Jersey Financial Reporting Manual, be reported and brought to the attention of the States Assembly through appropriate disclosures in the Annual Report and Accounts.

Accountable Officers must ensure that any special payments are coded as such within Connect Finance.

Confidentiality may require such payments to be reported in an aggregated and/or anonymised manner.

7. Payments to Principal Accountable Officer/Accountable Officers

If a payment relates to an Accountable Officer of a Government department (outside of regular contractual salary payments), the Principal Accountable Officer must take responsibility for the decision to make any payment.  If a payment relates to the Principal Accountable Officer, the Treasurer of the States must consult with the Chief Minister and the Chair of the States Employment Board (where these posts differ) and gain a Ministerial Instruction from the Chief Minister to cover any payment. If a payment relates to an Accountable Officer of a Non-ministerial department (outside of regular contractual salary payments), the Treasurer of the States must take responsibility for the decision to make any payment.

8. Funding for special payments

It is expected that in the first instance that an Accountable Officer will ensure that any Special Payment is funded from existing budgets. If this is not possible, the Accountable Officer must ensure that another suitable source of funding is identified and agreed before the payment is authorised.

The fact that an Accountable Officer has consulted with and/or received an endorsement to a special payment from Treasury and Exchequer is not an agreement that additional funding will be made available by Treasury and Exchequer.

In extreme circumstances where the Accountable Officer is not able to identify funding to meet a payment, they must ensure that the Treasurer of the States is contacted, before any special payment is offered, and asked that a request for additional funding is considered by the Minister for Treasury and Resources. The Minister’s written approval that funding will be made available if the special payment is approved, must be gained before any payment is offered.

Expenditure to meet an Emergency

Introduction and background

This section provides advice and guidance on the procedures to be followed if an emergency as defined in the Public Finances (Jersey) Law 2019 or a Major Incident, as described below, arises and immediate funding is required. This advice and guidance applies to all States Bodies as defined in the Public Finances (Jersey) Law 2019.

General provisions relating to emergencies are set out in the Emergency Powers and Planning (Jersey) Law 1990. That Law contains arrangements relating to the Emergencies Council and Competent Authorities Ministers.

For the purposes of financial decisions, the definition of what constitutes an emergency is established in Article 24(2) of the Public Finances (Jersey) Law 2019 as either:

• the declaration of a state of emergency under the Emergency Powers and Planning (Jersey) Law 1990
• if the Minister for Treasury and Resources is satisfied that there exists an immediate threat to the health and safety of any of the inhabitants of Jersey, to the stability of the economy in Jersey or to the environment

This section also covers the immediate arrangements if a Major incident has been declared, but neither of the above declarations have been made. The JESIP (Joint Emergency Service Interoperability Programme) doctrine states:

• a Major Incident is an event or situation with a range of serious consequences which requires special arrangements to be implemented by one or more emergency responder agency
  
• any responding agency can declare a Major Incident if it meets the criteria above for their organisation, even if it doesn’t meet this threshold for other agencies

The Public Finances (Jersey) Law 2019 sets out the responsibilities for the Minister for Treasury and Resources in relation to funding for any emergency which meets either of these terms.

The initial presumption is that any additional expenditure arising will be met from existing heads of expenditure, including centrally held reserves, approved in a Government Plan.

The Law also enables the Minister for Treasury and Resources (the Minister) to authorise the withdrawal of further funds from the Consolidated Fund if the emergency situation requires immediate funding and the Minister is satisfied that there is insufficient money in existing heads of expenditure to fund the emergency. If the amount is £100 million or more an amendment to the approved Government Plan must be progressed.

Should it be necessary for the Minister to approve the withdrawal of additional funds from the Consolidated Fund, the Minister must present a notice of the withdrawal to the States Assembly as soon as practical. Furthermore, the Minister must ensure that details of these withdrawals are included in the 6 monthly financial update report presented to the States.

The Minister for Treasury and Resources will review all other funding and financing options to meet the costs of an emergency and will where necessary take other funding options forward to the States Assembly.

Users of this section should refer to other sections of the Manual that may be relevant. Specifically, this includes:

• Accountable Officers
• expenditure and procurement
• risk management
• changes to head of expenditure
• reserve head of expenditure
• letters of comfort

In addition to the common risks identified in the Background and Introduction section of the Manual a number of significant risks relating to this section include:

• immediate action to address an emergency may be delayed due to uncertainty over funding
• expenditure is not properly authorised and may exceed the amount set aside for the emergency
• expenditure is considered irregular i.e. not spent for the purposes intended
• expenditure may not offer the best value to the States of Jersey
• the States of Jersey's reputation may be compromised as a result of not being able to function if an emergency was to arise and if funding was not made available when required
• expenditure is incorrectly recorded

Principles

1. In the first instance arrangements should be put in place to deal with an emergency whilst also endeavouring to ensure that routine service delivery is maintained as far as is practically possible. The immediate health and safety of Islanders and visitors is paramount.

2. The Chief Minister, Minister for Treasury and Resources, the States Chief Executive and the Treasurer of the States should be notified by the person identifying the potential emergency as soon as there is a possibility that there is an "emergency" situation (as defined in Article 24 of the Public Finances (Jersey) Law 2019 and set out in the Background and introduction to this section above) which requires additional funding so that the relevant emergency protocols can be brought into play.

3. Initially Accountable Officers should look to meet funding associated with an emergency, as defined in this Section, from within existing heads of expenditure.

4. Any additional funding allocated to meet the costs of an emergency should only be used for the purpose it was allocated for.

5. When considering an expenditure proposal to meet an emergency, alternative approaches to delivering services to meet the emergency should, as far as possible, be considered. Accountable Officers should also be mindful of the risks they are responsible for managing and ensure they are adequately addressed.

6. All additional funding to meet emergency expenditure should be appropriately considered, authorised and then reported on.

7. Emergency expenditure should be incurred in lines with the relevant Schemes of Delegation.

8. Accountable Officers should be aware that their Accountable Officer responsibilities apply to all expenditure, including that related to emergency expenditure, and that they are responsible for ensuring value for money at the same time as needing to ensure that the emergency situation is addressed appropriately.

9. Accountable Officers should establish whether any costs of an emergency can be met from insurance.

Requirements

1. Immediate action: Major incident

Where a major incident has been declared, or in an emergency situation where a Strategic Coordination Group (SCG) has been established, the Chair of SCG, and/or the Government Duty Executive Officer can commit any expenditure needed to address immediate needs on the day the emergency arose (D1) and the subsequent day (D2). The normal value for money requirements of the Expenditure and procurement section are not required to be followed but expenditure authorised in this way should be proportional and reasonably necessary considering all the circumstances, with the Treasurer to be consulted if there is any doubt over what is proportional or reasonable. The relaxation of normal procurement requirements must not be used to let contracts extending beyond D2 without consulting the Treasurer. The Minister for Treasury and Resources commits to underwrite any expenditure from the General Reserve if it cannot be met from within existing heads of expenditure. Prior to the end of D2 the Minister for Treasury and Resources must advise Accountable Officers of the arrangements expected to be followed from D3 onwards, and the documentation to be provided (in due course) relating to expenditure on D1 and D2. In the event the Minister is unavailable, the Treasurer can issue that advice, to be ratified by the Minister as soon as is practical.

2. Review of funding sources

If an emergency situation arises Accountable Officers supported by their Heads of Finance Business Partnering and the appropriate member of staff from Treasury and Exchequer must, as much as is practicable in the situation, undertake a review of existing heads of expenditure and other sources of funding to identify what funds may be available to meet the estimated cost of any emergency.

3. Request for additional funding

In instances where Accountable Officers require additional funding to meet costs associated with an emergency (as declared under the terms of Article 24(2) of the Law or a Major Incident has been declared), a written business case must be made with evidence that this is supported by the affected Minister(s), prior to incurring any expenditure, to the Minister for Treasury and Resources detailing:

• the nature of the expenditure, the reason it has arisen and the implications if it's not funded
• why they believe that the proposed expenditure is relevant to either:
• a state of emergency declared under the Emergency Powers and Planning (Jersey) Law 1990
• an immediate threat to the health and safety of any of the inhabitants of Jersey, to the stability of the economy in Jersey or to the environment
• if the pressure is likely to be recurring
• why the request cannot be absorbed within the Accountable Officer's current head(s) of expenditure
• details of when the funding is required and sensitivity analysis around the values required, together with any assumptions
• an evaluation of major risks

Where appropriate, supporting documentary evidence must be provided.

Depending on the urgency of the expenditure the Treasurer of the States has the discretion to waive the need for a written business case or the level of detail provided before approval to spend is given. If this authority is given the relevant information must be provided as soon as practical thereafter.

4. Consideration for request for urgent funding

In considering whether to approve requests to fund expenditure related to the emergency the Minister and Treasurer of the States (or any delegate) will take the following factors into consideration:

• whether expenditure is genuinely urgent and essential
  
• decisions of the Emergencies Council Competent Authorities Ministers and the Council of Ministers, where appropriate
  
• whether the application followed procedures and enclosed all relevant documents
• whether existing funding sources have been adequately considered
  
• whether authority to spend already exists
  

5. Response to request for funding

The Minister or Treasurer of the States, (if given delegated authority by the Minister) or their delegate will provide a written indicative response to any funding request as soon as practicable. If necessary, an initial indication will be given within one working day. If necessary, and time permits, additional information may be requested.

6. Expenditure and unspent funds

Additional funding allocated to meet the costs of an emergency must only be used for the purpose for which it was approved. Treasury and Exchequer will provide details on how and when funding will be released. Accountable Officers must provide monthly updates on the use of such funds to the Treasurer of the States.

7. Delegation

The Minister for Treasury and Resources may delegate authority to approve expenditure relating to the emergency to the Treasurer of the States. This delegation should only occur if there is genuine urgency in the public interest and postponing expenditure would:

• cause other damage or public detriment
• cause additional wasteful expenditure
  
• lose efficiency savings
  

Any expenditure authorised under this delegated authority must be notified to the States Assembly in the appropriate six-monthly report.

