07 June 2011
The Minister for Treasury and Resources has published the audited 2010 accounts for the States of Jersey.
The key points are: -
- these are the most detailed and transparent set of accounts that the States has produced
- they comply with Generally Accepted Accounting Principles and our independent auditors confirm the accounts show a "true and fair view"
- there is clear disclosure of how States money is being spent
- at the end of 2010 the States consolidated fund held £41m – that’s £22m better than target because of -
- underspends by departments, who are managing their expenditure while also restructuring their services to meet savings targets of £65m by 2013
- higher than expected tax receipts from businesses and personal income tax (£14m). This figure is within the prudent forecast range of plus or minus £15m
- during 2010 the States introduced the Common Investment Fund (CIF) to allow States Funds to pool investments and so benefit from greater investment opportunities and economies of scale. This has delivered an increase in the value of the Reserve by £36m from £551m to £587m
- States income was £546m in 2010 – £128m less than in 2009, but £16m more than forecast
- in the full first year effect of zero/ten and during an economic downturn, the accounts show a strong and healthy balance sheet
- in 2010 there was significant investment in our infrastructure
- £68m was spent from the Consolidated Fund on capital projects – including the planned £34m on the Energy from Waste plant. More and better social housing for local people has been delivered. For example, renovation of the Cedars, Le Marais Low Rise and completed Phases 5, 6 and 7 of Le Geyt Flats
- improvements to radiology facilities for the Accident and Emergency unit have been delivered, together with a new CT scanner
- investments continue to be made in the Island’s essential waste water and sewage network
- this investment in infrastructure is part-funded from the sale of high value sites and surplus assets so as to deliver best value for Jersey
- holdings in States’ owned companies were valued at the end of the year at £254m, little changed from 2009
- detailed reports have been published setting out how the spending of Fiscal Stimulus money supported local businesses through the recession. At the same time competitive bids were attracted for work that was essential and already a priority within our capital programme
The Minister for Treasury and Resources, Philip Ozouf, said “We are tackling a structural deficit and should stick to our plans for ensuring sustainable finances. We need to support the Island’s economy.
"I am pleased with the feedback from local businesses that our Fiscal Stimulus package has kept them working through the downturn and they are now well placed to grow new business as the economy improves. The bringing forward of essential projects has kept businesses in work and delivered value for Jersey."
The Treasurer of the States, Laura Rowley, said "This is the first set of accounts I’ve signed for the States and it is the only set of accounts I have ever signed with such a strong balance sheet.
"The difficult decisions taken by the States to balance the Budget for the longer term are beginning to pay off. The Treasury’s new investment strategy has worked well with the Strategic Reserve increasing from £550m to £587m - a return of £37m. This is all the more remarkable as it was delivered with investment returns for the six months from July.
“The Deputy Treasurer, Jason Turner, and our team have worked hard to implement the new strategy quickly. We are bringing forward proposals for Medium Term Financial Planning. Work is progressing to strengthen financial management across the public sector and deliver better value for Jersey.”
The annex to the accounts contains detailed information on each of the departments and provides a clear picture of how public money is spent.
Senator Ozouf added: "A great deal of hard work has been put into these accounts and I am grateful to the Treasury Team and the Departmental Finance Teams that prepare them.
Savings proposals on track
"These accounts provide a clear record of the range of services provided by the public sector and funded by taxpayers. We are making good progress on dealing with the projected deficit and I am confident we can deal with future challenges.
"Work continues on meeting the £65 million savings target agreed by the States Assembly and I will present detailed savings proposals in the draft 2012 Business Plan later this year."
States of Jersey accounts