Financial Statements of the Consolidated Fund March 31, 2014 Issued by The Accountant General Ministry of Finance TABLE OF CONTENTS Statement of Responsibility …………………………………………………….. 1 Auditor’s Report …………………………………………………………………… 2 Statement of Financial Position ...………………………………………………... 4 Statement of Operations and Accumulated Deficit...…………………………. 5 Statement of Change in Net Debt …………..…..…………………………….….. 6 Statement of Cash Flow …………………………………………………………… 7 Notes to the Financial Statements ...…………………………………………….. 8 Schedule 1: Accounts Receivable ...……………………………………………... 39 Schedule 2: Inventories for Consumption ....…………………………………... 40 Schedule 3: Due From / To Government Funds & Agencies ………………... 41 Schedule 4: Long-Term Receivables ...………………………………………….. 42 Schedule 5: Accounts Payable and Accrued Liabilities ………………...…… 42 Schedule 6: Deferred Revenue ...…………………………………………………. 43 Schedule 7: Interest Bearing Debt – Net of Sinking Fund ....………….…….. 44 Schedule 8: Revenue By Type .…………………………………………………… 46 Schedule 9: Revenue By Ministry / Department ………………… ………..…. 47 Schedule 9(a): Interdepartmental Revenue By Ministry / Department…..…. 49 Schedule 10: Expenses by Program ...………………………………………...… 51 Schedule 10(a): Current Expense By Type…………………...….……………... 53 Schedule 10(b): Current Expenses By Ministry / Department .....…………... 54 Schedule 10(c): Interdepartmental Current Expenses By Ministry / Department ..…………………………………………………….. 56 Schedule 11: Schedules of Tangible Capital Assets and Assets Under Construction ...……………………………………………………… 58 Schedule 12: Current Expenditure – Estimates Compared to Expenses…. 59 Schedule 13: Commitments – Legislated ...…………………………………….. 61 Schedule 14: Public Debt – Legislated Limit ...………………………………… 62 Government of Bermuda Consolidated Fund Statement of Responsibility for the Consolidated Fund Financial Statements The Government of Bermuda is responsible for the integrity, objectivity and fair presentation of the financial statements of the Consolidated Fund. The Accountant General prepares the statements on behalf of the Minister of Finance in accordance with public sector accounting standards, using the Government?s best estimates and judgement where appropriate. The Government is responsible for maintaining a system of internal accounting and administrative controls in order to provide reasonable assurance that transactions are within statutory authority, assets are safeguarded and financial records are properly maintained. The Auditor General provides an independent opinion on these financial statements, under section 6 of the Audit Act 1990, and her report appears on page 2 of this document. The Consolidated Fund financial statements and Auditor General?s report are laid before both Houses of the Legislature, and are referred to the Public Accounts Committee for review. On behalf of the Government of Bermuda. Anthony Manders, CGA Curtis Stovell, CA, CPA Financial Secretary Accountant General Hamilton, Bermuda March 25, 2015 O?ice of the Auditor General Reid Hall, Penthouse 3 Reid Street Hamilton HM 11, Bermuda Tel: (441) 296-3148 Fax: (441) 295-3849 Email: oaggrioagbermudabm Website: INDEPENDENT REPORT To the House of Assembly, the Governor and the Senate 1 have audited the accompanying ?nancial statements of the Consolidated Fund of the Government of Bermuda, which comprise the statement of ?nancial position as at March 31, 2014, and the statements of operations and accumulated de?cit, change in net debt and cash ?ow for the year then ended, and a summary of signi?cant accounting policies and other explanatory information. Management?s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these ?nancial statements in accordance with public sector accounting standards generally accepted in Bermuda and Canada, and for such internal control as management determines is necessary to enable the preparation of ?nancial statements that are free from material misstatement, whether due to fraud or error. Auditor?s Responsibility My responsibility is to express an opinion on these ?nancial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in Bermuda and Canada. Those standards require that comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the ?nancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ?nancial statements. The procedures selected depend on the auditor?s judgment, including the assessment of the risks of material misstatement of the ?nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity?s preparation and fair presentation of the ?nancial statements in order to design audit procedures that are appr0priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity?s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the ?nancial statements. I believe that the audit evidence I have obtained is suf?cient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the ?nancial statements present fairly, in all material respects, the ?nancial position of the Consolidated Fund of the Government of Bermuda as at March 31, 2014, and the results of its operations, the changes in its net debt, and its cash ?ows for the year then ended in accordance with public sector accounting standards generally accepted in Bermuda and Canada. Other matters As permitted by Section 6 of the Audit Act 1990, I may include in my auditor?s report any other comments arising out of the accounts that I consider appr0priate. Increasing Nei Debi Without qualifying my opinion, I wish to draw attention to the level of net debt which increased by $172 million to $3 billion as of March 31, 2014. Government needs to take concerted action to address this ?scal challenge. Incidences anon-compliance with the Government ofBermuda ?s inancial Instructions Also, without qualifying my opinion, I wish to draw attention to ongoing incidences of non- compliance with the Government of Bermuda?s Financial Instructions which form the standard for ?nancial controls for the Government. Although these incidences of non-compliance did not lead me to qualify my audit opinion for the current year, it revealed weaknesses and de?ciencies in the control enviromnent. It is important that the Government adheres to its internal control framework. Usefulness offhese Financial! Statements is Limited As described in Note 2, these ?nancial statements represent the ?nancial transactions of the Consolidated Fund and have been prepared primarily to provide accountability for the ?nancial resources appropriated by the Legislature of Bermuda. These ?nancial statements are not summary ?nancial statements of the Government of Bermuda. Signi?cant ?nancial activities of the Government occur outside the Consolidated Fund. As such, the ?nancial statements of the Consolidated Fund for the year ended March 31, 2014 do not represent the full nature and extent of the overall ?nancial affairs and resources of the Government of Bermuda. Hamilton, Bermuda Heather A. Jacobs Matthews, P, FCPA, FCA, CFE March 25, 2015 Auditor General Government of Bermuda – Consolidated Fund GovernmentStatement of Bermuda Consolidated Fund of –– Cash Flow Government of Bermuda Consolidated Fund Statement ofFor Financial Position the year ended March 31 Statement of Financial Position As at March 31 As at March 31 Liabilities Liabilities Operating Activities Annual Deficit Actual $ $ $$ $ (184,017,663) (407,990,925) 5 158,195,821 5 158,195,821 6 36,054,549 6 36,054,549 (Decrease) Increase in Pension and Retirement Benefits194,250,370 Liability 194,250,370 Bank Overdraft (Note 15) Bank Overdraft (Note 15) Accounts Payable and Items Accrued notLiabilities affecting cash: Accounts Payable and Accrued Liabilities Deferred Revenue Amortization of Tangible Capital Assets Deferred Revenue Increase in Compensated Absences Liability Pensions and Other Employee Future Benefits Cash Applied to Operating Activities Pensions and Other Employee Future Benefits - Pensions Pensions and and Retirement Retirement Benefits Benefits (Note (Note 9(g)) 9(g)) - Pensions Pensions and and Retirement Retirement Benefits Benefits (Note (Note 9(g)) 9(g)) Capital - Compensated Absences (NoteActivities 8) - Compensated Absences (Note 8) Other Liabilities Net Additions to Tangible Capital Assets Other Liabilities Due to Government Funds Agencies Netand Additions to Assets under Construction3(a) Due to Government Funds and Agencies Total Liabilities Total Liabilities Cash Applied to Capital Activities 3(a) 1,768,442,271 1,768,442,271 1,145,115,545 1,145,115,545 26,182,883 26,182,883 1,171,298,428 1,171,298,428 45,728,754 45,728,754 3,179,719,823 3,179,719,823 Financing Activities 2013 2013 2013 Actual Actual Actual Schedule Schedule Interest Bearing Debt - Net of Sinking Fund 7 Interest Bearing Debt -(Decrease) Net of Sinking Fund in Non-Cash Working Capital 7 Increase 2014 2014 2014 Actual Actual $ 69,000,521 69,000,521 163,241,796 163,241,796 35,237,299 54,677,285 35,237,299 267,479,616 (94,302,441) 267,479,616 743,102 1,407,858,034 1,407,858,034 (14,873,061) (237,772,778) 1,239,417,986 1,239,417,986 25,439,781 25,439,781 1,264,857,767 1,264,857,767 (35,541,886) 47,044,473 113,192,618 1,118,758 34,599,789 (212,035,287) (36,944,067) 50,808,141 (8,624,694) (3,750,355) (44,166,580) (40,694,422) 12,174,590 800,000,000 475,000,000 50,808,141 2,991,003,558 2,991,003,558 Financial Assets Financial Assets Cash and Cash Equivalents Debt issues Cash and Cash Equivalents Accounts Receivable (Increase) Decrease in Sinking Fund Accounts Receivable Due from Government Funds and Agencies Debt retirement Due from Government Funds and Agencies Long-Term Receivables Long-Term Receivables Cash Provided By Financing Activities Investment in Quango (Note 14(b)(ii)) Investment in Quango (Note 14(b)(ii)) 1 1 3 3 4 4 Net Increase in Cash and Cash Equivalents Total Financial Assets Total Financial Assets Cash and Cash Equivalents, Beginning of Year Net Debt Net Debt Non-Financial Assets Non-Financial Assets Cash and Cash Equivalents, End of Year Tangible Capital Assets Tangible Capital Assets Assets under Construction Assets under Construction Inventories for Consumption Inventories for Consumption Cash and Cash Equivalents, End of Year Prepaid Expenses Prepaid Expenses 11 11 11 11 2 2 Total Non-Financial Assets Cash and Cash Equivalents Total Non-Financial Assets Bank Overdraft Accumulated Deficit Accumulated Deficit Cash and Cash Equivalents, Endand ofContractual Year Contingent Liabilities, Non-Contractual Operational Obligations Contingent (Notes Liabilities, Non-Contractual Operational Obligations and Contractual Obligations 10, 11, 12 and Schedule 13) Obligations (Notes 10, 11, 12 and Schedule 13) 21,818,948 21,818,948 136,625,225 136,625,225 23,212,713 23,212,713 1,191,140 1,191,140 5,000,000 5,000,000 187,848,026 187,848,026 2,991,871,797 2,991,871,797 722,214,382 722,214,382 52,476,614 52,476,614 16,479,001 16,479,001 2,704,490 2,704,490 793,874,487 793,874,487 2,197,997,310 2,197,997,310 12,174,590 137,974,699 (439,415,763) 137,974,699 14,661,053 14,661,053 1,557,847 1,557,847 360,584,237 5,000,000 5,000,000 17,605,115 (200,000,000) 292,605,115 78,644,879 39,875,406 (56,825,931) (96,701,337) 21,818,948 741,349,781 (56,825,931) 171,368,189 171,368,189 2,819,635,369 2,819,635,369 741,349,781 43,851,920 43,851,920 14,727,949 14,727,949 5,726,072 5,726,072 805,655,722 21,818,948 805,655,722 12,174,590 - (69,000,521) 21,818,948 (56,825,931) 2,013,979,647 2,013,979,647 4 The accompanying notes and schedules are an integral part of these financial statements The accompanying notes and schedules are an integral part of these financial statements 4 The accompanying notes and schedules are an integral part of these financial statements 4 7 Government of Bermuda – Consolidated Fund Government of Bermuda Consolidated Fund Statement of Cash Flow ––Consolidated Government of Bermuda Fund Statement of Operations and Accumulated Deficit For the year ended March 31 Statement of Operations and Accumulated Deficit For the year ended March 31 For the year ended March 31 Operating Activities Schedule Schedule Annual Deficit Revenue 8, 9 Revenue 8, 9 Taxes & Duties ItemsTaxes not affecting & Dutiescash: Payroll Tax Amortization of Tangible Capital Assets Payroll Tax Customs Duties (Decrease) CustomsIncrease Duties in Pension and Retirement Benefits Liability Other Taxes and Duties Increase Compensated OtherinTaxes and Duties Absences Liability Land Tax (Decrease) Increase in Non-Cash Working Capital Land Tax Passenger Tax CashPassenger Applied toTax Operating Activities Total Taxes & Duties Total Taxes & Duties Capital Activities Fees, Permits & Licenses Fees, Permits & Licenses Other Revenue Other Revenue Net Additions to Tangible Capital Assets Investment Income Net Additions Assets under Construction Investmentto Income Total Revenue Cash to Capital Activities TotalApplied Revenue Financing Activities Expenses Expenses Economic Development DebtEconomic issues Development Health (Increase) Health Decrease in Sinking Fund National Security DebtNational retirement Security Education CashEducation Provided By Financing Activities Interest on Debt Interest on Debt Social Services & Assistance Net Increase in Cash and Cash Equivalents Social Services & Assistance Other General Government Services Other Government Services Cash andGeneral Cash Equivalents, Beginning of 9(g)) Year Gain on Benefits Plans Amendments (Note Gain on Benefits Plans Amendments (Note 9(g)) Pensions and Retirement Benefits Expense Pensions and Retirement Benefits Expense Total Expenses Cash Cash Equivalents, End of Year Totaland Expenses Annual Deficit Annual Deficit Cash and Cash Equivalents, End of Year Accumulated Deficit, Beginning of Year Accumulated Deficit, Beginning of Year Cash and Cash Equivalents Accumulated Bank Overdraft Deficit, End of Year Accumulated Deficit, End of Year 10 10 2014 2014 2014 Actual Actual* Actual* $ $ $ 2013 2013 2013 Actual Actual Actual $ $ $ (184,017,663) (407,990,925) 330,848,121 54,677,285 330,848,121 174,951,259 (94,302,441) 174,951,259 62,751,362 743,102 62,751,362 60,476,977 (14,873,061) 60,476,977 33,921,396 (237,772,778) 33,921,396 662,949,115 662,949,115 197,038,543 197,038,543 20,481,618 20,481,618 (35,541,886) 3,445,828 (8,624,694) 3,445,828 883,915,104 (44,166,580) 883,915,104 328,023,069 47,044,473 328,023,069 169,693,292 113,192,618 169,693,292 61,694,088 1,118,758 61,694,088 55,844,840 34,599,789 55,844,840 34,577,919 (212,035,287) 34,577,919 649,833,208 649,833,208 194,064,998 194,064,998 19,848,310 19,848,310 (36,944,067) 2,831,042 (3,750,355) 2,831,042 866,577,558 (40,694,422) 866,577,558 402,578,077 800,000,000 402,578,077 211,775,144 (439,415,763) 211,775,144 148,265,878 148,265,878 141,683,778 141,683,778 360,584,237 109,244,778 109,244,778 83,078,244 78,644,879 83,078,244 64,866,207 64,866,207 (56,825,931) (214,091,800) (214,091,800) 120,532,461 120,532,461 1,067,932,767 21,818,948 1,067,932,767 407,736,821 475,000,000 407,736,821 210,180,706 17,605,115 210,180,706 165,734,476 (200,000,000) 165,734,476 144,243,904 144,243,904 292,605,115 81,577,570 81,577,570 78,086,721 39,875,406 78,086,721 72,696,909 72,696,909 (96,701,337) 114,311,376 114,311,376 1,274,568,483 (56,825,931) 1,274,568,483 (184,017,663) (184,017,663) (407,990,925) (407,990,925) (2,013,979,647) (2,013,979,647) 21,818,948 (1,605,988,722) (1,605,988,722) 12,174,590 (2,197,997,310)(2,197,997,310) (2,013,979,647) (69,000,521) (2,013,979,647) Cash and Cash Equivalents, End of Year 21,818,948 * Estimates against these actuals are provided for revenue in Schedules 8 and 9 and for * Estimates against these actuals are provided for revenue in Schedules 8 and 9 and for current expenses in Schedules 10(a) and 10(b) for appropriation purposes. current expenses in Schedules 10(a) and 10(b) for appropriation purposes. The accompanying notes and schedules are an integral part of these financial statements The accompanying notes and schedules are an integral part of these financial statements The accompanying notes and schedules are an integral part of these financial statements (56,825,931) 75 5 5 Government of Bermuda – Consolidated Fund GovernmentStatement of Bermuda – Consolidated Fund of –Cash Flow Government of Bermuda Consolidated Fund Statement of Change in Net Debt the year ended March 31 Statement ofFor Change in Net Debt For the year ended March 31 For the year ended March 31 2014 2014 Actual Actual Operating Activities Annual Deficit Annual Deficit Annual Deficit $ $ (184,017,663) (184,017,663) Items not affecting cash: Change Due to Tangible Capital Assets: Amortization Tangible Capital Assets Change Due to Tangible Capital of Assets: Net Additions to Tangible Capital Assets (35,541,886) (Decrease) Increase Liability Net Additions to Tangible Capital Assetsin Pension and Retirement Benefits (35,541,886) Net Additions to Assets under Construction (8,624,694) Increase in Compensated Absences Liability Net Additions to Assets under Construction (8,624,694) (Decrease) Increase Amortization of Tangible Capital Assetsin Non-Cash Working Capital 54,677,285 Amortization of Tangible Capital Assets 54,677,285 Cash Applied to Operating Activities Total Change Due to Tangible Capital Assets 10,510,705 Total Change Due to Tangible Capital Assets 10,510,705 Capital Activities Net Additions to Inventories for Consumption Net Additions to Tangible Capital Assets Net Additions to Inventories for Consumption Net Reductions (Additions) to Prepaid Expenses Net Additions to Assets under Construction Net Reductions (Additions) to Prepaid Expenses Cash Applied for to Capital Activities Total Change Due to Inventories Consumption Total Change Due to Inventories for Consumption and Prepaid Expenses Financing Activities and Prepaid Expenses Increase in Net Debt Debt issues Increase in Net Debt (Increase) Decrease in Sinking Fund Net Debt, Beginning of Year Net Debt, Beginning of retirement Year Debt (1,751,052) (1,751,052) 3,021,582 3,021,582 2014 2013 2013 Actual 2013 Actual Actual Actual$ $ $ $ (184,017,663) (407,990,925) (407,990,925) 54,677,285 (36,944,067) (94,302,441) (36,944,067) (3,750,355) 743,102 (3,750,355) (14,873,061) 47,044,473 47,044,473 (237,772,778) 6,350,051 6,350,051 (1,154,146) (35,541,886) (1,154,146) (1,691,070) (8,624,694) (1,691,070) (44,166,580) 1,270,530 1,270,530 (172,236,428) (172,236,428) (2,819,635,369) (2,819,635,369) Cash Provided By Financing Activities Net Debt, End of Year (2,991,871,797) Net Debt, End of Year (2,991,871,797) Net Increase in Cash and Cash Equivalents (407,990,925) 47,044,473 113,192,618 1,118,758 34,599,789 (212,035,287) (36,944,067) (3,750,355) (40,694,422) (2,845,216) (2,845,216) (404,486,090) 800,000,000 (404,486,090) (439,415,763) (2,415,149,279) (2,415,149,279) 360,584,237 (2,819,635,369) (2,819,635,369) 78,644,879 475,000,000 17,605,115 (200,000,000) 292,605,115 39,875,406 Cash and Cash Equivalents, Beginning of Year (56,825,931) (96,701,337) Cash and Cash Equivalents, End of Year 21,818,948 (56,825,931) 21,818,948 12,174,590 Cash and Cash Equivalents, End of Year Cash and Cash Equivalents Bank Overdraft Cash and Cash Equivalents, End of Year 6 - (69,000,521) 21,818,948 (56,825,931) The accompanying notes and schedules are an integral part of these financial statements The accompanying notes and schedules are an integral part of these financial statements 6 The accompanying notes and schedules are an integral part of these financial statements 6 7 Government of Bermuda – Consolidated Fund Government Bermuda ConsolidatedFund Fund Statement of Cash Flow ––Consolidated Government ofofBermuda Statement ofCash CashMarch Flow 31 For the yearof ended Statement Flow Forthe theyear yearended endedMarch March31 31 For Operating Activities Operating Activities Operating Activities Annual Deficit Annual Deficit Annual Deficit Items not affecting cash: Items not affecting cash: Amortization of Tangible Items not affecting cash:Capital Assets Amortization of Tangible Capital Assets (Decrease) Increase in Pension and Retirement Benefits Liability Amortization of Tangible Capital Assets (Decrease) Increase in Pension and Retirement Benefits Liability Increase in Compensated Absences (Decrease) Increase in Pension andLiability Retirement Benefits Liability Increase in Compensated Absences Liability (Decrease) in Non-Cash Working Capital Increase inIncrease Compensated Absences Liability (Decrease) Increase in Non-Cash Working Capital (Decrease) in Non-Cash Cash AppliedIncrease to Operating ActivitiesWorking Capital Cash Applied to Operating Activities Cash Applied to Operating Activities Capital Activities Capital Activities Capital Activities Net Additions to Tangible Capital Assets Net Additions to Tangible Capital Assets Net under Construction NetAdditions AdditionstotoAssets Tangible Capital Assets Net Additions to Assets under Construction Cash Applied totoCapital Net Additions AssetsActivities under Construction Cash Applied to Capital Activities Cash Applied to Capital Activities Financing Activities Financing Activities Financing Activities Debt issues Debt issues (Increase) Decrease in Sinking Fund Debt issues (Increase) Decrease in Sinking Fund Debt retirement (Increase) Decrease in Sinking Fund Debt retirement DebtProvided retirement Cash By Financing Activities Cash Provided By Financing Activities Cash Provided By Financing Activities Net Increase in Cash and Cash Equivalents Net Increase in Cash and Cash Equivalents Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, Beginning of Year 2014 2014 2014 Actual Actual Actual $ $ $ 2013 2013 2013 Actual Actual Actual $ $ $ (184,017,663) (407,990,925) (184,017,663) (407,990,925) (184,017,663) (407,990,925) 54,677,285 47,044,473 54,677,285 47,044,473 (94,302,441) 54,677,285 113,192,618 47,044,473 (94,302,441) 113,192,618 743,102 1,118,758 (94,302,441) 113,192,618 743,102 34,599,789 1,118,758 (14,873,061) 743,102 1,118,758 (14,873,061) 34,599,789 (14,873,061) (212,035,287) 34,599,789 (237,772,778) (237,772,778) (212,035,287) (237,772,778) (212,035,287) (35,541,886) (36,944,067) (35,541,886) (36,944,067) (8,624,694) (3,750,355) (35,541,886) (36,944,067) (8,624,694) (3,750,355) (44,166,580) (8,624,694) (40,694,422) (3,750,355) (44,166,580) (40,694,422) (44,166,580) (40,694,422) 800,000,000 475,000,000 800,000,000 17,605,115 475,000,000 (439,415,763) 800,000,000 475,000,000 (439,415,763) 17,605,115 (200,000,000) (439,415,763) 17,605,115 (200,000,000) (200,000,000) 360,584,237 - 292,605,115 360,584,237 292,605,115 360,584,237 292,605,115 78,644,879 39,875,406 78,644,879 39,875,406 78,644,879 39,875,406 (56,825,931) (96,701,337) (56,825,931) (96,701,337) (56,825,931) (96,701,337) Cash and Cash Equivalents, End of Year Cash and Cash Equivalents, End of Year Cash and Cash Equivalents, End of Year 21,818,948 (56,825,931) 21,818,948 (56,825,931) 21,818,948 (56,825,931) Cash and Cash Equivalents, End of Year Cash and Cash Equivalents, End of Year Cash and Cash Equivalents, End of Year Cash and Cash Equivalents Cash and Cash Equivalents Bank Overdraft Cash and Cash Equivalents Bank Overdraft Bank Overdraft Cash and Cash Equivalents, End of Year Cash and Cash Equivalents, End of Year Cash and Cash Equivalents, End of Year 21,818,948 12,174,590 21,818,948 12,174,590 (69,000,521) 21,818,948 12,174,590 (69,000,521) (69,000,521) 21,818,948 (56,825,931) 21,818,948 (56,825,931) 21,818,948 (56,825,931) The accompanying notes and schedules are an integral part of these financial statements The accompanying notes and schedules are an integral part of these financial statements The accompanying notes and schedules are an integral part of these financial statements 77 7 7 Government of Bermuda – Consolidated Fund Notes to the Financial Statements Government of Bermuda – Consolidated Fund March 31, 2014 Notes to the Financial Statements March 31, 2014 1. Authority The Consolidated Fund (the “Fund”) operates under the authority of the Bermuda 1. Authority Constitution Order 1968 and amendments, and the Public Treasury (Administration and Payments) Act 1969 and amendments. The Consolidated Fund (the “Fund”) operates under the authority of the Bermuda Constitution Order and the amendments, and the Public Treasury (Administration and All public money is 1968 paid into Fund and legislative authority must be obtained for any Payments) Act amendments. expenditure out1969 of theand Fund. All public money is paid intoauthority the Fundtoand legislative authority be Fund obtained for any The Legislature provides make payments out must of the in annual expenditure outActs, of theSupplementary Fund. Appropriation Estimates and other statutes. Unused spending authority for current account appropriations lapses at the end of the fiscal year. Unused The Legislature provides authority to make payments out of the Fund in annual spending authority for uncompleted capital projects is carried forward to subsequent Appropriation Acts, Supplementary Estimates and other statutes. Unused spending fiscal years, subject to the approval of the Minister of Finance. authority for current account appropriations lapses at the end of the fiscal year. Unused spending authority for uncompleted capital projects is carried forward to subsequent fiscal years, subject to the approval of the Minister of Finance. 