8. Reporting

All funding decisions in relation to the emergency made by the Minister must be documented by public Ministerial Decision subject to the normal Freedom of Information restrictions.

The Minister must report to the States Assembly at six monthly intervals regarding any approvals given to withdraw additional funding from the Consolidated Fund.

9. Insurance

Accountable Officers must contact the Head of Insurance in Treasury and Exchequer, at the earliest practicable opportunity once immediate emergency actions have been taken, to ascertain if any costs are insured, and to begin the process of making a claim.

​ Criminal Offences Confiscations Fund

Introduction and background

The Criminal Offences Confiscations Fund is established under Article 24 of the Proceeds of Crime (Jersey) Law 1999 and is managed and controlled by the Minister for Treasury and Resources.

The Criminal Offences Confiscations Fund is established to receive money - 

(a) recovered under or in satisfaction of a confiscation order or instrumentalities forfeiture order (as defined in Article 1 of the above Law); or 

(b) received under an asset sharing agreement (which means any agreement or arrangement made by or on behalf of Jersey with a country or territory outside Jersey for the sharing of the proceeds of criminal conduct that, as a result of mutual assistance, have been confiscated or forfeited either in Jersey or elsewhere).

Money paid into the Criminal Offences Confiscations Fund does not form part of the States Consolidated Fund. Money in the Criminal Offences Confiscations Fund is available to the Minister for Treasury and Resources for the following purposes (As per Article 24(4)(a) of the Proceeds of Crime (Jersey) law 1999): 

(a) in promoting or supporting measures that, in the opinion of the Minister for Treasury and Resources, may assist – 

(i) in preventing, suppressing or otherwise dealing with criminal conduct;

(ii) in dealing with the consequences of criminal conduct; or

(iii) without prejudice to the generality of clauses (i) and (ii), in facilitating the enforcement of any enactment dealing with criminal conduct; 

(b) discharging Jersey’s obligations under asset sharing agreements; and 

(c) meeting the expenses incurred by the Minister for Treasury and Resources in administering the Criminal Offences Confiscations Fund.

Additionally, following consultation with the Attorney General, the Proceeds of Crime (Jersey) Law 1999 may be amended by Regulation to enable specific money to be used for other specific purposes.

Money paid into the Criminal Offence Confiscations Fund can be invested in either a current or deposit account with one or more banks selected by the Minister for Treasury and Resources, with any interest earned paid into the Criminal Offences Confiscations Fund. Confiscated funds may be in any currency.

When funds are confiscated the Law Officers’ Department notifies Treasury and Exchequer of the status of the funds confiscated and advises of any ringfencing requirements before funds are deposited.  Confiscated funds are not available for allocation until the relevant legal case is concluded and written agreement has been provided by the Law Officers’ Department. This written confirmation will detail any negotiated payment due to a third-party, another jurisdiction and the amount available, if any, for use for a purpose approved by the Minister for Treasury and Resources. 

Users of this section should refer to other sections of the Public Finances Manual that are relevant. Specifically, these include:

• cash 
• banking
• expenditure and procurement 
• changes to head of expenditure
• Income
• foreign currency.
  

In addition to the common risks identified in the Background and Introduction section of this Manual a number of significant risks relating to this section include:

• money paid into the Criminal Offences Confiscations Fund is not used for the purposes intended
• the States or Government of Jersey’s reputation may be compromised because of poor control of the Criminal Offences Confiscations Fund
• transfers to fund expenditure are not properly authorised
• money allocated from the Criminal Offences Confiscations Fund is spent on areas of expenditure not intended
• that money due to be shared with another jurisdiction is not available

Principles 

1. Money confiscated in accordance with the Proceeds of Crime (Jersey) Law 1999 should be promptly collected and banked.

2. Expenditure from the Criminal Offences Confiscations Fund should follow all relevant procedures set in this Manual for expenditure approved by the States Assembly. 

3. Where a confiscation takes place in a foreign currency Treasury and Exchequer should be notified so that consideration can be given to the most appropriate way to manage any foreign exchange exposure.

4. Funds allocated from the Criminal Offences Confiscations Fund should only be used for the purpose approved by the Minister for Treasury and Resources. Any unspent funds should be returned to the Criminal Offences Confiscations Fund. In exceptional circumstances the Minister for Treasury and Resources, having consulted with the Attorney General, may agree that unspent funds are allocated for other purposes which meet the terms of the Criminal Offences Confiscations Fund.

Requirements

1. Investing of unallocated funds

The Treasurer of the States must ensure that all money within the Criminal Offences Confiscations Fund is held in an appropriate current or deposit bank account with a bank approved by the Minister for Treasury and Resources or their delegate.

2. Approval of Expenditure

Expenditure must not be directly met from the Criminal Offences Confiscations Fund. 

For expenditure approved outside of the Government Plan process, once approval has been given to the proposal, the relevant funding may be transferred from the Criminal Offences Confiscations Fund and allocated as departmental income in the relevant head of expenditure. In order to enable the project to commence approval to use additional income in line with requirements in the Manual’s section on Changes to head of expenditure. At this stage accountability for the project moves to the Accountable Officer with responsibility for the head of expenditure which received the income.

This process does not need to be followed for expenditure funded from the Criminal Offences Confiscations Fund and approved as part of a Government Plan. This expenditure is already included in the relevant departmental head of expenditure and has received approval to spend.

3. Investment Appraisal of Expenditure

The Treasury and Resources Minister must consult the Attorney General (and where appropriate any other relevant person) on the proposed use of funds (as per Article 24(4)(a) of the Proceeds of Crime (Jersey) Law 1999) held in the Criminal Offences Confiscations Fund.

To ensure value for money and that proposed projects are in line with States of Jersey priorities all projects put forward for Criminal Offences Confiscations Fund funding must be appraised by the Treasury and Exchequer’s Investment Appraisal Team before consideration by the Treasurer of the States who will make a recommendation to the Minister for Treasury and Resources. The Minister for Treasury and Resources holds overall responsibility for deciding what projects are progressed. If the Minister decides to take a different approach from that advised by the Treasurer of the States relevant documented evidence must be retained. 

4. Payment under Asset Sharing agreements

The Treasurer of the States must ensure that, where necessary, payments from the Fund meet the terms of any signed asset sharing agreement.

5. Reporting

The Minister for Treasury and Resources must report to the States Assembly at six monthly intervals regarding the use o​f additional income and the purpose for which it was used. 

Details on the financial affairs of the Criminal Offences Confiscations Fund must be reported in the States of Jersey’s Annual Report and Accounts.

Expen​ses​

Introduction and background​

Principl​​es

Requirements

Financial reporting and accounting

Annual financial statements

Introduction and background

This section applies to all States Bodies as defined in the Public Finances Law, and provides guidance on financial reporting arrangements both at the States Bodies and States of Jersey levels.

Users of this section should refer to other sections of the Public Finances Manual that are relevant. Specifically, this includes:

• income
• assets
• expenditure
• investments
• funds
• financing
• budgeting

Users should refer to the Jersey Financial Reporting Manual, see supporting documents, which provides guidance on the preparation of financial statements.

The Jersey Financial Reporting Manual sets out the accounting standards to be adopted in the preparation of the States of Jersey Financial Statements. It is based on the UK Treasury Financial Reporting Manual, adapted for States of Jersey-specific situations. The accounting policies contained in the Jersey Financial Reporting Manual apply UK endorsed International Financial Reporting Standards as adapted or interpreted for the Public Sector in Jersey. The Jersey Financial Reporting Manual is published by the Minister for Treasury and Resources and presented to the States each year. The relevant annual update of this can be found in the Report section of the States Assembly website.

In addition to the common risks identified in the background and introduction section of the manual a number of significant risks relating to this section include: 

• the States Assembly and the public are unable to assess the performance of the States or Government of Jersey against its stated priorities due to lack of transparency and consistent framework for reporting financial outcomes
• the States Assembly is not provided with up-to-date financial information and is, therefore, unable to make appropriate decisions
• reports produced by different States Bodies are inconsistent due to a lack of commonality regarding the accounting standards used or the template utilised
• those responsible for producing reports are unaware of the expectations in terms of frequency of reporting and the nature of reports required
• the manner and format of how matters are reported is not transparent, nor easily understood, by all stakeholders including the Accountable Officers and the States Assembly

Principles

1. All reporting, budgeting, forecasts, performance measuring documents and financial statements should use the same generally accepted accounting principles.

2. Reporting should be clear, concise and consistent throughout the States of Jersey. Consideration should be given to alternative methods of presentation, e.g. infographics, where they will make the report more easily understood and accessible to non-financially trained users.

3. Reports should be comprehensive and present a States-wide view of finances, e.g. including the aggregated debt position.

Requirements

1. Recording and reporting

States Bodies must record and report transactions in line with the provisions of the Jersey Financial Reporting Manual and any accompanying guidance. Accountable Officers are responsible for ensuring that the relevant staff are aware of the requirements of the Jersey Financial Reporting Manual and that these requirements are complied with.

2. Semi-annual updates

States Bodies must provide financial information in the form required by the Minister for Treasury and Resources focusing on the progress against objectives.

3. Specified Organisations

In the case of Specified Organisations, financial reporting arrangements must be clearly set out in the relevant Memorandum of Understanding and should be such that public funds received can be clearly accounted for.

4. Performance monitoring

Treasury and Exchequer will provide standardised reporting templates and guidance on the most appropriate ways to present the different types of financial information for different audiences.

5. Retention of financial documents

Accountable officers must ensure that documents are retained in accordance with the periods set out in Retention of Financial Documents (within Supporting documents).

6. Consultation on changes to accounting standards

The Comptroller and Auditor General must be consulted for a minimum of five working days on any proposed revisions to the Jersey Financial Reporting Manual.

