Treasury and Resources
Ministerial Decision Report
Presentation of the 2013 Financial Report and Accounts to the States Assembly
- Purpose of Report
Presentation of the 2013 Financial Report and Accounts to the States Assembly.
- 2013 Financial Report and Accounts
The 2013 Financial Report and Accounts have been prepared and audited. The report and accounts are currently being printed and will be available for presentation to the States Assembly shortly.
The 2013 Accounts show a small operating surplus of £0.5 million with General Revenue Income of £636.7 million and Departmental Expenditure of £636.2 million.
General Revenue Income
General Revenue Income for 2013 was £636.7 million, compared with £627.7 million in 2012. This consisted of revenues gained from taxation such as personal income tax and goods and services tax (£529.3 million), Impôts, Stamp Duty and the Island Rate (£83.3 million) and other income (£24.1 million). Total income was £9.3 million less than anticipated in the Budget Statement, with lower amounts of Personal Tax and Stamp Duty being offset by additional Company Tax collected.
Departmental Revenue Expenditure
Departments Net Revenue expenditure for 2013 was £636.2 million. Departments ended the year with an underspend of £22.8 million against budgets. £19.9 million of these approvals have been carried forward into 2014 so that Departments can fund projects spanning multiple years and other spending pressures.
In addition, £20.7 million of the contingency amounts allocated by the States to deal with unforeseen pressures were not needed in 2013, and will be used to provide a buffer against spending pressures in 2014 and beyond.
Balance Sheet Management
During the year, States Departments spent £43.2 million on Capital projects to develop the fixed assets base, including improvements to Social Housing and the Island’s Infrastructure. The value of States Fixed Assets is now £3.3 billion.
The Treasury has also operated as an active shareholder with regards to Jersey Post, Jersey Telecoms, Jersey Water, Jersey Electricity and SOJDC. Together, the four utilities contributed £11 million in dividends to the States in 2013, reducing the need for that funding to be raised by taxes.
Investment Performance
The majority of the States’ Investments are managed through the Common Investment Fund (CIF), which enables States Funds to pool resources and benefit from greater investment opportunities, economies of scale and improve risk management.
The performance of the States’ investments in the CIF in 2013 was £251.0 million, a rate of return of 15.9%, exceeding benchmarks by 1.3%. In particular equity returns were 26.5% against a benchmark of 22.9%. The total value of investments held in the CIF stands at £2.4 billion, £2.0 billion of which relates to funds in the States Accounts.
- Recommendation
The Public Finances (Jersey) Law 2005 requires the Minister for Treasury and Resources to present the Annual Report and Accounts to the States Assembly.
- Reason for Decision
In accordance with the Public Finances (Jersey) Law 2005 the Minister for Treasury and Resources is required to present to the States Annual Report and Accounts to the Assembly.
- Resource Implications
None
Report author : Manager – Financial Accounting and Control | Document date : 8/05/13 |
Quality Assurance / Review : Business Manager | File name and path: l:\treasury\sections\accounting services\fact\new filing structure\states accounts\2013\issue and communication\wr - tr 2013 financial report and accounts - ah.doc |
MD sponsor : Director of Accounting Services |