2. Reporting Entity The Fund’s financial statements report the financial position, results of operations, 2. Reporting Entity change in net debt and cash flow resulting from the activities of the Fund only, which comprise the accounts of the Senate, the House of Assembly, all Government The Fund’s financial statements report the financial position, results of operations, departments and offices (including the Public Service Commission) and all courts. The change in net debt and cash flow resulting from the activities of the Fund only, which Fund is established and defined pursuant to Section 94 of the Bermuda Constitution comprise the accounts of the Senate, the House of Assembly, all Government Order 1968. departments and offices (including the Public Service Commission) and all courts. The Fund isfinancial established and defined pursuant to consolidated Section 94 offinancial the Bermuda Constitution These statements are not summary statements of the Order 1968. Bermuda Government. Separate audited financial statements are prepared for all other Government organizations. These financial statements are not summary consolidated financial statements of the Bermuda Government. Separate auditedinfinancial statements preparedrequirements for all other These financial statements are prepared accordance with theare legislative Government as outlined inorganizations. Sections 5 and 32A of the Public Treasury (Administration and Payments) Act 1969 and amendments. These financial statements are prepared in accordance with the legislative requirements as outlined in Sections 5 and 32Ageneral of the Public Treasury (Administration andFund Payments) The Government adheres to the practice of using a Consolidated as its general fund. Schedules 8 to 11 provide information concerning the Act 1969 operating and amendments. operations, tangible capital assets and capital expenses of individual Government The Government adheres to the general practice of using a Consolidated Fund as its departments and funds and agencies comprising the Fund. general operating fund. Schedules 8 to 11 provide information concerning the operations, tangible capital assets and capital expenses of individual Government departments and funds and agencies comprising the Fund. 3. Summary of Significant Accounting Policies The recommendations of the Public Sector Accounting Board and the Accounting 3. Summary Policies of Canada (which are Standards Board of of Significant the Chartered Accounting Professional Accountants promoted by the Chartered Professional Accountants of Bermuda by signed agreement The recommendations of the Public Sector Accounting Board and the Accounting and therefore generally accepted in Bermuda) are the source for the disclosure basis of Standards Board of the Chartered Professional Accountants of Canada (which are accounting. promoted by the Chartered Professional Accountants of Bermuda by signed agreement and therefore generally accepted in Bermuda) are the source for the disclosure basis of The preparation of financial statements in accordance with Public Sector Accounting accounting. Standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and The preparation of financial statements in accordance with Public Sector Accounting liabilities at the date of the financial statements and the reported amounts of revenues Standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues 8 8 8 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 3. Summary of Significant Accounting Policies (cont’d) 3. Summary of Significant Accounting Policies (cont’d) and expenses during the year. Actual results could differ from these estimates. and expenses during the year. Actual results could differ from these estimates. The significant accounting policies are as follows: The significant accounting policies are as follows: (a) Basis (a) Basis The financial statements are prepared on the accrual basis of accounting. The financial statements are prepared on the accrual basis of accounting. (b) Revenue (b) Revenue Revenues are accounted for in the fiscal year in which the transactions or events Revenuesthat aregave accounted forrevenues. in the fiscal year in which the transactions or events occurred rise to the occurred that gave rise to the revenues. Revenues not practicably measurable until cash is received are accounted for upon Revenues not practicably measurable until cash is received are accounted for upon receipt. receipt. Amounts received or receivable prior to the end of the year, which relate to revenues Amounts orareceivable prior to year, the end the year, which relate to revenues that will bereceived earned in subsequent fiscal are of reported as deferred revenue. that will be earned in a subsequent fiscal year, are reported as deferred revenue. (c) Expenses (c) Expenses Expenses are accounted for in the fiscal year that goods and services are acquired, a Expenses are accounted in the fiscal year that goods and services are acquired, a liability is incurred or grant for payments are due. liability is incurred or grant payments are due. Contributions to Government funds and agencies are expensed in the year the Contributionsis made. to Government funds and agencies are expensed in the year the expenditure expenditure is made. Classification of expenses between current account items and capital account items Classification of expenses between current account items and capital account items follows the classification in the Approved Estimates. follows the classification in the Approved Estimates. (d) Interdepartmental Revenues and Expenses (d) Interdepartmental Revenues and Expenses Interdepartmental revenues and expenses are not eliminated but have been identified as Interdepartmental revenues and expenses are not eliminated but have been identified as explained in Note 14(c). explained in Note 14(c). (e) Financial Assets (e) Financial Assets Financial assets are resources that can be used to discharge existing liabilities or Financial assets are resources that can used discharge accounts existing liabilities or finance future operations. They include cashbe and cashtoequivalents, receivable, finance future operations. They include cash and cash equivalents, accounts receivable, amounts due from Government funds and agencies, long-term receivables and amounts due from Government funds and agencies, long-term receivables and investment in QUANGO. investment in QUANGO. Accounts receivable are recorded at cost. A provision is recorded when collection of the Accounts receivable are doubtful. recorded at cost. A provision is recorded when collection of the receivable is considered receivable is considered doubtful. Long-term receivables are recorded at cost. Long-term receivables are recorded at cost. Investment in QUANGO is recorded at cost. Investment in QUANGO is recorded at cost. 9 9 9 Government Governmentof ofBermuda Bermuda––Consolidated ConsolidatedFund Fund Notes to the Financial Statements Notes to the Financial Statements March March31, 31,2014 2014 3. 3. Summary Summaryof ofSignificant SignificantAccounting AccountingPolicies Policies(cont’d) (cont’d) (f) Non-Financial Assets (f) Non-Financial Assets Non-Financial assets are resources that are employed for future services. They include Non-Financial assets are resources that are employed for future services. They include tangible capital assets, assets under construction, inventories for consumption and tangible capital assets, assets under construction, inventories for consumption and prepaid expenses. The costs of acquiring land, buildings, equipment and other capital prepaid expenses. The costs of acquiring land, buildings, equipment and other capital property are capitalized as tangible capital assets and are amortized over the estimated property are capitalized as tangible capital assets and are amortized over the estimated useful lives of the assets. Where original acquisition documents were difficult to retrieve, useful lives of the assets. Where original acquisition documents were difficult to retrieve, the Book Value Calculator (“BVC”), developed by the Chief Appraiser of Public Works the Book Value Calculator (“BVC”), developed by the Chief Appraiser of Public Works and Government Services Canada (as modified by them to address the Bermuda and Government Services Canada (as modified by them to address the Bermuda Government situation), was used to establish reasonable estimates of the Net Book Government situation), was used to establish reasonable estimates of the Net Book Values in order to develop opening balances. Values in order to develop opening balances. Other tangible capital assets that do not meet the minimum threshold requirements for Other tangible capital assets that do not meet the minimum threshold requirements for their respective asset class have continued to be charged to capital expenses in the year their respective asset class have continued to be charged to capital expenses in the year of purchase, which is consistent with prior years. These expenses are currently of purchase, which is consistent with prior years. These expenses are currently classified as capital development and capital acquisition expenses on Schedule 10, classified as capital development and capital acquisition expenses on Schedule 10, Expenses by Program. Included in the capital development and capital acquisition Expenses by Program. Included in the capital development and capital acquisition expenses are other significant items: capital grants, repairs and maintenance, expenses are other significant items: capital grants, repairs and maintenance, professional fees and other items which are expensed as they are incurred. Tangible professional fees and other items which are expensed as they are incurred. Tangible capital assets that have not yet been disclosed include historical treasures. capital assets that have not yet been disclosed include historical treasures. Amortization is recorded on a straight-line basis for all assets, according to the following: Amortization is recorded on a straight-line basis for all assets, according to the following: Buildings Buildings 40 years 40 years Leasehold Improvements Leasehold Improvements Remaining life or lease period of the related Remaining life or lease period of the related asset asset Betterments Betterments Remaining life or lease period of the related Remaining life or lease period of the related asset asset Heavy Equipment Heavy Equipment $10,000 to $99,999 $10,000 to $99,999 $100,000 and above $100,000 and above 5 years 5 years 7 years 7 years Vehicles Vehicles 2 – 3 Wheeled Vehicles 2 – 3 Wheeled Vehicles $3,000 and above $3,000 and above 5 years 5 years 4 or More Wheeled Vehicles 4 or More Wheeled Vehicles $0 - $99,999 5 years $0 - $99,999 5 years $100,000 and above 7 years $100,000 and above 7 years 10 10 10 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 3. Summary of Significant Accounting Policies (cont’d) 3. Summary of Significant Accounting Policies (cont’d) Boats & Vessels Boats & Vessels $10,000 to $99,999 $10,000 toand $99,999 $100,000 above $100,000 and above 5 years 5 years 10 years 10 years Leased Equipment Leased$3,000 Equipment and above $3,000 and above 3 years 3 years Computer Hardware Computer Hardware $3,000 to $99,999 $3,000 to and $99,999 $100,000 above $100,000 and above 3 years years 73 years 7 years All laptops and desktop computers are capitalized All laptops and desktop computers are capitalized Computer Software Computer Software $20,000 and above $20,000 and above 10 years 10 years Furniture & Fixtures Furniture & Fixtures $3,000 and above $3,000 and above 7 years 7 years Office Equipment Office Equipment $3,000 and above $3,000 and above 5 years 5 years Plant, Machinery & Equipment Plant, Machinery & Equipment $50,000 and above $50,000 and above 10 – 30 years 10 – 30 years Infrastructure Infrastructure $50,000 to $199,999 $50,000 toand $199,999 $200,000 above $200,000 and above 10 years 10 years years 40 40 years The Ministry of Public Works is primarily responsible for Government’s tangible capital The Ministry of Public Works is primarily responsible for Government’s tangible capital assets. In prior years, amortization was reported as a single expense item of this assets. prior years, amortization was reported single expense item ofSince this Ministry. In Amortization expense is now reported under as the arespective departments. Ministry. Amortization expense is now reported under the respective departments. Since amortization is a non-cash expense, it is removed for appropriation reporting purposes. amortization is a non-cash expense, it is removed for appropriation reporting purposes. Assets under construction relate to the development of buildings, betterments, vehicles, Assets under construction relatesoftware, to the development of buildings, betterments, computer hardware, computer infrastructure, office equipment and vehicles, vessels. computer hardware, computer software, infrastructure, office equipment and vessels. Upon completion, the balance of assets under construction will be transferred to tangible Upon completion, balancebased of assets under construction will be transferred to tangible capital assets and the amortized on the appropriate useful life. capital assets and amortized based on the appropriate useful life. Tangible capital assets that have historical or cultural value, including works of art, Tangible documents, capital assets have and historical or artifacts, cultural are value, works of art, historical andthat historical cultural not including recognized as tangible historical documents, and historical and cultural artifacts, are not recognized as tangible capital assets in these financial statements because a reasonable estimate of the future capital assets in these statements because a reasonable estimate of the future benefits associated withfinancial such property cannot be made. benefits associated with such property cannot be made. Inventories for consumption are comprised of spare parts and supplies that are held for Inventories for consumption are comprised of spare parts and supplies that are held for 11 11 11 Government of of Bermuda Bermuda –– Consolidated Consolidated Fund Fund Government Notes to to the the Financial Financial Statements Statements Notes March 31, 31, 2014 2014 March 3. Summary Summary of of Significant Significant Accounting Accounting Policies Policies (cont’d) (cont’d) 3. future program delivery and are not intended for resale. They are valued at cost. future program delivery and are not intended for resale. They are valued at cost. Inventories for consumption that no longer have service potential are valued at the lower Inventories for consumption that no longer have service potential are valued at the lower of cost and net realizable value. Items for which the costs are not readily available have of cost and net realizable value. Items for which the costs are not readily available have been valued using management’s best estimates of original cost based on available been valued using management’s best estimates of original cost based on available information. information. (g) Liabilities (g) Liabilities Liabilities are recorded for financial obligations to organizations and individuals occurring Liabilities are recorded for financial obligations to organizations and individuals occurring as a result of transactions and events arising on or before the year-end. They occur as a as a result of transactions and events arising on or before the year-end. They occur as a result of contracts, agreements and legislation in force at the year-end that require the result of contracts, agreements and legislation in force at the year-end that require the Government to repay borrowings or to pay for goods and services acquired or provided Government to repay borrowings or to pay for goods and services acquired or provided on or before the year-end. Liabilities also include grant payments due where no direct on or before the year-end. Liabilities also include grant payments due where no direct value is received in return. value is received in return. (h) Translation of Foreign Currencies (h) Translation of Foreign Currencies The financial statements are reported in Bermuda dollars. The Bermuda dollar is valued The financial statements are reported in Bermuda dollars. The Bermuda dollar is valued at par with the United States dollar. Assets and liabilities denominated in foreign at par with the United States dollar. Assets and liabilities denominated in foreign currencies are translated at the exchange rate prevailing at the year-end date. currencies are translated at the exchange rate prevailing at the year-end date. Revenues and expenses originating in foreign currencies are translated at the exchange Revenues and expenses originating in foreign currencies are translated at the exchange rate in effect on the date the specific transactions occurred. Translation gains and losses rate in effect on the date the specific transactions occurred. Translation gains and losses are included in the Statement of Operations and Accumulated Deficit. are included in the Statement of Operations and Accumulated Deficit. (i) Measurement Uncertainty (i) Measurement Uncertainty Estimates are used to accrue revenues and expenses in circumstances where the actual Estimates are used to accrue revenues and expenses in circumstances where the actual accrued revenues and expenses are unknown at the time the financial statements are accrued revenues and expenses are unknown at the time the financial statements are prepared. Uncertainty in the determination of the amount at which an item is recognized prepared. Uncertainty in the determination of the amount at which an item is recognized in the financial statements is known as measurement uncertainty. Such uncertainty in the financial statements is known as measurement uncertainty. Such uncertainty exists when there is a variance between the recognized amount and another reasonable exists when there is a variance between the recognized amount and another reasonable amount, as there is whenever estimates are used. amount, as there is whenever estimates are used. Measurement uncertainty in these financial statements exists in the accrual of individual Measurement uncertainty in these financial statements exists in the accrual of individual and corporate payroll and land taxes, accruals for pension obligations, accruals for and corporate payroll and land taxes, accruals for pension obligations, accruals for environmental obligations, allowances for doubtful receivables and accruals for liabilities environmental obligations, allowances for doubtful receivables and accruals for liabilities through actuarial valuations. through actuarial valuations. The nature of the uncertainty related to the accruals for pension obligations arise The nature of the uncertainty related to the accruals for pension obligations arise because actual results may differ significantly from the Government’s best estimates of because actual results may differ significantly from the Government’s best estimates of expected results based on variables such as earnings on the pension investments, expected results based on variables such as earnings on the pension investments, salary increases and the life expectancy of the participants. The uncertainty related to salary increases and the life expectancy of the participants. The uncertainty related to the accrual of environmental obligations is based upon the identification of all sites the accrual of environmental obligations is based upon the identification of all sites where environmental damages have occurred that are the Government’s responsibilities where environmental damages have occurred that are the Government’s responsibilities to mitigate and the quantification of what the actual liability will be based upon impact to mitigate and the quantification of what the actual liability will be based upon impact studies. Uncertainty concerning the allowance for doubtful receivables is based upon studies. Uncertainty concerning the allowance for doubtful receivables is based upon actual collectability and changes in economic conditions. actual collectability and changes in economic conditions. 12 12 12 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 3. Summary of Significant Accounting Policies (cont’d) 3. Summary of Significant Accounting Policies (cont’d) While management’s best estimates have been used for reporting items subject to While management’s bestit estimates been used for reporting to measurement uncertainty, is possiblehave that changes in future conditionitems in the subject near term measurement uncertainty, it is possible that changes in future condition in the near term could require a material change in the valuation of the reported amounts. Near term is could require material valuation the reported term is defined as a aperiod of change time notintotheexceed oneofyear from theamounts. date of Near the financial defined as a period of time not to exceed one year from the date of the financial statements. statements. (j) Risk Management of Public Debt (j) Risk Management of Public Debt Funds are borrowed in both domestic and foreign capital markets by issuing Bermuda Funds are borrowed in both and foreign markets by issuing Bermuda Government senior notes anddomestic using bank loans and capital other credit facilities. This borrowing Government senior notes and using bank loans and other credit facilities. This borrowing activity is used to fund government capital expenditure programs and other budgeted activity is usedoperations. to fund government capital expenditure programstoand budgeted governmental These transactions result in exposure fourother types of risk: governmental operations. These transactions result in exposure to four types of risk: interest rate risk, foreign exchange risk, credit risk and liquidity risk. interest rate risk, foreign exchange risk, credit risk and liquidity risk. Interest rate risk is the risk that debt servicing costs will increase due to changes in Interest rates. rate risk is risk the is riskmanaged that debtbyservicing costssecurities will increase due to changes in interest This issuing debt as predominately fixed interest rates. This risk is managed by issuing debt securities as predominately fixed rates of interest rather than floating rates of interest for fixed terms. rates of interest rather than floating rates of interest for fixed terms. Foreign exchange risk is the risk that debt servicing costs will increase due to a decline Foreign exchange riskrelative is the risk that debt servicing costs increase by duemaintaining to a decline of the Bermuda dollar to other currencies. This risk will is managed a of the Bermuda dollar relative to other currencies. This risk is managed by maintaining preference for debt that is issued predominately in United States (“US”) dollars. Thea preferencedollar for debt that istoissued in United Statesof(“US”) dollars. The Bermuda is pegged the USpredominately dollar to eliminate the impact any fluctuations in Bermuda dollar is pegged to the US dollar to eliminate the impact of any fluctuations in the exchange rates between the two. the exchange rates between the two. Credit risk is the risk that a loss might occur from the failure of another party to meet its Credit risk isunder the risk that a loss financial might occur from thecontract. failure ofThe another to meet by its obligations a derivative instrument risk party is managed obligations under a derivative financial instrument contract. The risk is managed by issuing debt securities that have no derivatives as the underlying securities. The debt issuing debt are securities have as the underlying securities. The debt instruments senior that notes of no the derivatives Bermuda Government and loan facilities with a instruments are senior notes of the Bermuda Government and loan facilities with a domestic lender. domestic lender. Liquidity risk is the risk that financial commitments will not be met over the short term. Liquidity is the riskthrough that financial commitments be met over the short term. This risk risk is managed the establishment of will the not Government Borrowing Sinking This risk is managed through the establishment of the Government Borrowing Sinking Fund as a separate legal entity for the repayment of government debt and to pay interest Fund as aonseparate legal entitydebt for the repayment of government debt and to pay interest charged long-term public under the provisions of the Government Loans Act charged on long-term public debt under the provisions of the Government Loans Act 1978. 1978. (k) Future Changes in Accounting Standards (k) Future Changes in Accounting Standards Each year new standards and amendments to standards may be issued by the Public Each year new standards andthe amendments to standards Accountants may be issued by the Public Sector Accounting Board of Chartered Professional of Canada. The Sector Accounting Board of the Chartered Professional Accountants of Canada. The standards following are not yet effective and have not been applied in preparing these standards following are not yet effective and have not been applied in preparing these financial statements. financial statements. PS 3450 Financial Instruments – a new standard providing guidance on the recognition, PS 3450 Financial Instruments a new standard providing guidance on the recognition, measurement, presentation and–disclosure of financial instruments, including derivatives. measurement, presentation and disclosure of financial instruments, including derivatives. PS 1201 Financial Statement Presentation – replaces PS 1200 with revised general PS 1201 Financial Statement Presentation – replaces PS 1200 with revised general reporting principles and standards of presentation and disclosure in government financial reporting principles and standards of presentation and disclosure in government financial statements. PS 2601 Foreign Currency Translation – replaces PS 2600 and has revised statements. PS 2601 Foreign Currency Translation – replaces PS 2600 and has revised 13 13 13 Government Government of of Bermuda Bermuda –– Consolidated Consolidated Fund Fund Notes to the Financial Statements Notes to the Financial Statements March March 31, 31, 2014 2014 3. 3. Summary Summary of of Significant Significant Accounting Accounting Policies Policies (cont’d) (cont’d) standards on accounting for and reporting transactions denominated in a foreign standards on accounting for and reporting transactions denominated in a foreign currency. PS 3260 Liability for Contaminated Sites – a new standard providing guidance currency. PS 3260 Liability for Contaminated Sites – a new standard providing guidance on reporting liabilities associated with the remediation of contaminated sites. on reporting liabilities associated with the remediation of contaminated sites. With the exception of PS 3260, effective for fiscal years beginning on or after April 1, With the exception of PS 3260, effective for fiscal years beginning on or after April 1, 2014, each of these new standards becomes effective for fiscal years beginning on or 2014, each of these new standards becomes effective for fiscal years beginning on or after April 1, 2016. The Government does not intend to adopt these new standards prior after April 1, 2016. The Government does not intend to adopt these new standards prior to the effective dates. The impact that these standards will have on the financial to the effective dates. The impact that these standards will have on the financial statements is not deemed significant. statements is not deemed significant. 4. 