Financial planning and budgeting

Government plan and budgeting

Introduction and background

This section applies to all States Bodies as defined in the Public Finances Law, with the exception of Specified Organisations (but includes Jersey Overseas Aid) as defined in schedule 2 of the Public Finances Law. It applies to the creation and management of budgets, and provides guidance on the responsibilities arising in relation to the process of preparing the financial elements of the Government Plan as defined in the Public Finances Law. Note that this includes the preparation of income and expenditure plans by individual States Bodies that contribute to the consolidated draft Government Plan.

This Section adopts the definition of ‘budget’ from the Organisation for Economic Co-operation and Development’s Recommendation on Budgetary Governance. Specifically, a budget is a “contract between citizens and state, showing how resources are raised and allocated for the economic, efficient, and effective delivery of public services”.

The areas covered by this section include:

• responsibilities of Accountable Officers in relation to budgets
• preparation of an annual income and expenditure plan for individual States Bodies
• proposals for Major Projects
• management of a States Body's budgets subsequent to the commencement of the approved Government Plan
• ongoing reporting of performance against budget

For the avoidance of doubt, this section is not intended to address the role of the Treasury and Exchequer in collating budgetary submissions received from Accountable Officers, and balancing them to form the financial elements of the Government Plan. Nor does it address the creation of taxation or impôt proposals, or other income-related matters for which individual States Bodies are not directly responsible.

Users of the Public Finances Manual should refer to other sections that are relevant. Specifically this includes:

• assets
• Accountable Officers
• cash
• expenditure
• fees and charges
• reserves
• grants
• income
• Major Projects
• Projects

In addition to the common risks identified in the background and introduction section of the manual a number of significant risks relating to this section include: 

• a States Body budgets to spend too much, leading to the potential for best value being unachieved
• a States Body budgets to spend too little, and so has insufficient funds to deliver its priorities
• an individual States Body’s income and expenditure proposal does not further the collective Strategic Priorities of the States or Government of Jersey
• a historic/cost plus approach to budgeting renders income and expenditure proposals unsuitable for the present year’s requirements
• an Accountable Officer could exceed the approved expenditure limits

Principles

1. Accountable Officers are responsible for the preparation of detailed annual and high-level forecast income and expenditure proposals for their States Bodies (and for those Funds defined in the Public Finances Law, including the Social Security Funds, Stabilisation Fund and Strategic Reserve Fund), together covering a 4 year period. This proposal should show a clear link between Strategic Priorities, policy initiatives, finances, and outcomes.

2. Accountable Officers should promote the integrity and quality of budgetary forecasts, financial plans and budgetary implementation through rigorous quality assurance including independent audit.

3. To the extent that it is feasible, Accountable Officers should adopt a zero-based budgeting mind-set. While using prior year figures for guidance is permitted, rollover budgeting should not usually be employed. 

4. When considering the preparation of an income and expenditure proposal, alternative approaches to delivering services and Strategic Priorities should be considered. Accountable Officers should also be mindful of the risks they are responsible for managing in relation to Strategic Priorities and ensure they are adequately addressed.

5. Accountable Officers should consult widely amongst their peers when preparing income and expenditure proposals to share ideas, initiatives and other thoughts in preparing their budgets.

6. The proposal should be clear and concise, considering relevant statistics and financial information available to the States Body, and aligned to the States' Strategic Priorities. It should contain clear outcomes and measures of performance.

7. The proposal should also have due regard for macro-economic and local economic trends, and draw on available information prepared by the Government of Jersey, such as intergenerational reports and long-term capital plans. This will help identify, assess and prudently manage longer term sustainability and other fiscal risks.

8. Where appropriate, Accountable Officers should also consider thought leadership prepared by supra-national bodies and the impact such trends may have on their Strategic Priorities and department more generally (such as relevant reports published by the World Health Organisation or the Organisation of Economic Co-operation Development).

9. The Accountable Officer of the lead States Body responsible for a strategic priority of the Government of Jersey should ensure other States Bodies involved in the delivery of the objective are consulted when preparing the proposal to ensure expenditure is allocated in the most economic, efficient and effective manner.

10. Subsequent to the commencement of the Government Plan and associated head of expenditure, Accountable Officers should monitor expenditure and provide regular updates both to Treasury and Exchequer and to their States Body in the format prescribed by Treasury and Exchequer.

11. As part of longer-term planning for the States of Jersey, Accountable Officers may be required to contribute to the preparation of intergenerational reports and other strategic planning. Accountable Officers should ensure that the body is able to provide the information required to the preparer of the report accurately and in a timely manner.

Requirements

1. Income an​d expenditure proposal

With the exception of Non-Ministerial States Bodies, income and expenditure proposals for States Bodies (and those Funds referred to in Principle 1 above) must be submitted to the States Treasurer prior to the preparation of the draft Government Plan. Accountable Officers of Non-Ministerial States Bodies should present their proposals in accordance with the Public Finances Law.

2. Form of income and expenditure proposal

The income and expenditure proposal prepared by the Accountable Officer should contain the following sections:

• major projects for inclusion in major project envelope
• other projects excluding Major Projects
• revenue head of expenditure
• income

3. Accounting standards

The form of the proposal must follow a format specified by the States Treasurer and be prepared in accordance with the accounting standards set out in the Jersey Financial Reporting Manual. The proposal should contain detailed income and expenditure for one year, and indicative income and expenditure for a further three years. It should contain clear outcomes, with performance measures. The Jersey Financial Reporting Manual will be published by the Minister for Treasury and Resources.

4. Consideration of alternative approaches

When preparing an income and expenditure proposal, Accountable Officers should assess if the existing model of delivery is appropriate. They should also consider a range of alternative approaches to delivering the Strategic Priorities for which they are responsible, for example the use of digital service delivery. This could include consultation with other Accountable Officers about new ideas and developments and the opportunity to deliver services and projects together.

5. Reserve

The proposal should not include provision for expenditure from the Reserve. Expenditure from the reserve should only be considered in exceptional circumstances, or if it would result in a better economic outcome for the States of Jersey. See the Reserve section for further details.

6. Sensitivity and other analysis

For material items with variables or imponderables, consideration should be given to using sensitivity analysis to assist Treasury and Exchequer in balancing the submissions from various States Bodies to the Government Plan e.g. payroll costs should be sensitised to illustrate the impact of staff turnover and vacancies. Where relevant, it may be appropriate to also present option analysis indicating the different costs and income associated with alternative methods of service or project delivery.

7. Major project envelope

If an Accountable Officer wishes to include one or more Major Projects in the income and expenditure proposal, each project must first be approved by Treasury and Exchequer. See the Major Projects section for further details.

8. Other projects

For more information, please refer to the Projects section. 

9. Proposals for Major Projects for States Trading Operations

The proposals in the Government Plan determine the approval of individual Major Projects for States Trading Operations for the financial year. These are funded from Trading Funds and not directly from the Consolidated Fund as for other States Funded Bodies.

The approval of individual Major Projects should be sufficient to deliver that project or be sufficient to complete an existing Major Project for which no other approval (e.g. a Capital Rolling Vote) sufficient to complete the project exists.

The approval of individual Major Projects should be based on the expected gross expenditure and an estimate of any capital receipts that relate to that specific project.

10. Ongoing reporting

It is the responsibility of the Accountable Officer to provide updates to the States Treasurer, comparing budgeted against actual income and expenditure of the States Body in the form prescribed by the States Treasurer. High-level updates should be provided on a monthly basis, with more detailed reports every quarter. Monthly reporting should also include estimated cash flow requirements. Quarterly reporting should include performance against agreed Key Performance Indicator’s, and explanations for any significant variances. The States Treasurer must then report the corporate financial position quarterly to the Council of Ministers.

Accountable Officers should also provide Treasury and Exchequer with accurate and timely inputs for the six-monthly updates to the States Assembly as defined in the Public Finances Law.

Accountable Officers should also perform any ongoing monitoring necessary to identify, assess and manage prudently longer term sustainability and other fiscal risks.

11. Internal communication

Accountable Officers should ensure that regular (at least quarterly) updates on performance against budget are provided to staff for whom they are responsible. The format of these updates should be determined by the Accountable Officer, but they should ensure that the updates are clear and transparent, and appropriate to their audience.

12. Further responsibilities

• Accountable Officers should ensure they are able to contribute to longer-term strategic planning when requested by the Principal Accountable Officer, for example by providing long-term estimates at the request of the Economics Unit
• Accountable Officers must document and operate a Scheme of Delegation for their States Body which segregates duties as appropriate and allocates responsibilities for budgets
• Accountable Officers must maintain and review forecasts on a regular basis
• Accountable Officers must document the control and assurance framework for their States Body to support the reliable processing of financial information
• Accountable Officers must ensure appropriate controls are in place to ensure that expenditure does not exceed approved budgets
• Accountable Officers should ensure expenditure is incurred in a timely manner so that best value is delivered for the States Body and the States of Jersey as a whole

Fiscal policy panel

Introduction and background

This section provides an overview of the operation and remit of the Fiscal Policy Panel are not bound by the requirements of the Public Finances Manual and as such this section is included for information only.

The Fiscal Policy Panel provides independent economic advice on matters relating to income raising and spending policy (including on the medium and longer term sustainability of States finances), the Strategic Reserve Fund and the Stabilisation Fund, to the Minister for Treasury and Resources and the Council of Ministers.

The legislative requirements in relation to the establishing and remit of the Fiscal Policy Panel are set out in the Public Finances Law. It also sets out provisions for independence and the requirement for an annual report on the state of the economy and the States of Jersey’s finances to inform the preparation of the Government Plan. The Council of Ministers or Minister for Treasury and Resources can request other ad hoc reports.

Users of this section should refer to other sections of the Public Finances Manual that are relevant.

