Public Finances (Amendment No. 3) (Jersey) Law 2011

Public Finances (Amendment No. 3) (Jersey) Law 2011 Arrangement Article 1 Interpretation . 3 2 Article 1 amended . 3 3 Articles 7 to 20 and headings substituted . 4 4 Articles 24A and 24B inserted . 18 5 Article 27 amended . 19 6 Article 28 amended . 20 7 Article 32 amended . 20 8 Article 38 amended . 20 9 Article 46 amended . 20 10 Schedule amended . 20 11 Citation, commencement and transitional arrangements . 20 Public Finances (Amendment No. 3) (Jersey) Law 2011 A LAW to amend further the Public Finances (Jersey) Law 2005. Adopted by the States 19th July 2011 Sanctioned by Order of Her Majesty in Council 16th November 2011 Registered by the Royal Court 9th December 2011 THE STATES , subject to the sanction of Her Most Excellent Majesty in Council, have adopted the following Law – 1 Interpretation A reference in this Law to an Article or other sub-division of a Law by number only is a reference to the Article or other sub-division of that number in the Public Finances (Jersey) Law 2005 [1] . 2 Article 1 amended In Article 1(1) – (a) the definition “budget proposition” is deleted; (b) before the definition “Comptroller and Auditor General” there is inserted the following definition – “ ‘ capital head of expenditure ’ shall be construed in accordance with Article 16(3);”; (c) for the definition “expenditure approval” there is substituted the following definition – “ ‘ expenditure approval ’ means – (a) in the case of a States funded body other than a States trading operation, the authority described in Article 16(1), (2) or (3) as it may be varied in accordance with Part 3; (b) an amount appropriated for a financial year, in a medium term financial plan, to contingency expenditure, as that amount may be added to as described in Article 17(1);”; (d) for the definition “head of expenditure” there is substituted the following definition – “ ‘ head of expenditure ’ means a revenue head of expenditure or a capital head of expenditure;”; (e) after the definition “record” there is inserted the following definition – “ ‘ revenue head of expenditure ’ shall be construed in accordance with Article 16(1) and (2);”; (f) after the definition “standing orders” there is inserted the following definition – “ ‘ States Assembly ’ includes – (a) committees of the States established by standing orders; (b) scrutiny panels established by standing orders; and (c) the States Greffe;”; (g) in sub-paragraph (c) of the definition “States funded body” the words “or by or in accordance with standing orders” are deleted; (h) in the definition “taxation draft” the words “, except in respect of an amendment moved in accordance with Article 20,” are deleted; (i) after the definition “taxation draft” there is inserted the following definition – “ ‘ total revenue expenditure ’ in relation to a States funded body, means the amount indicated in the report accompanying a draft medium term financial plan, as amended in accordance with Part 3;”. 3 Articles 7 to 20 and headings substituted For the heading to Part 3, Articles 7 to 20 and any cross-headings to any of those Articles there are substituted the following headings and Articles – “part 3 financial planning and budgeting Medium term financial plan and budget 7 Financial planning cycle (1) The Council of Ministers must, following an ordinary election for Deputies, prepare and lodge, for approval by the States, a draft medium term financial plan for the period – (a) commencing with the second complete financial year following the ordinary election; and (b) ending with the first complete financial year following the next ordinary election. (2) The Minister must prepare and lodge, for approval by the States, a draft budget for each financial year. (3) A draft medium term financial plan and a draft budget must be prepared and lodged in accordance with the requirements in this Part. (4) The requirements in this Part are in addition to the requirements in standing orders. (5) The States may by Regulations amend in paragraph (1) the period to which a draft medium term financial plan must relate. 8 Preparation and lodging of draft medium term financial plan (1) A Council of Ministers required by Article 7(1) to lodge a draft medium term financial plan must do so in sufficient time for it to be debated and approved by the States at least 2 months before the start of the first financial year to which it relates. (2) A draft medium term financial plan must seek the approval of the States to the following amounts, for each financial year to which the draft plan relates – (a) an intended total amount of States income; (b) a total amount of net States expenditure from the consolidated fund; (c) the following amounts, not exceeding in the aggregate the total amount of net States expenditure referred to in sub-paragraph (b) – (i) for each States funded body, other than a States trading