Government Reports Net Surplus Of $260 Million To March 2024 Loop Cayman Islands

The content originally appeared on: Cayman Compass

According to the Government’s unaudited financial statements for the period from January 2024 to March 2024, published in the Cayman Islands Gazette today, May 10, 2024, the total net surplus of the Government (including statutory authorities) was $260,156,000. In addition, total net assets were $2,422,029,000. However, the reported amounts could be less if accounting rules were applied to record $2.4 billion attributed to an actuarial valuation of post-retirement health care net liability.

Surplus components

The amount reported as a surplus for Core Government was calculated by taking into account $512,419,000 in operating revenues and $260,647,000 in operating expenses. The surplus sub-total of $251,772,000 for Core Government was then added to the surplus of $8,384,000 for statutory authorities to arrive at an overall amount of $260,156,000.

Based on the unaudited quarterly financials, the percentages of total operating revenue and total operating expenses of Core Government were attributed to various areas as follows:

In numbers, these details were broken down as follows:

Net assets

Turning to the reported net assets of $2,422,029, the breakdown was as follows:

Possible Inflated surplus and net assets

Notwithstanding the reported amounts, a previous Standing Public Accounts Committee (PAC) hearing on March 14, 2024, revealed that “over two billion dollars attributed to an actuarial valuation of post-retirement health care net liability is not reflected in the Statement of Financial Position for Central Government and the Entire Public Sector.”

As previously reported, recording this line item properly in accordance with generally accepted accounting practices as defined by International Public Sector Accounting Standards, would obliterate the favourably reported financial statement position for net assets, reducing it to zero and reducing reported surpluses.

If the practice of not reflecting the $2.4 billion actuarial valuation of post-retirement health care net liability in the statement of financial position continues, then the audit reports for the end of this year and future years will continue to state that the financial statements are presented fairly in accordance with generally accepted accounting practices as defined by International Public Sector Accounting Standards, except for the proper accounting and reporting for post-retirement benefits.