Jersey Innovation Fund
Start date: 01/03/2017
Status: Review started
What is the review about?
Following a report by the Comptroller and Auditor General (C&AG), the PAC agreed to undertake a review to ensure the implementation of the C&AG's recommendations. It decided to split its review into two phases and it has heard evidence from the Treasurer of the States and the Chief Executive, and the former Chairman of the JIF Advisory Board at public hearings on 16th May 2017, as part of the first phase of the review.
Terms of reference
The Jersey Innovation Fund was created to promote competitiveness, improve infrastructure, develop innovation and diversify, creating good jobs for local people. On its establishment, the States transferred £5million to the Fund in 2013, to make loans or grants to stimulate innovation and thereby economic growth. Following the C&AG's review in January 2017, the CMD undertook to appoint 3 organisations to undertake reviews in 3 areas, namely political involvement, officer involvement and responsibility and financial arrangements.
The PAC's review will consider the following aspects:
1. How the full potential costs of the Fund, as agreed by the States in P.124/2012 (amended) were assessed, agreed, and by whom.
- When and how the quantification of risk appetite changed (from 10-20% agreed by the States to 50% outlined in Financial Direction 1.2 of 2014) and why this was not brought back to the States.
- Who was responsible for developing changes to the Finance Law to enable mechanisms for securing upside gains from successful loans, as envisaged by P.124/2012 and why the changes were not pursued.
- Why the Operational Terms of Reference were not changed when it became apparent they were unworkable in their current form;
5. How lessons have been learnt from the outcome of the CMD's reviews and how the findings of the C&AG's review of the Innovation Fund can be applied more widely across the States Departments.