operation, the appropriation of an amount to a revenue head of expenditure being, subject to Article 16(2), its total revenue expenditure for the year less its estimated income for the year, (ii) the appropriation of an amount to contingency expenditure, (iii) the allocation of a total amount that, in the budget for the year, may be appropriated to capital heads of expenditure (other than capital projects of a States trading operation), being an amount that is net of any proposed capital receipts to be used for capital projects to which the amount may be appropriated, and (iv) the allocation of a maximum amount that, in the budget for the year, may be appropriated to growth expenditure; (d) for each States trading operation – (i) its estimated income, (ii) its estimated expenditure, and (iii) the total cost of the capital projects that it is scheduled to start during the financial year; and (e) any intended transfer of money between the consolidated fund and a fund mentioned in Part 2 or a special fund established in accordance with Article 3(3) or (4). (3) The revenue head of expenditure proposed for a financial year for the States Assembly under paragraph (2)(c)(i) must be the amount of the estimate of revenue expenditure, less the estimate of income of the States Assembly, provided under Article 24B. (4) Paragraph (3) does not prohibit the lodging of an amendment to the draft medium term financial plan that would vary the revenue head of expenditure of the States Assembly for a financial year. (5) The report accompanying a draft medium term financial plan must contain the following information – (a) an estimate of the amount that will be in the consolidated fund at the start of each financial year to which the plan relates; (b) an estimate of the amount that will be in the consolidated fund at the end of each financial year to which the plan relates, after provision has been made for the intended amounts to be paid into the consolidated fund and the expenditure and allocations proposed under paragraph (2)(b), (c) and (e); (c) the Minister’s statement of the expected purposes for which the Minister will approve transfers from the amount appropriated for contingency expenditure for each financial year to which the plan relates; (d) such information as the Council of Ministers believes that the States may reasonably be expected to need in order to consider the amounts proposed under paragraph (2); and (e) the comments of the Comptroller and Auditor General (if any) provided under Article 24B on the estimate of revenue expenditure of the States Assembly. (6) The Council of Ministers must not lodge a draft medium term financial plan that includes a report that shows a deficit in the consolidated fund at the end of any financial year to which the plan relates. (7) If the Council of Ministers is unable to agree with a non-Ministerial States funded body (other than the States Assembly) the revenue head of expenditure of the body for a financial year the report must also contain – (a) a note stating the estimate provided by the non-Ministerial States funded body for its revenue head of expenditure; and (b) an explanation stating why the amount of the revenue head of expenditure proposed by the Council of Ministers varies from that estimate. (8) The States may, by Regulations, amend in paragraph (1) the time by which a draft medium term financial plan must be lodged. (9) Only the Council of Ministers may lodge a draft medium term financial plan. (10) In this Article ‘States income’ includes money derived from taxation. 9 Restriction of amendment of medium term financial plan approved by the States (1) Once a medium term financial plan has been approved by the States – (a) the total amount of net States expenditure approved for a financial year to which the plan relates may only be varied on a proposition lodged in accordance with paragraph (2); (b) the amount appropriated to a revenue head of expenditure of a States funded body for a financial year to which the plan relates may only be varied – (i) on a proposition lodged in accordance with paragraph (2), or (ii) as described in Article 16(5)(b) to (g); (c) the amount appropriated to contingency expenditure for a financial year to which the plan relates may only be varied – (i) on a proposition lodged in accordance with paragraph (2), or (ii) by the addition of the amounts described in Article 17(1)(b) to (d); (d) the total amount, described in Article 8(2)(c)(iii), allocated for capital projects for a financial year to which the plan relates (other than capital projects of a States trading operation) may only be varied on a proposition lodged in accordance with paragraph (2); (e) the maximum amount, described in Article 8(2)(c)(iv), allocated for appropriation to growth expenditure for a financial year to which the plan relates may only be altered on a proposition lodged in accordance with paragraph (2). (2) The Council of Ministers may only lodge a proposition for the purposes described in paragraph (1) – (a) if a state of emergency has been declared under the Emergency Powers and Planning (Jersey) Law 1990 [2] ; (b) if the Council is satisfied that there exists an immediate threat to the health or safety of all or any of the inhabitants of Jersey; (c) if the Council of Ministers is satisfied that there is a serious threat to the economic, environmental or social wellbeing of Jersey which requires an immediate response; (d) following the appointment of a Council of Ministers otherwise than following an ordinary election for Deputies; or (e) in accordance with paragraph (3). (3) If, at any time, it appears to the Council of Minister that, by reason of any variance between the intended total amount to be paid into the consolidated fund and amounts actually received in a financial year, or by any other reason, the receipts and expenditure approved in the medium term financial plan would result in a deficit in the consolidated fund at the end of any financial year, the Council of Ministers must lodge a proposition, for the purposes described in paragraph (1), that, if approved by the States, would remedy the deficit. (4) The Council of Ministers must not lodge an amendment to a medium term financial plan that, if the receipts and expenditure proposed in it were approved, would result in a deficit in the consolidated fund at the end of any financial year to which the plan relates. (5) Paragraph (1) does not prohibit the lodging of an amendment to a proposition lodged under paragraph (2). (6) If a medium term financial plan is amended before it is approved by the States, either a supplement to the report that accompanied the draft plan when it was lodged shall be issued or the report shall be reissued, to take account of the amendment. 10 Preparation and lodging of draft budget (1) Once the annual financial statement required by Article 32 for the previous financial year has been prepared, the Minister must, in advance of the budget, and after consultation with the Council of Ministers, inform the States of the amount (if any) he or she intends to propose, in the budget, should be allocated to growth expenditure for the following financial year. (2) The Minister must – (a) in the course of preparing a draft budget, consult with the Council of Ministers upon the amounts described in paragraph (3); and (b) lodge a draft budget for a financial year in sufficient time for it to be debated and approved by the States before the start of that year. (3) A draft budget must seek the approval of the States to the following for the financial year to which it relates – (a) the amount of income intended to be raised by taxation during the year; (b) a maximum amount (if any) that the States may borrow during the year, in accordance with Article 21; (c) the amounts (if any) in respect of growth expenditure, described in Article 11(1); (d) for each capital project to be started or continued in the year by a States funded body (other than a States trading operation) and for which no other expenditure approval sufficient to complete the project exists, a capital head of expenditure; (e) for each States trading operation, details of each capital project that it is scheduled to start during the next financial year; and (f) amounts (if any) to be transferred between the consolidated fund and any fund mentioned in Part 2 or a special fund established in accordance with Article 3(3) or (4). (4) Subject to paragraph (6), if the estimates of the States Assembly, provided under Article 24B, include an estimate for a capital project to be started or continued in the year and for which no other expenditure approval sufficient to complete the project exists, a capital head of expenditure for the amount of the estimate shall be included in the draft budget, under paragraph (3)(d). (5) Paragraph (4) does not prohibit the lodging of an amendment to the draft budget that would vary or omit a capital head of expenditure of the States Assembly for the financial year. (6) The aggregate of the capital heads of expenditure proposed under paragraph (3)(d) must not exceed the total amount, described in Article 8(2)(c)(iii), allocated for capital heads of expenditure, by the States, for the financial year in the medium term financial plan. (7) The report accompanying a draft budget lodged by the Minister must contain the following information – (a) an estimate of the amounts from each source that, in the financial year, would be paid into the consolidated fund by way of receipts from taxation, if the proposals for taxation in the budget were approved, and from income; (b) a summary of the amounts in respect of growth expenditure, described in Article 11(9); (c) a summary of amounts (other than those referred to in sub-paragraph (b)) previously authorized by the States to be withdrawn from