4. Approved Approved Estimates Estimates of of the the Government Government of of Bermuda Bermuda (a) Budget Process (a) Budget Process Annually, the Government presents a Budget (“Estimates”) of expected revenues and Annually, the Government presents a Budget (“Estimates”) of expected revenues and expenditures for the following fiscal year. expenditures for the following fiscal year. The Government’s spending Estimates for the fiscal year commencing April 1, 2013 The Government’s spending Estimates for the fiscal year commencing April 1, 2013 were presented to the Members of the Legislature by the Minister of Finance. were presented to the Members of the Legislature by the Minister of Finance. The Estimates outline the spending plans of each Ministry/Department submitted for The Estimates outline the spending plans of each Ministry/Department submitted for approval to the Legislature in the Appropriations Act. approval to the Legislature in the Appropriations Act. The Estimates referred to in the financial statement schedules are from the original The Estimates referred to in the financial statement schedules are from the original Approved Estimates of Revenue and Expenditure for the fiscal year 2013/14 and do not Approved Estimates of Revenue and Expenditure for the fiscal year 2013/14 and do not reflect changes arising from the tabling of Supplementary Estimates, except for the reflect changes arising from the tabling of Supplementary Estimates, except for the Adjusted Estimates referred to in Schedule 12 which include the original Approved Adjusted Estimates referred to in Schedule 12 which include the original Approved Estimates and any tabled Supplementary Estimates. Estimates and any tabled Supplementary Estimates. (b) Comparison of Expenses to Estimates for Expenditure (b) Comparison of Expenses to Estimates for Expenditure The Ministry of Finance prepares annual Estimates on the modified cash basis. These The Ministry of Finance prepares annual Estimates on the modified cash basis. These financial statements are prepared on an accrual basis. Due to the difference in financial statements are prepared on an accrual basis. Due to the difference in accounting, Schedule 12 restates actual expenses to the modified cash basis for accounting, Schedule 12 restates actual expenses to the modified cash basis for comparative and analytical purposes against the adjusted estimates. The most comparative and analytical purposes against the adjusted estimates. The most significant differences are as follows: significant differences are as follows: (i) Bad Debts – For financial statement purposes, a provision is established and (i) Bad Debts – For financial statement purposes, a provision is established and expensed for accounts receivable where collection is doubtful. For budget purposes, expensed for accounts receivable where collection is doubtful. For budget purposes, no such provision is made. no such provision is made. (ii) Pension – The financial statement pension-related expense is explained in Note 9. (ii) Pension – The financial statement pension-related expense is explained in Note 9. For budget purposes, pension expense is equal to its funding requirements. For budget purposes, pension expense is equal to its funding requirements. 14 14 14 Government of of Bermuda Bermuda – – Consolidated Consolidated Fund Fund Government Notes to to the the Financial Financial Statements Statements Notes March 31, 31, 2014 2014 March 4. Approved Approved Estimates Estimates of of the the Government Government of of Bermuda Bermuda (cont’d) (cont’d) 4. (iii) Government Borrowing Sinking Fund (Note 5) – Transfers to the Sinking Fund are (iii) Government Borrowing Sinking Fund (Note 5) – Transfers to the Sinking Fund are recorded as cash transfers against long-term debt. For budget purposes, the Sinking recorded as cash transfers against long-term debt. For budget purposes, the Sinking Fund contribution is considered expenditure. Fund contribution is considered expenditure. (iv) Compensated Absences – Certain Government employees are entitled to paid (iv) Compensated Absences – Certain Government employees are entitled to paid retirement leave, as explained in Note 8. For budget purposes, retirement pay is retirement leave, as explained in Note 8. For budget purposes, retirement pay is estimated based on anticipated salary spending for the current year. estimated based on anticipated salary spending for the current year. (v) Amortization – For financial statement purposes, annual amortization of tangible (v) Amortization – For financial statement purposes, annual amortization of tangible capital assets is expensed based on the respective assets as explained in Note 3(f). capital assets is expensed based on the respective assets as explained in Note 3(f). For budget purposes, amortization is not considered expenditure. For budget purposes, amortization is not considered expenditure. (vi) Environment Liability – As explained in Note 10(c), the Government has recognized (vi) Environment Liability – As explained in Note 10(c), the Government has recognized a cost of restoration of land. For budget purposes, the liability established is not a cost of restoration of land. For budget purposes, the liability established is not considered expenditure. considered expenditure. 5. Government Government Borrowing Borrowing Sinking Sinking Fund Fund 5. Effective March 31, 1993, the Government Borrowing Sinking Fund (“GBSF”) was Effective March 31, 1993, the Government Borrowing Sinking Fund (“GBSF”) was established as a separate legal entity for the repayment of government borrowing under established as a separate legal entity for the repayment of government borrowing under the provisions of the Government Loans Act 1978, as amended. the provisions of the Government Loans Act 1978, as amended. During each financial year, the Fund must pay to the GBSF 2.5% of the public debt During each financial year, the Fund must pay to the GBSF 2.5% of the public debt outstanding in the Fund at the end of the preceding year. Under Section 12AA of the outstanding in the Fund at the end of the preceding year. Under Section 12AA of the Government Loans Act 1978 as amended, the Minister may, by Order, suspend the Government Loans Act 1978 as amended, the Minister may, by Order, suspend the annual contribution for a period of twelve months. annual contribution for a period of twelve months. 2013 2013 $ $ Sinking Fund Sinking Fund 97,141,966 97,141,966 Contributions Contributions 37,878,582 37,878,582 2014 2014 $ $ Additional Additional Earnings Funds Earnings Funds Sinking Fund Sinking Fund 3,168,426 3,168,426 536,557,729 536,557,729 398,368,755 398,368,755 Up until 2013, the GBSF assets were only to be applied to reduce, cancel or pay interest Up until 2013, the GBSF assets were only to be applied to reduce, cancel or pay interest on public debt. In 2013 the Government Loans Act 1978 was amended to allow excess on public debt. In 2013 the Government Loans Act 1978 was amended to allow excess funds borrowed to be paid into the Sinking Fund and applied to future year deficits. The funds borrowed to be paid into the Sinking Fund and applied to future year deficits. The assets are invested in accordance with the Public Funds Act 1954 and are shown as a assets are invested in accordance with the Public Funds Act 1954 and are shown as a reduction of debt issued on the Fund’s Statement of Financial Position. reduction of debt issued on the Fund’s Statement of Financial Position. 15 15 15 Government Government of of Bermuda Bermuda –– Consolidated Consolidated Fund Fund Notes to the Financial Statements Notes to the Financial Statements March March 31, 31, 2014 2014 5. 5. Government Government Borrowing Borrowing Sinking Sinking Fund Fund (cont’d) (cont’d) The assets of the GBSF are comprised of the following: The assets of the GBSF are comprised of the following: Short Term Investments Short Term Investments Fixed Term Deposits Fixed Term Deposits 2014 2014 $ $ 2013 2013 $ $ 437,286,780 437,286,780 99,270,949 99,270,949 97,141,966 97,141,966 The following is a schedule of projected contributions to the GBSF by the Fund up to The following is a schedule of projected contributions to the GBSF by the Fund up to March 31, 2019, based on estimated debt levels to March 31, 2015: March 31, 2019, based on estimated debt levels to March 31, 2015: 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 $ $ 47,668,750 47,668,750 52,250,000 52,250,000 54,625,000 54,625,000 54,625,000 54,625,000 54,625,000 54,625,000 There are separate audited financial statements for the GBSF to which readers should There are separate audited financial statements for the GBSF to which readers should refer for further information. refer for further information. 6. 6. Contingencies Contingencies Fund Fund On March 14, 1979 the House of Assembly passed a resolution to withdraw $1 million On March 14, 1979 the House of Assembly passed a resolution to withdraw $1 million from the Fund to set up a Contingencies Fund under the provisions of Section 10(1) of from the Fund to set up a Contingencies Fund under the provisions of Section 10(1) of the Public Treasury (Administration and Payments) Act 1969, as amended. the Public Treasury (Administration and Payments) Act 1969, as amended. The purpose of the Contingencies Fund is to allow the Minister of Finance to authorize The purpose of the Contingencies Fund is to allow the Minister of Finance to authorize urgent and unforeseen expenditures up to $1 million prior to the approval of the urgent and unforeseen expenditures up to $1 million prior to the approval of the Legislature by supplementary estimate. The Contingencies Fund balance is not Legislature by supplementary estimate. The Contingencies Fund balance is not segregated from general operating cash and cash equivalents and accumulated deficit. segregated from general operating cash and cash equivalents and accumulated deficit. 7. 7. Unemployment Unemployment Insurance Insurance Fund Fund The Unemployment Insurance Fund (“Insurance Fund”) was established March 18, 2002 The Unemployment Insurance Fund (“Insurance Fund”) was established March 18, 2002 by amendment to the Public Treasury (Administration and Payments) Act 1969 under by amendment to the Public Treasury (Administration and Payments) Act 1969 under the provisions of Section 10B. The Legislature authorized $1 million to be set aside the provisions of Section 10B. The Legislature authorized $1 million to be set aside within the Fund to set up the Insurance Fund. within the Fund to set up the Insurance Fund. 16 16 16 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 7. Unemployment Insurance Fund (cont’d) 7. Unemployment Insurance Fund (cont’d) The Minister of Finance will pay amounts approved by the Legislature as Government’s The Ministertoofthe Finance will pay amounts Legislature Government’s contribution Insurance Fund. Moniesapproved paid into by thethe Insurance Fundaswill be invested contribution to the Insurance Fund. Monies paid into the Insurance Fund will be on invested in accordance with the Public Funds Act 1954 and the interest earned such in accordance theinto Public Funds Act 1954 and the interest earned on such investments will with be paid the Insurance Fund. investments will be paid into the Insurance Fund. On August 10, 2011 the Government amended the Public Treasury (Administration and On August 10, amended theprovision Public Treasury (Administration and Payments) Act 2011 1969the in Government order to make further about the Unemployment Payments) Act 1969 in order to make further provision about the Unemployment Insurance Fund. The Act was amended to provide for payments out of the Fund to be Insurance Fund. The of Actthe was amended to provide for purpose payments of theunemployed Fund to be made at the direction Minister of Finance for the of out assisting made at the direction of the Minister of Finance for the purpose of assisting unemployed persons. persons. 8. Compensated Absences 8. Compensated Absences Certain Government employees are entitled to paid retirement leave under the various Certainagreements Government employees to paidPaid retirement leave under the various union that exist with are the entitled Government. retirement leave is available to union agreements that exist with the Government. Paid retirement leave is available to those eligible employees with a minimum of ten years credited service, who are retiring those with aisminimum of salary ten years service, who arethe retiring on theeligible basis ofemployees age. The leave paid at the levelcredited immediately preceding date on the basis of age. The leave is paid at the salary level immediately preceding the date of retirement, to a maximum eligibility of twelve weeks. of retirement, to a maximum eligibility of twelve weeks. An actuarial valuation of the Government’s obligation for retirement leave was performed An March actuarial of the Government’s obligationassumptions for retirementas leave performed at 31,valuation 2014 using similar various long-term the was Public Service at March 31, 2014 using similar various long-term assumptions as the Public Service Superannuation Fund pension plan (Note 9). The valuation determined that the accrued Superannuation Fund pension plan (Note 9). The valuation determined that the accrued benefit obligation for retirement leave is currently $26,182,883 (2013 - $25,439,781), as benefit obligation retirement leave is currently $26,182,883 (2013 - $25,439,781), as defined in the tableforbelow. defined in the table below. 2014 2014 $ $ 2013 2013 $ $ Accrued benefit obligation, beginning of year Accrued benefit obligation, beginning of year Amortization of experience loss Amortization of experience loss Current period benefit cost Current period benefit cost Interest accrued Interest accrued Benefit payments Benefit payments 25,439,781 25,439,781 (145,685) (145,685) 1,190,012 1,190,012 1,510,781 1,510,781 (1,812,006) (1,812,006) 24,321,023 24,321,023 (145,685) (145,685) 1,141,498 1,141,498 1,443,004 1,443,004 (1,320,059) (1,320,059) Accrued benefit obligation, end of year Accrued benefit obligation, end of year 26,182,883 26,182,883 25,439,781 25,439,781 17 17 17 Government of Bermuda – Consolidated Fund Notes to the Financial Statements March 31, 2014 Government of Bermuda – Consolidated Fund Notes to the Financial Statements March 31, 2014 9. Pensions and Other Retirement Benefits (a) Contributory Defined Benefit Pension Plans 9. Pensions and Other Retirement Benefits The Government administers contributory defined benefit pension plans for substantially all its employees, quasi-autonomous non-governmental organization (“QUANGO”) (a) of Contributory Defined Benefit Pension Plans employees and all ministers and members of the Legislature. There are two plans The Government administers defined benefit pension plans for substantially currently in operation – the contributory Public Service Superannuation Fund (“PSSF”) and the all of its and employees, non-governmental organization (“QUANGO”) Ministers Membersquasi-autonomous of the Legislature Pensions Fund (“MMLPF”). employees and all ministers and members of the Legislature. There are two plans currently in operation – the Public Service Superannuation (“PSSF”) and the For the PSSF, a service pension is available with a minimumFund of eight years credited Ministers and Members of the Legislature Pensions Fund (“MMLPF”). service. Subject to exceptions as outlined in the Public Service Superannuation Act 1981, it is based on the number of years of service times 1.5% of the salary payable For the PSSF, a service is availableAdditional with a minimum yearstocredited immediately preceding thepension date of retirement. benefits of areeight provided special service.such Subject to exceptions asand outlined in the officers. Public Service Superannuation Act groups as police, corrections fire services 1981, it is based on the number of years of service times 1.5% of the salary payable immediately preceding the date of retirement. Additional benefits are providedwho to special For the MMLPF, a service pension is generally available to contributors have groups such as police, corrections and fire services officers. reached age 60 and have served for at least 8 years, or to contributors who have reached age 55 and have served for at least 20 years. The rate of pension is 3/1000 th of For monthly the MMLPF, service topension is generally available the salaryapayable a minister, member or officer, to on contributors the date on who whichhave the reached age 60 andentitled have served foraat least 8foryears, or to contributors who have contributor becomes to receive pension, each month of service rendered up th reached age 55 and have served for at least 20 years. The rate of pension is 3/1000 of to a maximum of 25 years. the monthly salary payable to a minister, member or officer, on the date on which the contributor becomes to their receive a pension, for PSSF each month of service rendered up Employees contributeentitled 8.0% of basic salary for and Ministers and Members to a maximum of 25 contribute 12.5% of years. their salary for MMLPF. The Government matches the participant’s contribution in each plan. The amount of Government contributions made during the Employees contribute of theirPSSF basic- salary for PSSF and- $32,862,218), Ministers and Members year for each plan was8.0% as follows: $33,093,862 (2013 MMLPF contribute (2013 12.5% -of$475,973). their salaryThe for MMLPF. The Government matches participant’s $454,927 Public Service Superannuation Actthe 1981 and the contribution in each plan. The amount of Government contributions made during Ministers and Members of the Legislature (Salaries and Pensions) Act 1981, the as year for each plan was follows: PSSF (2013 - $32,862,218), MMLPF amended, provide that, as if at any time the- $33,093,862 funds are insufficient to meet the payments $454,927 (2013 - $475,973). The Public Superannuation Act 1981 and the chargeable against them, the deficiency shallService be made up out of the Consolidated Fund. Ministers and Members of the Legislature (Salaries and Pensions) Act 1981, as amended, provide that, if at any time the funds are insufficient to meet the payments (b) Pension Liability chargeable against them, the deficiency shall be made up out of the Consolidated Fund. Normally, the pension liability is calculated on an actuarial basis. Actuarial valuations are performed triennially (b) Pension Liabilityusing the projected benefit method, pro-rated on services. An actuarial valuation was performed on both the PSSF and the MMLPF as at March 31, Normally, the pension liability isincluded calculated on financial an actuarial basis. Actuarial valuations are 2014 to produce the estimates in the statements. performed triennially using the projected benefit method, pro-rated on services. An Actuarial are based on a on number of assumptions about future as events, such31, as actuarial valuations valuation was performed both the PSSF and the MMLPF at March inflation rates, interest rates, wage and salary increases, employee turnover and 2014 to produce the estimates included in the financial statements. mortality. The assumptions used reflect Government’s best estimates of expected longActuarial are based on a number of assumptions about future events, such as term ratesvaluations and short-term forecasts. inflation rates, interest rates, wage and salary increases, employee turnover and mortality. assumptions used reflect Government’s estimates of expected longThe most The significant assumptions are that the average best investment return will be greater term rates and short-term than the average rate offorecasts. salary increase by approximately 2.25% (prior valuation – 2.25%) and the cost of living increase will be 0% per annum (prior valuation – 3%) as it The been most suspended significant assumptions are2014 that the average has as at March 31, (Note 9 (c)). investment return will be greater than the average rate of salary increase by approximately 2.25% (prior valuation – 2.25%) and the cost of living increase will be 0% per annum (prior valuation – 3%) as it has been suspended as at March 31, 2014 (Note 9 (c)). 18 18 18 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 9. Pensions and Other Retirement Benefits (cont’d) 9. Pensions and Other Retirement Benefits (cont’d) As at March 31, 2014, the Bermuda Government has adopted the new Canadian As at March 31, 2014, Government has adopted using the new Canadian CPM2014Publ scale (withthe full Bermuda generational mortality improvement, Scale CPM-B CPM2014Publ scale (with full generational mortality improvement, using Scale CPM-B for the mortality assumption). The adoption of these tables has resulted in a material for the mortality assumption). Thebenefit adoption of these(“ABO”) tables of has in aBermuda material increase in the projected accrued obligations theresulted funds. The increase in the projected accrued benefit obligations (“ABO”) of the funds. The Bermuda Government will recognize the cost of adopting the new mortality tables in the current Government will recognize the cost of adopting the new mortality tables in the current year. year. For the PSSF, pension fund assets consist primarily of listed stocks and bonds, shortFor the PSSF, pension assets consist primarilyequity of listed stocks andMarket-related bonds, shortterm investment funds, fund hedge funds and private investments. term investment funds, hedge funds and private equity investments. Market-related asset values, which recognize the differences between the actual return on assets and asset values, return which on recognize the differences thehave actual return and the expected assets over a period of between five years, been usedontoassets determine the expected return on assets over a period of five years, have been used to determine the pension liability and pension-related expenses for the PSSF. the pension liability and pension-related expenses for the PSSF. The market-related value of assets for the PSSF was $563,232,830 as at March 31, The market-related value of compared assets for tothe PSSF was $563,232,830 as at March 2014 (2013 - $517,301,834) a real market value of $572,747,186 (201331, – 2014 (2013 $517,301,834) compared to a real market value of $572,747,186 (2013 – $544,516,882). $544,516,882). For the MMLPF, there is no difference between the market value of plan assets and the For the MMLPF,value. there is between plan assets(2013 and the market-related Asnoatdifference March 31, 2014, the themarket value value was of $12,456,938 – market-related value. As at March 31, 2014, the value was $12,456,938 (2013 $12,119,242). The actual return on plan assets during the year was 7.44% (2013 –– $12,119,242). The actual return(2013 on plan assets the year was 7.44% (2013 – 9.02%) for the PSSF and 7.03% - 7.19%) forduring the MMLPF. 9.02%) for the PSSF and 7.03% (2013 - 7.19%) for the MMLPF. As at March 31, 2014, $19,503,788 (2013 – $27,381,870) was due to the PSSF in As at March 31, 2014,received $19,503,788 (2013 $27,381,870) wasFund due (Schedule to the PSSF in respect of contributions in excess of –benefits paid by the 3(a)). respect of contributions received in excess of benefits paid by the Fund (Schedule 3(a)). As at March 31, 2014, $12,633,281 (2013 – $12,438,562) was due to the MMLPF in As at March 31, 2014, received $12,633,281 (2013of–benefits $12,438,562) due to the MMLPF respect of contributions in excess paid bywas the Fund (Schedule 3(a)).in respect of contributions received in excess of benefits paid by the Fund (Schedule 3(a)). (c) Pension-Related Expenses (c) Pension-Related Expenses Pension-related expenses recognized by the Consolidated Fund comprise the cost of Pension-related the Consolidated Fundoncomprise the cost of pension benefits expenses earned byrecognized employeesby during the year, interest the pension benefit pension benefits earned by employees during the year, interest on the pension benefit liability (net of interest on pension plan assets) and amortization of the Government’s liabilityof(net interest on pension plan less assets) and amortization the Government’s share any of experience gains or losses, contributions made byofthe employees. The share of any experience gains or losses, less contributions made by the employees. The estimated total cost of the Government’s share of plan amendments related to past estimated total cost of the Government’s share of plan amendments related to past service is expensed in the year the plan is amended. The pension-related expense is service isinexpensed the as year the plan is of amended. pension-related included Schedule in 10(a) a component retirementThe benefit expenses. expense is included in Schedule 10(a) as a component of retirement benefit expenses. As at March 31, 2014, the cost of living (“COLA”) (Note 16(a)) was removed for both As at March 31, 2014, the cost living (Note 16(a))inwas removed for both current and future pensioners forofboth the(“COLA”) PSSF and MMLPF order to improve the current and future pensioners for both the PSSF and MMLPF in order to improve the sustainability of the respective pension plans. This amendment results in significant sustainability of the respective pension plans. This amendment results in significant decreases of the ABO of the funds. The Government will offset the net unamortized decreases of the ABO the funds. Theof Government offset the net unamortized experience losses as at of March 31, 2014 $173,426,000will (2013 - $88,024,000) against experience losses as at March 31, 2014 of $173,426,000 (2013 $88,024,000) against the decrease of the ABO of $432,661,000 to eliminate all existing amortization the decrease of the ABO of $432,661,000 to eliminate all existing amortization schedules. The remaining balance will be fully recognized in the Statement of schedules. and TheAccumulated remaining balance Operations Deficit. will be fully recognized in the Statement of Operations and Accumulated Deficit. Aggregate information about the PSSF and MMLPF is in the following tables. Aggregate information about the PSSF and MMLPF is in the following tables. 19 19 19 Government Government of of Bermuda Bermuda – – Consolidated Consolidated Fund Fund Notes to the Financial Statements Notes to the Financial Statements March March 31, 31, 2014 2014 9. 