The quarterly financial statement for September 2015 is now available.
For the September 2015 Quarter the net operating balance of the General Government Sector as at 31 September 2015 was a surplus of $4.3 million, made up of $36.4 million in operating revenue and $32.0 million in operating expenditure.
The overall fiscal balance which excludes the effects of depreciation, but includes capital expenditure was a surplus of $2.2 million.
Minister for Finance, the Honourable Mark Brown released the 2016/17 Budget Policy Statement (BPS) outlining the intended focus for the development of the 2016/17 budget for 2016/17 and the 2015/16 Half Year Economic Update (HYEFU).
In releasing the statement Minister Brown pointed out the focus on the first of Government in the first six months of 2016 would be aimed at improving public financial management, economic governance and the public sector, these include:
• undertaking an independent economic review of the underwrite of Los Angeles and Sydney flights;
• further upgrading the Revenue Management System;
• scoping changes required to centralise the Cook Islands Government Financial Management Information Systems (FMIS);
• development and finalisation of the Cook Islands tourism strategy;
• reviewing the medium term infrastructure needs of the education sector and reviewing expenditure levels in the health sector;
• implementing a corrective action plan to meet ICAO universal safety oversight audit programme (USOAP) findings; and
• finalising a set of standard immigration operating procedures.
The Government of the Cook Islands seeks suitable companies, groups or individuals to submit a tender for the Sale of Assets of 20 vehicles. These vehicles will supplement the existing private rental fleet and government fleet which is being used for the transportation of a number of VIPs who will be attending the activities celebrating 50 years of Self Government.
All vehicles will be registered prior to use and sold on the basis that they will be made available for transportation of VIPs during the 50 year celebrations with a number also being required for the combined Pacific Forum Economic and Trade Ministers (FEMM and FTMM) to be held in the week 26 to 31 October 2015. All vehicles will be sold as new by tender on an as-is where is basis.
The suite of 2015/16 budget papers is now available on the MFEM website – these include:
The Quarterly Financial Statement for March 2015 is now available.
For the March 2015 Quarter the net operating balance of the General Government Sector as at 31 March 2015 was a surplus of $8.5 million, made up of:
The overall fiscal balance which excludes theeffectsof depreciation, but includes capital expenditure was a surplus of $3.6 million. The full Quarterly Statement is annexed to the Submission.
A positive Phase 2 Peer Review reinforces the strength of the Cook Islands’ regulatory environment and commitment to meeting its international obligations. The Global Forum on Transparency and Exchange of Information for Tax Purposes has just released its report on the Cook Islands titled “Peer Review Report Phase 2 Implementation of the Standard in Practice—Cook Islands”. The report is the result of months of research and consultation by the Peer Review assessment team with stakeholders in the Cook Islands. The process was led locally by Andrew Haigh of the Revenue Management Division of the Ministry of Finance and Economic Management, Paul Heckles of the Financial Supervisory Commission, and Jenner Davis of the Financial Services Development Authority.
“The positive report reflects all of the work of the Cook Islands in meeting its exchange of information obligations and modernising its laws in this area,” says Andrew Haigh. The Cook Islands has 19 Tax Information Exchange Agreements in place and continues to develop more. The purpose of this Phase 2 Peer Review was to assess how the Cook Islands exchanges information for tax purposes in practice, using its network of tax information exchange agreements. Amendments to the Income Tax Act, made in 2011, set out the process by which such requests are to be handled.
The Quarterly Financial Statement for December 2014 is now available.
For the December Quarter the net operating balance of the General Government Sector as at 31 December 2014 was a surplus of $8.5 million, made up of:
The overall fiscal balance which excludes theeffectsof depreciation which are contained in operating expenditure, but includes capital expenditure was a surplus of $6 million.
Total revenue collections for the quarter ending December 2014/15 were slightly higher than the Budget estimate and were mainly attributable to higher than estimated tax and fishingrevenues.
The Ministry of Finance and Economic Management (MFEM) has embarked on a new approach in our attempts to produce timely consolidated financial statements for the Government of the Cook Islands. MFEM with technical assistance from KPMG is now releasing the unaudited financial statements for the year ended 30 June 2012. The unaudited financial statement for June 2013 will be released shortly after it has been reviewed by the KPMG.
These financial statements will be replaced, once it has been audited, by the audited financial statements.
The Ministry of Finance and Economic Management has published the 2014/15 Half Year Economic and Fiscal Update via MFEM website www.mfem.gov.ck.
The 2014/15 HYEFU provides an update of the economic and fiscal forecasts which were recently made at the time of the 2014/15 Budget in October 2014, and provides analysis of the changes in key economic variables and their impact on the fiscal status of Government.
Given the publishing of the 2014/15 Budget in October 2014, there is limited data and information to update, many areas remain largely unchanged from those presented in the 2014/15 Budget.
Public sector procurement, the process by which government purchases goods, works and services is an important economic activity in the Cook Islands where the balance needs to be struck between getting value for money for the taxpayer’s dollar and allowing local suppliers to supply to government.
This will become an even more the case over the next two years as the Government pursues a greater investments in the infrastructure area.
Ultimately our public sector procurement processes needs to have integrity where Cook Islanders taxpayers believe that balance is reasonable and that development partners also have faith to use Cook Islands systems instead of their own to ensure that their own tax payers are satisfied that value for money is being achieved with their money.