the consolidated fund during the year and all money to be paid into the fund during the year; (d) the nature and cost of each capital project proposed to start or continue in the year and for which no other expenditure approval sufficient to complete the project already exists; (e) an estimate of – (i) the amount that will be in the consolidated fund at the beginning of the year, and (ii) the amount that would be in the consolidated fund at the end of the year if the draft budget is approved and all moneys that are estimated to be paid into the fund during the year are received; (f) the comments of the Comptroller and Auditor General (if any) provided under Article 24B on any estimate of a capital project of the States Assembly; and (g) such other information as the Minister believes that the States may reasonably be expected to need in order to consider the amounts proposed under paragraph (3). (8) The Minister must not lodge a draft budget that includes a report that shows a deficit in the consolidated fund at the end of the financial year to which the budget relates. (9) If the Minister is unable to agree with a non-Ministerial States funded body (other than the States Assembly) a capital head of expenditure of the body for a financial year, the report must also contain – (a) a note stating the estimate provided by the non-Ministerial States funded body for the capital project; and (b) an explanation stating why, as the case requires, the Minister has not proposed any capital head of expenditure for the project or has proposed a capital head of expenditure for an amount less than the non-Ministerial States funded body’s estimate. (10) The States may, by Regulations, amend in paragraph (2)(b) the time by which a draft budget must be lodged. (11) Only the Minister may lodge a draft budget. (12) The Minister may, at any time during a financial year, lodge a further draft budget for the year. (13) If a draft budget – (a) is not approved by the States or is amended by the States; and (b) as a result the consolidated fund would, after provision had been made for all the receipts and expenditure approved, be in deficit at the end of the financial year to which the budget relates, the Minister must lodge, as soon as practicable, a further draft budget which, if approved by the States, would remedy the deficit. 11 Budget – growth expenditure (1) Subject to this Article, the amounts referred to in Article 10(3)(c) to be included in a draft budget are – (a) a total amount (if any) for appropriation to growth expenditure for the financial year; and (b) the appropriation, from the amount (if any) proposed under sub-paragraph (a), of – (i) amounts to specified heads of expenditure, and (ii) an amount (if any) to contingency expenditure. (2) A proposed appropriation to a specified head of expenditure may also specify one or more purposes for which the money is to be used. (3) Subject to paragraphs (5) and (6), and notwithstanding that a budget relates to one financial year, a proposal for the appropriation of an amount to a revenue head of expenditure for the year to which a budget relates in respect of expenditure that will recur in one or more remaining years of the medium term financial plan may also propose the appropriation of amounts to revenue heads of expenditure for each or any of those remaining years. (4) Subject to paragraphs (5) and (6), where a proposal described in paragraph (3) for the appropriation of an amount from growth expenditure to a revenue head of expenditure for a remaining year of the medium term financial plan is approved by the States, the approval also approves the appropriation of the amount to the total amount for growth expenditure for that year, as described in paragraph (1)(a). (5) The total amount (if any) appropriated to growth expenditure for a financial year cannot exceed the maximum amount allocated for growth expenditure by the States for that financial year in the medium term financial plan. (6) Except as provided by paragraph (7), the amounts appropriated from growth expenditure for a financial year to heads of expenditure and contingency expenditure cannot exceed the total amount appropriated to growth expenditure for that year. (7) Where, for any financial year, the States approve the appropriation of an amount from growth expenditure to a head of expenditure for specified purposes, and the States subsequently decide that, by reason of a change in circumstances, all or part of the amount is no longer required to be expended for those purposes – (a) the States may approve the transfer of the amount that is no longer required from the head of expenditure back to growth expenditure; and (b) fresh appropriations of all or part of the amount may be proposed, as described in paragraphs (1)(b), (2) and (3), whether for the year for which the approval described in sub-paragraph (a) of this paragraph has effect or for