In addition to the common risks identified in the background and introduction section of the manual a number of significant risks relating to this section include: 

• the operation of the Fiscal Policy Panel does not support the achievement of the States or Government of Jersey’s Strategic Priorities
• the Fiscal Policy Panel is not established or operated in line with international best practices of Independent Fiscal Institutions
• the Fiscal Policy Panel is not sufficiently independent or perceived as such
• the Fiscal Policy Panel is not provided with sufficient resources or information to enable it to achieve its objectives

Principles

1. The Organisation for Economic Co-operation and Development sets out key principles to be considered in the establishment and operation of Independent Financial Institutions such as the Fiscal Policy Panel. These principles are based on international leading practices but should be considered in the context of Jersey’s size, political and economic characteristics. The principles include the following:

• local ownership – the Fiscal Policy Panel requires national ownership, commitment and consensus across the political spectrum to be effective and enduring
• independence and non-partisanship – this will ensure that the Panel does not presents its analysis from a political perspective, rather objectively and professionally
• mandate – the authority of the Panel should remain clearly defined in the primary legislation i.e. Public Finances Law
• resources – the resources that are allocated to the Panel should be commensurate with their mandate 
• relationship with legislature : regardless of whether the Panel reports directly to the Executive, mechanisms should be put in place to encourage appropriate accountability to the States Assembly
• access to information – the Panel should be granted full access to all relevant information, as required by them, in a timely manner, including methodology and assumptions underlying budget and fiscal proposals, and sensitivity analysis where appropriate
• communications – the Panel should develop effective communication channels, especially with the media, the public and other stakeholders, with due consideration to available communication channels and resources within the Government of Jersey
• transparency – the Panel has a special duty to act as transparently as possible to maintain credibility with the public
• external evaluation – a mechanism should be developed for external evaluation for the work of the Panel. This could be conducted by either local or international experts 

Funds

Introduction and background

This section applies to all States Bodies as defined in the Public Finances Law and provides guidance on Funds specifically named in the Law as well as other States Funds which are created in line with the Law.

For the avoidance of doubt, the Funds specifically listed in the Public Finances Law include the Consolidated Fund, the Strategic Reserve Fund and the Stabilisation Fund. The Public Finances Law also allows for the establishment of States Funds for specific purposes by the States Assembly on a proposition lodged by or with the consent of the Minister for Treasury and Resources. Funds can also be established in standalone legislation, but such legislation may only be lodged by or with the consent of the Minister for Treasury and Resources. 

When dealing with the Consolidated Fund, Strategic Fund and Stabilisation Fund reference should be made to specific provisions contained in the Public Finances Law as some requirements of this section (e.g. termination) might not be applicable to these funds. Other States Funds are:

• Currency Fund
• Insurance Fund
• Jersey Car Parking Trading Fund
• Jersey Fleet Management Trading Fund
  
• Agricultural Loans and Guarantees Fund
• Tourism Development Fund
• Channel Islands (Jersey) Lottery Fund
• Jersey Innovation Fund
• Housing Development Fund
• Dwelling Houses Loans Fund
• Assisted House Purchase Scheme
• 99 Year leaseholders Account
• Criminal Offences Confiscation Fund
• Civil Assets Recovery Fund
• Ecology Fund
• Jersey Reclaim Fund
• Hospital Construction Fund
• Climate Emergency Fund
• Social Security Fund
• Social Security (Reserve) Fund
• Health Insurance Fund
• Long-Term Care Fund
• Dental Scheme
• Fiscal Stimulus Fund
• Technology Accelerator Fund

Details on the purposes of these Funds are included in the Supporting documents section of the Manual.

Users of this section should refer to other sections of the Public Finances Manual that are relevant. Specifically this includes:

• fraud
• income
• investments

Users of this manual should take specific note of the transitional provisions included in the Public Finances Law in relation to the Funds created prior to the passing of the law. These provisions allow for the Funds to continue in existence until such time as they are wound up, subject to time considerations, their original purpose and whether they are still required.

In addition to the common risks identified in the background and introduction section of the manual a number of significant risks relating to this section include: 

• existing Funds no longer serve the purpose for which they were created or the initial objectives could be better achieved through alternative arrangements
• Funds are mismanaged due to lack of sufficient oversight, administration or internal control
• Funds are not properly accounted for or that money is lost to fraud or theft
• money becomes effectively locked up to a Fund due to ring-fencing and cannot be used for alternative uses, even after the purpose of that Fund has been served 

Principles

1. There should be a clear and documented framework for the establishment, operation, monitoring and termination of Funds, where applicable, depending on the relevant legislative provisions.

2. All Funds must contribute to the Strategic Priorities of the States of Jersey. They should be periodically reviewed to ensure that they remain fit for the purpose for which they were originally established. The purpose of a Fund can only be amended via a request submitted to the States Assembly by or with the consent of the Minister for Treasury and Resources.

3. When establishing a Fund, provision should be made for the winding up of the Fund once its purpose has been served.

Requirements

1. Accountable Officers

There must be an Accountable Officer appointed for each Fund who will ensure accountability and that the Strategic Priorities of the States of Jersey in relation to the Fund are achieved. The appointment, responsibilities and other guidelines on Accountable Officers are covered in the Accountable Officers section.

2. Establishment of a Fund

The Public Finances Law allows for the establishment of States Funds on the basis of a proposition lodged by or with the consent of the Minister for Treasury and Resources. The Minister must prepare or arrange for a business case for consideration by the States Assembly for any new Fund. Any assumptions contained within the business case must lay out the strategic objectives of the Fund, governance and operational arrangements, source of the initial Funds, expected life span, termination and evidence that creation of a Fund provides the most benefits for the States of Jersey in terms of value for money.

Funds can also be established in legislation. Any legislation which proposes a Fund may only be lodged by or with the consent of the Minister for Treasury and Resources. Funds established via this route should follow the same appraisal, monitoring and reporting process as those established in a Report and Proposition.

3. Ongoing monitoring and reporting

The Accountable Officer must provide a periodic, but as a minimum six-monthly, report to Treasury and Exchequer covering:

• operational and financial performance against the aims and objectives of the Fund
• how these are being met
• whether the standards set by the Government of Jersey have been met
• other key performance measures and targets as set out during the establishment of the Fund
• disclosure of future plans to establish Funds and how they are likely to impact upon the achievement of States corporate and States Bodies’ priorities (where applicable)
• all of the above in the manner prescribed by the States Treasurer

A pragmatic and risk-based approach should be adopted in meeting this requirement with consideration given to the size of the business and the nature of each Fund.

4. Fund Operation

The operation and administration of each Fund must be conducted in line with any relevant document (for example Terms of Reference) establishing the Fund and guidance on the involvement and responsibilities of Accountable Officers. All expenditure from a Fund should be agreed as part of the Government Plan process.

5. Investment of Funds

This must be carried out in line with the Public Finances Law. These include the requirement for the Minister of Treasury and Resources to present an investment strategy to the States Assembly after consultation with qualified investment professionals, the Treasury Advisory Panel and for the States Treasurer to ensure that Funds’ assets are invested in line with the investment strategy. For further guidance, please refer to the Investments section of the Public Finances Manual.

6. Joint venture funds

The requirements set out in this section apply equally to these joint venture funds or any arrangement involving the pooling of funds with the private sector, Accountable Officers must ensure that adequate due diligence is conducted on the private sector partners, appropriate service level agreements are signed and controls are in place to ensure ongoing monitoring depending on the size, purpose and risk associated with the Fund. 

Reserve head of expenditure

Introduction and background

This section applies to all States Bodies as defined in the Public Finances Law and relates to expenditure from a Reserve head of expenditure. The Minister for Treasury and Resources holds responsibility for the control of a Reserve head of expenditure, but all Accountable Officers need to ensure that any requests for funding are appropriate.

The Public Finances Law sets out a number of responsibilities for the Minister for Treasury and Resources in relation to a Reserve, including:

• to report to the States Assembly every 6 months with details of any approvals given to spend the Reserve
• to propose a head of expenditure for the Reserve in the Government Plan
• to direct how an approved appropriation from a Reserve head of expenditure may be spent in the first financial year covered by the Government Plan
• to authorise that an unspent amount appropriated from the Consolidated Fund under an approved Government Plan for one financial year is deemed to be appropriated as part of a Reserve head of expenditure for the following financial year

Allocations from a Reserve head of expenditure cannot be made without the approval of the Minister for Treasury and Resources. If necessary, the Minister for Treasury and Resources may delegate the approval for expenditure from a Reserve head of expenditure to the States Treasurer, with any decision under this delegated authority being notified to the States Assembly in the next six monthly report. 

Users of this section should refer to other sections of the Public Finances Manual that are relevant. Specifically this includes:

• budgeting
• changes to head of expenditure
• expenditure

In addition to the common risks identified in the Background and Introduction section of the manual a number of significant risks relating to this section include: 

• expenditure from the Reserve may not be properly authorised
• expenditure from the Reserve may not be in accordance with the published policy of the Minister for Treasury and Resources or offer best value to the States or Government of Jersey
• expenditure from the Reserve may exceed the amount set aside by the States Assembly for this purpose
• the States or Government of Jersey could achieve better value for money if the amounts held in the Reserve were put to alternative uses
• expenditure from the Reserve is not properly accounted for

Principles

1. A Reserve head of expenditure should be operated in line with the requirements set out in the published Ministerial Policy Statement on the Reserve.

2. A Reserve head of expenditure should be used only for unforeseen and urgent expenditure or as otherwise considered in the Government Plan or specified in the Minister’s policy statement.

3. A Reserve head of expenditure may also be used to accelerate expenditure planned in another head of expenditure for the next financial year, depending on the terms of the Reserve, if to do so would be more economic, effective and efficient than delaying the expenditure. Such expenditure should result in a corresponding transfer to the Reserve head of expenditure from the following year’s budget.

4. Expenditure from a Reserve head of expenditure should be appropriately considered, authorised and reported.

5. If a States Body aims to make a withdrawal from a Reserve head of expenditure, a plan should, where appropriate, be made to repay the figure out of the next year’s head of expenditure when agreed. However a decision can be taken by the Minister for Treasury and Resources not to require repayment.

