October 1, 2020

Cayman: Annual Report of the Ministry of Finance and Economic Development for the year ended 31 December 2019


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Hon Roy McTaggart


Mister Speaker, I Beg to lay on the Table of this Honourable House, the Annual Report of the Ministry of Finance and Economic Development for the year ended 31 December 2019.

Mister Speaker, the Office of the Auditor General issued an unqualified opinion on the financial statements of the Ministry for the year ended 31 December 2019.

An unqualified opinion signifies that the information contained in the financial statements is accurate and can be relied upon.

As shown on pages 12 to 13 of the Annual Report, during the 12-month period ended 31 December 2019, the Ministry comprised of 163 staff members – of which 142 or 87% were Caymanian.

Sixty-seven percent of staff members were female and the majority of staff was 41 years and older.

Mr Speaker, some of the Ministry’s key events and achievements, during the 2019 financial year, included:

  1. the issuance of the Policy for the Payment of Annual Dividends by Statutory Authorities and Government Companies;
  1. the processing of 831 requests for the waiver of stamp and import duties with a total value $7.5 million;
  1. generating approximately $18.0 million in incremental revenue from operating investments;
  1. the release of the Occupational Wage Survey Report 2017 which provided the average wage and benefits for employees within the Cayman Islands along with the total compensation by sex, status, economic sectors and occupations;
  1. tabling the 2020 Strategic Policy Statement and the 2020-2021 Budget in the Legislative Assembly;
  1. the delivery of training to senior civil servants on governance frameworks on Internal Controls, Risk Management, Performance Reporting and Public Private Partnerships and Alternative Financing Initiatives;
  1. the Cayman Postal Services delivering letter mail 97.5% of the time, on time; and
  1. the Central Procurement Office achieving the Chartered Institute of Procurement & Supply’s requirements for Corporate Ethical Procurement.

Mr Speaker, the Statement of Executive Financial Transactions shows that, on behalf of the Cabinet, the Ministry collected $45.9 million in executive revenue which was $137.2 million below budget. The primary reason for the under-achievement was due to the Customs Department moving from the Ministry to the Ministry of Employment and Border Control.

On behalf of the Cabinet, the Ministry incurred $59.1 million in executive expenses which was $2.0 million over budget. The primary reason for the net over-expenditure was due to the higher than budgeted number of seafarers and veterans receiving health insurance, the increase in contributions rates for the defined benefit pension plan and the additional funding to the Cayman Islands National Insurance Company or CINICO in order to maintain the Prescribed Capital Requirements as required by the Insurance (Capital and Solvency) (Class A Insurers) Regulations, 2012 and by the Cayman Islands Monetary Authority.

The Statement of Financial Position shows that the Ministry ended the financial period with $19.4 million in Total Assets. Of this amount, $10.4 million or 54% is comprised of cash and cash equivalents which includes cash on hand, cash in transit and bank accounts with a maturity of no more than three (3) months from the date of acquisition.

Total Liabilities amounted to $2.5 million, the majority of which comprise of a $1.1 million in other payables and accruals.

Net Assets, which are Total Assets less Total Liabilities, amounted to $16.9 million.

The Statement of Financial Performance shows that the Ministry earned $16.0 million in Revenue for the year. Almost all of this revenue was earned from the delivery of Outputs to Cabinet.

The Ministry incurred $15.7 million in operating expenses during the financial year, of which $12.1 million or 77% comprise of personnel costs. Personnel costs include salaries, health insurance and pension costs.

The Ministry achieved an Operating Surplus of $0.3 million which will be repaid to the Cabinet during the 2020 financial year.

Mister Speaker, this annual report shows that the Ministry has worked hard to provide effective, efficient and outstanding public services which represent value for money and which contribute to the prosperity and productivity of the Cayman Islands.

I would like to reiterate the congratulations of the Auditor General by saying that the Ministry of Finance continues to lead by example on the year-end financial statements and annual reports.

I thank the staff and management of the Ministry for their hard work during the 2019 financial year and I look forward to future successes in the years to come.

Thank you, Mister Speaker.

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