any remaining year of the medium term financial plan. (8) Where, pursuant to paragraph (7), an amount previously appropriated to growth expenditure for one financial year is the subject of a fresh appropriation to a head of expenditure or contingency expenditure for a remaining year of the medium term financial plan, notwithstanding Article 9(1)(a), the total amount of net States expenditure for that remaining year shall be increased by the amount of the appropriation. (9) The report accompanying a draft budget must contain a summary of – (a) all appropriations from growth expenditure previously approved as described in paragraph (4) by the States for the financial year and any remaining years of the medium term financial plan; and (b) amounts previously transferred back to growth expenditure as described in paragraph (7)(a) and which have not been appropriated as described in paragraph (7)(b). 12 Amendments to draft budget (1) An amendment to a draft budget is not limited to an amendment of the draft budget but may propose – (a) the amendment of any enactment that imposes a tax or provides for the administration of a tax (whether or not the Minister has lodged a taxation draft that would amend the enactment); (b) the imposition of a new tax; (c) an alternative way for the States to borrow money; (d) an alternative way for the States to obtain financial resources. (2) Article 11(5) and (6) applies to an amendment to the budget for or regarding the appropriation of a total amount to growth expenditure, or for the appropriation of an amount from growth expenditure to a specified head of expenditure or to contingency expenditure, as it applies to the amounts proposed by the Minister in accordance with Articles 10(3)(c) and 11. 13 Approval of budget If a draft budget is amended before it is approved by the States, either a supplement to the report that accompanied the draft budget when it was lodged shall be issued or the report shall be reissued, to take account of the amendment. Taxation drafts 14 Lodging of taxation draft (1) The Minister shall lodge any taxation draft that is necessary to implement a proposal in a draft budget for the variation of a tax or the imposition of a new tax in sufficient time for the taxation draft to be debated and approved by the States before the start of the financial year to which the budget relates. (2) If, at any time, the States approve a proposition (including an amendment to a draft budget) that suggests that a taxation draft should be lodged and the Minister does not lodge such a draft in sufficient time for it to be debated before the time (if any) when the proposition suggests that the taxation draft should have effect, the Minister must explain why he or she has not lodged the taxation draft. (3) Only the Minister may lodge a taxation draft. (4) Paragraph (1) does not prevent the Minister lodging a taxation draft at any time. 15 Taxation draft may be given immediate effect (1) This Article applies to a taxation draft that is a draft Law. (2) The States may, by Act, declare that the provisions of a taxation draft to which the Act applies shall, upon the Act being made, have effect as if the draft was a Law passed by the States, confirmed by Her Majesty in Council and registered in the Royal Court. (3) The power in paragraph (2) may be exercised at any time after the taxation draft has been lodged. (4) The provisions of a taxation draft given effect under paragraph (2) may include provisions for – (a) the collection and administration of a tax; (b) the proper administration of matters connected with the imposition of a tax; (c) the interpretation, application, effect and commencement of the taxation draft; (d) consequential amendments, transitional arrangements and savings that are supplemental to any provisions of the taxation draft being given effect. (5) Where any provision of a taxation draft which has effect in accordance with an Act made under paragraph (2) provides for the renewal of an existing tax, any enactment which was in force with reference to the tax as last imposed shall, subject to any amending provisions of the taxation draft which also have effect in accordance with an Act made under paragraph (2), have full force and effect with respect to the tax as so renewed. (6) If, after an Act has been made under paragraph (2), a provision of a taxation draft given effect by the Act is amended before it is confirmed by Her Majesty in Council, money paid or deducted under the provision as given effect by the Act which would not have been paid or deducted under the provision as so confirmed shall be repaid or made good. (7) If, after an Act has been made under paragraph (2), a provision of a taxation draft given effect by the Act is withdrawn, or the States decide not to adopt it, or Her Majesty in Council decides not to confirm it, any money paid or deducted under the provision shall be repaid or