6. Expenditure from a Reserve head of expenditure should not be used for regular recurring expenditure and its availability should not be relied upon when making budgeting decisions.

Requirements

1. Compliance

Accountable Officers and other responsible parties must ensure compliance with the Ministerial Policy on a Reserve head of expenditure. The existing Ministerial Policy for Contingency covers the following broad sections:

• the different ways allocation can be made to the Reserve
• types of expenditure that can come out of the Reserve
• the treatment of any unspent balance in the Reserve at the end of the year
• the allocation process including the role of Accountable Officers, the Investment Appraisal Board, Principal Accountable Officer, and the States Treasurer
• drawdown on approved funding
• monitoring the Reserve

2. Expenditure and unspent funds

Expenditure from a Reserve head of expenditure may only be used for the purpose for which it was approved. Unspent funds must be returned to the Reserve head of expenditure. Accountable Officers should provide monthly updates on the use of such funds to the States Treasurer.

3. Reporting

The Minister for Treasury and Resources must report to the States at six monthly intervals regarding any transfers from a Reserve identifying the head of expenditure to which it was applied.

4. Re-allocation at year end

At the end of each financial year, the Minister for Treasury and Resources may re-allocate any unspent funds from any head of expenditure to the following year’s Reserve head of expenditure.

5. Carry forward

At the end of each financial year, the Minister for Treasury and Resources may agree that unspent funds may be deemed to be appropriated to the following years Reserve head of expenditure, taking into consideration all relevant factors.

6. Delegation

The Minister for Treasury and Resources may delegate authority to approve expenditure from a Reserve head of expenditure to the States Treasurer. This delegation should only occur if there is genuine urgency in the public interest and postponing expenditure would:

• cause other damage or public detriment
• cause additional wasteful expenditure
• lose efficiency savings

Any expenditure authorised under this delegated authority must be notified to the States Assembly in the appropriate 6 monthly report.

These principles must be applied together. None should be applied alone, and no principle should be treated as more important than any other.

5. Supporting documents

Supporting documents such as invoices and receipts must be retained and available upon request for all expenses incurred and must include the date, amount, description, and purpose.

6. Donations

A donation is a gift in a form of payment, such as money, goods or services, made voluntarily and without expecting reciprocation.

Donations must not create any obligation on individuals or organisations, other than to apply the donation to the purposes of the recipient. They must be lawful in all respects, non-political, disclos​ed and appropriately documented.

7. Entertainment and hospitality expenditure

Offering entertainment and hospitality must only be incurred if it is deemed to be in the public interest and it is:

Alcohol is not permitted when offering hospitality unless approval has been received from the budget holder or accountable officer, or delegate. Approval should be sought at pre-authorisation stage wherever possible.

8. Loyalty reward scheme benefits

Fraud, c​orruption and money laundering

Introduction and background

Principles

1. Accountable Officers should be responsible for managing the risks which their respective States Bodies face, including fraud and corruption risks. They should be responsible for establishing and maintaining sound systems of internal control to manage such risks. Accountable Officers should be alert to new and emerging fraud and corruption risks affecting their States Body.

2. Accountable Officers should consider the risks of fraud and corruption in relation to any arm’s length body associated with their department, and should ensure any lay members are aware of the States’ Anti-Fraud and Corruption and Anti-Money Laundering Policies and Strategy.

3. Accountable Officers should maintain an environment where staff are willing to talk about fraud risks and senior managers are receptive to those discussions.

4. Accountable Officers should ensure that the 'zero tolerance' position within the States of Jersey on fraud, corruption and money laundering is well known amongst their staff.

5. All managers should regularly circulate States of Jersey fraud, corruption and money laundering communications received to their staff. 

6. All employees should report any suspicion of money laundering activities to the Designated AML Lead or Deputy Designated AML Lead.

7. All employees should be willing to raise any concerns they might have that relate to fraud, corruption and money laundering.

8. All employees should be aware of the risks of non-monetary fraud. This can include taking work resources home for personal use, carrying out personal activity in work time or accepting gifts of time or 'valueless' goods from external parties in exchange for States resources.

Requirements

1. Compliance with policies

Accountable Officers and all staff must comply with the States of Jersey Anti-Fraud and Corruption Policy and Anti Money Laundering Policy (attached in supporting documents).

2. Counter fraud, corruption and money laundering lead officer

Accountable Officers in Government departments must designate a lead officer in their area of operation who will lead on counter fraud, corruption and money laundering activity. That officer will:

The designation must be included in the Accountable Officer’s scheme of delegation. For the avoidance of doubt the designation identifies a point of contact – it is not a dedicated post or job title and should not involve a significant time commitment.

3. Risk assessment 

Accountable Officers, or delegates, must identify, assess, and evaluate their departments’ specific fraud, corruption and money laundering risks and document this within the States of Jersey Enterprise Risk Management system. Risk assessment must be carried out at least annually and controls must be tested to confirm effectiveness.

4. Internal controls

Accountable Officers must customise their response to fraud, corruption and money laundering risks to reflect the nature of the activities and the risks they face. This will typically involve, but is not limited to the following:

5. Training and awareness

Accountable Officers must take all reasonable steps to ensure that staff within their area of responsibility complete anti-fraud and corruption mandatory or role specific training, when available.

6. Using States resources for personal purposes

Employees must not use States or Government resources for personal purposes without the express permission of their line manager. This can constitute fraud, and can include taking home 'spare' supplies or carrying out personal activities in work time.

7. Responsibilities of all employees

All employees play a key role in preventing, detecting, and reporting fraud, corruption and money laundering. Each member of staff must:

Any fraudulent activity by a member of staff is likely to result in disciplinary action.

Losses and write offs

Introduction and background

This section applies to all States Bodies as defined in the Public Finances Law. This section provides guidance to States Bodies on what is expected when they incur losses or write off the value of assets. This section also applies to Funds for which a States Body is responsible. Specified Organisations may also want to follow this section.

As the States Assembly does not agree or approve advance provision for potential future losses when voting money or passing specific legislation, such transactions when they arise are subject to greater scrutiny and control than other payments.

A loss is any event that temporarily or permanently causes a decline in value or deprives the States of revenues, services, tangible or intangible assets or resources, including human resources. Below are some examples of circumstances that may result in losses:

• overpayments to staff due to miscalculation, misinterpretation etc. of allowances and superannuation benefits
• overpayments of social security benefits, grants, subsidies etc.
• fraud and theft, arson or any other deliberate act
• claims waived or abandoned
• fruitless payments which cannot be avoided because the recipient is entitled to it even though nothing of use to the States Body will be received in return e.g. payment for travel tickets or hotel accommodation wrongly booked; or for goods wrongly ordered or accepted
• losses due to errors in procurement processes
• bookkeeping losses such as unexplained payments e.g. unvouched or incompletely vouched payments
• inadequate charges e.g. for the use of public property
• losses are incurred due to damage to, or inadequate maintenance of physical property, e.g. stock
• a loan default
• revaluation of assets

Users of this section should refer to other sections of the Public Finances Manual that are relevant. Specifically this includes:

• government plan and budgeting
• expenditure
• fees and charges
• fraud
• income
• lending
• investment

In addition to the common risks identified in the background and introduction section of the manual a number of significant risks relating to this section include: 

• losses are recognised and written-off when there could be other alternatives to avoid the write-off
• assets are deliberately written-off in order to facilitate theft or fraud
• there is a loss of revenue that could have been received or collected
• the resources of the States Body are not used efficiently and effectively to meet the States or Government of Jersey’s Strategic Priorities
• increased budget projections due to an increase in the trend of losses or write-offs lead to a possible increase in fees and charges
• services to specific groups of users could, in effect, be reduced due to increased losses
• there is an incorrect accounting treatment of losses due to a lack of understanding of the different type of losses

Principles

1. Losses and write offs should be reduced to the lowest level possible or entirely mitigated.

2. States Bodies should have clear methods of investigating, mitigating, and reducing losses and write offs.

3. All losses and write offs should be carefully appraised and approved before being processed.

4. States Bodies should only consider accepting losses and write offs after careful appraisal of the facts (including whether all reasonable action has been taken to effect recovery), and should be satisfied that there is no feasible alternative.

Requirements

1. Assessment of controls

Accountable Officers must ensure that they have arrangements for detecting weaknesses or failures in the control system around losses and write offs and identifying appropriate corrective actions. The ability to authorise losses or write offs must be documented in the relevant Scheme of Delegation.

2. Consultation

Accountable Officers must ensure that they adopt a pragmatic approach to losses and write offs and document that approach. However, irrespective of the amount of losses, States Bodies should consult Treasury and Exchequer if the loss or write off:

• involves important questions of principle
• raises doubts about the effectiveness of existing systems
• contains lessons which might be of wider interest
• is novel or contentious
• might create a precedent for other States Bodies in similar circumstances
• arises because of obscure or ambiguous instructions issued centrally

3. Maintaining records

Accountable Officers must ensure that they maintain a record of losses at all times. The record should show:

• the nature and gross amount (or estimate where an accurate value is unavailable)
• cause of each loss
• the action taken, total recoveries and date of write-off where appropriate
• the annual accounts in which each loss is to be noted

4. Recovery

Accountable Officers must maintain a record of claims to ensure that recovery is not overlooked where efforts are still being made to secure recovery of cash losses formally written off and charged to the accounts and noted.

5. Potential losses

Accountable Officers must identify the different types of losses that may arise in the operations of the Body and ways to address the losses.

