Jersey Innovation Fund

Background

In 2013, the States Assembly voted to establish the Innovation Fund (‘the Fund’) to make loans or grants to stimulate innovation and thereby economic growth. The States Assembly agreed the transfer of £5 million to the Fund. 

In September 2016, the C&AG announced that she would undertake a review of the Fund. She noted that this was area of public interest and committed to reporting as quickly as possible consistent with undertaking thorough, evidence-based research.

Scope

The review considers:

• the effectiveness of the governance arrangements for the Fund as a whole and individual loans made
• the arrangements to ensure that appropriate internal controls are in place for the loans granted; and
• whether economy, efficiency and effectiveness is being achieved.

Conclusions

The C&AG concluded that:

• the arrangements for the Fund were inadequate from the outset; and
• the operation of the Fund was deficient in many respects.

As a result, the States cannot demonstrate that good governance was in place, good internal control demonstrated and value for money secured from the Fund.

The report emphasises the role of the Accounting Officer for the Fund and concludes that he could and should have done more to ensure that public money was protected. It also expresses concern about the role of the Advisory Board and action taken by the Treasury and Resources Department.