The 2015 financial report and accounts have been prepared and audited. The report and accounts have been printed and will be available for presentation to the States Assembly shortly.
The 2015 accounts show a small operating deficit of £5.3 million with general revenue income of £691.7 million and departmental expenditure of £697 million.
Income vs expenditure (consolidated States of Jersey group)
Expenditure exceeded income for the year by £41.9 million in 2015 compared to income exceeding expenditure by £17.1 million in 2014. The movement of £59 million between years comprised:
- a decrease in income of £58 million in 2015, principally due to lower investment income
- an increase in expenditure of £1 million in 2015
Income vs expenditure (States Assembly approved)
Before depreciation, expenditure exceeded income by £5.3 million compared to £17.1 million in 2014. This is the net impact of greater revenue income of £34.7 million offset by an increase in net revenue expenditure of £22.9 million in 2015.
Inclusive of depreciation, expenditure exceeded income in 2015 by £49.9 million compared to £76.4 million in 2014.
Income
Total revenue income remained strong at £1.11 billion. This was £57.9 million lower than 2014 as a result of lower investment returns of £101.7 million, partially offset by income from taxation and other States charges which was £39.6 million higher than 2014.
Included in the above, general revenue income was £34.7 million higher than 2014 largely as a result of an increase in income tax receipts and the inclusion of a full year of return from Andium Homes Limited.
Expenditure
Total revenue expenditure of £1.15 billion was incurred during the year. This was an increase of £1.0 million compared to 2014.
This includes a net reduction associated with the movement in the valuation of pension past service debts of £41.6 million, offset by increases in the impairment of assets and losses on disposal, as well as an increase in social benefit payments for long term care.
Departments returned 2% savings on budgets in 2015 and returned a further £10.9 million of unspent budgets but the end of 2015.
After these budget adjustments, and ignoring non-recurring items in 2014 and 2015 such as the:
- spend on the independent Jersey care inquiry
- impact of removing the Housing Department,
- voluntary release scheme costs
- one-off grants for Jersey innovation fund
- criminal offences confiscation funds to the police headquarters
- purchase of Plémont
The Departmental Expenditure decreased by approximately £1.3 million in 2015.
Strong balance sheet
The balance sheet has grown further in 2015 with an increase in the net asset balance of £166 million to £5.9 billion, largely as a result of investment returns and the revaluation of property, infrastructure and strategic investments.
The 2015 position also includes the transfer of a number of assets to other entities including:
Capital projects
Departments spent a total of £45.6 million on capital projects in 2015, with a further £11.1 million spent by trading operations.
Investment performance
The common investment fund has generated an annual return over the last three years of 8.85% with a net return of £76.5 million in 2015.
The equity value of our strategic investments in utility companies has increased by £45.2 million (14.6%) to £355.6 million.
The investment in Jersey Electricity increased in value by £23 million (30.8%) and the valuation of Jersey Telecom increased by £12.6 million (7.0%).
Reserves
The balance in the strategic reserve decreased from £786.5 million to £771.4 million over 2015, a decrease of £15.1 million (1.9%). The movement reflects net earnings of £21.6 million less transfers out £36.7 million.
The transfers from the fund was approved by the States Assembly for:
- £10.0 million related to funding for the independent Jersey care inquiry
- £22.7 million to the hospital replacement project
- £4.0 million for redundancies
The balances in the four social security funds increased in 2015 to a total value of over £1.46 billion.
Pension liabilities
The accounts include disclosures in respect of the States’ two main pension schemes, the public employees contributory retirement scheme (PECRS) and the Jersey teachers’ superannuation fund (JTSF). They are recognised as defined contribution schemes and, as such, only the contributions made in each year are recognised in the financial statements.
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