6. Loss management

When managing losses, considerations by States Bodies should include but not be limited to the following:

• for any loss incident, where there is evidence of threatening behaviour or other equivalent emergency situation, notifying the police immediately
• ensuring there are internal procedures for investigating, detecting, mitigating and monitoring of losses and write offs. The procedures must include what procedures should be undertaken after a loss incident in terms of review of the efficiency and effectiveness of the existing system
• methods to be used for any loss incident in order to recover losses in a cost-effective manner
• for all cases where a States Body has reason to believe that the conduct of an employee or contractor in the workplace is criminal in nature, promptly notifying the appropriate police authority and cooperate in any resulting investigation and subsequent prosecution
• when dealing with a loss incident alleging illegal activity by a Body’s employee or contractor, the Body must not make any threat or promise to the employee or contractor or their representatives as to whether the alleged illegal activity will or will not be referred for criminal investigation or prosecution
• whether it may be appropriate to make an insurance claim in respect of the loss

7. Notifying Treasury and Exchequer and quarterly reporting

Accountable Officers must provide a quarterly return to Treasury and Exchequer detailing all losses incurred in the period. Losses should be valued in accordance with the Jersey Financial Reporting Manual. Where losses or write offs exceed £30,000 they should be notified to Treasury and Exchequer, where practical, before the payment is made or loss recorded.

Jersey Overseas Aid

Introduction and background

This section applies to the Jersey Overseas Aid Commission, known publicly as ‘Jersey Overseas Aid’, which is designated as a Specified Organisation in the Public Finances Law. 

Jersey began its official overseas aid programme in 1968. Its current incarnation was established and is governed by the Jersey Overseas Aid Commission (Jersey) Law (2005). The organisation is governed by a Commission, which consists of three States members and three non-States members, all of whom are appointed by the States. They are legally responsible for managing the monies voted annually by the Government of Jersey for overseas aid. They are assisted in doing so by a team of directly-employed professional staff, led by an Executive Director.

Jersey Overseas Aid provides funding in the following ways:

• grants for development projects implemented through UK-registered charities and other recognised specialist aid agencies
• humanitarian aid and disaster relief through internationally-recognised relief agencies
• community work projects, where teams of Jersey volunteers undertake specific development projects overseas
• supporting Jersey charities in their work overseas, often on a matched-funding basis
• providing sponsorship and bursaries to Jersey citizens conducting charitable work overseas

The chair of the Jersey Overseas Aid Commission is also, by definition, the Minister for International Development, and vice versa. The Minister for International Development, in conjunction with the Commission, is responsible for policy on:

1. promoting economic and social development in developing countries; and
2. humanitarian aid overseas

The Jersey Overseas Aid Commission is not linked to any Department or States Body for funding purposes. It is a separate Head of Expenditure in the Government Plan.

The Jersey Overseas Aid Commission remains an independent body governed by its own (2005) law, and is a separate legal entity from the Government of Jersey.

The Jersey Overseas Aid Commission complies with the Public Finances Manual, but due to the unique nature and overseas-focus of its work it has developed some policies and procedures of its own which may differ from those in the Public Finances Manual. This section lays out where Jersey Overseas Aid complies with and differs from the Public Finances Manual.

Principles

1. Jersey Overseas Aid recognises that it has a dual responsibility: to the world’s poorest and neediest people, and to Jersey’s taxpayers. Discharging this dual responsibility requires the same, fairly straightforward approach: a well-governed, professionally-staffed donor organisation making the most effective use of its budget, concentrating on areas where Jersey can add the most value, and focusing on long-term outcomes rather than short-term activities.

2. The Mission of Jersey Overseas Aid is ‘To translate the generosity, skills and compassion of the people of Jersey into effective assistance for the world’s neediest people’. 

3. Jersey Overseas Aid’s high-level objectives are laid out in its 5 year strategy plan and are the following:

• to promote sustainable economic and human development in some of the poorest countries on earth
• to provide timely humanitarian assistance to victims of natural and manmade disasters
• to facilitate the efforts of individuals and organisations in Jersey to provide assistance to the world’s poor
• to enhance Jersey’s international personality as a responsible global citizen and force for good in the world

4. Jersey Overseas Aid complies with international standards, set out by the Organisation of Economic Co-operation and Development Assistance Committee, in what constitutes Official Development Assistance. Jersey Overseas Aid aims to improve aid and development effectiveness and is guided by the principles of aid effectiveness, as set out in the 2005 Paris Declaration, the 2008 Accra Agenda for Action, the 2011 Busan Outcome Document and the 2014 Mexico Communique. The key principles for effective aid, defined in the Busan outcome, are:

• country ownership
• transparency and accountability
• focus on results
• inclusive development partnerships

Requirements

1. Accountable Officer

The Principal Accountable Officer may appoint an Accountable Officer for Jersey Overseas Aid who will ensure accountability to the Principal Accountable Officer for the use of resources. The Accountable Officer must be a full-time employee of the Jersey Overseas Aid Commission. In normal instances, the Accountable Officer will be the most senior full-time official of the Jersey Overseas Aid Commission. The appointment, responsibilities and other guidelines are covered in the Accountable Officers section.

2. Oversight

A specific Memorandum of Understanding is being developed between Jersey Overseas Aid and the Office of the Chief Executive, which will set out the administrative support which the Government of Jersey will provide to Jersey Overseas Aid. The Accountable Officer must ensure compliance with the forthcoming Memorandum of Understanding.

3. Compliance in full with Public Finances Manual

Jersey Overseas Aid complies in full with the following applicable sections of the Public Finances Manual:

• assets
• leases
• cash
• banking
• foreign currency
• special payments
• financing
• lending
• income
• projects
• fraud
• losses and write offs

4. Majority Compliance with Public Finances Manual

Jersey Overseas Aid complies with the following sections of the Public Finances Manual with certain stated exceptions:

• consulting Treasury and Exchequer. Full compliance, except in Section 2 of Explicit Approval, Compliance only with the provision ‘Expenditure proposals affecting the Government of Jersey’s approved expenditure totals’ and none of the other examples given.
• Expenditure and Procurement. The provisions only apply to Jersey Overseas Aid where the expenditure and procurement are conducted within Jersey. 
• Major Projects. The provisions only apply to Jersey Overseas Aid where the major projects are conducted within Jersey.
• Delegations and Changes to Head of Expenditures. Full compliance apart from being exempt from requirement 6 under and overspends of revenue budgets. Any underspend at the end of the financial year should not be transferred to the Reserve but may be retained by Jersey Overseas Aid for allocation in the following year. This will need to be effected by a decision of the Minister for Treasury and Resources.
• Annual financial Statements. Compliance except with the provision of requirement 2 of Semi-Annual Updates. Financial reports can be provided but not focusing on ‘progress against objectives’. 
• Fees and Charges. Full compliance to the extent that this section is relevant, but this section does not affect Jersey Overseas Aid’s ability to recover costs from volunteers deployed on projects abroad

5. Exemptions from Compliance with Public Finances Manual

Jersey Overseas Aid is exempt from compliance with the following sections of the Public Finances Manual:

• Grants and Sponsorships. Awarding grants is the main task of the Jersey Overseas Aid Commission, and the organisation follows its own policies and procedures in this respect. 
• Investment. Jersey Overseas Aid reserves the right to make impact-oriented investments in developing countries in accordance with Organisation of Economic Co-operation and Development guidelines and only to the extent that they remain eligible to be considered Official Development Assistance. 

Jersey Overseas Aid has developed and complies with its own travel policy, developed due to the nature of its work in difficult environments abroad.

Jersey Overseas Aid has its own insurance (travel, public and employers’ liability, Directors and Officers, Special Risks).

States Employment Board

Introduction and background

The States Employment Board is established in the Employment of States of Jersey Employees (Jersey) Law 2005. It is a political body chaired by the Chief Minister, or their nominee (who must be another Minister), and comprises two Ministers or Assistant Ministers (appointed in writing by the Chief Minister) and two other members of the States Assembly (who are neither a Minister nor an Assistant Minister and who are appointed by the States Assembly). The Board may also appoint one or 2 advisors who have the right to attend and speak at meetings. The States Employment Board may delegate (in writing) to any of its members, or to the Chief Executive Officer, any of its powers or functions.

The States Employment Board is the employer of States of Jersey employees but has a more limited role in relation to certain specified senior appointments including within the Non-Ministerial Departments, Crown Officers and police officers.

The States Employment Board is responsible for giving directions regarding consultation or negotiation with States’ employees, or with representatives of States’ employees, concerning pay awards and the term and conditions of employment of those employees. This is particularly important in financial terms as a large proportion of overall States expenditure is incurred on staff costs.

Other legislative and States approved functions of the States Employment Board include:

• ensuring that the public service conducts itself with economy, efficiency, probity and effectiveness
• accountability for the health, safety and well-being of States’ employees
• issuing Codes of Practice (strategic policy documents) with which Accountable Officers (including those for Ministerial and Non-Ministerial Departments) have a duty to comply (Accountable Officers are required to produce a Policy statement setting out how they and their delegates comply with the directions set in the relevant Code)
• approving the engagement of senior employees, interims and contractors under the requirements of P59/2011
• oversight of the Jersey Appointments Commission including recommending appointments to the Commission
• preparing an Annual Report to the States Assembly.
  

All States Employment Board meetings are supported by the Group Director of People and Corporate Services who ensures that:

• meetings are formally recorded (by the States Greffe) and that minutes are agreed at a subsequent meeting
• decisions are notified to the relevant Minister and Accountable Officer – decisions which have financial implications must also be reported to the Minister for Treasury and Resources and Treasurer of the States
  

P.59/2011 – Salaries over £100, 000 – Process for Review and Scrutiny imposes a duty on the States Employment Board to control and monitor all pay proposals where the salary is likely to be over £100,000 per annum. There are established arrangements for reporting on such proposals to the States Employment Board, using a standard proforma containing key information. The States Employment Board is supported in this process by the Group Director of People and Corporate Services. Approval is required from the States Employment Board for the salary band/daily rate, and also where an alternate arrangement is required to engage the most suitable candidate.

In addition to the common risks identified in the Background and Introduction section of this Manual a number of significant risks relating to this section include:

• Accountable Officers are not fully aware of the legal, and States approved, responsibilities and accountabilities required of them by the States Employment Board
• the States Employment Board does not receive the support required to meet its statutory and States approved obligations
  
• expenditure approved by the States Employment Board may exceed the amount set aside by the States Assembly.
  