made good. (8) In paragraphs (6) and (7), a reference to money paid or deducted under a provision of a taxation draft includes a reference to money paid or deducted under a subordinate enactment made in exercise of a power conferred by the provision of the taxation draft. (9) In this Article, ‘taxation draft’ includes any amendment to a taxation draft that is adopted by the States before the Act is declared. Expenditure 16 Authorized expenditure (1) The approval by the States of a revenue head of expenditure of a States funded body for a financial year authorizes the body – (a) subject to paragraphs (4) and (5), to withdraw from the consolidated fund, in the year, amounts not exceeding, in total, the amount of the revenue head of expenditure; and (b) subject to Article 19, to withdraw from the consolidated fund, in the year, amounts not exceeding, in total, the amount it pays into the consolidated fund in the year by way of income or, if that amount exceeds its estimated income for the year, referred to in Article 8(2)(c)(i), amounts not exceeding that estimated income. (2) Notwithstanding paragraph (1) and Article 8(2)(c)(i), if a States funded body has estimated income for a financial year in excess of its total revenue expenditure for the year, the approval by the States of a revenue head of expenditure for the financial year for the body authorizes the body, subject to paragraph (5) and Article 19, to withdraw from the consolidated fund, in the year, amounts not exceeding, in total, its total revenue expenditure for the year. (3) Subject to paragraphs (4) and (5), the approval by the States of a capital head of expenditure authorizes a States funded body (other than a States trading operation) to withdraw from the consolidated fund, in one or more financial years, commencing with the financial year for which the approval is given, to make payments due for a capital project, amounts not exceeding, in total, the amount approved for the project, net of any capital receipts that are intended to be used for the project. (4) If the States, when approving a head of expenditure, provide that the approval is dependent upon the subsequent approval by the States of the funding for the head of expenditure, the authority given by the head of expenditure to withdraw an amount from the consolidated fund shall have effect in accordance with the conditions of the approval. (5) A revenue head of expenditure approved by the States in the medium term financial plan, as described in Article 8(2)(c)(i), or a capital head of expenditure approved by the States in the budget, as described in Article 10(3)(d) may be varied, following such approval, by – (a) the approval by the States of an amendment, lodged in accordance with Article 9, to the medium term financial plan; (b) the approval by the States as part of a budget, of the appropriation of an amount from growth expenditure, as described in Articles 10(3)(c) and 11(1)(b) and (7)(b); (c) a decision of the States to transfer an amount from a head of expenditure to growth expenditure, as described in Article 11(7)(a); (d) a transfer of an amount from contingency expenditure, approved by the Minister under Article 17; (e) a transfer approved by the Minister under Article 18; (f) an authorization given by the Minister under Article 18(5); or (g) a determination by the Council of Ministers under Article 20(3). 17 Contingency expenditure (1) The amount available for contingency expenditure in a financial year is the aggregate of – (a) the amount approved by the States, in the medium term financial plan, to be appropriated to contingency expenditure for the year; (b) an amount (if any), approved by the States, in the budget for the year, to be appropriated from growth expenditure to contingency expenditure; (c) the amounts (if any) approved by the Minister to be transferred from a head of expenditure in accordance with Article 18(1)(d); and (d) the amounts (if any) transferred by the Minister from excess income, in accordance with Article 19(1)(b). (2) The Minister is authorized to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year in accordance with paragraph (1). (3) The Minister may, when approving a transfer from contingency expenditure, specify the use to which the amount transferred is to be put. (4) The Minister must, in accordance with Article 8(5)(c) and from time to time, present to the States a statement of – (a) the Minister’s procedures for the approval of transfers; and (b) the expected purposes for which the Minister will approve transfers. (5) The Minister must not approve a transfer that would cause a deficit in the amount available for contingency expenditure in a financial year. (6) If, at the end of a financial year, the whole of the amount available for contingency expenditure in the year has not been transferred, the Minister may, under paragraph (2), approve transfers of all or any of the