08 June 2010
The Minister for Treasury and Resources, Senator Philip Ozouf, has published the States of Jersey’s 2009 accounts.
The key points in the accounts are:
- States Net General Revenue was £674 million in 2009 – that’s £20 million more than forecast. This is due to income tax receipts, which at £508 million are higher than the forecast of £488 million
- investment income has dropped 54% since 2008
- departments ended the year £7.6 million under spent - mostly due to delays in implementing various projects
- there was a net surplus of £71 million compared to the surplus originally forecast of £55 million. Although this will help cushion the island against the effects of the downturn, it is not sustainable in the longer term
- underlying, recurring expenditure was up 3% on 2008 – accounted for by inflation and various service improvements (agreed by the States Assembly in 2009 business plan)
- there was extra, unbudgeted spending of £12.7 million – to fund items like the ending of the Reciprocal Health Agreement, the Williamson plan for vulnerable children, the Historic Child Abuse Enquiry and Pandemic Flu preparations
- there were net assets of nearly £1.6 billion - including £550 million held in the Strategic Reserve
- these figures include £104 million spent on capital projects – including Energy from Waste plant (£67 million)
The Minister for Treasury and Resources, Senator Ozouf, said: “States finances have held up remarkably well, given the global economic situation. Our reserves have remained healthy with the Strategic Reserve up 8.5% on 2008 to £550 million.
“We must remember though, that these accounts are based largely on the personal income and company profits from 2008, when the economy had yet to feel the full impact of the global downturn and before zero-ten came into effect.
“And while we are anticipating a recurring deficit in the future, we have a firm plan for closing the gap between income and expenditure that has been forecast."
The Deputy Treasurer of the States, Jason Turner, said “These are the most comprehensive set of accounts ever presented to the States and represent a complete and transparent view of States’ finances. With a clean bill of health from our independent auditors, these accounts provide a thorough insight into how our public services are funded and how taxpayers’ money is spent.”
On the introduction of GAAP accounting, Jason Turner added “I am pleased to report that, as planned, the Treasury has now successfully moved to GAAP based accounting and these accounts include GAAP based information for the first time. The information has been independently audited and has been included in the 2009 accounts in preparation for full GAAP based 2010 accounts.”
In addition to the accounts, an annex has been produced. This contains detailed information on each of the departments, in a format that allows comparison. It also contains new information - such as a list of all grants made by the States of Jersey in 2009. The annex provides supporting data which supplement the accounts and provide a clear picture of how public money is spent.
Senator Ozouf added “A considerable amount of work has gone into these accounts and I am very grateful for the dedication and hard work of the small Treasury team responsible for preparing them.
“The accounts provide a useful record of the wide-ranging services provided by the public sector for islanders and funded by taxpayers. I am proud of the work done by our staff, and while I know we have a deficit to deal with, we start from a position of strength.
“Our finances are strong, our staff are dedicated and we have a realistic plan to deal with the challenges ahead. I am confident we can find the right way to deliver a successful future for our Island.”
States of Jersey financial report and accounts 2009
gov.je