Principles

1. Effective oversight of people management is a critical component of the operation of the Government and States of Jersey. The role of the States Employment Board is to set the standards and give direction on its functions to officers rather than to conduct the work itself.

2. The States Employment Board should receive sufficient support to fulfil its obligations and it should ensure that it follows the requirements of the Public Finances (Jersey) Law 2019 and the Public Finances Manual when meeting those obligations.

Requirements

1. Consultation by the Group Director of People and Corporate Services (or their authorised delegate(s))

The Group Director of People and Corporate Services (or their authorised delegate(s)) must consult with the Minister for Treasury and Resources and the Treasurer of the States before any proposals are put to the States Employment Board which would result, or would be likely to result, in the amounts allocated, and approved, in a Government Plan to be exceeded.

The Group Director of People and Corporate Services, or their authorised delegate(s), must also consult with the Treasurer of the States and the relevant Accountable Officer (with responsibility for the budget out of which any costs would be met) prior to the States Employment Board offering an employment contract with non-standard clauses that could expose the States of Jersey to future liabilities.

The Group Director of People and Corporate Services must ensure that the Treasurer of the States (or a nominated representative from Treasury and Exchequer) is invited to all States Employment Board meetings with attendance required where either:

• any proposals are to be put to the States Employment Board which would result, or would be likely to result, in the amounts allocated, and approved, in a Government Plan to be exceeded; or
• the States Employment Board are considering offering an employment contract with non-standard clauses that could expose the States of Jersey to future liabilities.
  

2. Funding

Where a decision made by SEB has financial implications the Accountable Officer, of the department(s) affected, will be required in the first instance to meet additional costs within existing heads of expenditure. Where this is not possible a business case for supplementary funding from the Reserve head of expenditure must be made by the affected department to the Minister for Treasury and Resources (see section on Reserve head of expenditure).

The Accountable Officer must, in advance of any recommendation or decision of the States Employment Board, seek advice on any business case for funding from the Reserve from the Treasury and Exchequer.

3. Posts where remuneration is estimated to exceed £100,000

In order to meet the requirements of the Governance Statement Questionnaire (specifically Principle 1 – Accountability, Decision Making and Scrutiny) an Accountable Officer must ensure that all documentation relating to the filling, establishment or extension of any post(s) within their department where remuneration is expected to exceed £100,000 is properly completed and submitted to the States Employment Board in line with any deadlines set, in advance of finalising any decision.

4. Codes of Practice

In order to meet the requirements of the Governance Statement Questionnaire (see Principle 5. People management frameworks) Accountable Officers must complete an annual statement of compliance against the Code (applicable to the Codes issued from 2020 onwards) along with any breaches or exemptions applied to the Codes.

Specific States Owned Entities

Introduction and background

This section applies only to the following list of States Owned Entities (SOEs) (and their subsidiaries, if any) in which the States has an interest whether wholly or partly as Shareholder or as Guarantor:

Companies wholly owned by the States 

• Andium Homes Limited (“Andium”)
• Jersey Post International Limited (“JP”)
• JT Group Limited (“JT”)
• The States of Jersey Development Company Limited (“SoJDC”)
• Ports of Jersey Limited (“PoJ”)

Companies partly (majority) owned by the States

• The Jersey New Waterworks Company Limited (“JNWW”)  
• Jersey Electricity Plc (“JE”)
  

These entities are referred to in Article 53 of the Public Finances (Jersey) Law, 2019 (the “Law”).  Under this Article the Minister for Treasury and Resources is responsible for managing the States’ shares in a company, wherever incorporated, on behalf of the States, and may exercise the rights and is responsible for any liabilities attached to the shares.  These companies are referred to as the States Owned Entities (SOEs).

In addition, there are powers set up under the individual Laws and Regulations governing each of the SOEs in this section.

The overriding consideration in any SOE arrangement is the achievement of the States’ Strategic Priorities in the most effective, efficient and economic manner, ensuring the imposition of robust controls over governance, including probity and regularity.

The Shareholder Relationship team within Treasury and Exchequer are responsible for maintaining the relationship between the States of Jersey and the above listed companies.

The States Owned Entities covered by this section can be split into two classes:

• Strategic Investments; and
• States-controlled subsidiary entities.
  

Strategic Investments

The shares the States hold in:

• Jersey Electricity Plc
• Jersey Post International Limited
• JT Group Limited
• JNWW
  

are classed as “Strategic Investments” and are companies in which the States have a controlling interest.   These companies are not consolidated into the States accounts because, even though the States have either a 100% shareholding or a majority shareholding, in an adaption of IFRS 10, the Jersey Financial Reporting Manual only requires entities to be consolidated where the States have direct control evidenced by the Government, Council of Ministers or a Minister exercising in year control over operating practices, income, expenditure, assets and liabilities of the entity.

As Strategic Investments the holdings in these companies are classified in the States annual report and accounts as “Available-for-Sale” instruments.

States-controlled subsidiary entities

In addition to the Strategic Investments the Minister is responsible for the following wholly owned subsidiary companies (and any subsidiary, if any): -

• Andium - Jersey’s largest provider of affordable housing, managing more than 4,500 properties and providing homes for more than 10,000 Islanders and is the States wholly owned social housing provider.
• Ports of Jersey - the wholly owned operator of the Island's Airport and Harbours, providing the strategic gateway infrastructure and associated services.
• SoJDC – the wholly owned company responsible for the development and regeneration of States owned property and land no longer required for the delivery of public services.

The above subsidiaries are distinguished from the Strategic Investments by way of the level of control exerted by the States of Jersey.  Sufficient control is exerted over the entities above to meet the criteria for consolidation into the States of Jersey group accounts.

States of Jersey Investments Limited (“SOJIL”)

SOJIL is wholly owned by the States and is a nominee company formed to hold the issued shares in Jersey Post 

International Limited, JT Group Limited and Ports of Jersey Limited.

The following legislative provisions and agreements govern the operation of the SOEs:

Users of this section should also refer to the following sections of the Manual:

• Accountable Officers in specified organisations
• Annual financial statements.

These companies will face many of the same risks to which the States is exposed but these are managed directly by the individual Boards and Executive Management teams. Details on how these risks are managed can be found in each company’s own annual report.

The following list identifies some of the risks to the States which this section is intended to address and reduce in terms of likelihood and impact. There will invariably be more risks than can be practically listed below:

Principles

1. All SOEs should contribute towards the strategic aims, priorities, and desired outcomes of the States.

2. Service delivery should be aligned to the priorities of the States.

3. The merits of establishing a relationship with a SOE should be well defined and based on robust assumptions. 

4. A risk based approach to assurance, governance and the oversight of operational and financial performance should be exercised.

5. There should be a consistent approach to the utilisation of SOEs across the States and a continuous challenge required on both SOEs’ performance and the utilisation of SOEs as representing the most optimal mode of service delivery against viable alternative options.

Requirements

​1. SOE obligation to make staff aware

The most senior officer of each SOE must ensure that their staff are aware of the requirements of this section of the Public Finances Manual as it affects their organisation.

3. Requirements of the Companies (Jersey) Law 1991, as amended (the “Companies Law”)

In addition to the legislative provisions and agreements that govern the operation of the SOEs set out in the Introduction and background, each SOE is a Jersey registered company and is therefore governed by the Companies Law. Each SOE must comply with the following requirements:

• have a registered office in the Island in accordance with Article 67
• the directors of an SOE must observe the duties listed in Article 74 in fulfilling their responsibilities
• must maintain a register of directors and secretaries in accordance with Article 83
• must maintain a register of members in accordance with Article 84
• must produce an annual set of accounts in accordance with Article 105
• should hold an AGM of the shareholder(s) of the company at which the annual report and accounts are to be tabled for adoption in accordance with Article 87 as well as the SOE’s Articles of Association and MoU
• must produce and retain minutes of all general meetings, meetings of its members, directors, and committees of directors in accordance with Article 98.
  

4. Requirement for Memoranda of Understanding (“MoU”)

The MoU complements the legislation and Articles of Association for each wholly owned SOE. It represents the internal guidebook to the shareholder relationship. There must be an MoU between the body and the States, as represented by the Minister for Treasury and Resources, for each wholly owned SOE.  These MoUs must be published to the States Assembly, and must cover the following areas:

• the business objectives of the SOE
• the objectives of the States’ ownership of the SOE
• Key Performance Indicators (“KPIs”)
• obligations to inform, consult and/or approve
• director appointment and remuneration provisions
• risk management
• the requirements for a Strategic Business Plan
• reporting requirements
  

5. Periodic updates

On a quarterly basis, to a timescale agreed with the Minister all wholly owned SOEs must provide financial information in the form required by the Minister for Treasury and Resources focusing on progress against objectives. All majority owned SOEs must provide financial information on a semi-annual basis in the form required by the Minister for Treasury and Resources.

6. Meetings

The MoUs set out a calendar of meetings, besides the AGM, that must take place between the SOEs, the Minister for Treasury and Resources and Treasury officials, as well as define the items to be discussed, papers and reports to be tabled at each meeting. The dates of the quarterly meetings for the following year should be agreed with the company secretaries of the SOE by the last quarter of each year.

7. Meeting notes

The Treasury and Exchequer’s Shareholder Relationship Team must ensure that official notes of all meetings with the SOEs are taken and these are circulated to attendees as soon as is practicable after the meeting to ensure the notes are an accurate record of discussions held during those meetings.

8. Strategic Business Plan (“SBP”)

Each SOE is required by the MoU to produce a SBP, and keep it under review, setting out the SOE’s objectives and aims for the ensuing period covered by the SBP. The MoUs set out detailed requirements as regards what should be contained within the SBP as a bare minimum. The SOE must seek the approval of the SBP by the Minister for Treasury and Resources. Treasury officials may seek external assurance reviews of the SBP as deemed appropriate and necessary. At each quarterly meeting, the SOE must present an update on their performance against the Key Performance Indicators in the SBP.