9. Pensions Pensions and and Other Other Retirement Retirement Benefits Benefits (cont’d) (cont’d) (d) (d) Funded Funded Status Status of of Plans Plans For For the the year year ended ended March March 31 31 Pension Pension Liability Liability Accrued Benefit Accrued Benefit Obligation Obligation PSSF PSSF MMLPF MMLPF Net Net Fund Fund Assets Assets PSSF PSSF MMLPF MMLPF Net Net Unamortized Unamortized Experience Experience Loss Loss PSSF PSSF Pension Pension Liability Liability PSSF PSSF MMLPF MMLPF Carried Carried Forward Forward to to Note Note 9 9 (g) (g) 20 2014 2014 Actual Actual 2013 2013 Actual Actual 1,359,815,000 1,359,815,000 30,075,000 30,075,000 1,559,247,000 1,559,247,000 35,281,000 35,281,000 (563,233,000) (563,233,000) (12,457,000) (12,457,000) (517,302,000) (517,302,000) (12,119,000) (12,119,000) $ $ 1,389,890,000 1,389,890,000 (575,690,000) (575,690,000) -796,582,000 796,582,000 17,618,000 17,618,000 814,200,000 814,200,000 $ $ 1,594,528,000 1,594,528,000 (529,421,000) (529,421,000) (88,024,000) (88,024,000) 953,921,000 953,921,000 23,162,000 23,162,000 977,083,000 977,083,000 20 20 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 9. Pensions and Other Retirement Benefits (cont’d) 9. Pensions and Other Retirement Benefits (cont’d) For the year ended March 31 For the year ended March 31 Pension Expense Pension Expense Cost of Pension Benefits Cost of Pension Benefits Employee Contributions Employee Contributions Interest on Pension Liability Interest on Pension Liability Prior Period Service Costs Prior Period Service Costs Recognition of Unamortized Net Actuarial Losses Recognition of Unamortized Net Actuarial Losses Amortization of Experience Gains & Losses Amortization of Experience Gains & Losses 2004 Experience Loss 2004 Experience Loss 2005 Experience Loss 2005 Experience Loss 2006 Experience Loss 2006 Experience Loss 2007 Experience Gain 2007 Experience Gain 2008 Experience Loss 2008 Experience Loss 2009 Experience Loss 2009 Experience Loss 2010 Experience Gain 2010 Experience Gain 2011 Experience Loss 2011 Experience Loss 2012 Experience Loss 2012 Experience Loss 2013 Experience Loss 2013 Experience Loss Pensions and Retirement Benefits Expense Pensions Retirement Benefits Expense excludingand Employer Contribution excluding Employer Contribution 2014 2014 Actual Actual $ $ 2013 2013 Actual Actual $ $ 57,371,000 57,371,000 (33,549,000) (33,549,000) 70,747,000 70,747,000 (432,661,000) (432,661,000) 173,426,000 173,426,000 - 56,299,620 56,299,620 (33,338,191) (33,338,191) 66,826,298 66,826,298 - 21,908,000 21,908,000 2,048,000 2,048,000 596,000 596,000 (352,000) (352,000) 5,243,000 5,243,000 7,609,000 7,609,000 (2,548,000) (2,548,000) 443,000 443,000 944,000 944,000 440,000 440,000 21,908,087 21,908,087 2,048,199 2,048,199 595,574 595,574 (351,626) (351,626) 5,243,035 5,243,035 7,608,893 7,608,893 (2,547,908) (2,547,908) 442,686 442,686 944,481 944,481 - (128,335,000) (128,335,000) 125,679,148 125,679,148 Value of Obligations Relating to Benefits for the Pension Plans Value of Obligations Relating to Benefits for the Pension Plans The value of obligations relating to benefits for the pensions plan at a given date is The value of using obligations relating projections to benefits prorated for the pensions plantaking at a given date is determined the actuarial on service, into account, determined using the the actuarial projections proratedeconomic on service, taking into account, among other things, most probable long-term assumption made by the among other things, the most probable long-term economic assumption made by the Government. Government. 21 21 21 Government of Bermuda – Consolidated Fund Notes to the Financial Statements Government of Bermuda – Consolidated Fund March 31, 2014 Notes to the Financial Statements March 31, 2014 9. Pensions and Other Retirement Benefits (cont’d) 9.Main Pensions and Other Retirement Benefits (cont’d) economic assumptions used: PSSF (%) PSSF (%) 3.00 Main economic assumptions used: Inflation Rate Discount Rate for Obligations Inflation Rate Salary Escalation Rate Discount Rate for Obligations Salary Escalation Rate 6.50 3.00 4.25 6.50 4.25 MMLPF (%) MMLPF (%) 3.00 6.50 3.00 3.50 6.50 3.50 Changes in these assumptions may lead to a material increase or decrease in the value of the obligations relating to vested benefits. The following tables, which take the main Changes in these may lead to a material or decrease in the in value assumptions into assumptions account, show the potential impactincrease of a difference of 1.00% the of the of obligations relatingfortothe vested The following tables, whichThe taketables the main value the obligations two benefits. pension plans, PSSF and MMLPF. also assumptions into of account, show the potential of a difference 1.00% in the show the impact a one-year difference in lifeimpact expectancy, consideringofthat, according value of theassumptions, obligations for pension plans, PSSF andaged MMLPF. tables to current thethe lifetwo expectancy of beneficiaries 60 isThe 21.8 yearsalso for show the 25.6 impact of afor one-year men and years women.difference in life expectancy, considering that, according to current assumptions, the life expectancy of beneficiaries aged 60 is 21.8 years for Impact of changes on the main assumptions on the value of obligations relating to PSSF men and 25.6 years for women. benefits as at March 31, 2014: Impact of changes on the main assumptions on the value of obligations relating to PSSF benefits as at March 31, 2014: Impact on ABO Impact on ABO Assumption Change ($) (%) Impact on ABO Impact on ABO Assumption Change ($) (%) (142,336,900) (10.5) Discount rate 1.0% increase 1.0% decrease Discount rate 1.0% increase Salary increase rate 1.0% increase 1.0% decrease 1.0% decrease Salary increase rate 1.0% increase Life expectancy 1 year increase 1.0% decrease 1 year decrease Life expectancy 1 year increase 1 year decrease 22 175,853,700 (142,336,900) 51,312,900 175,853,700 (46,115,600) 51,312,900 21,381,000 (46,115,600) (22,622,400) 21,381,000 12.9 (10.5) 3.8 12.9 (3.4) 3.8 1.6 (3.4) (1.7) 1.6 (22,622,400) (1.7) 22 22 Government of Bermuda – Consolidated Fund Notes to the Financial Statements Government of Bermuda – Consolidated Fund March 31, 2014 Notes to the Financial Statements March 31, 2014 9. Pensions and Other Retirement Benefits (cont’d) 9. Pensions and Other Retirement Benefits (cont’d) Impact of changes on the main assumptions on the value of obligations relating to MMLPF benefits as at March 31, 2014: Impact of changes on the main assumptions on the value of obligations relating to MMLPF benefits as at March 31, 2014: Impact on ABO Impact on ABO Assumption Change ($) (%) Impact on ABO Impact on ABO Assumption Change ($) (%) (2,843,600) (9.5) Discount rate 1.0% increase 3,395,900 11.3 1.0% increase decrease (2,843,600) (9.5) Discount rate 1.0% 676,700 2.3 Salary increase rate 1.0% 3,395,900 11.3 1.0% increase decrease (632,100) (2.1) 1.0% increase decrease 676,700 2.3 Salary increase rate 1.0% 795,400 2.6 Life expectancy 1 yeardecrease increase (632,100) (2.1) 1.0% (711,100) (2.4) 1 year year increase decrease 795,400 2.6 Life expectancy 1 (711,100) (2.4) 1 year decrease (e) Contributory Pension Fund The Contributory Pension Pension Fund (e) Contributory Fund (“CPF”) was established under the Contributory Pensions Act 1970 and subsequent amendments. The Contributory Pension Fund (“CPF”) was established under the Contributory The purpose theand CPFsubsequent is to provide old age pension, disability and death benefits for Pensions Act of 1970 amendments. persons satisfying certain contribution, citizenship and residency requirements. The purpose of the CPF is to provide old age pension, disability and death benefits for Contributions to the CPF contribution, are compulsory for persons employedrequirements. in Bermuda, the selfpersons satisfying certain citizenship and residency employed and employers. Contributions to the CPF are compulsory for persons employed in Bermuda, the selfThere is no legislative provision for the Fund to provide for any shortfall if, at any time, employed and employers. the CPF has insufficient funds to meet its current legislated obligations. There is no legislative provision for the Fund to provide for any shortfall if, at any time, the CPF has insufficient funds to meet its current legislated obligations. (f) Retirement Benefits Other than Pensions – Employee Health Insurance Plan (f) Retirement Benefits Other than Pensions – Employee Health Insurance ThePlan Government administers a health care plan, the Government Employees Health Insurance Fund (“GEHI”), for substantially all of its employees, QUANGO employees, all The Government administers a health care theThe Government Employees Health ministers and members of the Legislature and plan, retirees. GEHI Fund provides medical Insurance Fund (“GEHI”), for substantially all of its employees, QUANGO employees, all insurance for retirees and eligible dependents with the Government matching the ministers andcontribution members oftothe and retirees. The GEHI Fund provides medical participants’ theLegislature plan. insurance for retirees and eligible dependents with the Government matching the An actuarial contribution calculation to of the theplan. Government’s obligations for retirement benefits other participants’ than pensions was performed for accounting purposes at March 31, 2014, using various An actuarial calculationtoof the Government’s benefits other long-term assumptions produce the estimatesobligations included infor theretirement financial statements. than pensions was performed for accounting purposes at March 31, 2014, using various long-term assumptions to produce the estimates included in the financial statements. 23 23 23 Government Bermuda – Consolidated Fund Government ofof Bermuda – Consolidated Fund Notes the Financial Statements Notes toto the Financial Statements Government of Bermuda – Consolidated Fund March 31, 2014 March 31, 2014 Notes to the Financial Statements March 31, 2014 Pensions and Other Retirement Benefits (cont’d) 9. 9. Pensions and Other Retirement Benefits (cont’d) 9. Pensions and Other Retirement Benefits (cont’d) The discount rate used in determining accumulated post-retirement benefit obligation The discount rate used in determining thethe accumulated post-retirement benefit obligation was 6.5% (2013 – 6.5%). The assumed health-care cost trend rate used was 9.0% was 6.5% (2013 – 6.5%). The assumed health-care cost trend rate used was 9.0% The discount rate used in the post-retirement benefit obligation (2013 - 9.0%). This be decreasing by 0.5% annum (from 2014) 5.0% (2013 - 9.0%). This willwill bedetermining decreasing by accumulated 0.5% perper annum (from 2014) to to 5.0% perper was 6.5% (2013 –As6.5%). The assumed health-care cost Government trend rate used was 9.0% annum 2022). As March 2014, Bermuda Government adopted annum (to(to 2022). at at March 31,31, 2014, thethe Bermuda adopted thethe (2013 9.0%). This will be decreasing by 0.5% per annum (from 2014) to 5.0% per Canadian Pensioner Mortality Table for Public Sector (CPM2014Publ) for the mortality Canadian Pensioner Mortality Table for Public Sector (CPM2014Publ) for the mortality annum (to The 2022). Asaccrues ataccrues March 2014, the Bermuda Government adopted the assumption. The value a31, liability respect matching premium paid by assumption. value a liability in in respect of of thethe matching premium paid by Canadian Pensioner Mortality Table for Public Sector (CPM2014Publ) for the mortality Government under insurance arrangement respect retired employees. The Government under thethe insurance arrangement in in respect of of retired employees. The assumption. value a liability in method respect of the on matching premium paid by calculation isThe based the projected benefit pro-rated on service. calculation is based on on theaccrues projected benefit method pro-rated service. Government under the insurance arrangement in respect of retired employees. The As March 31, 2014, change in local claims subsidy 70% persons Ascalculation at at March 2014, thethe change in thethe local claims subsidy to to 70% forfor persons is31, based on the projected benefit method pro-rated on service. between (2013 – 80%) 80% persons over between thethe ageage of of 65 65 andand 75 75 (2013 – 80%) andand to to 80% forfor persons ageage 75 75 andand over As at– March 31, 2014, the change in theoflocal claims subsidy to subsidy 70% forand persons (2013 – 90%), Government’s ceasing of portability claims subsidy and (2013 90%), thethe Government’s ceasing thethe portability claims thethe between the age of 65previously and 75 (2013 – 80%) and to 80% for persons Fund age 75 and over benefits and coverage previously paid under the Mutual Re-insurance Fund becoming benefits and coverage paid under the Mutual Re-insurance becoming (2013 – 90%), the Government’s ceasing of the portability claims subsidy and the responsibility Island’s insurers have resulted a past service cost the thethe responsibility of of thethe Island’s insurers have resulted in in a past service cost in in the benefits and coverage previously paid under the Mutual Re-insurance Fund becoming amount of $45,143,200. The cost will be fully recognized in the Statement of Operations amount of $45,143,200. The cost will be fully recognized in the Statement of Operations the responsibility ofDeficit. the Island’s insurers have resulted in a past service cost in the and Accumulated and Accumulated Deficit. amount of $45,143,200. The cost will be fully recognized in the Statement of Operations Aggregate information about health care plan is the in the table below: Aggregate information about thethe health care plan is in table below: and Accumulated Deficit. Aggregate information about the health care plan is in the table below: Accrued benefit obligation at beginning of year Accrued benefit obligation at beginning of year 2014 2014 $ $ 2014 $ 269,381,327 269,381,327 2013 2013 $ $ 2013 $ 249,883,817 249,883,817 Current period benefit costat beginning of year Current period benefit cost Accrued benefit obligation 10,291,944 10,291,944 269,381,327 9,663,797 9,663,797 249,883,817 Interest accrued Interest accrued Current period benefit cost 17,621,733 17,621,733 10,291,944 16,344,908 16,344,908 9,663,797 Past Service Cost Past Service Cost Interest accrued 45,143,200 45,143,200 17,621,733 - 16,344,908 Benefit payments Benefit payments Past Service Cost (6,847,426) (6,847,426) 45,143,200 (6,511,195) (6,511,195) - Benefit payments Accrued benefit obligation at end of year Accrued benefit obligation at end of year (6,847,426) 335,590,778 335,590,778 (6,511,195) 269,381,327 269,381,327 Accrued benefit obligation at end of year 335,590,778 269,381,327 Expected accrued benefit obligation at end of year Expected accrued benefit obligation at end of year 335,590,778 335,590,778 269,381,327 269,381,327 Actual accrued benefit obligation at at end of of year Actual accrued benefit obligation at end of year Expected accrued benefit obligation end year 512,755,500 512,755,500 335,590,778 269,381,327 269,381,327 269,381,327 512,755,500 (177,164,722) (177,164,722) 269,381,327 - - Actual accrued benefit obligation at end of year Experience loss Experience loss Experience loss 24 (177,164,722) - 2424 24 Government of Bermuda – Consolidated Fund Notes to the Financial Statements Government of Bermuda – Consolidated Fund March 31, 2014 Notes to the Financial Statements March 31, 2014 9. Pensions and Other Retirement Benefits (cont’d) 9. Pensions and Other Retirement Benefits (cont’d) 2014 2013 Expected average remaining service life 112014 years 122013 years Expected average remaining service life Annual amortization 11 years $2,371,108 12 years $2,371,108 Annual amortization $2,371,108 $2,371,108 Liability for retirement benefits recorded in the statement of financial position Liability for retirement benefits recorded in the statement of financial position 2014 2013 Accrued benefit obligation, end of year Unamortized experience losses Accrued benefit obligation, end of year Unamortized experience losses Liability for retirement benefits (Note 9(g)) $ $ 2014 2013 $ $ 512,755,500 269,381,327 (181,839,955) (7,046,341) 512,755,500 269,381,327 (181,839,955) (7,046,341) 330,915,545 262,334,986 Liability for retirement benefits (Note 9(g)) 330,915,545 262,334,986 Expenses recorded in statement of operations and accumulated deficit Expenses recorded in statement of operations and accumulated 2014deficit Current period benefit cost Amortization of experience losses Current period benefit cost Amortization of experience losses Retirement benefit expense Retirement benefit interest expense Retirement benefit expense Past Service Cost Retirement benefit interest expense Past Service Cost Total expenses related to retirement benefits $ 2014 10,291,944 $ 2,371,108 10,291,944 2,371,108 12,663,052 17,621,733 12,663,052 45,143,200 17,621,733 45,143,200 75,427,985 2013 $ 2013 9,663,797 $ 2,371,108 9,663,797 2,371,108 12,034,905 16,344,908 12,034,905 16,344,908 28,379,813 Total expenses related to retirement benefits 75,427,985 28,379,813 (g) Accrued Pensions and Retirement Benefits Liability and Expense Summary 2014 2013 (g) Accrued Pensions and Retirement Benefits Liability and Expense Summary $ 2014 814,200,000 $ $ 2013 977,083,000 $ 814,200,000 330,915,545 977,083,000 262,334,986 Pensions (Note 9(d)) Retirement Benefits other than Pensions (Note 9(d)) Insurance Plan (Note 9(f)) Pensions – Health Retirement Benefits other than TotalPensions Pensions– and Retirement Benefits Liability Health Insurance Plan (Note 9(f)) 1,145,115,545 330,915,545 1,239,417,986 262,334,986 Total Pensions and Retirement Benefits Liability 1,145,115,545 1,239,417,986 25 25 25 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 9. Pensions and Other Retirement Benefits (cont’d) 9. Pensions and Other Retirement Benefits (cont’d) Pension Plans Pension Plans Plan Amendments (gain) loss Plan Amendments (gain) loss Recognition of Unamortized Net Recognition of Unamortized Net Actuarial Losses Actuarial Losses Gain on Benefit Plans Gain on Benefit Plans Amendments Amendments Current Period Benefit Cost Current Period Cost Amortization of Benefit Experience Amortization of Experience losses losses Employee Contributions Employee Contributions Interest on Accrued Benefits Interest on Accrued Benefits Employer Contributions Employer Contributions Pensions and Retirement Pensions and Retirement Benefits Expense Benefits Expense 2014 2014 $ $ Total Total Other Other Benefits Benefits 2013 2013 $ $ Total Total (432,661,000) (432,661,000) 45,143,200 45,143,200 (387,517,800) (387,517,800) - 173,426,000 173,426,000 - 173,426,000 173,426,000 - (259,235,000) (259,235,000) 45,143,200 45,143,200 (214,091,800) (214,091,800) - 57,371,000 57,371,000 36,331,000 36,331,000 (33,549,000) (33,549,000) 70,747,000 70,747,000 (34,550,000) (34,550,000) 11,481,956 11,481,956 2,225,423 2,225,423 19,132,514 19,132,514 (8,657,432) (8,657,432) 68,852,956 68,852,956 38,556,423 38,556,423 (33,549,000) (33,549,000) 89,879,514 89,879,514 (43,207,432) (43,207,432) 67,105,997 67,105,997 38,116,423 38,116,423 (33,338,000) (33,338,000) 84,614,210 84,614,210 (42,187,254) (42,187,254) 96,350,000 96,350,000 24,182,461 24,182,461 120,532,461 120,532,461 114,311,376 114,311,376 10. Contingent Liabilities 10. Contingent Liabilities (a) Guarantees (a) Guarantees (i) National Education Guarantee Scheme (i) National Education Guarantee Scheme In August 1994, the Government introduced the National Education Guarantee In Augustto1994, thequalifying Government introduced the National Education Guarantee Scheme provide students with financial guarantees on bank loans Scheme to provide qualifying students with financial guarantees on bank loans for post-secondary education. The repayment of principal and accrued interest is for post-secondary education. The repayment of principal and accrued interest is guaranteed by the Government. In the event of default by the student, the banks guaranteed by guarantee the Government. In the event 31, of default the student, banks will call on the contract. At March 2014, by $26,129 (2013 -the $68,851) will call on the guarantee contract. At March 31, 2014, $26,129 (2013 $68,851) is outstanding on guaranteed student loans with local banks. is outstanding on guaranteed student loans with local banks. (ii) West End Development Corporation (“WEDCO”) Guarantee (ii) West End Development Corporation (“WEDCO”) Guarantee On April 1, 2009, the Minister of Finance consented to the borrowing of $10 On April 2009, the Finance consented borrowing of $10 million by 1, WEDCO fromMinister Clarien of Bank (formerly Capital to G the Bank) to facilitate the million by WEDCO from Clarien Bank (formerly Capital G Bank) to facilitate the completion of the new Sewage Treatment Plant at Dockyard. completion of the new Sewage Treatment Plant at Dockyard. The Minister of Finance further approved the guarantee given by the Ministry of The Minister further approvedby the guarantee given by thetoMinistry of Public Works of to Finance repay the indebtedness way of annual payments WEDCO Public Works to repay the indebtedness by way of annual payments to WEDCO until all indebtedness to Clarien Bank has been fully discharged. until all indebtedness to Clarien Bank has been fully discharged. 26 26 26 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 10. Contingent Liabilities (cont’d) 10. Contingent Liabilities (cont’d) The Ministry of Public Works further guarantees and will make good any default The Ministry Public Works further guarantees will make good default on the part of of WEDCO in the payment of the loan and to Clarien Bank andany all related on the part of WEDCO in the payment of the loan to Clarien Bank and all related interest fees and charges due as a result of default by WEDCO until all interest fees to and charges a result of default by all indebtedness Clarien Bankdue hasasbeen fully discharged. At WEDCO March 31,until 2014, indebtedness to Clarien Bank has been fully discharged. At March 31, 2014, $4,285,716 (2013 - $5,714,287) is outstanding on WEDCO’s indebtedness to $4,285,716 (2013 $5,714,287) is outstanding on WEDCO’s indebtedness to Clarien Bank (Schedule 5). Clarien Bank (Schedule 5). (iii) Bank of N.T. Butterfield Guarantee Agreement (iii) Bank of N.T. Butterfield Guarantee Agreement On June 12, 2009, the Government assisted The Bank of N.T. Butterfield & Son On June(“BNTB”) 12, 2009, Government Bank Butterfield & Son Limited in the raising qualifyingassisted Tier 1 The capital via ofa N.T. perpetual preference Limited (“BNTB”) in raising qualifying Tier 1 capital via a perpetual preference share offering of US$200 million. share offering of US$200 million. Accordingly the Government provided the commitment that if the full $200 million AccordinglyShare the Government provided the commitment thattoif June the full million Preference Offering was not achieved on or prior 30,$200 2009, the Preference Share wasnonotlater achieved on or 30, prior2009 to June 2009, the Government wouldOffering purchase than June such30,number of GovernmentShares wouldaspurchase no later than June 30,Bank 2009realized such number of Preference was sufficient to ensure that the aggregate Preference Shares as was sufficient to ensure that the Bank realized aggregate proceeds equal to and not less than US$200 million. As the offering was fully proceeds equal to and not less purchase than US$200 . As the offering was fully subscribed, no such Government was million necessary. subscribed, no such Government purchase was necessary. On June 22, 2009, the Government entered into a Preference Shares Guarantee On June 22, 2009, Government into a Preference Shares Guarantee Agreement with the the BNTB and others.entered The Government has guaranteed payment Agreement with the BNTB and others. The Government has guaranteed payment of 100% of the liquidation value of the outstanding Preferred Shares in the event of 100% of the liquidation value of the outstanding Preferred Shares in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of BNTB during the term of the Guarantee. Also, the Government will act as a of BNTB during term ofpayments the Guarantee. Government willissuance. act as a guarantor for thethe dividend relating Also, to thethe Preferred Shares guarantor for the dividend payments relating to the Preferred Shares issuance. Should the BNTB fail to declare and pay dividends in any quarterly dividend Shouldduring the BNTB failoftothe declare and pay dividends in will anypay quarterly dividend period the term Guarantee, the Government such dividends period during the term of the Guarantee, the Government will pay such dividends at 8% per annum. As at March 31, 2014, Preference Shares with a liquidation at 8%ofper annum. As remained at March outstanding. 31, 2014, Preference Shares with a liquidation value $183.6 million value of $183.6 million remained outstanding. Pursuant to the Preference Share Offering, the BNTB pays to the Government a Pursuant theannum Preference Share Offering, the BNTB to the Government fee of 1%toper on the liquidation value of thenpays outstanding Preferencea fee of 1% per annum the investors. liquidation value of then outstanding Shares issued to third on party The Government was in Preference receipt of Shares issued to third party investors. The Government was ofin non-voting receipt of 4,279,601 warrants issued by the Bank to purchase a number 4,279,601 warrants issued by the Bank to purchase a number of non-voting common shares of BNTB having an aggregate market price equal to US$30 commonThe shares BNTB having aggregate to US$30 million. initialofexercise price foranthe warrants market and theprice price equal for determining million. The initial exercise price for the warrants and the price for determining the number of common shares of BNTB subject to the warrants was $7.01 per the number of common shares of BNTBissubject to the warrants $7.01 per common share. The quantity of warrants now 4,299,010 with an was exercise price common quantity ofmodel warrants 4,299,010 with an of $3.489.share. Per The the valuation run isfornow March 31, 2014, theexercise value ofprice the of $3.489. Per the valuation model run for March 31, 2014, the value of the warrants is $0.083 (2013 - $0.025) per warrant which represents a total value of warrants is $0.083 (2013 - $0.025) per warrant which represents a total value of $356,817 (2013 - $106,938). $356,817 (2013 - $106,938). (iv) Bermuda Hospitals Board (“BHB”) Guarantee (iv) Bermuda Hospitals Board (“BHB”) Guarantee On December 1, 2010, the Minister of Finance provided an irrevocable On December 1, 2010, the Health Minister of Finance irrevocable Guarantee Agreement to Paget Services Limitedprovided on behalfan of the BHB to Guarantee Agreement to Paget Health Services Limited on behalf of the BHBVII to facilitate the completion of the New Hospital Project of the King Edward facilitate Hospital the completion of the New Hospital Project of the King Edward VII Memorial in Paget. Memorial Hospital in Paget. 