Cook Islands Government Quarterly Financial Report – September 2018

The Cook Islands Government (CIG) preliminary financial outcome for the September 2018 quarter is now available.

September 2018 Quarter

Budget

(‘000)

Actual

(‘000)

Variance

(‘000)

Operating Revenue $43,652 $41,903 -$1,749
Operating Expenditure $44,004 $37,376 $6,628
Net Operating Balance -$352 $4,527 $4,879
       
Add Depreciation $2,453 $3,030 $577
Less Capital Expenditure $7,310 $3,114 $4,196
Fiscal Balance -$5,209 $4,443 $9,652

Operating Balance

The net operating balance of the General Government sector for the 3 months ending September 2018 resulted in a net operating surplus of $4.53 million.

Compared to the budget estimated for the quarter, this represent a saving of $4.88 million. The favourable result was driven mainly by saving in overall operating expenditure of $6.63 million. The first three months of the financial year evidenced greater control of operating expenditure due to the delayed tabling of the Appropriation Bill as a result of the 2018 general election. Offsetting this was a $1.75 million shortfall in overall revenue collection. Company Tax and Income Tax came in below budget by $1.10 million and $1.01 million respectively as a result of overdue payment plans by taxpayers. This is expected to pick up as the year progresses.

Fiscal Balance

The overall fiscal balance for the reporting period was $4.44 million, after taking into account spending on Capital expenditure of $3.11 million and adding back depreciation funding of $3.03 million.

Compared to budget, spending on Capital projects were below estimates by $4.20 million and driven mainly by delays in implementation of the Te Mato Vai Water Upgrade project.

This saving is temporary in nature and funding will be spend when capital projects are being implemented.

Official Development Assistance

Official Development Assistance (ODA) was appropriated at the total value of $61.18 million in the 2018/19 Appropriation. This value includes $7.73 million for Core Sector Support Grant Funding Arrangement with New Zealand for Education, Health and Tourism.

The first quarter reported a total spend of $4.43 million, only 7 per cent. The low spend was due to the delay in the appropriation bill being passed in parliament as well as the NZ triennium funding envelope not being confirmed due to ongoing negotiations on priorities and the design of the individual grant funding agreements.

Financial Position

Overall cash position at the end of the reporting period was $149.81 million, this includes $69.14 million of funds that are committed and set aside for specific purposes. This leaves $80.67 million of unencumbered cash reserve which government can draw upon to fund future investments.

The CIG reported a gross debt of $98.91 million, this represents actual loans disbursed and adjusted for debt service repayments. Other committed loans that have not been disbursed, like the Te Manatua Cable loan, are not included.

Net debt was reported at $56.35 million at the end of the reporting period. Net Debt adjusts the gross debt for Loan Repayment Fund (LRF) held against those loans and the loans held on behalf of SOE’s.

[END]

September 2018

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pdfSeptember_2018_Quarterly_Financial_Report.pdf398.42 KB

pdfSeptember_2018_ANNEX_1_-ODA_Progress.pdf336.75 KB

pdfSummary_Outcomes_QFR_-_September_2018_English_and_Maori.pdf859.48 KB