balance after the end of the financial year. (7) The Minister must, at periods of no longer than 6 months, report to the States details of any approvals given under paragraph (2). (8) Financial directions shall specify how and when an application for the Minister’s approval under paragraph (2) may be made. 18 Permitted variations of heads of expenditure (1) All or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister – (a) be transferred from a revenue head of expenditure to a capital head of expenditure, or vice versa, in order to comply with generally accepted accounting principles or an Order made under Article 32; (b) be transferred from one head of expenditure to another head of expenditure consequentially upon a transfer of functions by Regulations made under Article 29 of the States of Jersey Law 2005 [3] ; (c) be transferred from one head of expenditure to another head of expenditure where, otherwise than by Regulations made under Article 29 of the States of Jersey Law 2005, functions or services are transferred from one States funded body to another; (d) in the case of any head of expenditure, be transferred to contingency expenditure within or after the end of the relevant financial year; or (e) in the case of a revenue head of expenditure, be withdrawn from the consolidated fund after the end of the relevant financial year. (2) A transfer described in paragraph (1)(c) or (d) must also be approved by – (a) in the case of a transfer from a head of expenditure of the States Assembly, the chairman described in Article 24B(1); (b) in the case of a transfer from a head of expenditure of any other non-Ministerial States funded body, the person determined by the Minister for the purposes of Article 24A; or (c) in the case of any other States funded body, the Minister responsible to the States for its administration. (3) If a transfer described in paragraph (1)(b) or (c) is between revenue heads of expenditure, the heads of expenditure must be for the same financial year. (4) The Minister must, at periods of no longer than 6 months, report to the States details of any approval given under paragraph (1) since the last report made under this paragraph. (5) The Minister may authorize a States funded body that has disposed of an asset to use all or a specified amount of the proceeds of the sale for revenue expenditure or a specified capital project. (6) Financial directions – (a) shall specify how and when an application for the Minister’s approval under paragraph (1) may be made; and (b) may permit expenditure to be incurred for services and goods to be provided and paid for in the subsequent financial year where it is necessary or expedient to do so. 19 Adjustments for variations in income (1) If, during a financial year, the Minister is satisfied that the income of a States funded body which has a revenue head of expenditure for the year is likely to exceed its estimated income taken into account in approving that head of expenditure – (a) the Minister may authorize the body to withdraw from the consolidated fund during that year an amount not exceeding the likely excess of income; or (b) the Minister may, either within or after the end of the financial year, with the agreement of the person responsible for the States funded body, transfer all or part of the excess income to contingency expenditure. (2) Where paragraph (1)(a) applies, the States funded body’s total revenue expenditure is increased by the additional amount that the body is allowed to withdraw from the consolidated fund by virtue of that paragraph. (3) If, during a financial year, the person responsible for a States funded body is satisfied that the income of the body for the year is likely to fall short of its estimated income, the person must take steps to ensure that the body’s total revenue expenditure does not exceed the sum of its revenue head of expenditure and the revised estimate of its income. (4) In paragraphs (1)(b) and (3), the person responsible for a States funded body is the person whose approval would be required for a transfer from a head of expenditure of the body under Article 18(2). 20 Emergency expenditure (1) This Article applies where – (a) a state of emergency has been declared under the Emergency Powers and Planning (Jersey) Law 1990; or (b) the Minister is satisfied that there exists an immediate threat to the health or safety of all or any of the inhabitants of Jersey. (2) If the Minister is satisfied that – (a) the circumstances described in paragraph (1) require the immediate expenditure of money by a States funded body; and (b) no other money, or insufficient money, may be withdrawn from the consolidated fund by virtue of any other provision of this Part, the Minister may authorize the States funded body to withdraw the money or additional money so required from the consolidated fund. (3) If the expenditure is not subsequently authorized by an amendment to the medium term financial plan or the budget, the expenditure must be met from existing heads of expenditure, as determined by the Council of Ministers.”