27 27 27 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 10. Contingent Liabilities (cont’d) 10. Contingent Liabilities (cont’d) The design and construction related costs of the new facility are approximately The design related costs of the facility are $247 million.and Theconstruction Annual Service Payments will new commence fromapproximately the Service $247 million. The Annual Service Payments will commence from the interest, Service Commencement date for a period of thirty years, consisting of principal, Commencement date for a period of thirty years, consisting of principal, interest, construction, lifecycle and hard facilities maintenance. A portion of the annual construction, lifecycle and hard facilities maintenance. A portion of the annual service payment is indexed over the thirty year period to allow for changes in the service payment is indexed over the thirty year period to allow for changes in the cost of living and other related facility costs. The first year’s Annual Service cost of living andmillion. other related facility costs. The first year’s Annual Service Payment is $22.3 Payment is $22.3 million. The Guarantee Agreement guarantees the payment obligations of the BHB to The Guarantee Agreement guarantees the payment obligations of lenders. the BHB to Paget Health Services Limited by the Government as required by the Paget Health Services Limited by the Government as required by the lenders. (v) Bermuda Economic Development Corporation (“BEDC”) Guarantee (v) Bermuda Economic Development Corporation (“BEDC”) Guarantee The Government provides funding to BEDC to facilitate the function of the The Government provideson funding to BEDC to facilitate the function of the QUANGO as a guarantor business loans for locally owned businesses in QUANGO as a guarantor on business loans for locally owned businesses in Bermuda. The Government provides funding to fulfill the payment obligations of Bermuda. The Government provides to fulfill theagreement payment obligations of BEDC for defaulted loans. There is nofunding signed guarantee between the BEDC for defaulted loans. There is no signed guarantee agreement between the Government and BEDC. Government and BEDC. No liability has been admitted and no provision for loans in default is included in No liability hasstatements been admitted andGovernment. no provision for default is included in the financial of the Theloans totalin of specific amounts the financial statements of the Government. The total of specific amounts deemed contingent liabilities of the Government, as determined by BEDC, as at deemed liabilities of the Government, March 31,contingent 2014 is $2,369,830 (2013 - $3,120,941).as determined by BEDC, as at March 31, 2014 is $2,369,830 (2013 - $3,120,941). (vi) Morgan’s Point Letter of Comfort (vi) Morgan’s Point Letter of Comfort On August 12, 2013 the Government provided a letter of comfort to the Morgan’s On August 2013 the Government providedLimited a letter (“MPL”) of comforttoto the Morgan’s Point hotel12,developers, Morgan Points confirm the Point hotel developers, Morgan Points Limited (“MPL”) to confirm the Government’s willingness to consider credit enhancement for the project. This Government’s willingness to consider credit enhancement for the project. This letter was required so that MPL could begin discussions with potential lenders for letter was required so that MPL could begin discussions potential lenders for the project’s financing. The value of the possible creditwith enhancement provided thethe project’s value of the possible creditnot enhancement by Letter financing. of ComfortThe was an amount up to, and to exceed, provided US$125 by the Letter of Comfort was an amount up to, and not to exceed,in US$125 million, with the precise amount to be determined by the Government its sole million, with the precise amount to be determined by the Government in its sole discretion. discretion. (b) Claims and Potential Claims (b) Claims and Potential Claims The Government is subject to claims and potential claims related to breach of contract, The Government is subject to claims claims related to breach contract, damages to persons and property andand likepotential items. The effect of legal claimsofcannot be damages to persons and property and like items. The effect of legal claims cannot be determined until they are settled or dismissed. No liability has been admitted and no determined until they are settled or dismissed. No liability has been admitted and no provision for claims is included in the financial statements. Any resulting losses will be provision for is included in the financial Any resulting losses will be be recorded andclaims charged to operations in the statements. year an amount can reasonably recorded and charged to operations in the year an amount can reasonably be determined. determined. The total of specific amounts claimed or potential settlements which are under litigation The total oflitigation specific as amounts claimed or potential settlements are under litigation or possible at March 31, 2014 is $21,049,879 (2013which - $10,633,686). or possible litigation as at March 31, 2014 is $21,049,879 (2013 - $10,633,686). 28 28 28 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 10. Contingent Liabilities (cont’d) 10. Contingent Liabilities (cont’d) (c) Base Lands Clean Up (c) Base Lands Clean Up The Government recognizes that there will be a cost for restoration of the land at the The Government recognizes that US there will be Ita cost for restoration of thecosts land would at the bases formerly occupied by the military. is anticipated that such bases formerly occupied by materials the US military. It is anticipated that such costs would include removal of hazardous and clean-up. include removal of hazardous materials and clean-up. A liability of $44,078,555 (2013 - $38,656,865) has been accrued, which is an estimate A liability of $44,078,555 - $38,656,865) has beenataccrued, is an estimate of the remaining costs of (2013 the clean-up and remediation the threewhich former major base of the remaining costs ofrange the clean-up remediation at the three former major base land sites. The estimated is $41.5 and million to $57 million. land sites. The estimated range is $41.5 million to $57 million. The cost for Southside (estimated at $10.5 million, with a range of $10.5 million to $20 The cost for million Southside (estimated $10.5 million, with a range offrom $10.5 to $20 million; $6.5 for work alreadyatperformed has been deducted themillion lower end of million; $6.5 million work already performed has been deducted from the and lower end of the estimated range)forinvolves demolition of buildings beyond refurbishment removal theasbestos. estimated range) involves demolition of buildings beyond refurbishment and removal of of asbestos. The cost for clean-up of Tudor Hill (estimated at $1 million with a range of $1 million to Themillion) cost for clean-up of of Tudor Hill (estimated at $1 of million with on a range of $1 million to $2 is for removal asbestos and demolition buildings the site. $2 million) is for removal of asbestos and demolition of buildings on the site. Clean-up of Morgan’s Point is estimated at $32.5 million (with a range of $30 million to Clean-up of Morgan’s is estimatedhazards at $32.5and million a range of $30 million to $35 million) to removePoint environmental fuel(with storage tanks, removal and $35 million) ofto asbestos, remove environmental hazards ofand fuel storage and remediation as well as demolition derelict buildings.tanks, This removal accrual was remediation of asbestos, as well as demolition of derelict buildings. This accrual was increased by $5.4 million from 2013. This additional provision is recorded as an expense increased by $5.4 million 2013. in This additional provision is recorded as an expense of the current period, and from is included Other on Schedule 10(a). of the current period, and is included in Other on Schedule 10(a). The prior year’s estimate was originally developed in 2003, based on orders of cost The prior year’s estimate wasunit originally developed in 2003,atbased on orders cost which were developed from rates used for clean-up Southside and of budget which were developed from unit rates used for clean-up at Southside and budget estimates from consultants hired by potential developers at the Morgan’s Point site. The estimates from consultants hired by potential developers at the Morgan’s Point site. The Government had a registered professional engineer conduct an independent review of Government a registered the estimates had in 2012 and 2014.professional engineer conduct an independent review of the estimates in 2012 and 2014. The Government signed the Morgan’s Point Exchange Agreement with Southlands The Government signed Morgan’s Point Exchange Agreement Southlands Limited and Morgan’s Pointthe Limited. The agreement exchanged 12.454 with hectares of land Limited and Morgan’s Point Limited. The agreement exchanged 12.454 hectares of land owned by Southlands Ltd., located in Warwick, for 66.82 acres of freehold land at owned by Southlands Ltd., located in Warwick, for 66.82 acres of freehold land at Morgan’s Point in Southampton. Furthermore, the agreement provides Morgan’s Point Morgan’s Point in Southampton. Furthermore, the agreement provides Morgan’s Point Limited, as the Developer, the ability to develop an additional 128.46 acres of Leasehold Limited, as the Developer, developinan acres Development of Leasehold property at Morgan’s Point,the as ability furthertodetailed theadditional Morgan’s128.46 Point Land property at Morgan’s Point, as further detailed in the Morgan’s Point Land Development Agreement, also signed and dated April 8, 2011, amongst the same parties. Agreement, also signed and dated April 8, 2011, amongst the same parties. Article 6 of the Morgan’s Point Land Development Agreement, states the Bermuda Article 6 of the Morgan’s Pointfor Land states Bermuda Government is still responsible the Development remediation ofAgreement, the Morgan’s Pointtheproperty to Government is still responsible for the remediation of the Morgan’s Point property to international standards deemed reasonably acceptable to the Developer. These international deemedforreasonably acceptable standards are standards met in the request proposal issued in 2009. to the Developer. These standards are met in the request for proposal issued in 2009. 29 29 29 Government Government of of Bermuda Bermuda –– Consolidated Consolidated Fund Fund Notes to the Financial Statements Notes to the Financial Statements March March 31, 31, 2014 2014 10. 10. Contingent Contingent Liabilities Liabilities (cont’d) (cont’d) (d) (d) Hotels Hotels Concession Concession Act Act 2000 2000 and and the the Memorandum Memorandum of of Understanding Understanding between the Minister of Finance and the Bermuda Hotel Association between the Minister of Finance and the Bermuda Hotel Association On February 21, 2009, the Government entered into a Memorandum of Understanding On February 21, 2009, the Government entered into a Memorandum of Understanding (“MoU”) with the Bermuda Hotel Association to provide exemptions for applicable hotels (“MoU”) with the Bermuda Hotel Association to provide exemptions for applicable hotels from the payment of payroll tax. The assessment of the exemption was to be done from the payment of payroll tax. The assessment of the exemption was to be done quarterly and, if applicable, would allow for the full exemption of the quarterly payroll tax. quarterly and, if applicable, would allow for the full exemption of the quarterly payroll tax. On August 20, 2010, the Government entered into a Memorandum of Understanding On August 20, 2010, the Government entered into a Memorandum of Understanding (“MoU”) with the Restaurant Division of the Bermuda Chamber of Commerce to provide (“MoU”) with the Restaurant Division of the Bermuda Chamber of Commerce to provide exemptions for applicable restaurants from the payment of payroll tax. On October 1, exemptions for applicable restaurants from the payment of payroll tax. On October 1, 2011, the Government provided further payroll tax relief to the Retail Sector similar to the 2011, the Government provided further payroll tax relief to the Retail Sector similar to the relief provided to the hotel and restaurant sectors. These MoU’s were extended to March relief provided to the hotel and restaurant sectors. These MoU’s were extended to March 31, 2015. 31, 2015. The Hotels Concession Act 2000 allows for the full or partial exemption from or deferral The Hotels Concession Act 2000 allows for the full or partial exemption from or deferral of payroll tax, land tax and hotel occupancy tax for hotels which undergo development of payroll tax, land tax and hotel occupancy tax for hotels which undergo development deemed to be in the national economic interest of Bermuda as if it is determinable that deemed to be in the national economic interest of Bermuda as if it is determinable that the development is likely, among other considerations: the development is likely, among other considerations:  to benefit the tourism industry and the economy;  to benefit the tourism industry and the economy;  to create employment and entrepreneurial opportunities for Bermudians;  to create employment and entrepreneurial opportunities for Bermudians;  to encourage local development, or;  to encourage local development, or;  to employ and train Bermudians.  to employ and train Bermudians. The concessions are granted at the discretion of the Minister of Tourism with the written The concessions are granted at the discretion of the Minister of Tourism with the written agreement of the Minister of Finance for those hotels that apply for the concessions. The agreement of the Minister of Finance for those hotels that apply for the concessions. The Hotels Concession Act 2000 permits an exemption from, either in part or in full, or Hotels Concession Act 2000 permits an exemption from, either in part or in full, or deferral of the payroll tax, land tax and hotel occupancy tax for a period not exceeding deferral of the payroll tax, land tax and hotel occupancy tax for a period not exceeding five years from the hotel’s opening date. five years from the hotel’s opening date. The concessions afforded to the hotels are non-refundable and in instances where the The concessions afforded to the hotels are non-refundable and in instances where the payroll tax is deemed null and void due to the MoU, the concessions remain as a contrapayroll tax is deemed null and void due to the MoU, the concessions remain as a contrarevenue amount to be applied against any future payroll tax incurred by those hotels. revenue amount to be applied against any future payroll tax incurred by those hotels. The Government is obligated to recognize the effect of the concessions when payroll tax The Government is obligated to recognize the effect of the concessions when payroll tax is actually incurred unless they are dismissed by the Minister of Finance. No liability has is actually incurred unless they are dismissed by the Minister of Finance. No liability has been admitted and no provision for collectibility is included in the financial statements. been admitted and no provision for collectibility is included in the financial statements. Any resulting losses of payroll tax will be recorded and charged to operations in the year Any resulting losses of payroll tax will be recorded and charged to operations in the year the payroll tax is effective. the payroll tax is effective. The total of the hotel concessions The total of the hotel concessions $3,263,190) which may be applied $3,263,190) which may be applied applicable hotels. applicable hotels. as at March 31, 2014 is as at March 31, 2014 is against any future payroll against any future payroll $3,246,029 (2013 $3,246,029 (2013 tax incurred by the tax incurred by the In addition to this amount, $23,812,384 is available for use but has not yet been granted In addition to this amount, $23,812,384 is available for use but has not yet been granted by the Ministry of Tourism Development and Transport as per the terms and conditions by the Ministry of Tourism Development and Transport as per the terms and conditions of the individual orders. of the individual orders. 30 30 30 Government Government of of Bermuda Bermuda –– Consolidated Consolidated Fund Fund Notes to the Financial Statements Notes to the Financial Statements March March 31, 31, 2014 2014 10. 10. Contingent Contingent Liabilities Liabilities (cont’d) (cont’d) (e) (e) Air Air Service Service Agreements Agreements As As at at March March 31, 31, 2014 2014 the the Government Government has has signed signed agreements agreements with with three three commercial commercial airlines whereby in consideration of providing regular scheduled air service airlines whereby in consideration of providing regular scheduled air service to to Bermuda, Bermuda, the Government commits to pay the airlines a calculated sum if there is a the Government commits to pay the airlines a calculated sum if there is a financial financial shortfall shortfall on on the the routes. routes. The The agreements agreements vary vary in in detail, detail, but but guarantee guarantee the the airlines airlines either either aa certain level of revenue or a specific level of profit on a particular route. Shortfalls certain level of revenue or a specific level of profit on a particular route. Shortfalls occur occur when when ticket ticket revenues revenues are are insufficient insufficient to to cover cover the the cost cost of of operating operating the the routes, routes, either either due due to to insufficient insufficient passenger passenger numbers numbers (“Passenger (“Passenger Load Load Factor”) Factor”) or or discounted discounted tickets tickets to to attract attract passengers passengers (“Yield”). (“Yield”). The The estimated estimated liability liability for for Air Air Service Service Agreements Agreements as as at at March March 31, 31, 2014 2014 is is $2,726,636 $2,726,636 (2013 (2013 -- $1,350,138). $1,350,138). In In accordance accordance with with the the agreements, agreements, Government Government established established and and delivered delivered to to two two commercial commercial airlines airlines irrevocable irrevocable Letters Letters of of Credit Credit (“LOC”) (“LOC”) issued issued by by HSBC HSBC Bank Bank of of Bermuda Bermuda Ltd. Ltd. (“HSBC”), (“HSBC”), for for aa combined combined total total of of US$2,000,000. US$2,000,000. (f) (f) Ferry Ferry Lease Lease As As at at March March 31, 31, 2014 2014 the the Government Government had had aa lease lease agreement agreement for for aa ferry ferry to to provide provide additional additional lift lift during during the the tourist tourist season. season. The The lease lease commenced commenced April April 1, 1, 2013 2013 and and concluded concluded on on October October 31, 31, 2014. 2014. In In accordance accordance with with the the lease, lease, Government Government established established an an irrevocable irrevocable LOC, LOC, issued issued by by HSBC. HSBC. As As at at March March 31, 31, 2014, 2014, the the LOC LOC securing securing the the lease lease had a balance of US$1,250,000. had a balance of US$1,250,000. 11. 11. Non-Contractual Non-Contractual Operational Operational Obligations Obligations The The Government Government has has ongoing ongoing commitments commitments to to fund fund aa variety variety of of programs programs for for public public welfare welfare including including health, health, education, education, social social services, services, protection protection of of persons persons and and properties properties and and management management of of natural natural resources. resources. The The following following is is an an analysis analysis of of the the future future nonnoncontractual operational obligations: contractual operational obligations: 31 31 31 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 11. Non-Contractual Operational Obligations (cont’d) 11. Non-Contractual Operational Obligations (cont’d) 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 and subsequent 2020 and subsequent Total Future Operational Obligations Total Future Operational Obligations 2014 2014 $ $ 2,996,707 2,996,707 2,246,975 2,246,975 2,183,837 2,183,837 300,000 300,000 300,000 300,000 630,000 630,000 8,657,519 8,657,519 12. Contractual Obligations 12. Contractual Obligations (a) Capital Leases (a) Capital Leases The average period of capitalized leased office machines is 3 years. Leases are The average period of discounted capitalized rate leased office and machines is 3 Leasesbasis are capitalized based on the of 6.04% amortized onyears. a straight-line capitalized based on the discounted rate of 6.04% and amortized on a straight-line basis over the period of the lease. over the period of the lease. The following is an analysis of the leases: The following is an analysis of the leases: Present value of lease cost Present value of lease cost Less: Accumulated amortization Less: Accumulated amortization Present value of leases payable Present value of leases payable 32 2014 2014 $ $ 2013 2013 $ $ 4,879,102 4,879,102 4,906,219 4,906,219 (4,108,677) (4,108,677) 770,425 770,425 (4,137,364) (4,137,364) 768,855 768,855 32 32 Government of of Bermuda Bermuda –– Consolidated Consolidated Fund Fund Government Notes to to the the Financial Financial Statements Statements Notes March 31, 31, 2014 2014 March 12. Contractual Contractual Obligations Obligations (cont’d) (cont’d) 12. The following is a schedule of discounted future minimum lease payments under leases The following is a schedule of discounted future minimum lease payments under leases expiring up to March 31, 2018: expiring up to March 31, 2018: 2015 2015 2016 2016 2017 2017 2018 2018 Add: Discounted Amount Add: Discounted Amount Present value of lease obligation Present value of lease obligation 2014 2014 $ $ 264,880 264,880 125,649 125,649 29,762 29,762 350,134 350,134 770,425 770,425 (b) Contractual Obligation (b) Contractual Obligation The nature of government activity results in some large multi-year contracts and The nature of government activity results in some large multi-year contracts and agreements of various sizes and importance. Any financial obligations resulting from agreements of various sizes and importance. Any financial obligations resulting from these are recorded as a liability when the terms of these contracts and agreements for these are recorded as a liability when the terms of these contracts and agreements for the acquisition of goods and services or the provision of transfer payments are met. the acquisition of goods and services or the provision of transfer payments are met. The following is an analysis of estimated future expenditures related to these contractual The following is an analysis of estimated future expenditures related to these contractual obligations: obligations: 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 and subsequent 2020 and subsequent 2014 2014 $ $ 11,824,267 11,824,267 6,719,289 6,719,289 3,187,338 3,187,338 2,835,607 2,835,607 3,347,360 3,347,360 4,301,000 4,301,000 Total Contractual Obligations Total Contractual Obligations 32,214,861 32,214,861 33 33 33 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 12. Contractual Obligations (cont’d) 12. Contractual Obligations (cont’d) (c) Operating Leases (c) Operating Leases The Government rents premises under operating leases which expire at certain dates. The Government rents premises under operating leases which expire at certain dates. The following is an analysis of the future minimum operating lease payments: The following is an analysis of the future minimum operating lease payments: 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 and subsequent 2020 and subsequent 2014 2014 $ $ 9,315,490 9,315,490 6,879,731 6,879,731 5,198,795 5,198,795 4,452,148 4,452,148 3,227,088 3,227,088 17,071,296 17,071,296 Total Future Minimum Operating Lease Payments Total Future Minimum Operating Lease Payments 46,144,548 46,144,548 13. Supplementary Estimates and Virements (Transfers) 13. Supplementary Estimates and Virements (Transfers) Section 96(3) of the Bermuda Constitution Order 1968 allows for Supplementary Section 96(3) of theof Bermuda Constitution Order allows for appropriated Supplementary Estimates in respect any fiscal year if it is found that1968 (a) the amount by Estimates in respect anyany fiscal year if is it isinsufficient found that or (a)that the amount by the appropriation lawoffor purpose a need appropriated has arisen for the appropriation law for any purpose is insufficient or that a need has arisen for expenditure for a purpose for which no amount has been appropriated by that law; or (b) expenditure a purpose for which nopurpose amount in has been of appropriated that law; or for (b) moneys haveforbeen expended for any excess the amountbyappropriated moneys have been expended for any purpose in excess of the amount appropriated for that purpose by the appropriation law or for a purpose to which no amount has been that purpose by the appropriation law or for a purpose to which no amount has been appropriated by that law, a supplementary estimate, showing the sum required or spent, appropriated by thatthe law,House a supplementary estimate, required or spent, shall be laid before of Assembly. Sectionshowing 96(4) of the the sum Bermuda Constitution shall be laid requires before the House of Assembly. Section 96(4) of Constitution Order 1968 that a Supplementary Appropriation BillthebeBermuda introduced into the Order 1968 requires that a Supplementary Appropriation Bill be introduced into the Legislature as soon as practical after year end of the year that supplementary estimates Legislature as soon as practical after year end of the year that supplementary estimates have been necessary. have been necessary. The Public Treasury (Administration and Payments) Amendment Act 2004 allows a The Public Secretary Treasury (Administration and Payments) Amendment allows a Permanent or a Head of Department to transfer a part Act of a2004 Department’s Permanent Secretary or a Department Head of Department transfer a part of atoDepartment’s approved budget to another within the to same Ministry, subject the consent approved budget to another Department within the same Ministry, subject to the consent of the Minister of Finance. Virements do not increase the overall appropriation amount of the Minister Finance. Virements do not increase the overall appropriation amount but facilitate theofredeployment of approved budget resources after the start of a financial but facilitate the redeployment of approved budget resources after the start of a financial year. year. 34 34 34 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 13. Supplementary Estimates and Virements (Transfers) 13. Supplementary Estimates and Virements (Transfers) (cont’d) (cont’d) During the year $52,266,000 (2013 - $63,500,510) in Supplementary Estimates were During theand year $52,266,000 (2013 - of$63,500,510) Supplementary Estimates were approved spent which consisted $50,138,000in(2013 - $38,484,751) for current approved and spent which consisted of $50,138,000 (2013 $38,484,751) for current expenditure and $2,128,000 (2013 - $25,015,759) for capital expenditure. expenditure and $2,128,000 (2013 - $25,015,759) for capital expenditure. During the year $25,251,904 (2013 - $26,867,688) in virements were approved and During the which year $25,251,904 - $26,867,688) in virements approved and transferred consisted of (2013 $4,320,845 (2013 - $3,166,882) for were current expenditure transferred which consisted of $4,320,845 (2013 $3,166,882) for current expenditure and $20,931,059 (2013 - $23,700,506) for capital expenditure. and $20,931,059 (2013 - $23,700,506) for capital expenditure. Additional expenditures of $962,168 (2013 - $10,325,410) were incurred in excess of Additionalappropriated expendituresbyofthe $962,168 were incurred excess of of amounts Ministry (2013 and will- $10,325,410) require final approval, which in consisted amounts appropriated by the Ministry and will require final approval, which consisted of $962,168 (2013 - $10,289,080) for current expenditure and $0 (2013 - $36,330) for $962,168 (2013 - $10,289,080) for current expenditure and $0 (2013 - $36,330) for capital expenditure. capital expenditure. Additional virements of $6,777,378 (2013 - $12,038,218) require final approval and Additionalwhich virements of $6,777,378 (2013 - -$12,038,218) require final approval and and transfer, consisted of $4,088,716 (2013 $9,898,934) for current expenditure transfer, which consisted of $4,088,716 (2013 $9,898,934) for current expenditure and $2,688,662 (2013 - $2,139,284) for capital expenditure. $2,688,662 (2013 - $2,139,284) for capital expenditure. 