Corrigendum Treasurer’s Annual Financial Statement Minor Corrections to pages 19, 29 and 43
Tabled paper 894
Tabled Papers for 9th Assembly 2001 - 2005; Tabled Papers; ParliamentNT
Tabled By Speaker
Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.
REPORT ON THE 2001/02 TREASURERS ANNUAL FINANCIAL STATEMENT What is the Northern Territorys net debt? KEY ISSUES The impact of not bringing to account a decrease in the market value of equities held in the Conditions of Service Reserve was to understate the reported net debt by $17.7 million. As a result: - The net debt (on a Non-Financial Public Sector basis with AARC) is $1,761 million rather than the $1,743 million reported in Schedule 7.8 of the TAFR; and H M v j I UpH gglMGffi m M | m I The net debt (on a Non-Financial Public Sector basis with out AARC) is $1,762 million rather than the $1,744 million reported in Schedule 7.3 of the TAFR. Care must be taken when determining financial assets by only including those assets not already committed to infrastructure projects which cannot be postponed. In situations where Government Business Divisions are excluded from the General Government Sector, and are therefore excluded from determination of the deficit, but which are consistently loss making, consideration should be given to including their results in determination of the deficit It is important that the bases used to measure the deficit and the net debt not be varied over time, thus enabling comparative assessment on a consistent basis. Introduction Discussion in this section is based on the deficit on a net cash UPF General Government Sector basis and on the net debt on a net UPF Non-Financial Public Sector basis. Impact of the Conditions of Service Reserve and of AARC on the net debt Conditions of Service Reserve (COSR) An 11.2% reduction in the market value of the investments supporting the balance in the COSR was not recognised in determining the net debt at 30 June 2002. The COSR is supported, almost entirely, by investments in Equities (see Schedule 4.1 in TAFS). These investments have not been marked to market on 30 June 2002 but are carried at the same valuation reported at 30 June 2001 ($156.7 million). Under accrual accounting, it is normal accounting practice for organisations such as State Treasuries to recognise investments in equities at market values. Schedule 4.1 does include in note (a) the market values at 30 June 2002 ($148.2 million) and at 30 September 2002 ($139 million). Auditor-General for the Northern Territory 19