Tuesday, May 25, 2010

GOVERNMENT ACCOUNTS 2009-10

For anyone who is interested, here are the blue books for the IOM Government:


1. The Treasury has released this week the draft Government’s Accounts for the year to 31 March 2010

2. The Accounts released at this stage are the detailed management version compiled to the nearest whole pound and which remain subject to Audit by the Public Auditors. After the completion of the Public Audit later in this year a less detailed financial report style version of the Accounts will be released and formally laid before Tynwald. The audited Accounts are expected to be laid before the October 2010 sitting of Tynwald.

3. The Accounts reveal:

· Treasury income of £570 million.

· Net revenue expenditure of £572 million.

· Capital expenditure of £100 million.

· Revenue deficit of £3 million.

· No transfers to Government reserves.

4. The Accounts show Government has started to respond to the economic challenges it is facing with Departments ensuring their costs remain within Tynwald approvals. The revenue deficit of £2.8 million is £5.5 million less than the authorised out-turn of £8.3 million (surplus of £0.2 million approved in the Budget in February 2009 less the £8.5 million additional expenditure approved by Tynwald during the year for the Department of Health & Social Security).

5. Treasury Income is slightly below the estimate for the year due to reduced interest income. Income Tax receipts off-set a reduction in Customs receipts. Departments have all remained within their approved revenue votes for the year and have absorbed the costs of public sector employees’ pay awards. As set out in the budget in February 2010, no transfers to Government reserves and funds have been made.

6. Copies of the Accounts including details of the departmental spend can be obtained from the Tynwald library or at www.gov.im.

COMMENTARY ON THE YEAR

1. Net General Revenue Account – Balance Brought Forward

The actual balance brought forward at 1 April 2010 of £41.8 million was £12.4 million more than the "Probable" shown at the Budget in February 2009, with income £11.3 million up and expenditure £1.1 million down. The out-turn for 2008-09 was shown in the audited Government Accounts, which were laid before the October 2009 sitting of Tynwald.

2. Income

Gross income from all sources at £877.3 million was generally in line with the various estimates for Departments and Other Bodies but in aggregate exceeded them by £1.5 million, mainly due to higher Department receipts and lower Treasury income.

Treasury income at £569.6 million was below estimate by £2.7 million. Within this higher Income Tax receipts (up £26.0 million) offset lower Customs receipts (down £25.7 million) and Other Treasury Income (down £3.1 million).

3. Expenditure

Net expenditure at £572.4 million was £8.2 million less than the revised estimate (the original estimate of £572.1 million plus the Supplementary Revenue Vote of £8.5 million for the Department of Health & Social Security). Department Expenditure was within the approved Votes.

4. Net General Revenue Account – Balance Carried Forward

In the 2009-10 Budget it was originally envisaged that the General Revenue Account would produce a surplus for the year before appropriation to reserves of £0.2 million. This estimated surplus was reduced to a deficit of £8.3 million after allowing for the Supplementary Votes approved during the year. However the actual gross income of £877.3 million and the actual gross expenditure of £880.1 million resulted in a deficit for the year of £2.8 million.

The deficit of £2.8 million reduced the balance brought forward of £41.8 million and resulted in a carried forward balance on General Revenue Account at 31 March 2010 of £38.9 million.

5. Capital Expenditure

Total Capital expenditure out-turn for the year was £100.3 million. This compares with the original vote of £126.8 million plus Supplementary Votes of £2.1 million.

The balance on the Capital Fund at the end of the year was £801.6 million and the cash available for capital expenditure was £116.6 million.


6. Reserve Funds

Treasury's investment strategies for the larger funds (which are externally invested) include exposure to equities and, although their market values can and have fluctuated downwards from time to time, the broad and long term trend has been upwards. In 2009-10 the market value of the investments (net of transfers into and out of the funds) increased by £109.1 million to £1,683.9 million.

Within this the market value of external investments increased by £266.6 million, a decrease of 22.5%, net of transfers. Net transfers include transfers to external investments from internal funds, including £30.0 million in respect of the National Insurance Investment Account.

The value of internally invested reserve funds (excluding the Capital Fund) reduced by £28.1 million (net of expenditure and transfers) as transfers out of the funds exceeded transfers into the funds.

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