Overall Management of Public Finances during the COVID-19 pandemic

Background

The rapidly evolving nature of the COVID-19 pandemic called for an extraordinary response from the Government as it has sought to save lives and protect health and livelihoods in Jersey.

The principles of good governance, transparency, value for money, effective internal control and accountability for the use of public funds remain during a time of emergency. Whilst public financial management systems need to be responsive and flexible, it is essential that they continue to ensure value for money and minimise the risk of fraud and corruption.

Scope

This report evaluated the overall management of public finances in the period from March 2020 to September 2020. It focussed on:

• financial forecasting
• procedures to record and monitor COVID-19 related expenditure
• the revolving credit facility; and
• 2020 budget re-prioritisation

Conclusions

The States responded well to the impact of COVID-19 on their financial management arrangements. This included adapting existing arrangements and developing new processes. However, the stress placed on the States’ financial management systems has highlighted some shortcomings in the arrangements previously in place, particularly in reporting financial information to decision makers and forecasting cash flows.

The States should take this opportunity to consider lessons from the impact of the COVID-19 pandemic on their financial management arrangements and identify and secure improvements going forwards.