THE ADMINISTRATOR General's Department, one of four pioneering executive agencies, earned some $19 million in revenue during its first year under its new status. But those earnings were inadequate to support operating expenditure of $61 million in the period. According to the unaudited financial statements for the 1999/2000 financial year, the near $42 million operating deficit was financed by $55 million from the Consolidated Fund. The AG's 50 per cent appropriation of gross revenue to the Fund amounting to $9.3 million left the agency with a net surplus for the year of $3.4 million.
The AG's Department, which advises and assists the relatives, beneficiaries or representatives of deceased persons, principally in the case of intestacy, derives its income from a six per cent commission charge on certain estate transactions and fees from investment management and legal services undertaken by the department. All revenue is received gross and deposited to the Appropriation-in-Aid account. Under the provisions of the Financial Instructions to Executive Agencies (FIEA), the agency is required to remit 50 per cent of this revenue to the Consolidated Fund.
The FIEA also governs the accounting policies of the Adminstrator General's Department and one key requirement is that the full cost of operations should be recovered.
To meet this requirement, the accruals basis of accounting is being used by the agency in preparing its financial statements, hence the inclusion of non-cash items such as depreciation and notional interest charges.
For the financial year 1999/2000, the final vote by Parliament to the agency amounted to $54,615,000.00 and expenditure for the year was $60,638,996.41. The shortfall was met from the 50 per cent of the agency's gross earnings which it is permitted to retain.
Total revenue in the review period came in at $749,241.29 more than the budgeted revenue of $18 million, though total operating expenditure was about $7 million less than the budgeted $67,655,770.
Investment fees brought in $4.8 million, commission $11.7 million, administration fees $363,937.69 and legal fees $1.9 million.
Significant features of its expenditure showed that the Department paid out $51 million in staff costs, which represents amounts accrued for statutory payment amounting to $2,268,404.61 for HEART and NHT Employers contribution for the period April 1, 1999 to March 31, 2000. Rental of premises claimed another $6.2 million, while goods and services cost just under $2 million.