14. Related Party Transactions 14. Related Party Transactions (a) Funds (a) Funds The Fund is related to the GEHI Fund, the CPF, the MMLPF, the Bermuda Department The Fund isNorth related to theRetirement GEHI Fund, the the CPF, the MMLPF, the Bermuda Department of Tourism America Plan, PSSF, the Confiscated Assets Fund, the of Tourism North America Retirement Plan, the PSSF, the Confiscated Assets Fund, the GBSF, the Health Insurance Fund, the Mutual Re-insurance Fund, the FutureCare Fund GBSF, the Health Insurance Fund, the Mutual Re-insurance Fund, the FutureCare Fund and the Government Reserves Fund. and the Government Reserves Fund. The financial activities of these funds are reported separately in each fund's financial The financialThe activities of these accounting funds are reported separately in each fund's to financial statements. Fund provides and certain administrative services these statements. The Fund provides accounting and certain administrative services to these funds. These transactions are in the normal course of operations and are measured at funds. These transactions in theThe normal course of operations at the appropriate exchange are amount. other activities representand theare netmeasured position of the appropriate exchange amount. The other activities represent the net position of contributions payable to the funds and expenses paid out of the Fund on behalf of the contributions payable to 3(a) the funds expenses paidbalances out of the Fund behalf of the the funds. Schedules 3 and displayand details of unpaid due fromon and due to funds.which Schedules and 3(a) of unpaid balances due from and due to the funds have 3arisen fromdisplay normaldetails operating activities. The rate of interest accruing funds which have arisen from normal operating activities. The rate of interest accruing on the balances is 7% per annum. on the balances is 7% per annum. (b) QUANGOs and Other Related Organizations (b) QUANGOs and Other Related Organizations The Fund is related to certain quasi-autonomous non-governmental organizations The Fund is related to certain quasi-autonomous organizations (“QUANGOs”) and other government controlled non-governmental organizations. QUANGOs are (“QUANGOs”) and other government controlled organizations. QUANGOs are government businesses which have been established under their respective legislative government businesses which have been established under their respective legislative incorporation acts. Other government-related organizations are organizations that are incorporation acts. Other either government-related organizations arevoting organizations that are controlled by government by the possession of shares or rights or by some controlled by government either by the possession of shares or voting rights or by some other means. other means. 35 35 35 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 14. Related Party Transactions (cont’d) 14. Related Party Transactions (cont’d) The Fund enters into transactions with the QUANGOs and other related organizations in Thenormal Fund enters into with are the measured QUANGOsatand relatedamount, organizations in the course of transactions business which theother exchange which is the amount normal course of business which are measured at the the of consideration established and agreed upon byexchange the relatedamount, parties. which is the amount of consideration established and agreed upon by the related parties. Schedules 3 and 3(a) include details of balances due from and due to these entities Schedules and 3(a) of balances from the and year, due to entities which have3arisen frominclude normaldetails operating activities.due During nothese interest was which have arisen from normal operating activities. During the year, no interest was charged and/or incurred from or to the Fund and the various QUANGOs and other charged and/or incurred from or to the Fund and the various QUANGOs and other related organizations. related organizations. (i) Bermuda Monetary Authority (“BMA”) (i) Bermuda Monetary Authority (“BMA”) In accordance with Section 8 (3) of the Bermuda Monetary Authority Act 1969, In accordance Section the Bermuda Monetary Authority Act 1969, the BMA pays with a portion of 8its(3) netofprofit (historically 50%) to the Consolidated the BMA pays a portion of its net profit (historically 50%) to the Consolidated Fund of the Government. Fund of the Government. The BMA did not report a net profit for the year ended December 31, 2013, thus Thetransfer BMA did notrequired report atonet the Consolidated year ended December 31, 2013, thus no was be profit madefor to the Fund. no transfer was required to be made to the Consolidated Fund. (ii) Bermuda Land Development Company Limited (“BLDC”) (ii) Bermuda Land Development Company Limited (“BLDC”) On November 12, 1996 (date of inception), the Government purchased On November 12, shares 1996 of(date of The inception), thevalued Government 2,500,000 common BLDC. shares are at par $1purchased each and 2,500,000 common shares of BLDC. The shares are valued at par $1 each and are held in trust by the Minister of Finance. are held in trust by the Minister of Finance. On November 12, 1996 (date of inception), the Government purchased On November 12, shares 1996 of(date of The inception), thevalued Government 2,500,000 common BLDC. shares are at par $1purchased each and 2,500,000 common shares of BLDC. The shares are valued at par $1 each and are held in trust by the Minister of Public Works. are held in trust by the Minister of Public Works. (iii) Bermuda Housing Corporation (“BHC”) (iii) Bermuda Housing Corporation (“BHC”) On July 12, 2011, the Government provided a letter of comfort to the Bank of NT On July 12,(“BNTB”) 2011, theonGovernment provided a letter of comfort to the Bank of the NT Butterfield behalf of the BHC, which states, “To the extent that Butterfield (“BNTB”) on behalf of the BHC, which states, “To the extent that the BHC operates programmes which do not break even, the Government BHC operates programmes which even, Government appropriates annual grants which enabledothenot BHCbreak to comply withthe its legislation.” appropriates annual grants which enable the BHC to comply with its legislation.” (iv) WEDCO Guarantee (iv) WEDCO Guarantee On April 24, 2012, the Minister of Finance consented to the borrowing of $36 On April 2012, from the Minister of facilitate Finance the consented to the of $36 million by24, WEDCO BNTB to completion of borrowing the Infrastructure million by WEDCO from BNTB to facilitate the completion of the Infrastructure and Housing Project in Dockyard. The amount borrowed was subsequently and Housing reduced to $25Project million. in Dockyard. The amount borrowed was subsequently reduced to $25 million. The Ministry of Finance further guarantees and will make good any default on the The Ministry of Finance further guarantees will make any default onfees the part of WEDCO in the payment of the loanand to BNTB and good all related interest part of WEDCO in the payment of the loan to BNTB and all related interest fees and charges due as a result of default by WEDCO until all indebtedness to BNTB and been charges as a result of default by WEDCO until all indebtedness to BNTB has fullydue discharged. has been fully discharged. 36 36 36 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Notes to the Financial Statements Notes to the Financial Statements March 31, 2014 March 31, 2014 14. Related Party Transactions (cont’d) 14. Related Party Transactions (cont’d) (v) BHC Guarantee (v) BHC Guarantee On October 30, 2012, the Minister of Finance granted approval to the borrowing On$36 October 30,by2012, the Minister of Finance granted of million the BHC from BNTB to finance the approval purchasetoofthe theborrowing units of of $36 million by the BHC from BNTB to finance the purchase of the units of phase three of the Grand Atlantic Housing Development (“Grand Atlantic”) and to phase three of the Grand Atlantic Housing Development (“Grand Atlantic”) and to repay the loans advanced by the bank for Grand Atlantic phases one and two. repayloan thefacility loans is advanced theduration. bank for Grand Atlantic phases one and two. This for a two by year This loan facility is for a two year duration. The Ministry of Finance further guaranteed to make good any default on the part The Finance further guaranteed to make any default onfees the and part of theMinistry BHC inofthe payment of the loan to BNTB and good all related interest of the BHC in the payment of the loan to BNTB and all related interest fees and charges due as a result of default by the BHC until all indebtedness to BNTB has charges due as a result of default by the BHC until all indebtedness to BNTB has been fully discharged. been fully discharged. (vi) Regulatory Authority (“RA”) (vi) Regulatory Authority (“RA”) On January 28, 2013 the Regulatory Authority Act 2011 ("RAA") came into On January 28, 2013 Authority Act 2011 ("RAA") into operation. Section 111 ofthe theRegulatory RAA committed the Government to makecame an initial operation. Section 111 of the RAA committed the Government to make an initial payment of $2 million as paid-up capital, which was to be used for purposes payment ofunder $2 million as paid-up capital, which was topaid be the usedRA for$1 purposes prescribed the RAA. In 2013 the Government million prescribed under the RAA. In 2013 the Government paid the RA $1 million towards the paid-up capital. The $1 million was paid with the intent that the RA towardshave the paid-up The $1 million was paid with the the RA would fundingcapital. until collecting sufficient revenues to intent coverthat operating would have funding until111 collecting to coveroperational operating expenses as per section (b)(ii) of sufficient the RAA. revenues The RA achieved expenses as per section 111 (b)(ii) of the RAA. The RA achieved operational independence within the Financial Year and it was deemed not necessary to independence the The Financial Year and was deemed not necessary to provide further within funding. Government hasit fulfilled its financial obligations provide further funding. The Government has fulfilled its financial obligations towards the establishment of the RA in accordance with the intent of the Act. towards the establishment of the RA in accordance with the intent of the Act. In accordance with Section 41 (1)(a) of the RAA, the RA will pay 50% of its net In accordance with Section 41 (1)(a) of the the aRA pay 50% net surplus to the Consolidated Fund. The RA RAA, reported netwillsurplus for of theitsyear surplus to the Consolidated Fund. The RA reported a net surplus for the year ended March 31, 2014. Government’s 50% portion of the net surplus for the year ended March March 31, 31, 2014 2014.isGovernment’s 50% portion of the net surplus for the year ended $315,000. ended March 31, 2014 is $315,000. (c) Interdepartmental Transactions (c) Interdepartmental Transactions Interdepartmental transactions are those transactions in which revenues and expenses Interdepartmental transactions are those transactions in Ministries. which revenues expenses are generated between Government departments and/or These and revenues and are generated between Government departments and/or Ministries. These revenues and the related expenses should be eliminated from the Fund’s figures. As per Note 3(d), the related expenses should be eliminated from are the Fund’s figures. As per Note 3(d), interdepartmental revenues and expenses not eliminated. However, all interdepartmental revenues and expenses are not eliminated. However, interdepartmental revenues and expenses have been identified and are shown all in interdepartmental and expenses have been identified and are shown in Schedules 9(a) andrevenues 10(c), respectively. Schedules 9(a) and 10(c), respectively. 15. Bank Overdraft 15. Bank Overdraft As at March 31, 2014 the Government had no overdraft facilities in place. As at March 31, 2014 the Government had no overdraft facilities in place. 37 37 37 Government Government of of Bermuda Bermuda –– Consolidated Consolidated Fund Fund Notes to the Financial Statements Notes to the Financial Statements March March 31, 31, 2014 2014 16. 16. Subsequent Subsequent Events Events (a) Pension Amendments (a) Pension Amendments On June 27, 2014, the House of Assembly approved the Pensions (Increase) On June 27, 2014, the House of Assembly approved the Pensions (Increase) Amendment Suspension Act 2014 which allows the Minister of Finance to suspend the Amendment Suspension Act 2014 which allows the Minister of Finance to suspend the Cost of Living Adjustment (“COLA”) from the actuarial valuation of the future pension Cost of Living Adjustment (“COLA”) from the actuarial valuation of the future pension plan benefit obligations. Accordingly the COLA provision was removed for the actuarial plan benefit obligations. Accordingly the COLA provision was removed for the actuarial valuation of the pension obligation as at March 31, 2014. valuation of the pension obligation as at March 31, 2014. (b) Letter of Comfort and Guarantee (b) Letter of Comfort and Guarantee Subsequent to March 31, 2014, Government increased the Letter of Comfort with Subsequent to March 31, 2014, Government increased the Letter of Comfort with Southlands Limited and Morgan’s Point Limited (“MPL”), to support Phase 1 of the Southlands Limited and Morgan’s Point Limited (“MPL”), to support Phase 1 of the Morgan’s Point project, from US$125,000,000 to US$160,000,000. Morgan’s Point project, from US$125,000,000 to US$160,000,000. On November 28, 2014, the Minister of Finance provided an irrevocable Guarantee On November 28, 2014, the Minister of Finance provided an irrevocable Guarantee Agreement to Arch Reinsurance Limited on behalf of Morgan’s Point Limited. The Agreement to Arch Reinsurance Limited on behalf of Morgan’s Point Limited. The guarantee was issued to provide credit support for a $5,000,000 loan made by Arch to guarantee was issued to provide credit support for a $5,000,000 loan made by Arch to MPL for the purpose of meeting reasonable expenses incurred by MPL in connection MPL for the purpose of meeting reasonable expenses incurred by MPL in connection with the first phase of the Morgan's Point Project, including expenses relating to with the first phase of the Morgan's Point Project, including expenses relating to architecture, design, construction engineering and professional advice and services. The architecture, design, construction engineering and professional advice and services. The Government guarantees the full and prompt payment of the principal and interest on the Government guarantees the full and prompt payment of the principal and interest on the Loan. Loan. (c) Hotel Concessions (c) Hotel Concessions In June 2014, the Minister of Tourism Development and Transport tabled a Hotel In June 2014, the Minister of Tourism Development and Transport tabled a Hotel Concession Order in the House of Assembly. This order was approved, which resulted in Concession Order in the House of Assembly. This order was approved, which resulted in one Hotel Concession Order for 2014. The total value of concessions to be applied in one Hotel Concession Order for 2014. The total value of concessions to be applied in the future against land, payroll and hotel occupancy tax under this order is $11,222,500. the future against land, payroll and hotel occupancy tax under this order is $11,222,500. 17. 17. Comparative Comparative Figures Figures Certain comparative figures have been reclassified to conform to the current year’s Certain comparative figures have been reclassified to conform to the current year’s presentation. presentation. 38 38 38 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Schedule 1: Accounts Receivable Schedule 1: Accounts Receivable As at March 31 As at March 31 2014 2014 Office of the Tax Commissioner Office of theofTax Commissioner Registrar Companies Registrar Companies Works & of Engineering Works & Engineering Fire Services Fire Services Customs Customs Airport Operations Airport Operations Accountant General Accountant General Judicial Department Judicial Department Post Office Post Office Department of Education Department of Education Civil Aviation Civil Aviation Department of Health Department of Health Ministry of Public Works HQ Ministry of Public Works HQ Maritime Administration Maritime Administration Telecommunications Telecommunications Public Transportation Public PublicTransportation Lands & Buildings Public Lands &Services Buildings Conservation Conservation Services Marine & Ports Services Marine Ports Services Human&Resources Human Resources Defence Defence Police Police Registry General Registry GeneralProtection Environmental Environmental Protection Financial Assistance Financial Assistance Office of the Auditor General Office of the Auditor Ministry of Health & General Seniors HQ Ministry of Health & Seniors HQ Ministry of Environment & Planning HQ Ministry of Environment & Planning HQ Tourism Tourism Planning Planning Parks Parks Libraries Libraries Child & Family Services Child & Family Services Office Information Technology Information Technology Office Attorney General's Chambers Attorney General's Chambers Ministry of Legal Affairs HQ Ministry of Legal Affairs HQ Transport Control Department Transport Control Department Parlimentary Registrar Parlimentary Registrar Energy Energy National Drug Control National Control MinistryDrug of Tourism Dev. & Transport HQ Ministry of Tourism Dev. & Transport HQ Corrections Corrections Less: Provision for Doubtful Accounts Less: Provision for Doubtful Accounts Actual Actual $ $ 190,464,658 190,464,658 7,654,265 7,654,265 6,871,580 6,871,580 4,423,467 4,423,467 4,267,786 4,267,786 3,879,134 3,879,134 3,188,719 3,188,719 3,166,659 3,166,659 1,978,321 1,978,321 1,578,478 1,578,478 1,557,866 1,557,866 1,159,606 1,159,606 908,758 908,758 666,546 666,546 634,024 634,024 494,432 494,432 448,176 448,176 167,607 167,607 164,449 164,449 134,252 134,252 129,795 129,795 106,695 106,695 67,171 67,171 65,435 65,435 47,844 47,844 31,900 31,900 31,708 31,708 10,500 10,500 9,589 9,589 8,964 8,964 6,166 6,166 6,004 6,004 4,765 4,765 2,301 2,301 877 877 728 728 208 208 50 50 --(209) (209) 234,339,274 234,339,274 97,714,049 97,714,049 136,625,225 136,625,225 2013 2013 Actual Actual $ $ 177,698,720 177,698,720 6,097,838 6,097,838 5,450,870 5,450,870 3,698,207 3,698,207 6,509,640 6,509,640 5,881,753 5,881,753 2,314,883 2,314,883 2,936,843 2,936,843 2,351,367 2,351,367 1,596,859 1,596,859 1,207,040 1,207,040 1,063,169 1,063,169 951,352 951,352 493,546 493,546 3,174,597 3,174,597 715,503 715,503 1,805,967 1,805,967 349,734 349,734 181,269 181,269 138,656 138,656 182,070 182,070 174,983 174,983 56,562 56,562 130,097 130,097 46,644 46,644 68,400 68,400 31,708 31,708 4,500 4,500 8,996 8,996 26,774 26,774 6,166 6,166 4,067 4,067 4,265 4,265 2,301 2,301 877 877 413 413 50 50 984 984 250 250 89 89 225,368,009 225,368,009 87,393,310 87,393,310 137,974,699 137,974,699 39 39 39 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Schedule 2: Inventories for Consumption Schedule 2: Inventories for Consumption As at March 31 As at March 31 2014 2014 Ministry of Public Works HQ Ministry of Public Works HQ Public Transportation Public Transportation Works & Engineering Works & Engineering Marine & Ports Services Marine & Ports Services Police Police Department of Education Department of Education Department of Immigration Department of Immigration Department of Corrections Department of Corrections Health Health Defence Defence Conservation Services Conservation Services Public Lands & Buildings Public Lands & Buildings Post Office Post Office Less: Provision for Obsolescence Less: Provision for Obsolescence 40 2013 2013 Actual Actual $ $ Actual Actual $ $ 4,981,817 4,981,817 4,139,214 4,139,214 2,931,238 2,931,238 2,764,585 2,764,585 1,307,039 1,307,039 701,153 701,153 409,248 409,248 360,224 360,224 263,745 263,745 176,232 176,232 111,278 111,278 28,749 28,749 18,031 18,031 18,192,553 18,192,553 1,713,552 1,713,552 3,159,063 3,159,063 4,126,323 4,126,323 2,456,891 2,456,891 2,601,341 2,601,341 1,408,364 1,408,364 757,931 757,931 210,310 210,310 360,244 360,244 329,840 329,840 688,493 688,493 131,901 131,901 186,708 186,708 23,762 23,762 16,441,171 16,441,171 1,713,222 1,713,222 16,479,001 16,479,001 14,727,949 14,727,949 40 40 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Schedule 3: Due From Gov't Funds and Agencies Schedule 3: Due From Gov't Funds and Agencies As at March 31 As at March 31 Health Insurance Funds Health Insurance FundsBoard Bermuda Hospitals Bermuda Hospitals Board Regulatory Authority Regulatory Authority Golf Courses Golf CoursesCollege Bermuda Bermuda College Bermuda Monetary Authority Bermuda Monetary Authority Bermuda Land Development Company Bermuda Land Development Confiscated Assets Fund Company Confiscated Assets Fund Bermuda Housing Corporation Bermuda Housing Corporation West End Development Corporation West End Development Corporation Unemployment Insurance Fund Unemployment CedarBridgeInsurance AcademyFund CedarBridge Academy Government Reserves Fund Government Reserves Fund Pembroke Parish Council Pembroke Parish Council Bermuda Economic Development Corporation Bermuda Economic Development Financial Intelligence Agency Corporation Financial Intelligence Agency Pension Commission Pension Commission Bermuda Health Council Bermuda Health Council Parish Councils Parish Councils Bermuda Housing Trust Bermuda Housing Berkeley InstituteTrust Berkeley Institute National Sports Centre National Sports Centre Whitney Institute Whitney Institute Sandys Secondary Middle School Sandys Secondary Middle School St. George's Preparatory School St. George's Preparatory School Less: Provision for Doubtful Accounts Less: Provision for Doubtful Accounts 2014 2014 2013 2013 Actual Actual $ $ Actual Actual $ $ 20,415,167 20,415,167 3,092,646 3,092,646 2,704,863 2,704,863 1,077,879 1,077,879 952,667 952,667 877,594 877,594 773,515 773,515 589,066 589,066 460,209 460,209 374,609 374,609 182,949 182,949 179,917 179,917 168,490 168,490 99,852 99,852 46,814 46,814 40,522 40,522 35,459 35,459 28,207 28,207 24,042 24,042 22,668 22,668 17,281 17,281 7,332 7,332 5,233 5,233 4,011 4,011 1,691 1,691 32,182,683 32,182,683 8,969,970 8,969,970 23,212,713 23,212,713 Government of Bermuda - Consolidated Fund Government of Bermuda - Consolidated Fund Schedule 3(a): Due to Gov't Funds and Agencies Schedule 3(a): Due to Gov't Funds and Agencies As at March 31 As at March 31 2014 2014 2013 2013 Actual Actual Actual Actual $ Public Service Superannuation Fund Public Service Fund Fund Ministers andSuperannuation Members Pensions Ministers and Members Pensions Fund Bermuda Hospitals Board Bermuda Hospitals Board Contributory Pension Fund Contributory Pension FundNorth American Retirement Plan Department of Tourism Department Tourism North American Retirement Plan West Endof Development Corporation West End Development Corporation Bermuda Land Development Company Bermuda Land Development Company Bermuda Economic Development Corporation Bermuda Economic Development Corporation Golf Courses Golf CoursesCollege Bermuda Bermuda College Bermuda Housing Corporation Bermuda Housing Corporation Parish Council Parish Council 14,712,972 14,712,972 3,281,370 3,281,370893,493 893,493 770,370 770,370 1,057,284 1,057,284 730,480 730,480 767,120 767,120 454,286 454,286 326,791 326,791 2,283 2,283 355,681 355,681 18,490 18,490 100,592 100,592 28,271 28,271 28,923 28,923 20,152 20,152 29,312 29,312 23,398 23,398 868 868 17,281 17,281 345 345 5,319 5,319 4,248 4,248 1,694 1,694 23,631,023 23,631,023 8,969,970 8,969,970 14,661,053 14,661,053 $ 19,503,788 19,503,788 12,633,281 12,633,281 11,482,952 11,482,952 1,891,620 1,891,620 197,175 197,175 6,981 6,981 5,142 5,142 3,800 3,800 1,943 1,943 1,672 1,672 400 400 45,728,754 45,728,754 $ $ 27,381,870 27,381,870 12,438,562 12,438,562 10,000,000 10,000,000 555,249 555,249 211,175 211,175 157,568 157,568 5,142 5,142 3,800 3,800 1,943 1,943 1,672 1,672 45,400 45,400 5,760 5,760 50,808,141 50,808,141 41 41 41 Government of Bermuda – Consolidated Fund Government Bermuda – Consolidated Fund Schedule 4:of Long-Term Receivables Schedule 4: Long-Term Receivables As at March 31 As at March 31 Student Loans and Teacher Training Awards Student Loans and Teacher Training Awards Customs Duty Customs Duty 2014 2014 2013 2013 Actual Actual $ $ Actual Actual $ $ 798,893 798,893 392,247 392,247 1,191,140 1,191,140 1,183,200 1,183,200 374,647 374,647 1,557,847 1,557,847 Government of Bermuda - Consolidated Fund Government of Bermuda - Consolidated Fund Schedule 5: Accounts Payable and Accrued Liabilities Schedule 5: Accounts Payable and Accrued Liabilities 2013 As at March 31 2014 As at March 31 Base Lands Clean Up Base Lands Clean Department TradeUp Accounts Department Trade Interest on Debt Accounts Interest on Debt Deposits Held Deposits Held Employees' Leave Entitlements Employees' Entitlements Teachers' Leave Salaries & Leave Entitlements Teachers' Salaries & Leave Entitlements Guarantee Payable to WEDCO (Note 10(a)) Guarantee Payable to WEDCO Salaries, Wages and Benefits (Note 10(a)) Salaries, Leases Wages Payableand Benefits Leases Payable 42 2014 2013 Actual Actual $ $ Actual Actual $ $ 44,078,555 44,078,555 31,642,236 31,642,236 27,927,929 27,927,929 19,135,976 19,135,976 17,943,246 17,943,246 9,797,343 9,797,343 4,285,716 4,285,716 2,963,982 2,963,982 420,838 420,838 158,195,821 158,195,821 38,656,865 38,656,865 49,811,633 49,811,633 21,810,526 21,810,526 18,588,178 18,588,178 17,429,708 17,429,708 10,103,323 10,103,323 5,714,287 5,714,287 577,149 577,149 550,127 550,127 163,241,796 163,241,796 42 42 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Schedule 6: Deferred Revenue Schedule 6: Deferred Revenue As at March 31 As at March 31 Transport Control Department Transport Control Department Civil Aviation Civil Aviation Department of Immigration Department of Immigration Post Office Post Office Environmental Protection Environmental Protection Public Lands & Buildings Public Lands & Buildings Health Department Health Department Parks Parks Tourism Tourism Youth, Sport & Recreation Youth, Sport & Recreation Office of the Tax