September 30, 2004
Positive Operating Balance Of $13 Million Recorded In Public Accounts
Positive Operating Balance Of $13 Million Recorded In Public Accounts- - -
Province Continues to Improve Accountability and Transparency: Selinger
Manitoba's public accounts show that the province achieved a positive operating balance of $13 million for the 2003-04 fiscal year under the terms of balanced budget legislation.
The 2004 budget projected a $3 million positive balance for 2004-05 with no draw from the Fiscal Stabilization Fund. This projection remains unchanged.
"Despite a difficult year in 2003 including challenges to Manitoba's cattle industry, extreme forest fires and Manitoba Hydro losses due to low water levels, we recorded a positive result of $13 million, compared to the $6 million projected in the Fourth Quarter Financial Report," said Selinger. "We will continue to uphold balanced budget legislation while providing support to important social programs and reducing Manitobans' tax burden."
The annual report for the year ending March 31, 2004, which Selinger released today, contains Volume I of the Public Accounts including the Summary Financial Statements and the Operating Fund and Special Funds Special Purpose Financial Statements.
The Public Sector Accounting Board issues periodic changes to the generally accepted accounting practices. The province is required to incorporate these standards into its reporting practices and does so in consultation with the auditor general's office. This year, the timetable for the application of revised reporting practices will require the province to withdraw an additional $45 million from the Fiscal Stabilization Fund.
It should be noted that the withdrawal does not involve any new spending or borrowing but is simply a restatement of the province's financial position based on the application of changes to accounting procedures that only became apparent after the conclusion of 2003-04 business, said Selinger.
A majority of this withdrawal is due to a change to a long standing accounting practice regarding school debentures. Changes to the application of accounting standards also affected Red River College, the Manitoba Housing Renewal Corporation and the Manitoba Liquor Control Commission.
"This report continues our progress in improving the accountability and transparency of our financial reporting procedures. This has included steady progress towards the adoption of generally accepted accounting principles," said Selinger. "The change to the Fiscal Stabilization Fund is a direct result of the implementation of these accounting standards."
"In 2000, the current government produced the first ever plan to pay down the pension liability," said Selinger. "Such financial improvements have contributed to credit rating upgrades from two credit agencies."
Selinger noted that the auditor general indicates compliance with Manitoba's Balanced Budget, Debt Repayment and Taxpayer Accountability Act and provides a clean bill of health for the province's summary financial statements. The auditor stated clearly in his opinion of the summary statement that assets, liabilities and operations have been presented fairly without reservations.
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