The Cook Islands Government has now released the budget for 2014/15 with a small underlying surplus of $0.009 million. Underlying operational revenue is estimated to reach $123.203 million in 2014/15 and expenditure is projected to be $123.195 million. Major new initiatives include:
The Government put the final touches on the 2014/15 Budget which will see a small underlying budget surplus in 2014/15. The Budget will be tabled when Parliament resumes in late October. Finance Minister Mark Brown was happy to report that Cabinet had presented to MFEM a fiscally responsible budget, which would remain in an underlying balance position in 2014/15.
"We have now handed the budget back to MFEM who are now working on finalising the budget documentation with an aim for an end of October session of Parliament".
The full June 2014 Quarterly Financial Report is now available on the MFEM website. The report contains more information than the previous quarters as it intends to capture financial information for the whole of the 2013/14 financial year. The report is not audited and is not intended to be a replacement for the final 2013/14 audited accounts.
Expenditure comparisons have been made against the appropriations passed at the time of the original 2013/14 budget. Since then a number of Orders in Executive Council have altered the original appropriation.
The net operating balance of the General Government Sector as at 30 June 2014 was a surplus of $3.6 million.
Total revenue collections for 2013/14 were lower than the original budget estimate and were mainly attributable to reduced tax revenue than what was estimated at the time of the original budget due mainly to the legislated reduction of personal income tax rates which were introduced on 1 January and partially offset by the later increase of the VAT on 1 April.
Total operating expenses for 2013/14 were lower than the original budget estimate. This was largely attributed to lower expenditure on the underwrite of the long haul air routes to Los Angeles and Sydney (12 per cent) and the TOA profit guarantee (14 per cent). Additionally, lower levels of spending by agencies were a contributing factor (2 per cent).
Note that all 2013/14 budget figures are based on the original budget passed by Parliament in June 2013. In some cases, expenditures were incurred as a result of subsequent Orders made in Executive Council.
The Ministry of Finance & Economic Management (MFEM) commissioned an assessment of the performance of governments’ Public Financial Management (PFM) systems. The Public Expenditure and Financial Accountability (PEFA) assessment methodology was utilised and the assessment was undertaken in May 2011.
To date, a total of five internal reviews have been conducted with one self-assessment undertaken by the International Monetary Fund Organisation. This review covers the period November 2013 through to April 2014. This is an update on the progress from the time of the self- assessment review which was carried out in November 2013.
The Ministry of Finance and Economic Management has recently completed a presentation on The Pre-election Economic and Fiscal Update (PEFU) to all Political Parties and Independent candidates.
The publishing of the PEFU and these presentations are aimed at providing candidates with an update of the Government’s financial position and the changes in the economic parameters since the publishing of the 2014/15 Budget Policy Statement and the 2013/14 Half Year Economic and Fiscal Update (published in December 2013).
MFEM envisages that these presentations will guide candidates in terms of presenting their policies.
MFEM has also offered to help Political Parties cost policy initiatives, and have kindly requested all Political Parties and Independents to submit policy proposals by the 13th of June 2014, in order for MFEM to cost these policies by the 20th June. Agreed policy costings and a reconciliation table will be published on the MFEM website on the 27th of June 2014 for the general public.
The Ministry of Finance and Economic Management has now released the Quarterly Financial Update for March 2014. The net operating balance of the General Government Sector as at 31 March 2014 was a surplus of $3.4 million.
• Operating revenue was $87.0 million; and
• Operating expenditure was $83.6 million.
The overall fiscal balance which excludes depreciation, but includes capital expenditure was a deficit of $1.6 million.
General Government sector revenue as at 31 March 2014 was lower than the original budget estimate (YTD) by $4.4 million or 5 per cent, mainly because of the reduction of income taxes on 1 January, slightly offset by the increase in the rate of VAT to 15%.
The Pre-election Economic and Fiscal Update (PEFU) provides an update of the Government’s financial position and the changes in the economic parameters since the publishing of the 2014/15 Budget Policy Statement and the 2013/14 Half Year Economic and Fiscal Update (published in December 2013).
Section 17 of the Ministry of Finance and Economic Management Act 1995/96 requires that the Minister of Finance publish a report containing an economic and fiscal update within fourteen days of the appointment of a polling date in relation to a general election.
The PEFU is available to all members of the public.
The Government Financial Report for the quater ending December 2013 is now available for download.
Main key points from the report:
The net operating balance of the General Government Sector as at 31 December 2013 was a surplus of $8.3 million.
The overall fiscal balance which excludes depreciation, but includes capital expenditure was a surplus of $4.7 million. These capital activities are government funded as well activities financed through the ADB‐Economic Recovery Support Program (ERSP) loan and the Te Mato Vai China loan.
The first phase of the new Cook Islands Government HRMIS has now been completed. The new system is now live and was used to for the first time to deliver the public sector payroll for 15 January 2014.
The system implemented in a cross agency effort between The Ministry of Finance and Economic Management and the Office of the Public Service Commissioner. The new system (pay global) replaced the old system (attache), with significant benefits in terms of improved productivity in payroll management and administration, improved services to employees, and improved reporting for public sector managers.
Budget Policy Statement 2014/15 (BPS)975.08 KB
The Budget Policy Statement states Government’s policy intent for the 2014/15 fiscal year including the Government’s fiscal policy and its broad strategic priorities to lead the 2014/15 Budget. On 25-26 November 2013, a Head of Ministries (HOM’s) retreat was held to discuss and develop strategic priorities for the BPS. From these discussions, seven broad strategic priorities were developed and endorsed by cabinet.
These strategic priorities build on the achievements of the Government to date by directing public spending to encourage growth and complement private sector investment. Taking the National Sustainable Development Plan (NSDP) as a starting point, the Government is certain that the broad strategic priorities for 2014/15 will provide a framework which protects our fiscal position and supports inclusive sustainable growth.