9. Reporting

Under the terms of the MoUs, the SOEs must provide such reporting on an annual and ad hoc basis for the purpose of preparing the financial statements of the States and to assist with the financial planning of the States. This information must be provided in line with the States of Jersey’s accounting timescales.

10. Provision of information

SOEs must give the Minister for Treasury and Resources shareholder access to information to assist the Minister to properly and effectively respond, within the necessary timescale, to requests for information for Ministerial questions. SOEs must provide any other information required for the Shareholder to fulfil its responsibilities on behalf of the States.

11. Risk Management

In accordance with each MoU, the Treasury’s Head of Risk must be invited to attend two of the quarterly shareholder meet​ings per annum with the SOEs. In addition, Treasury officials must bring any risk issues with respect to the SOEs that need to be considered and escalated to the attention of the Head of Risk.

12. SOJIL

SOJIL holds the shares in Jersey Post, JT and Ports of Jersey as nominee for States of Jersey. Accordingly, dividends received from these entities are automatically paid to States of Jersey.

Annual financial statements are prepared for SOJIL which note the dividends that were paid to the States of Jersey during the course of the year in respect of the shares held as nominee.

The Directors’ resolution that is prepared to approve the annual financial statements also ratifies all actions of the directors during the course of the year, which include the signing of proxy forms for the Annual General Meetings of Jersey Post, JT and Ports of Jersey.

13. Retention of financial documents

The Shareholder Relationship Team must ensure that documents in respect of the SOEs are retained in accordance with the periods set out in Retention of Financial Documents (see Supporting documents) in an appropriate format.

Supporting documents

Business Travel Policy

Frameworks for major, strategi and other projects

Governance checklist and grant application for Arm's Length Organisations under £1 million

Governance checklist and grant application for Arm's Length Organisations over £1 million

Governance questionnaire

Jersey Financial Reporting Manual

Land and property disposal and acquisition policy​​

List of Ac​counta​ble Officers

Non-qualifying expenses​

Procurement Best Practice and Procedures: User Guide and Toolkit

Purchase card procedures

Purpose of States Funds

Retention of Financial Documents

Senior Responsible Office​​​r Appointment Letter (sponsoring or supplying)​

Special payments

​ Glossary

A

Accountable Officer

An official who has overall responsibility for a States Body or other organisation for which such an official may be appointed in accordance with the Public Finances Law​.

Aggregated Foreign Currency Cash Flow​

The net combined inflows and outflows in foreign currency over a given time period.

​Arm’s Length Organisation

An organisation which either has statutory fee levying powers or fulfils a role or function the Government of Jersey would otherwise perform (this definition does not extend to organisations which receive funding from the Government of Jersey of less than £75,000 per year).

​Asset

A tangible or intangible resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow.

B

​Benefit payments

Benefit payments are part of a social welfare framework established by Government Policy. They typically include a payment of money to people who have been identified as in need of support. These could include those who are ill, financially insecure, and elderly or those who have children, etc.​

C

​C&AG

The Comptroller and Auditor General of Jersey, whose duties are specified in the Comptroller and Auditor General (Jersey) Law 2014 and other legislation where the C&AG is required to appoint an auditor.

​Capital Rolling Vote

​A head of expenditure agreed in the Government Plan for general maintenance projects not specifically identified within the Major Projects Envelope.

​CEO

Chief Executive Officer.

​Chief Minister

​The head of the Government of Jersey and leader of the Council of Ministers.​Chief Officer of the States PoliceHas the command, direction and control of the States Police Force and of each of its police officers.

​CIF

​Common Investment Fund. The pool of assets available for the Government of Jersey to invest in accordance with the investment strategy published by the Minister for Treasury and Resources.

​Clawback

The act of retrieving money paid out by the Government of Jersey to a third party.

​CoM

See Council of Ministers​.

​Commercial Services team

​The Government of Jersey team with responsibility for the procurement of goods and services.

​Common Strategic Policy

​A document agreed and lodged by the Council of Ministers as required by the States of Jersey Law 2005.

​Complaints Panel

​The panel of independent volunteers which are available to form the States of Jersey Complaints Board when it is required to hear a complaint about a decision or administration process by any minister or department of the States.

​Consolidated Fund

​The account into which tax revenues and other relevant receipts are directed and from which payments for the majority of government expenditure are paid.

​Contingent liability

A possible obligation depending on whether some uncertain future event occurs, or a present obligation for which payment is not probable or the amount cannot be measured reliably.

​Council of Ministers

The Government of Jersey group consisting of the Chief Minister and at least seven other ministers, with duties described in the States of Jersey Law 2005.

D

​Department

A division of the Government of Jersey or a Non Ministerial Department as specified in the Public Finances (Jersey) Law 2019.

​Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life. It is used to account for declines in value. Organisations and businesses depreciate long-term assets for accounting purposes.

​Discretionary Financial Benefit

A transfer of value (monetary or otherwise) to a person or body to achieve results sought by States of Jersey policy. A discretionary financial benefit typically has the following characteristics:

• a transfer to a recipient which may be in return for compliance with certain terms and conditions;
• a transfer which may not directly give approximately equal value in return to the States (that is, there is a non-exchange transaction or subsidy so there may not be exact pound for pound value); or
• a recipient may have been selected on merit against a set of scheme-specific criteria

​Discretionary grant

​A one-off or regular Discretionary Financial Benefit which meets the definition of a grant but does not form part of an existing grant scheme.

​Donation

A transfer of value given, typically for charitable purposes and/or to benefit a cause. They impose no obligations on the recipient and offer little or no rights or benefits to the provider.

E

​EU

European Union.

Executive Leadership Team (ELT)

The ELT is an executive leadership team of the Government of Jersey’s public service. It's chaired by the Chief Executive and its membership includes:

• the Treasurer of the States and Assistant Chief Executive
• the Assistant Chief Executive and Chief Officer of People, Policy and Digital
• the Chief Officers of the following Departments:
• Customer and Local Services
• Children, Young People. Education and Skills
• Economy
• External Relations
• Infrastructure & Environment
• Health and Community Services
• Justice and Home Affairs
• Strategic Director, Assurance and Risk
• the Director of Communications
• the Chief People Officer

The following are not ELT members but have a standing invite:

• the Greffier of the States of Jersey
• a senior Representative of the Law Officers' department
  

F

​Feasibility

One of the four essential standards Accountable Officers must meet. Feasibility requires that the Accountable Officer should be satisfied that any proposed activity is likely to be successful in securing its intended result at a reasonable cost.

​Feasibility assessment

​A study to determine the viability of an idea, such as ensuring a project is legally and technically feasible as well as economically justifiable. Formal feasibility assessments are typically conducted when a Major Project is being considered.

​Finance charges

Interest and other costs, such as arrangement fees, that an entity incurs in connection with the borrowing of funds​.

​Fiscal Policy Panel

The organisation which reports on the state of the economy in Jersey and on the States’ finances in accordance with Articles 43-46 of the Public Finances (Jersey) Law 2019.

​Fixed assets

​Tangible, intangible and financial assets of a long-term nature. Typically these are assets that an entity owns and uses in its operations to generate income, not expected to be consumed or converted into cash within one year.

​FPP

See Fiscal Policy Panel.

G

​Government’s Investment Advisor

A third party organisation appointed by the Government of Jersey to provide advice and recommendations for the investments of the CIF.

​Government Plan

​The Government Plan sets out in detail how public money will be used to deliver the day-to-day services provided by government and non Ministerial departments and the Strategic Priorities set out in the Common Strategic Policy. It is composed of a detailed first year plan with outline priorities and an indicative spending envelope for the three subsequent years and is updated annually.

​Grant

A type of Discretionary Financial Benefit which does not confer the rights and benefits of a Sponsorship, but requires the recipient to comply with specific terms and conditions as to its use​.

​Grant scheme

​A system by which grants may be awarded if the proposed recipient meets certain specified criteria.

​GST

Goods and Services Tax as defined in the Goods and Services Tax (Jersey) Law 2007.

H

​Head of Expenditure

​An amount of money the States Assembly agrees may be used to deliver a service or strategic priority set out in the Common Strategic Policy.

​Hire purchase contracts ​

A form of lease that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration after which ownership of the asset transfers to the lessee.

I

​IFRS

International Financial Reporting Standards.

​Impairment

An accounting treatment by which a loss is recognised when the carrying amount of an intangible Asset or cash-generating unit exceeds its recoverable amount​.

​Income tax

Tax levied directly on personal or corporate income.

​Intangible asset

An identifiable non-monetary Asset without physical substance, such as goodwill, trademarks, and copyrights​.

​Internal Audit Charter

​The document which specifies the purpose of the Internal Audit function of the States of Jersey, along with reporting lines, scope of activities, and responsibilities.

​Investment

The placement of money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

​IT

Information Technology.

J

Jersey Appointments Commission

The independent body that oversees the recruitment of Government of Jersey employees and appointees to States supported or related bodies.

Jersey Financial Compliance Framework (JFCF)

The JFCF is an overarching framework developed to help the States of Jersey to establish and maintain effective financial management and to support the achievement of Jersey’s strategic aims, objectives and ultimately deliver expected outcomes.

Jersey Financial Reporting Manual

The technical accounting guide to the preparation of financial statements for the States of Jersey. It is complemented by guidance issued by the States Treasurer such as the Capital Accounting Manual. The Manual is based on the UK Treasury Financial Reporting Manual, adapted for States of Jersey specific situations.

​Jersey Property Holdings (JPH)

Now part of the Infrastructure, Housing and Environment Department. JPH is responsible for the real estate owned by the States of Jersey.

K

​Key Performance Indicator (KPI)

A quantifiable measure used to evaluate progress towards a population-level outcome.

​Key Stage Reviews (KSR)