. 4 Articles 24A and 24B inserted After Article 24 there are inserted the following Articles – “Information gathering 24A Estimates to b e provided for States funded bodies (1) When requested by the Minister – (a) the Minister responsible to the States for the administration of a States funded body; or (b) in the case of a non-Ministerial States funded body other than the States Assembly, a person determined by the Minister, must provide the Minister with such estimates and other information as the Minister requires for the purposes described in paragraph (2), whether for one or more financial years or for any other period. (2) The purposes are – (a) providing the Council of Ministers with the information it requires to prepare or monitor a medium term financial plan; (b) the preparation or monitoring by the Minister of a budget. (3) The Minister must, when requesting estimates and other information in accordance with paragraph (1), specify – (a) the procedures to be followed for providing those estimates and other information; (b) the detail and form in which the estimates and other information are to be provided; and (c) the date by which they must be provided. 24B Estimates for the States Assembly (1) In this Article ‘chairman’ means the chairman of the Privileges and Procedures Committee established by standing orders in accordance with Article 48(2) of the States of Jersey Law 2005. (2) When requested by the Minister, the chairman must provide the Minister with such estimates and other information in respect of the States Assembly as the Minister requires for the purposes described in Article 24A(2), whether for one or more financial years or for any other period. (3) Article 24A(3) applies to a request by the Minister under this Article as it applies to a request under Article 24A. (4) The chairman must, before providing the estimates of the States Assembly for a financial year specified by the Minister – (a) consult the Minister – (i) where the information is requested for the purposes of the preparation by the Council of Ministers of a draft medium term financial plan, on the proposed policy of the Council of Ministers for the plan, or (ii) where the information is requested for the purposes of the preparation of a draft budget by the Minister, on the Minister’s proposed policy for the budget; and (b) refer the estimates to the Comptroller and Auditor General for any comment. (5) The chairman must submit with the estimates any comments made in respect of them by the Comptroller and Auditor General.”. 5 Article 27 amended In Article 27 – (a) in paragraph (1) for the words “during the succeeding financial year.” there are substituted the words “whether for one or more financial years or for any other period.”. (b) for paragraph (3) there is substituted the following paragraph – “(3) The estimates as so determined shall be included in a draft medium term financial plan or a draft budget, when it is lodged for approval by the States.”; (c) in paragraph (6) for the words “the succeeding financial year” there are substituted the words “the term of a medium term financial plan or a budget”. 6 Article 28 amended In Article 28(3) for the words “and to advise on the appropriation and budget process for each financial year.” there are substituted the words “and to advise on the preparation of a medium term financial plan and on the appropriation and budget process for each financial year.”. 7 Article 32 amended In Article 32(2)(a) for the word “practice” there is substituted the word “principles”. 8 Article 38 amended In Article 38(2)(a) for the words “provided by Article 15” there are substituted the words “provided by Article 16(1)(b) or 18(5)”. 9 Article 46 amended In Article 46 – (a) for paragraph (3)(a) there is substituted the following sub-paragraph – “(a) the effectiveness of the internal financial controls, and of the internal auditing of those controls; of – (i) States funded bodies, and (ii) independently audited States bodies that are companies (wherever incorporated) owned or controlled by the States;”; (b) in paragraph (3)(b) the words “(other than those that are companies owned or controlled by the States)” are deleted. 10 Schedule amended The words “States Assembly” are added at the end of the Schedule. 11 Citation, commencement and transitional arrangements (1) This Law may be cited as the Public Finances (Amendment No. 3) (Jersey) Law 2011. (2) This Law shall come into force on 1st January 2012 or, if it is registered after that day, 14 days after it is registered. (3) The Minister may by Order make transitional arrangements for the purposes of the commencement of this Law. m.n. de la haye Greffier of the States [1] chapter 24.900 [2] chapter 23.100 [3] chapter 16.800