Commissioner Office of the Tax Commissioner Economy, Trade & Industry HQ Economy, Trade & Industry HQ Police Police 2014 2014 2013 2013 Actual Actual Actual Actual $ $ $ $ 17,716,627 17,716,627 12,103,870 12,103,870 5,397,244 5,397,244 309,379 309,379 225,577 225,577 90,816 90,816 82,794 82,794 65,352 65,352 29,839 29,839 28,051 28,051 5,000 5,000 36,054,549 36,054,549 16,293,317 16,293,317 12,481,915 12,481,915 326,898 326,898 133,345 133,345 90,816 90,816 52,841 52,841 29,865 29,865 33,146 33,146 14,068 14,068 5,524,237 5,524,237 256,851 256,851 35,237,299 35,237,299 43 43 43 Government of Bermuda – Consolidated Fund Schedule 7: Interest Bearing Debt - Net of Sinking Fund Government Bermuda – Consolidated Fund As at Marchof31 Schedule 7: Interest Bearing Debt - Net of Sinking Fund As at March 31 2014 2014 Actual Senior Notes Due 2024 - US$ Issue Date: February 6, 2014 Interest: 4.854% payable Senior Notes Due 2024 - US$ semi-annually February 6 and August 6 Issue Date: February 6, 2014 Notes Due: February 6, 2024 Interest: 4.854% payable semi-annually February 6 and August 6 SeniorDue: Notes Due 2023 - BMD$ Notes February 6, 2024 Issue Date: December 16, 2013 Interest: 4.75% payable semi-annually Senior Notes Due 2023 - BMD$ June 16 and December 16 Issue Date: December 16, 2013 Notes4.75% Due: December 16, 2023 Interest: payable semi-annually June 16 and December 16 SeniorDue: Notes Due 2023 Notes December 16,- US$ 2023 Issue Date: July 3, 2012 Senior Notes Due 2023 - US$ semi-annually Interest: 4.138% payable Issue Date: 3July 2012 January and3,July 3 Interest: payable Notes4.138% Due: January 3,semi-annually 2023 January 3 and July 3 Notes January 3, 2023 SeniorDue: Notes Due 2020 - US$ Issue Date: July 13, 2010 Senior Notes Due 2020 - US$semi-annually Interest: 5.60% payable Issue Date: 20 July 13,July 2010 January and 20 Interest: payable semi-annually Notes5.60% Due: July 20, 2020 January 20 and July 20 Notes JulyDue 20, 2019 2020 - US$ SeniorDue: Notes Issue Date: November 10, 2009 Senior Notes Due 2019 - US$semi-annually Interest: 5.93% payable Issue Date: November 10,10 2009 November 10 and May Interest: payable semi-annually Notes5.93% Due: November 10, 2019 November 10 and May 10 Notes November 10, US$ 2019 SeniorDue: Notes Due 2016Issue Date: November 10, 2009 Senior Notes Due 2016US$semi-annually Interest: 5.27% payable Issue Date: November 10,10 2009 November 10 and May Interest: 5.27% payable semi-annually Notes Due: November 10, 2016 November 10 and May 10 Notes November 10,- 2016 SeniorDue: Notes Due 2019 US$ Issue Date: May 21, 2009 Senior Notes Due 2019 - US$semi-annually Interest: 7.38% payable Issue Date: May 21, 2009 21 May 21 and November Interest: payable semi-annually Notes7.38% Due: May 21, 2019 May 21 and November 21 Notes Due: May 21, 2019 44 2013 2013 Actual $ Actual $ Actual $ $ 750,000,000 750,000,000 - 50,000,000 50,000,000 475,000,000 475,000,000 500,000,000 500,000,000 80,000,000 80,000,000 60,000,000 60,000,000 100,000,000 100,000,000 - 475,000,000 475,000,000 500,000,000 500,000,000 80,000,000 80,000,000 60,000,000 60,000,000 100,000,000 100,000,000 44 44 Government of of Bermuda Bermuda –– Consolidated Consolidated Fund Fund Government Schedule 7: 7: Interest Interest Bearing Bearing Debt Debt -- Net Net of of Sinking Sinking Fund Fund Schedule As at at March March 31 31 As SeniorNotes NotesDue Due2016 2016--US$ US$ Senior IssueDate: Date: May May21, 21,2009 2009 Issue Interest: 6.98% payable semi-annually Interest: 6.98% payable semi-annually May21 21and andNovember November21 21 May Notes Due: May 21, 2016 Notes Due: May 21, 2016 30,000,000 30,000,000 30,000,000 30,000,000 SeniorNotes NotesDue Due2014 2014--US$ US$ Senior IssueDate: Date:May May21, 21,2009 2009 Issue Interest: 6.55% payable semi-annually Interest: 6.55% payable semi-annually May21 21and andNovember November21 21 May Notes Due: May 21, 2014 Notes Due: May 21, 2014 45,000,000 45,000,000 45,000,000 45,000,000 SeniorNotes NotesDue Due2022 2022--US$ US$ Senior Issue Date: December 4, 2007 Issue Date: December 4, 2007 Interest:5.73% 5.73%payable payablesemi-annually semi-annually Interest: June 4 and December 4 June 4 and December 4 NotesDue: Due:December December4, 4,2022 2022 Notes 140,000,000 140,000,000 140,000,000 140,000,000 SeniorNotes NotesDue Due2014 2014--US$ US$ Senior IssueDate: Date:June June10, 10,2004 2004 Issue Interest: 5.39% payable semi-annually Interest: 5.39% payable semi-annually June10 10and andDecember December10 10 June Notes Due: June 10, 2014 Notes Due: June 10, 2014 75,000,000 75,000,000 75,000,000 75,000,000 2,305,000,000 2,305,000,000 1,505,000,000 1,505,000,000 536,557,729 536,557,729 97,141,966 97,141,966 1,768,442,271 1,768,442,271 1,407,858,034 1,407,858,034 Less:Sinking SinkingFund Fund(Note (Note5) 5) Less: 45 45 45 Government of of Bermuda Bermuda –– Consolidated Consolidated Fund Fund Government Schedule 8: 8: Revenue Revenue By By Type Type Schedule For the the year year ended ended March March 31 31 For Taxes & & Duties Duties Taxes Payroll Tax Payroll Tax Customs Duty Duty Customs Land Tax Tax Land Passenger Tax Tax Passenger Other Taxes Taxes & & Duties Duties Other Stamp Duty Stamp Duty Foreign Currency Currency Purchase Purchase Tax Tax Foreign Hotel Occupancy Occupancy Tax Tax Hotel Non-Bermudian Land Land Acquisition Acquisition Tax Tax Non-Bermudian Corporate Services Tax Corporate Services Tax Betting Tax Tax Betting Timesharing Tax Tax Timesharing Total Taxes Taxes & & Duties Duties Total Fees, Permits Permits & & Licences Licences Fees, International Companies International Companies Vehicle Licences Licences & & Registration Registration Vehicle Registration of of Aircraft Aircraft Registration Immigration Immigration Air Terminal Terminal & & Aviation Aviation Air Telecommunications Telecommunications Wharfage Wharfage Bus Transportation Transportation Bus Registration of Shipping Shipping Registration of Postal Services Postal Services Solid Waste Waste Services Services Solid Water Water Local Companies Companies Local Services to Seaborne Seaborne Shipping Shipping Services to Rentals Rentals Other Customs Customs Fees Fees & & Charges Charges Other Ferry Services Ferry Services Trade and and Service Service Mark Mark Trade Planning Fees Fees and and Searches Searches Planning Companies Licences Companies Licences Liquor Licences Licences Liquor Plant Production Production and and Marketing Marketing Centre Centre Plant Insurance Fees Fees Insurance Other Revenue Revenue Other Other Other Fines & & Forfeitures Forfeitures Fines Investment Income Income Investment TOTAL REVENUE REVENUE TOTAL 46 2014 2014 Original Original Estimates Estimates 2014 2014 2013 2013 Actual Actual Actual Actual $$ $$ $$ 320,000,000 320,000,000 175,000,000 175,000,000 59,000,000 59,000,000 35,670,000 35,670,000 589,670,000 589,670,000 330,848,121 330,848,121 174,951,259 174,951,259 60,476,977 60,476,977 33,921,396 33,921,396 600,197,753 600,197,753 328,023,069 328,023,069 169,693,292 169,693,292 55,844,840 55,844,840 34,577,919 34,577,919 588,139,120 588,139,120 19,962,000 19,962,000 24,000,000 24,000,000 9,500,000 9,500,000 10,000,000 10,000,000 4,800,000 4,800,000 1,450,000 1,450,000 92,000 92,000 21,379,248 21,379,248 20,823,253 20,823,253 9,195,261 9,195,261 4,937,639 4,937,639 4,686,562 4,686,562 1,540,106 1,540,106 189,293 189,293 18,754,461 18,754,461 22,071,642 22,071,642 10,002,033 10,002,033 5,967,336 5,967,336 3,185,370 3,185,370 1,543,828 1,543,828 169,418 169,418 69,804,000 69,804,000 659,474,000 659,474,000 62,751,362 62,751,362 662,949,115 662,949,115 61,694,088 61,694,088 649,833,208 649,833,208 56,728,000 56,728,000 28,216,000 28,216,000 23,512,000 23,512,000 10,000,000 10,000,000 10,286,000 10,286,000 10,000,000 10,000,000 8,421,000 8,421,000 8,700,000 8,700,000 4,151,000 4,151,000 4,774,000 4,774,000 3,520,000 3,520,000 5,100,000 5,100,000 2,620,000 2,620,000 3,069,000 3,069,000 2,115,000 2,115,000 2,264,000 2,264,000 1,822,000 1,822,000 1,640,000 1,640,000 875,000 875,000 613,000 613,000 50,000 50,000 295,000 295,000 -- 62,473,501 62,473,501 26,664,805 26,664,805 26,569,005 26,569,005 11,887,007 11,887,007 10,589,960 10,589,960 10,031,429 10,031,429 8,679,779 8,679,779 7,244,714 7,244,714 5,139,326 5,139,326 4,552,756 4,552,756 4,097,763 4,097,763 3,555,830 3,555,830 2,808,526 2,808,526 2,612,825 2,612,825 2,111,306 2,111,306 2,073,025 2,073,025 1,921,159 1,921,159 1,751,791 1,751,791 868,546 868,546 703,946 703,946 371,058 371,058 330,431 330,431 55 55 62,163,373 62,163,373 26,031,165 26,031,165 23,925,970 23,925,970 7,985,278 7,985,278 10,682,301 10,682,301 13,647,281 13,647,281 8,335,162 8,335,162 7,703,962 7,703,962 4,177,276 4,177,276 5,321,611 5,321,611 4,094,230 4,094,230 4,705,192 4,705,192 2,808,988 2,808,988 2,768,441 2,768,441 2,384,204 2,384,204 2,149,659 2,149,659 1,777,478 1,777,478 1,584,346 1,584,346 714,183 714,183 774,362 774,362 277,725 277,725 37,761 37,761 15,050 15,050 188,771,000 188,771,000 197,038,543 197,038,543 194,064,998 194,064,998 16,884,000 16,884,000 3,570,000 3,570,000 20,454,000 20,454,000 2,500,000 2,500,000 22,954,000 22,954,000 17,770,289 17,770,289 2,711,329 2,711,329 20,481,618 20,481,618 3,445,828 3,445,828 23,927,446 23,927,446 17,773,246 17,773,246 2,075,064 2,075,064 19,848,310 19,848,310 2,831,042 2,831,042 22,679,352 22,679,352 871,199,000 871,199,000 883,915,104 883,915,104 866,577,558 866,577,558 46 46 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Schedule 9: Revenue By Ministry/Department Schedule 9: Revenue By Ministry/Department For the year ended March 31 For the year ended March 31 2014 2014 Original Original Estimates Estimates Non-Ministry Departments Non-Ministry Departments 05 Office of the Auditor General 0563Office of the Auditor General Parliamentary Registrar 6302Parliamentary Registrar Legislature 0201Legislature Governor & Staff 0192Governor & Staff Internal Audit 92 Internal Audit Cabinet Office Departments Cabinet Office Departments 26 Department of Human Resources 2614Department Resources DepartmentofofHuman Statistics 1409Department of Statistics Cabinet Office 09 Cabinet Office Ministry of Tourism Development & Transport Ministry of Tourism Development 34 Transport Control Department & Transport 3431Transport Control Department Airport Operations 3135Airport PublicOperations Transportation 3530Public Transportation Marine & Ports Services 3048Marine & Ports Services Ministry of Tourism Dev. & Transport HQ 4833Ministry of Tourism Dev. & Transport HQ Tourism 33 Tourism Ministry of Legal Affairs Ministry of Legal Affairs 03 Judicial Department 0304Judicial Department Attorney General's Chambers 0487Attorney Chambers MinistryGeneral's of Legal Affairs HQ 8775Ministry of Legal Affairs HQ Department of Public Prosecutions 75 Department of Public Prosecutions Ministry of Finance Ministry of of Finance 38 Office the Tax Commissioner 3812Office of the Tax Commissioner Customs 1213Customs Post Office 1311Post Office General Accountant 1110Accountant Ministry ofGeneral Finance HQ 1028Ministry of Finance HQ Insurance Department of Social 2843Department of Social Insurance Information Technology Office 43 Information Technology Office Ministry of Education Ministry of Education 17 Department of Education 1718Department Libraries of Education 1819Libraries Department of Archives 19 Department of Archives Ministry of Health & Seniors Ministry of Health & Seniors 22 Health Department 2221Health Department Ministry of Health & Seniors HQ 2191Ministry Health & Seniors HQ Health of Insurance 91 Health Insurance $ $ 2014 2014 2013 2013 Actual Actual Actual Actual $ $ $ $ 911,000 911,000 285,000 285,000 --1,196,000 1,196,000 682,508 682,508 332,551 332,551 2,850 2,850 1,206 1,206 602 602 1,019,717 1,019,717 ---- 685 68581 81 766 766 351 351 1,641 1,641 120 120 2,112 2,112 28,217,000 28,217,000 10,336,000 10,336,000 8,700,000 8,700,000 6,169,000 6,169,000 33,000 33,000 53,455,000 53,455,000 26,783,419 26,783,419 10,707,671 10,707,671 7,282,058 7,282,058 5,565,563 5,565,563 38,194 38,194 35,851 35,851 50,412,756 50,412,756 26,145,815 26,145,815 12,708,563 12,708,563 7,709,462 7,709,462 6,044,951 6,044,951 39,503 39,503 34,538 34,538 52,682,832 52,682,832 7,134,000 7,134,000 --7,134,000 7,134,000 5,135,906 5,135,906 968 968 728 728 5,137,602 5,137,602 5,095,051 5,095,051 652 652 88,924 88,924 81,646 81,646 5,266,273 5,266,273 471,974,000 471,974,000 186,427,000 186,427,000 4,716,000 4,716,000 2,500,000 2,500,000 2,500,000 2,500,000 -668,117,000 668,117,000 481,393,449 481,393,449 186,336,894 186,336,894 4,485,974 4,485,974 4,640,073 4,640,073 2,134,685 2,134,685 1,968 1,968 678,993,043 678,993,043 471,612,650 471,612,650 180,776,615 180,776,615 5,239,207 5,239,207 1,300,475 1,300,475 2,308,701 2,308,701 2,225 2,225 563 563 661,240,436 661,240,436 230,000 230,000 17,000 17,000 4,000 4,000 251,000 251,000 188,117 188,117 22,605 22,605 1,495 1,495 212,217 212,217 193,718 193,718 20,250 20,250 1,520 1,520 215,488 215,488 2,941,000 2,941,000 20,000 20,000 2,961,000 2,961,000 3,216,808 3,216,808 23,247 23,247 3,600 3,600 3,243,655 3,243,655 3,144,716 3,144,716 3,537 3,537 7,914 7,914 3,156,167 3,156,167 (61,657) (61,657) 360,383 360,383 1,823 1,823 7,357 7,357 1,521 1,521 309,427 309,427 47 47 47 GovernmentofofBermuda Bermuda––Consolidated ConsolidatedFund Fund Government Schedule9:9:Revenue RevenueBy ByMinistry/Department Ministry/Department Schedule Forthe theyear yearended endedMarch March31 31 For 2014 2014 Original Original Estimates Estimates Ministry of Environment & Planning Ministry of Environment & Planning 32 Department of Planning 32 Department of Planning 72 Environmental Protection 72 Environmental Protection 69 Conservation Services 69 Conservation Services 68 Parks 68 Parks 50 Ministry of Environment & Planning HQ 50 Ministry of Environment & Planning HQ 97 Land, Surveys & Registration 97 Land, Surveys & Registration 49 Land Valuation 49 Land Valuation Ministry of Community & Cultural Development Ministry of Community & Cultural Development 20 Youth, Sport & Recreation 20 Youth, Sport & Recreation 52 Community and Cultural Affairs 52 Community and Cultural Affairs 23 Child & Family Services 23 Child & Family Services 42 Rent Commissioner 42 Rent Commissioner 56 Human Affairs 56 Human Affairs Ministry of Public Safety Ministry of Public Safety 45 Fire Services 45 Fire Services 07 Police 07 Police 88 National Drug Control 88 National Drug Control 06 Defence 06 Defence 83 Ministry of Public Safety HQ 83 Ministry of Public Safety HQ Ministry of Home Affairs Ministry of Home Affairs 27 Department of Immigration 27 Department of Immigration 29 Registry General 29 Registry General 60 Labour & Training 60 Labour & Training 93 Ministry of Home Affairs HQ 93 Ministry of Home Affairs HQ Ministry of Public Works Ministry of Public Works 82 Works & Engineering 82 Works & Engineering 81 Public Lands & Buildings 81 Public Lands & Buildings 36 Min. of Public Works HQ 36 Min. of Public Works HQ Ministry of Economy, Trade & Industry Ministry of Economy, Trade & Industry 94 Ministry of Economy, Trade & Industry HQ 94 Ministry of Economy, Trade & Industry HQ Ministry of Economic Development Ministry of Economic Development 39 Registrar of Companies 39 Registrar of Companies 57 Civil Aviation 57 Civil Aviation 46 Telecommunications 46 Telecommunications 73 Maritime Administration 73 Maritime Administration 95 Ministry of Economic Development HQ 95 Ministry of Economic Development HQ TOTAL REVENUE TOTAL REVENUE 48 $ $ 2014 2014 2013 2013 Actual Actual Actual Actual $ $ $ $ 1,004,000 1,004,000 851,000 851,000 510,000 510,000 254,000 254,000 18,000 18,000 1,144,000 1,144,000 3,781,000 3,781,000 1,067,286 1,067,286 918,700 918,700 465,183 465,183 201,569 201,569 9,315 9,315 360 360 45 45 2,662,458 2,662,458 711,000 711,000 248,000 248,000 77,000 77,000 1,000 1,000 1,037,000 1,037,000 749,483 749,483 146,741 146,741 101,506 101,506 72 72 997,802 997,802 712,000 712,000 556,000 556,000 12,000 12,000 1,280,000 1,280,000 705,989 705,989 541,001 541,001 17,395 17,395 11,190 11,190 6,906 6,906 1,282,481 1,282,481 717,696 717,696 569,910 569,910 22,092 22,092 11,149 11,149 11,290 11,290 1,332,137 1,332,137 20,000,000 20,000,000 1,852,000 1,852,000 60,000 60,000 21,912,000 21,912,000 16,824,646 16,824,646 2,005,919 2,005,919 696 696 18,831,261 18,831,261 6,734,752 6,734,752 725,520 725,520 935 935 (964) (964) 7,460,243 7,460,243 10,135,000 10,135,000 1,700,000 1,700,000 112,000 112,000 11,947,000 11,947,000 10,692,174 10,692,174 1,833,682 1,833,682 (31,917) (31,917) 12,493,939 12,493,939 11,285,228 11,285,228 2,055,370 2,055,370 526,621 526,621 13,867,219 13,867,219 - 7,228,040 7,228,040 7,228,040 7,228,040 60,416,000 60,416,000 23,562,000 23,562,000 10,000,000 10,000,000 4,150,000 4,150,000 98,128,000 98,128,000 66,546,616 66,546,616 26,626,888 26,626,888 10,303,960 10,303,960 5,149,790 5,149,790 153 153 108,627,407 108,627,407 66,557,740 66,557,740 24,072,465 24,072,465 13,519,708 13,519,708 4,345,287 4,345,287 1,007,700 1,007,700 109,502,900 109,502,900 871,199,000 871,199,000 883,915,104 883,915,104 866,577,558 866,577,558 - - - 936,387 936,387 825,930 825,930 1,160,316 1,160,316 234,112 234,112 8,446 8,446 1,277 1,277 30 30 3,166,498 3,166,498 923,680 923,680 145,854 145,854 78,231 78,231 36 36 (15) (15) 1,147,786 1,147,786 4848 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Schedule 9(a): Interdepartmental Revenue by Ministry/Department Schedule 9(a): Interdepartmental Revenue by Ministry/Department For the year ended March 31 For the year ended March 31 Non-Ministry Departments Non-Ministry Departments 05 Office of the Auditor General 05 Office of the Auditor General 63 Parliamentary Registrar 63 Parliamentary Registrar 02 Legislature 02 Legislature 01 Governor & Staff 01 Governor & Staff 92 Internal Audit 92 Internal Audit 2014 2014 Interdepartmental Interdepartmental Revenue Revenue $ $ 2014 2014 Gross Revenue Gross Revenue Actual Actual $ $ 500 500 500 500 682,508 682,508 332,551 332,551 2,850 2,850 1,206 1,206 602 602 1,019,717 1,019,717 682,508 682,508 332,051 332,051 2,850 2,850 1,206 1,206 602 602 1,019,217 1,019,217 - 685 685 81 81 766 766 685 685 81 81 766 766 120 120 115,005 115,005 480,945 480,945 5,744 5,744 601,814 601,814 26,783,419 26,783,419 10,707,671 10,707,671 7,282,058 7,282,058 5,565,563 5,565,563 38,194 38,194 35,851 35,851 50,412,756 50,412,756 26,783,299 26,783,299 10,592,666 10,592,666 6,801,113 6,801,113 5,559,819 5,559,819 38,194 38,194 35,851 35,851 49,810,942 49,810,942 35,371 35,371 4,689 4,689 40,060 40,060 5,135,906 5,135,906 968 968 728 728 5,137,602 5,137,602 5,100,535 5,100,535 (3,721) (3,721) 728 728 5,097,542 5,097,542 18,699 18,699 1,703,354 1,703,354 13,079 13,079 32,146 32,146 1,767,278 1,767,278 481,393,449 481,393,449 186,336,894 186,336,894 4,485,974 4,485,974 4,640,073 4,640,073 2,134,685 2,134,685 1,968 1,968 678,993,043 678,993,043 481,374,750 481,374,750 184,633,540 184,633,540 4,472,895 4,472,895 4,607,927 4,607,927 2,134,685 2,134,685 1,968 1,968 677,225,765 677,225,765 23,911 23,911 23,911 23,911 188,117 188,117 22,605 22,605 1,495 1,495 212,217 212,217 164,206 164,206 22,605 22,605 1,495 1,495 188,306 188,306 205,689 205,689 205,689 205,689 3,216,808 3,216,808 23,247 23,247 3,600 3,600 3,243,655 3,243,655 3,011,119 3,011,119 23,247 23,247 3,600 3,600 3,037,966 3,037,966 Cabinet Office Departments Cabinet Office Departments 26 Department of Human Resources 26 Department of Human Resources 14 Department of Statistics 14 Department of Statistics Ministry of Tourism Development & Transport Ministry of Tourism Development & Transport 34 Transport Control Department 34 Transport Control Department 31 Airport Operations 31 Airport Operations 35 Public Transportation 35 Public Transportation 30 Marine & Ports Services 30 Marine & Ports Services 48 Ministry of Tourism Dev. & Transport HQ 48 Ministry of Tourism Dev. & Transport HQ 33 Tourism 33 Tourism Ministry of Legal Affairs Ministry of Legal Affairs 03 Judicial Department 03 Judicial Department 04 Attorney General's Chambers 04 Attorney General's Chambers 87 Ministry of Legal Affairs HQ 87 Ministry of Legal Affairs HQ Ministry of Finance Ministry of Finance 38 Office of the Tax Commissioner 38 Office of the Tax Commissioner 12 Customs 12 Customs 13 Post Office 13 Post Office 11 Accountant General 11 Accountant General 10 Ministry of Finance HQ 10 Ministry of Finance HQ 28 Department of Social Insurance 28 Department of Social Insurance Ministry of Education Ministry of Education 17 Department of Education 17 Department of Education 18 Libraries 18 Libraries 19 Department of Archives 19 Department of Archives Ministry of Health & Seniors Ministry of Health & Seniors 22 Health Department 22 Health Department 21 Ministry of Health & Seniors HQ 21 Ministry of Health & Seniors HQ 91 Health Insurance 91 Health Insurance 2014 2014 Net Net Revenue Revenue $ $ 49 49 49 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Schedule 9(a): Interdepartmental Revenue by Ministry/Department Schedule 9(a): Interdepartmental Revenue by Ministry/Department For the year ended March 31 For the year ended March 31 Ministry of Environment & Planning Ministry of Environment & Planning 32 Department of Planning 32 72Department of Planning Environmental Protection 72 69Environmental ConservationProtection Services 69 68Conservation Services Parks 68 50Parks Ministry of Environment & Planning HQ 50 Ministry of Environment & Planning HQ 97 Land, Surveys & Registration 97 49Land, Surveys & Registration Land Valuation 49 Land Valuation Ministry of Community & Cultural Development Ministry of Community & Cultural Development 20 Youth, Sport & Recreation 20 Youth, Sport & Recreation 52 Community and Cultural Affairs 52 23Community and Cultural Affairs Child & Family Services 23 42Child & Family Services Rent Commissioner 42 Rent Commissioner Ministry of Public Safety Ministry of Public Safety 45 Fire Services 45 Fire Services 07 Police 07 88Police National Drug Control 88 06National Drug Control Defence 06 83Defence Ministry of Public Safety HQ 83 Ministry of Public Safety HQ Ministry of Home Affairs Ministry of Home of Affairs 27 Department Immigration 27 29Department of Immigration Registry General 29 60Registry LabourGeneral & Training 60 Labour & Training Ministry of Public Works Ministry of Public Works 82 Works & Engineering 82 81Works & Engineering Public Lands & Buildings 81 36Public & Buildings Min.Lands of Public Works HQ 36 Min. of Public Works HQ Ministry of Economic Development Ministry of Economic Development 39 Registrar of Companies 39 57Registrar of Companies Civil Aviation 57 46Civil Aviation Telecommunications 46 73Telecommunications Maritime Administration 73 95Maritime MinistryAdministration of Economic Development HQ 95 Ministry of Economic Development HQ TOTAL REVENUE TOTAL REVENUE 50 2014 2014 2014 2014 Interdepartmental Gross Revenue Interdepartmental Gross Revenue Revenue Actual Revenue Actual $ $ $ $ 2014 2014 Net Net Revenue Revenue $ $ 15,496 15,496 4,350 4,350 225 225 - 20,071 20,071 1,067,286 1,067,286 918,700 918,700 465,183 465,183 201,569 201,569 9,315 9,315 360 360 45 45 2,662,458 2,662,458 1,051,790 1,051,790 914,350 914,350 465,183 465,183 201,344 201,344 9,315 9,315 360 360 45 45 2,642,387 2,642,387 190 190 6,224 6,224 - 6,414 6,414 749,483 749,483 146,741 146,741 101,506 101,506 72 72 997,802 997,802 749,293 749,293 140,517 140,517 101,506 101,506 72 72 991,388 991,388 25,921 25,921 - - 25,921 25,921 705,989 705,989 541,001 541,001 17,395 17,395 11,190 11,190 6,906 6,906 1,282,481 1,282,481 705,989 705,989 515,080 515,080 17,395 17,395 11,190 11,190 6,906 6,906 1,256,560 1,256,560 19,178 19,178 2,727 2,727 21,905 21,905 16,824,646 16,824,646 2,005,919 2,005,919696 696 18,831,261 18,831,261 16,805,468 16,805,468 2,003,192 2,003,192696 696 18,809,356 18,809,356 188,744 188,744 116,282 116,282 1,229 1,229 306,255 306,255 10,692,174 10,692,174 1,833,682 1,833,682 (31,917) (31,917) 12,493,939 12,493,939 10,503,430 10,503,430 1,717,400 1,717,400 (33,146) (33,146) 12,187,684 12,187,684 18,475 18,475 1,980 1,980 - 20,455 20,455 66,546,616 66,546,616 26,626,888 26,626,888 10,303,960 10,303,960 5,149,790 5,149,790153 153 108,627,407 108,627,407 66,546,616 66,546,616 26,608,413 26,608,413 10,301,980 10,301,980 5,149,790 5,149,790153 153 108,606,952 108,606,952 3,040,273 3,040,273 883,915,104 883,915,104 880,874,831 880,874,831 50 50 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Schedule 10: Expenses By Program Schedule 10: Expenses By Program For the year ended March 31 For the year ended March 31 2014 2014 2014 2014 Capital Capital Capital Capital Development Acquisition Development Acquisition Economic Development Economic Development 11 Accountant General 11 82 Accountant General Works & Engineering 82 81 Works & Engineering Public Lands & Buildings 81 33 Public Lands & Buildings Tourism 33 31 Tourism Airport Operations 31 30 Airport Operations Marine & Ports Services 30 35 Marine & Ports Services Public Transportation 35 12 Public Transportation Customs 12 36 Customs Ministry of Public Works HQ 36 13 Ministry Public Works HQ PostofOffice 13 43 PostInformation Office Technology Office 43 57 Information Technology Office Civil Aviation 57 95 CivilMinistry Aviationof Economic Development HQ 95 93 Ministry of Economic Ministry of Home Development Affairs HQ HQ 93 34 Ministry of Home Affairs HQ Transport Control Department 34 10 Transport Control Department Ministry of Finance HQ 10 39 Ministry of Finance HQ Registrar of Companies 39 38 Registrar OfficeofofCompanies the Tax Commissioner 38 05 Office of theofTax Office the Commissioner Auditor General 05 32 Office of the Auditor General Department of Planning 32 73 Department Planning MaritimeofAdministration 73 29 Maritime Administration Registry General 29 97 Registry General Land, Surveys & Registration 97 48 Land,Ministry Surveys Registration of &Tourism Dev. & Transport HQ 48 84 Ministry of Tourism Dev. & Transport HQ E-Government 84 49 E-Government Land Valuation 49 89 LandEnergy Valuation 89 46 Energy Telecommunications 46 67 Telecommunications E-Commerce 67 80 E-Commerce Project Management & Procurement 80 96 Project Management & Procurement Sustainable Development 96 90 Sustainable Energy, Development Telecommunications and E-Commerce HQ 90 94 Energy, Telecommunications and&E-Commerce Ministry of Economy, Trade Industry HQ HQ 94 Ministry of Economy, Trade & Industry HQ Health Health 24 Hospitals 24 22 Hospitals Health Department 22 21 Health Department Ministry of Health & Seniors HQ 21 91 Ministry of Health & Seniors HQ Health Insurance 91 28 Health Insurance of Social Insurance Department 28 Department of Social Insurance National Security National 07 Security Police 07 25 Police Corrections 25 45 Corrections Fire Services 45 03 Fire Judicial ServicesDepartment 03 87 Judicial Department Ministry of Legal Affairs HQ 87 06 Ministry of Legal Affairs HQ Defence 06 27 Defence