2015/16 Periodic Financial Statements—Quarters 2 and 3

Media Release

3 June 2016

I am pleased to release the 2015/16 second and third quarter financial statements for the Administration of Norfolk Island (ANI), the Norfolk Island Hospital Enterprise (NIHE) and the consolidated entity.

Prepared as required by the Commonwealth Finance Minister's (Norfolk Island) Orders 2011, the statements are an important tool for demonstrating accountability for public expenditures.

Focussing on the third quarter results, ANI is under-budget for the year to 31 March 2016 by $5.41 million and NIHE is over-budget by $18,209.

Due to lower than anticipated revenue flows, NIHE's budget position has deteriorated and is now in deficit. In order to remedy the situation, processes are being implemented to reduce expenditure where possible. NIHE's liquidity position is also concerning and will require close attention during the rest of the financial year.

ANI's financial outcomes for the year to 31 March 2016 reflect prudent budget management processes which continue to be driven by the need to find savings and build cash reserves in order to provide for a sustainable Norfolk Island Regional Council in 2016/17 and beyond.

ANI's financial result demonstrates the benefits of having an operational plan in place which focuses on ensuring resources are allocated more efficiently to the areas of greatest community need. These areas include: building staff capability, programmed asset maintenance, new asset purchases and investment in new technologies for providing government services.

If this level of discipline can be maintained, Norfolk Island will be able to quickly move to consistent break-even or surplus budget positions.

The statements, which contain brief summaries of the financial positions of each entity, are available at: http://www.norfolkisland.gov.nf/reports/Quarterly Financial Statements/

The Hon Gary Hardgrave