August 14, 2006
Government releases program expenditures and revenues report
Finance Minister Loyola Sullivan today released the Report on the Program Expenditures and Revenues of the Consolidated Revenue Fund (CRF) for the year ending March 31, 2006.
Some of the report�s highlights include a budgetary contribution for 2005-06 of $524.3 million, an improvement of $68.1 million over the 2005-06 revised budget estimate of $456.2 million. This change is attributed to an increase in revenues of $22.6 million, due to increased offshore royalties of $20.4 million, and a decrease in expenditures of $45.5 million due to timing delays in cash outlays for various projects and initiatives.
This improvement of $68.1 million represented a positive contribution to the average cash balances of the CRF, resulting in a positive impact on investment earnings. This also means government has to borrow less to fund its 2006-07 cash requirements.
"We are very proud of this accomplishment and will continue to make strides towards the long-term prosperity of this province," said Minister Sullivan. "While we are increasing our revenue base we continue to keep our expenditures in check, and this is a healthy balance for our province�s fiscal future."
In past years, government released its program revenues and expenditures report in the fall, as part of Public Accounts. While Public Accounts is still scheduled to be released in the fall, the earlier release of the Report on the Program Expenditures and Revenues of the Consolidated Revenue Fund is an effort by government to get more detailed information out to the general public, and to internal government departments, in a timelier manner.
"By updating departments of their revenues and expenditures earlier, they can have a better handle and be more accurate in estimating for budgetary purposes in the future," said Minister Sullivan. "This government is committed to accountability and transparency and this is just another mechanism to keep the people of the province in tune with our province�s financial picture."
This report does not represent the accrual surplus or deficit of the province and is not considered to be the province�s financial statements; however, it does reflect the actual cash based revenues and expenditures resulting in the budgetary contribution (requirement) of the CRF.
The CRF includes all provincial government departments but does not include Crown corporations, boards and agencies. The audited, accrual, financial statements of the province, which present the annual surplus or deficit, is presented through the Public Accounts process and will be released in the fall of the year.
The Report on the Program Expenditures and Revenues of the Consolidated Revenue Fund is available for viewing and/or downloading on the government�s web site at //www.gov.nl.ca/ComptrollerGeneral/publications.htm
Media contact: Deborah Pennell, Communications, (709) 729-6830, 685-6612, email@example.com
The Consolidated Revenue Fund, pursuant to the Financial Administration Act, consists of all public money over which the legislature has power of appropriation, except money that is otherwise specially assigned by the legislature. Such public money is allotted to the public service of the province by the legislature, as part of government department expenditures.
As stated in the Executive Council Act, the overall responsibility for a department�s programs and administration lies with the minister of each department, while the deputy minister has responsibility for payments of public money from the appropriations assigned by the House of Assembly to a department (Head of Expenditure) as says the Financial Administration Act.
The budgetary contribution or requirement represents the difference between revenues and expenditure cash flows of the CRF generated as a result of the operations of government departments during the year.
In accordance with the requirements of the Financial Administration Act, this report is prepared by the Comptroller General of Finance using the modified cash basis of accounting and is not subject to an audit opinion. This is the same basis used to prepare the budgeted appropriations and revenues as per government�s departmental estimates presented to the House of Assembly. Budgeted amounts, as per the Estimates, have also been presented for comparative purposes.
This report shows the actual overall budgetary contribution (requirement) of the CRF as of March 31, 2006 and not the accrual based consolidated results. For previous years, the information included in this report was presented in Volume III of the Public Accounts.
The statements, schedules and notes presented in the document are based on information recorded in government�s Financial Management System (FMS), supplemented by information provided by departments relating to the 2005-06 fiscal year as of June 23, 2006, the completion date of this report. Any significant adjustments affecting the revenues and expenditures will be reflected in the appropriate schedule in the audited Volume II of the Public Accounts.
For all accrual based information related to the CRF, please refer to Volume II of the Public Accounts which will be released at a later date. In addition, the accrual based consolidated summary financial statements of the province including Crown corporations, boards and authorities may be found in audited Volume I of the Public Accounts which will also be released at a later date.
2006 08 14 9:45 a.m.
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