12 October 2020
WEDNESDAY, 30 SEPTEMBER 2020
- The Finance Committee held their monthly meeting on Wednesday, 30 September 2020
- Terms of Reference for the Finance Committee were discussed
- Other discussions included the budget execution report for August, quarter 1 management accounts 2020/21, details of expenditure in excess for 2019/20 and an update on COVID-19 related expenditure
A meeting of the Finance Committee was held on Wednesday, 30 September 2020.
The first of the substantive Open Agenda items focussed on continuation of the discussion regarding the draft Terms of Reference for the Finance Committee. Members reviewed the responsibilities of the Economic Development Committee (EDC) as set out in the Council Committee (Rules of Procedure) (Amendment) Order 2020 and agreed that responsibility for Investment was a cross-cutting area and should thus be a joint responsibility of the EDC and Finance Committees. They agreed also that the Finance Committee should be responsible for policy and legislation relating to banking, money laundering, monopolies, financial services, financial management, income tax patents, risk management and monitoring of fiscal risk and contingent liabilities. The need for the Committee to have oversight of state owned entities was raised and this will be explored further before the Terms of Reference are finalised.
Deputy Financial Secretary, Nicholas Yon, presented a number of open session agenda items including the budget execution report for August 2020; the Quarter 1 2020/21 management accounts; details of expenditure in excess for the 2019/20 financial year; and an update on COVID-19 related expenditure for the period March to August 2020, which totalled £1.6m.
Committee Members noted that there were forecast overspends in some Directorates for the current financial year and that Corporate Finance staff were working with relevant Directorates to understand the issues and try to resolve them. The likely increased costs of overseas medical referral treatment was highlighted as a potential risk due to the need for patients to receive treatment in the UK rather than in South Africa as a result of current travel restrictions due to the COVID-19 pandemic.
In noting expenditure in excess for the 2019/20 financial year, Members were informed that Corporate Finance staff are working with the two Directorates concerned with a view to improving financial management skills and forecasting techniques. The Public Accounts Committee would, in due course, scrutinise the expenditure in excess on behalf of the Legislative Council.
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12 October 2020