Department of Immigration 27 04 Department Immigration AttorneyofGeneral's Chambers 04 74 Attorney CourtGeneral's ServicesChambers 74 75 CourtDepartment Services of Public Prosecutions 75 83 Department Ministry of of Public Public Prosecutions Safety HQ 83 Ministry of Public Safety HQ Education Education 17 Department of Education 17 41 Department Education BermudaofCollege 41 60 Bermuda College Labour & Training 60 16 Labour & Training Ministry of Education HQ 16 Ministry of Education HQ $ $ $ $ 2014 2014 Current Current Expenses Expenses $ $ 2014 2014 Total Total Actual Actual $ $ 2013 2013 Total Total Actual Actual $ $ 168,585 80,661,680 80,830,265 86,716,460 168,585 - 80,661,680 3,258,964 51,630,779 80,830,265 54,889,743 86,716,460 53,874,287 3,258,964 - - 51,630,779 1,970,613 40,379,859 54,889,743 42,350,472 53,874,287 44,406,895 1,970,613 40,379,859 3,049 31,387,946 42,350,472 31,390,995 44,406,895 30,457,306 3,049 251,740 65,796 31,387,946 25,288,089 31,390,995 25,605,625 30,457,306 30,181,650 251,740 65,796 197,143 25,288,089 24,426,856 25,605,625 24,623,999 30,181,650 24,301,140 - - 197,143 598,956 24,426,856 23,714,179 24,623,999 24,313,135 24,301,140 25,658,459 - 992 598,956 149,454 23,714,179 20,772,202 24,313,135 20,922,648 25,658,459 7,783,169 992 149,454 138,383 111,680 20,772,202 15,624,303 20,922,648 15,874,366 7,783,169 11,968,157 138,383 - 111,680 17,465 15,624,303 12,823,180 15,874,366 12,840,645 11,968,157 13,690,309 - 17,465 1,059,911 12,823,180 8,232,394 12,840,645 9,292,305 13,690,309 10,748,311 - - 1,059,911 8,232,394 21,236 7,851,018 9,292,305 7,872,254 10,748,311 9,282,847 - 21,236 724 7,851,018 7,047,555 7,872,254 7,048,279 9,282,847 4,730,505 724 7,047,555 360,000 6,306,730 7,048,279 6,666,730 4,730,505 614,344 360,000 - 6,306,730 614,344 6,444,787 6,666,730 6,444,787 6,157,968 - -30,000 6,444,787 4,956,317 6,444,787 4,986,317 6,157,968 5,093,165 - 30,0002,033 4,956,317 4,218,546 4,986,317 4,220,579 5,093,165 4,784,929 - 2,033 4,218,546 104,684 3,844,942 4,220,579 3,949,626 4,784,929 11,721,468 - - 104,6844,280 3,844,942 3,895,980 3,949,626 3,900,260 11,721,468 3,867,232 - 4,280 3,895,980 3,336,703 3,900,260 3,336,703 3,867,232 3,561,602 - - 450 3,336,703 2,304,199 3,336,703 2,304,649 3,561,602 1,786,044 - 450 2,304,199 1,686,449 2,304,649 1,686,449 1,786,044 1,276,615 - 1,686,449 (20,739) 1,281,501 1,686,449 1,260,762 1,276,615 1,478,540 (20,739) 1,281,501 56,062 958,194 1,260,762 1,014,256 1,478,540 740,967 56,062 -40,216 958,194 740,967 964,783 1,014,256 1,004,999 1,049,697 - 40,2163,725 964,783 979,491 1,004,999 983,216 1,049,697 1,043,644 - 3,725 979,491 983,216 730,402 730,402 1,043,644 565,303 - - 730,402 730,402 565,303 650,495 650,495 3,587,031 - - 650,495 650,495 583,418 583,418 3,587,031 626,342 - 583,418 583,418 626,342 (129,595) 649,303 519,708 1,332,688 (129,595) - 649,303 519,708 479,990 479,990 1,332,688 495,061 - - 479,990 479,990 495,0611,802 - - - - 1,802 4,152,884 4,152,884 5,907,159 2,558,648 394,112,270 402,578,077 407,736,821 5,907,159 2,558,648 394,112,270 402,578,077 407,736,821 620,000 620,000 18,713 18,713 - - 638,713 638,713 152,825,516 153,445,516 149,672,674 152,825,516 67,976 27,369,614 153,445,516 27,456,303 149,672,674 30,788,431 67,976 - 27,369,614 13,348,181 27,456,303 13,348,181 30,788,431 11,569,056 - - 13,348,181 10,381,093 13,348,181 10,381,093 11,569,056 12,041,310 - - 10,381,093 7,144,051 10,381,093 7,144,051 12,041,310 6,109,235 7,144,051 67,976 211,068,455 7,144,051 211,775,144 6,109,235 210,180,706 67,976 211,068,455 211,775,144 210,180,706 741,200 741,200 56,350 56,350 (1,371) (1,371) - 73,035 73,035 - - - - 869,214 869,214 41,433 67,583,568 68,366,201 71,003,336 41,433 49,890 67,583,568 25,454,803 68,366,201 25,561,043 71,003,336 29,104,163 49,890 (54,974) 25,454,803 14,468,585 25,561,043 14,412,240 29,104,163 15,543,662 (54,974) 14,468,585 8,281,649 14,412,240 8,281,649 15,543,662 8,227,643 8,281,649 8,074,203 8,281,649 8,074,203 8,227,643 6,652,601 8,074,203 6,888 7,797,102 8,074,203 7,877,025 6,652,601 6,726,300 6,888 7,797,102 3,243 4,449,807 7,877,025 4,453,050 6,726,300 17,447,495 3,243 4,449,807 3,768,457 4,453,050 3,768,457 17,447,495 3,544,026 - 3,768,457 3,561,613 3,768,457 3,561,613 3,544,026 3,454,719 -18,081 3,561,613 2,794,518 3,561,613 2,812,599 3,454,719 2,614,952 18,081 2,794,518 1,097,798 2,812,599 1,097,798 2,614,952 1,415,579 1,097,798 64,561 147,332,103 1,097,798 148,265,878 1,415,579 165,734,476 64,561 147,332,103 148,265,878 165,734,476 894,721 1,265,922 113,750,780 115,911,423 117,699,414 894,721 - 1,265,922 - 113,750,780 18,119,000 115,911,423 18,119,000 117,699,414 18,119,000 - - 890 18,119,000 5,358,069 18,119,000 5,358,959 18,119,000 5,356,824 - 890 5,358,069 2,294,396 5,358,959 2,294,396 5,356,824 3,068,666 2,294,396 894,721 1,266,812 139,522,245 2,294,396 141,683,778 3,068,666 144,243,904 894,721 1,266,812 139,522,245 141,683,778 144,243,904 51 51 51 Governmentof ofBermuda Bermuda––Consolidated ConsolidatedFund Fund Government Schedule10: 10: Expenses ExpensesBy ByProgram Program Schedule Forthe theyear yearended endedMarch March31 31 For 2014 2014 2014 2014 Capital Capital Capital Capital Development Acquisition Acquisition Development Interest Debt Interest onon Debt 58 Interest Debt 58 Interest onon Debt Social Services Assistance Social Services && Assistance Financial Assistance 5555 Financial Assistance Child & Family Services 2323 Child & Family Services 53 Bermuda Housing Corporation 53 Bermuda Housing Corporation National Drug Control 8888 National Drug Control Community & Cultural Affairs 5252 Community & Cultural Affairs 71 Ministry of Community & Cultural Dev. 71 Ministry of Community & Cultural Dev. HQHQ 42 Rent Commissioner 42 Rent Commissioner Other General Government Services Other General Government Services Youth, Sport & Recreation 2020 Youth, Sport & Recreation Parks 6868 Parks 09 Cabinet Office 09 Cabinet Office Legislature 0202 Legislature Conservation Services 6969 Conservation Services 26 Department of Human Resources 26 Department of Human Resources 72 Environmental Protection 72 Environmental Protection Department Statistics 1414 Department of of Statistics Department Communication & Information 5151 Department of of Communication & Information 18 Libraries 18 Libraries Human Affairs 5656 Human Affairs 01 Governor & Staff 01 Governor & Staff Internal Audit 9292 Internal Audit Department Archives 1919 Department of of Archives 63 Parliamentary Registrar 63 Parliamentary Registrar Ombudsman's Office 8585 Ombudsman's Office Ministry Environment & Planning 5050 Ministry of of Environment & Planning HQHQ Pensions and Other Employee Future Benefits Pensions and Other Employee Future Benefits Gain on Benefits Plans Amendments Gain on Benefits Plans Amendments Pensions Retirement Benefits Expense Pensions andand Retirement Benefits Expense TOTAL EXPENSES TOTAL EXPENSES 52 $$ $$ 2014 2014 Current Current Expenses Expenses 2014 2014 Total Total Actual Actual 2013 2013 Total Total Actual Actual $$ $$ $$ - - - - - - 109,244,778 109,244,778 109,244,778 109,244,778 109,244,778 109,244,778 109,244,778 109,244,778 81,577,570 81,577,570 81,577,570 81,577,570 - 4,271 4,271 480480 - 166,431 166,431 - 2,881 2,881 - 174,063 174,063 48,454,709 48,454,709 15,676,567 15,676,567 8,000,000 8,000,000 4,869,590 4,869,590 3,143,440 3,143,440 2,230,824 2,230,824 529,051 529,051 82,904,181 82,904,181 48,458,980 48,458,980 15,677,047 15,677,047 8,000,000 8,000,000 5,036,021 5,036,021 3,143,440 3,143,440 2,233,705 2,233,705 529,051 529,051 83,078,244 83,078,244 43,158,612 43,158,612 17,715,160 17,715,160 6,500,000 6,500,000 4,345,982 4,345,982 3,557,799 3,557,799 2,285,091 2,285,091 524,077 524,077 78,086,721 78,086,721 2,048,232 2,048,232 365,186 365,186 - 13,535 13,535 262,512 262,512 - 36,881 36,881 - - - - - - - - - 8,775 8,775 2,735,121 2,735,121 - (2,161) (2,161) 864864 - 2,178 2,178 213,951 213,951 (4,741) (4,741) 21,882 21,882 (7,637) (7,637) 11,037 11,037 - - - 22,149 22,149 - 665 665 590590 258,777 258,777 11,217,114 11,217,114 10,794,737 10,794,737 6,807,429 6,807,429 5,134,536 5,134,536 4,715,613 4,715,613 3,815,644 3,815,644 3,711,032 3,711,032 2,694,798 2,694,798 2,455,406 2,455,406 2,236,267 2,236,267 2,142,951 2,142,951 1,455,585 1,455,585 1,356,755 1,356,755 1,169,462 1,169,462 837,166 837,166 785,268 785,268 542,546 542,546 61,872,309 61,872,309 13,265,346 13,265,346 11,157,762 11,157,762 6,808,293 6,808,293 5,148,071 5,148,071 4,980,303 4,980,303 4,029,595 4,029,595 3,743,172 3,743,172 2,716,680 2,716,680 2,447,769 2,447,769 2,247,304 2,247,304 2,142,951 2,142,951 1,455,585 1,455,585 1,356,755 1,356,755 1,191,611 1,191,611 837,166 837,166 785,933 785,933 551,911 551,911 64,866,207 64,866,207 18,702,182 18,702,182 11,511,073 11,511,073 7,156,931 7,156,931 5,224,993 5,224,993 5,722,450 5,722,450 4,054,040 4,054,040 3,425,146 3,425,146 2,665,962 2,665,962 2,376,878 2,376,878 2,333,124 2,333,124 2,145,512 2,145,512 1,606,581 1,606,581 1,479,042 1,479,042 1,304,638 1,304,638 1,522,207 1,522,207 755,967 755,967 710,183 710,183 72,696,909 72,696,909 - - - - - - - - (214,091,800) (214,091,800) (214,091,800) (214,091,800) 120,532,461 120,532,461 120,532,461 120,532,461 (93,559,339) (93,559,339) (93,559,339) (93,559,339) 114,311,376 114,311,376 114,311,376 114,311,376 - 11,044,928 11,044,928 - - 4,390,837 1,052,497,002 1,052,497,002 1,067,932,767 1,067,932,767 1,274,568,483 1,274,568,483 4,390,837 52 52 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Schedule 10(a): Current Expenses By Type Schedule 10(a): Current Expenses By Type For the year ended March 31 For the year ended March 31 Employees Employees Salaries Salaries Wages Wages Employer Overhead Employer Overhead Other Personnel Costs Other Personnel Costs Training Training Compensated Absences Compensated Absences Gain on Benefits Plans Amendments (Note 9(g)) Gain on Benefits Plans Amendments (Note 9(g)) Pensions and Retirement Benefits Expense Pensions and Retirement Benefits Expense Operations Operations Grants & Contributions Grants & Contributions Interest on Debt Interest on Debt Professional Services Professional Services Amortization (Note 4(b)(v)) Amortization (Note 4(b)(v)) Energy Energy Materials & Supplies Materials & Supplies Advertising & Promotion Advertising & Promotion Repairs & Maintenance Repairs & Maintenance Rentals Rentals Other (Note 10(c)) Other (Note 10(c)) Insurance Insurance Communications Communications Transport Transport Bad Debts Bad Debts Travel Travel Clothing & Uniforms Clothing & Uniforms Bank Charges & Commissions Bank Charges & Commissions Equipment Equipment Transfer to Other Funds (Note 4(b)(iii)) Transfer to Other Funds (Note 4(b)(iii)) TOTAL CURRENT EXPENSES TOTAL CURRENT EXPENSES 2014 2014 Original Original Estimates Estimates $ $ 2014 2014 2013 2013 Actual Actual $ $ Actual Actual $ $ 333,500,000 333,500,000 70,714,000 70,714,000 73,879,000 73,879,000 6,734,000 6,734,000 6,737,000 6,737,000 491,564,000 491,564,000 309,981,244 309,981,244 83,381,635 83,381,635 31,369,492 31,369,492 5,644,886 5,644,886 2,491,282 2,491,282 743,102 743,102 (214,091,800) (214,091,800) 161,184,785 161,184,785 380,704,626 380,704,626 321,173,034 321,173,034 84,133,053 84,133,053 32,594,636 32,594,636 5,563,527 5,563,527 2,306,757 2,306,757 1,118,758 1,118,758 154,058,961 154,058,961 600,948,726 600,948,726 266,030,000 266,030,000 97,650,000 97,650,000 89,466,000 89,466,000 20,652,000 20,652,000 25,786,000 25,786,000 13,247,000 13,247,000 19,921,000 19,921,000 17,244,000 17,244,000 4,028,000 4,028,000 11,710,000 11,710,000 10,297,000 10,297,000 5,205,000 5,205,000 4,683,000 4,683,000 2,190,000 2,190,000 855,000 855,000 37,655,000 37,655,000 626,619,000 626,619,000 286,962,034 286,962,034 109,704,201 109,704,201 81,469,122 81,469,122 54,677,285 54,677,285 20,119,926 20,119,926 19,797,144 19,797,144 16,967,815 16,967,815 16,908,319 16,908,319 16,695,815 16,695,815 12,391,793 12,391,793 11,984,402 11,984,402 8,404,455 8,404,455 4,534,011 4,534,011 4,122,070 4,122,070 3,311,420 3,311,420 1,858,041 1,858,041 1,362,238 1,362,238 522,285 522,285 671,792,376 671,792,376 277,384,973 277,384,973 84,292,653 84,292,653 95,944,148 95,944,148 47,044,473 47,044,473 20,573,009 20,573,009 23,158,414 23,158,414 18,135,591 18,135,591 17,613,858 17,613,858 16,794,324 16,794,324 3,603,120 3,603,120 12,498,541 12,498,541 9,181,459 9,181,459 3,977,255 3,977,255 15,698,647 15,698,647 3,418,547 3,418,547 1,576,116 1,576,116 977,640 977,640 890,795 890,795 652,763,563 652,763,563 1,118,183,000 1,118,183,000 1,052,497,002 1,052,497,002 1,253,712,289 1,253,712,289 53 53 53 GovernmentofofBermuda Bermuda––Consolidated ConsolidatedFund Fund Government Schedule10(b): 10(b):Current CurrentExpenses ExpensesBy ByMinistry/Department Ministry/Department Schedule Forthe theyear yearended endedMarch March31 31 For Non-Ministry Departments Non-Ministry Departments 02 Legislature 02 Legislature 05 Office of the Auditor General 05 Office of the Auditor General 01 Governor & Staff 01 Governor & Staff 92 Internal Audit 92 Internal Audit 63 Parliamentary Registrar 63 Parliamentary Registrar 85 Ombudsman's Office 85 Ombudsman's Office Cabinet Office Departments Cabinet Office Departments 09 Cabinet Office 09 Cabinet Office 26 Department of Human Resources 26 Department of Human Resources 14 Department of Statistics 14 Department of Statistics 51 Department of Communication & Information 51 Department of Communication & Information Ministry of Tourism Development & Transport Ministry of Tourism Development & Transport 33 Tourism 33 Tourism 31 Airport Operations 31 Airport Operations 30 Marine & Ports Services 30 Marine & Ports Services 35 Public Transportation 35 Public Transportation 34 Transport Control Department 34 Transport Control Department 48 Ministry of Tourism Dev. & Transport HQ 48 Ministry of Tourism Dev. & Transport HQ Ministry of Legal Affairs Ministry of Legal Affairs 03 Judicial Department 03 Judicial Department 87 Ministry of Legal Affairs HQ 87 Ministry of Legal Affairs HQ 04 Attorney General's Chambers 04 Attorney General's Chambers 74 Court Services 74 Court Services 75 Department of Public Prosecutions 75 Department of Public Prosecutions Ministry of Finance Ministry of Finance 58 Interest on Debt 58 Interest on Debt 11 Accountant General 11 Accountant General 12 Customs 12 Customs 13 Post Office 13 Post Office 43 Information Technology Office 43 Information Technology Office 28 Department of Social Insurance 28 Department of Social Insurance 10 Ministry of Finance HQ 10 Ministry of Finance HQ 38 Office of the Tax Commissioner 38 Office of the Tax Commissioner 80 Project Management & Procurement 80 Project Management & Procurement 59 Sinking Fund Contribution 59 Sinking Fund Contribution Gain on Benefits Plans Amendments Gain on Benefits Plans Amendments Pensions and Retirement Benefits Expense Pensions and Retirement Benefits Expense Ministry of Education Ministry of Education 17 Department of Education 17 Department of Education 41 Bermuda College 41 Bermuda College 16 Ministry of Education HQ 16 Ministry of Education HQ 18 Libraries 18 Libraries 19 Department of Archives 19 Department of Archives Ministry of Health & Seniors Ministry of Health & Seniors 24 Hospitals 24 Hospitals 22 Health Department 22 Health Department 21 Ministry of Health & Seniors HQ 21 Ministry of Health & Seniors HQ 91 Health Insurance 91 Health Insurance 54 2014 2014 Original Original Estimates Estimates $ $ 2014 2014 2013 2013 Actual Actual $ $ Actual Actual $ $ 6,079,000 6,079,000 3,846,000 3,846,000 1,638,000 1,638,000 1,773,000 1,773,000 1,600,000 1,600,000 822,000 822,000 15,758,000 15,758,000 5,134,536 5,134,536 3,895,980 3,895,980 1,455,585 1,455,585 1,356,755 1,356,755 837,166 837,166 785,268 785,268 13,465,290 13,465,290 5,190,783 5,190,783 3,855,599 3,855,599 1,605,112 1,605,112 1,479,042 1,479,042 1,531,282 1,531,282 751,882 751,882 14,413,700 14,413,700 7,091,000 7,091,000 4,247,000 4,247,000 2,975,000 2,975,000 2,561,000 2,561,000 16,874,000 16,874,000 6,807,429 6,807,429 3,815,644 3,815,644 2,694,798 2,694,798 2,455,406 2,455,406 15,773,277 15,773,277 7,153,332 7,153,332 3,860,900 3,860,900 2,656,086 2,656,086 2,400,875 2,400,875 16,071,193 16,071,193 27,273,000 27,273,000 19,777,000 19,777,000 18,536,000 18,536,000 20,945,000 20,945,000 6,332,000 6,332,000 882,000 882,000 93,745,000 93,745,000 31,387,946 31,387,946 25,288,089 25,288,089 24,426,856 24,426,856 23,714,179 23,714,179 6,444,787 6,444,787 958,194 958,194 112,220,051 112,220,051 30,457,365 30,457,365 29,819,172 29,819,172 24,126,943 24,126,943 25,656,719 25,656,719 6,157,968 6,157,968 670,212 670,212 116,888,379 116,888,379 8,360,000 8,360,000 7,360,000 7,360,000 4,286,000 4,286,000 4,378,000 4,378,000 2,993,000 2,993,000 27,377,000 27,377,000 8,281,649 8,281,649 8,074,203 8,074,203 3,768,457 3,768,457 3,561,613 3,561,613 2,794,518 2,794,518 26,480,440 26,480,440 8,139,938 8,139,938 6,652,601 6,652,601 3,544,026 3,544,026 3,440,679 3,440,679 2,614,952 2,614,952 24,392,196 24,392,196 96,675,000 96,675,000 84,636,000 84,636,000 20,000,000 20,000,000 13,621,000 13,621,000 7,329,000 7,329,000 6,583,000 6,583,000 5,042,000 5,042,000 3,448,000 3,448,000 977,000 977,000 37,625,000 37,625,000 275,936,000 275,936,000 109,244,778 109,244,778 80,661,680 80,661,680 20,772,202 20,772,202 12,823,180 12,823,180 8,232,394 8,232,394 7,144,051 7,144,051 4,956,317 4,956,317 3,844,942 3,844,942 649,303 649,303 (214,091,800) (214,091,800) 120,532,461 120,532,461 154,769,508 154,769,508 81,577,570 81,577,570 86,607,339 86,607,339 7,641,326 7,641,326 13,672,969 13,672,969 9,285,585 9,285,585 6,109,235 6,109,235 5,075,665 5,075,665 11,656,136 11,656,136 1,294,595 1,294,595 114,311,376 114,311,376 337,231,796 337,231,796 121,000,000 121,000,000 18,119,000 18,119,000 2,452,000 2,452,000 2,273,000 2,273,000 1,547,000 1,547,000 145,391,000 145,391,000 113,750,780 113,750,780 18,119,000 18,119,000 2,294,396 2,294,396 2,236,267 2,236,267 1,169,462 1,169,462 137,569,905 137,569,905 117,088,177 117,088,177 18,119,000 18,119,000 3,068,666 3,068,666 2,326,086 2,326,086 1,303,738 1,303,738 141,905,667 141,905,667 141,344,000 141,344,000 27,453,000 27,453,000 15,147,000 15,147,000 11,300,000 11,300,000 195,244,000 195,244,000 152,825,516 152,825,516 27,369,614 27,369,614 13,348,181 13,348,181 10,381,093 10,381,093 203,924,404 203,924,404 149,552,674 149,552,674 30,512,840 30,512,840 11,569,056 11,569,056 12,041,310 12,041,310 203,675,880 203,675,880 54 54 GovernmentofofBermuda Bermuda––Consolidated ConsolidatedFund Fund Government Schedule10(b): 10(b):Current CurrentExpenses ExpensesBy ByMinistry/Department Ministry/Department Schedule Forthe theyear yearended endedMarch March31 31 For 2014 2014 Original Original Estimates Estimates $$ 2014 2014 2013 2013 Actual Actual $$ Actual Actual $$ Ministry Environment Planning Ministry ofof Environment && Planning Parks 6868Parks Conservation Services 6969Conservation Services 72 Environmental Protection 72 Environmental Protection Department Planning 3232Department of of Planning 97 Land, Surveys & Registration 97 Land, Surveys & Registration Land Valuation 4949Land Valuation Ministry Environment & Planning 5050Ministry of of Environment & Planning HQHQ 96 Sustainable Development 96 Sustainable Development 10,537,000 10,537,000 4,851,000 4,851,000 4,074,000 4,074,000 3,782,000 3,782,000 1,753,000 1,753,000 832,000 832,000 1,118,000 1,118,000 500,000 500,000 10,794,737 10,794,737 4,715,613 4,715,613 3,711,032 3,711,032 3,336,703 3,336,703 1,281,501 1,281,501 979,491 979,491 542,546 542,546 479,990 479,990 11,269,737 11,269,737 5,488,471 5,488,471 3,417,643 3,417,643 3,561,602 3,561,602 1,397,605 1,397,605 1,041,750 1,041,750 699,223 699,223 495,061 495,061 Ministry Community Cultural Development Ministry ofof Community && Cultural Development Financial Assistance 5555Financial Assistance Child & Family Services 2323Child & Family Services Youth, Sport & Recreation 2020Youth, Sport & Recreation Bermuda Housing Corporation 5353Bermuda Housing Corporation Community & Cultural Affairs 5252Community & Cultural Affairs Ministry Community & Cultural Dev. 7171Ministry of of Community & Cultural Dev. HQHQ Human Affairs 5656Human Affairs Rent Commissioner 4242Rent Commissioner 39,476,000 39,476,000 18,148,000 18,148,000 11,662,000 11,662,000 8,199,000 8,199,000 3,729,000 3,729,000 2,356,000 2,356,000 2,269,000 2,269,000 569,000 569,000 48,454,709 48,454,709 15,676,567 15,676,567 11,217,114 11,217,114 8,000,000 8,000,000 3,143,440 3,143,440 2,230,824 2,230,824 2,142,951 2,142,951 529,051 529,051 43,144,312 43,144,312 17,681,662 17,681,662 11,554,182 11,554,182 6,500,000 6,500,000 3,557,799 3,557,799 2,283,012 2,283,012 2,145,512 2,145,512 524,077 524,077 71,000,000 71,000,000 27,469,000 27,469,000 13,809,000 13,809,000 6,959,000 6,959,000 4,120,000 4,120,000 1,324,000 1,324,000 124,681,000 124,681,000 67,583,568 67,583,568 25,454,803 25,454,803 14,468,585 14,468,585 7,797,102 7,797,102 4,869,590 4,869,590 1,097,798 1,097,798 121,271,446 121,271,446 69,682,641 69,682,641 28,799,443 28,799,443 15,458,645 15,458,645 6,486,558 6,486,558 4,247,236 4,247,236 1,415,579 1,415,579 126,090,102 126,090,102 7,172,000 7,172,000 5,741,000 5,741,000 4,894,000 4,894,000 2,205,000 2,205,000 1,059,000 1,059,000 21,071,000 21,071,000 6,306,730 6,306,730 5,358,069 5,358,069 4,449,807 4,449,807 1,686,449 1,686,449 964,783 964,783 18,765,838 18,765,838 614,344 614,344 5,356,322 5,356,322 17,398,528 17,398,528 1,276,615 1,276,615 1,005,970 1,005,970 25,651,779 25,651,779 32,286,000 32,286,000 22,869,000 22,869,000 6,246,000 6,246,000 51,630,779 51,630,779 40,379,859 40,379,859 15,624,303 15,624,303 52,006,475 52,006,475 39,959,436 39,959,436 11,380,461 11,380,461 Ministry Public Safety Ministry ofof Public Safety Police 0707Police Corrections 2525Corrections 45 Fire Services 45 Fire Services Defence 0606Defence National Drug Control 8888National Drug Control Ministry Public Safety 8383Ministry of of Public Safety HQHQ Ministry Home Affairs Ministry ofof Home Affairs Ministry Home Affairs 9393Ministry of of Home Affairs HQHQ 60 Labour & Training 60 Labour & Training Department Immigration 2727Department of of Immigration Registry General 2929Registry General E-Government 8484E-Government Ministry Public Works Ministry ofof Public Works Works & Engineering 8282Works & Engineering Public Lands & Buildings 8181Public Lands & Buildings Ministry Public Works 3636Ministry of of Public Works HQHQ 27,447,000 27,447,000 86,408,000 86,408,000 61,401,000 61,401,000 Ministry Economy, Trade and Industry Ministry ofof Economy, Trade and Industry Ministry Economy, Trade and Industry 9494Ministry of of Economy, Trade and Industry HQHQ 90 Energy, Telecommunications and E-Commerce 90 Energy, Telecommunications and E-Commerce HQHQ Ministry Economic Development Ministry ofof Economic Development Civil Aviation 5757Civil Aviation Ministry Economic Development 9595Ministry of of Economic Development HQHQ 39 Registrar of Companies 39 Registrar of Companies Maritime Administration 7373Maritime Administration 89 Energy 89 Energy Telecommunications 4646Telecommunications E-Commerce 6767E-Commerce TOTAL CURRENT EXPENSES TOTAL CURRENT EXPENSES - - - - 25,841,613 25,841,613 91,394,656 91,394,656 107,634,941 107,634,941 - - - - 27,371,092 27,371,092 87,390,556 87,390,556 103,346,372 103,346,372 4,152,884 4,152,884 1,802 1,802 4,154,686 4,154,686 10,500,000 10,500,000 8,050,000 8,050,000 3,329,000 3,329,000 1,904,000 1,904,000 730,000 730,000 1,257,000 1,257,000 1,080,000 1,080,000 26,850,000 26,850,000 7,851,018 7,851,018 7,047,555 7,047,555 4,218,546 4,218,546 2,304,199 2,304,199 730,402 730,402 650,495 650,495 583,418 583,418 23,385,633 23,385,633 9,150,933 9,150,933 4,720,390 4,720,390 4,762,357 4,762,357 1,783,291 1,783,291 565,303 565,303 3,520,275 3,520,275 626,342 626,342 25,128,891 25,128,891 1,118,183,000 1,118,183,000 1,052,497,002 1,052,497,002 1,253,712,289 1,253,712,289 55 55 55 GovernmentofofBermuda Bermuda– –Consolidated ConsolidatedFund Fund Government Schedule10(c): 10(c):Interdepartmental InterdepartmentalCurrent CurrentExpenses ExpensesBy ByMinistry/Department Ministry/Department Schedule Forthe theyear yearended endedMarch March31 31 For 2014 2014 Interdepartmental Interdepartmental Expense Expense Non-Ministry Departments Non-Ministry Departments 02 Legislature 02 Legislature Office Auditor General 0505Office of of thethe Auditor General 01 Governor & Staff 01 Governor & Staff Internal Audit 9292Internal Audit Parliamentary Registrar 6363Parliamentary Registrar 85 Ombudsman's Office 85 Ombudsman's Office Cabinet Office Departments Cabinet Office Departments 09 Cabinet Office 09 Cabinet Office Department Human Resources 2626Department of of Human Resources 14 Department of Statistics 14 Department of Statistics Department Communication & Information 5151Department of of Communication & Information Ministry Tourism Development & Transport Ministry of of Tourism Development & Transport 33 Tourism 33 Tourism Airport Operations 3131Airport Operations Marine & Ports Services 3030Marine & Ports Services 35 Public Transportation 35 Public Transportation Transport Control Department 3434Transport Control Department 48 Ministry of Tourism Dev. & Transport 48 Ministry of Tourism Dev. & Transport HQHQ Ministry Legal Affairs Ministry of of Legal Affairs 03 Judicial Department 03 Judicial Department Ministry Legal Affairs 8787Ministry of of Legal Affairs HQHQ 04 Attorney General's Chambers 04 Attorney General's Chambers Court Services 7474Court Services Department Public Prosecutions 7575Department of of Public Prosecutions Ministry Finance Ministry of of Finance Interest Debt 5858Interest onon Debt 11 Accountant General 11 Accountant General 12 Customs 12 Customs Post Office 1313Post Office Information Technology Office 4343Information Technology Office 28 Department of Social Insurance 28 Department of Social Insurance Ministry Finance 1010Ministry of of Finance HQHQ Office Tax Commissioner 3838Office of of thethe Tax Commissioner Project Management & Procurement 8080Project Management & Procurement Gain on Benefits Plans Amendments Gain on Benefits Plans Amendments Pensions and Retirement Benefits Expense Pensions and Retirement Benefits Expense Ministry Education Ministry of of Education 17 Department Education 17 Department of of Education 41 Bermuda College 41 Bermuda College Ministry Education 1616Ministry of of Education HQHQ Libraries 1818Libraries Department Archives 1919Department of of Archives Ministry Health & Seniors Ministry of of Health & Seniors 24 Hospitals 24 Hospitals Health Department 2222Health Department 21 Ministry Health & Seniors 21 Ministry of of Health & Seniors HQHQ Health Insurance 9191Health Insurance 56 $ $ 2014 2014 Actual Gross Actual Gross Expense Expense $ $ 2014 2014 NetNet Expense Expense $ $ 8,125 8,125 3,191 3,191 1,618 1,618 8585 1,266 1,266 - 14,285 14,285 5,134,536 5,134,536 3,895,980 3,895,980 1,455,585 1,455,585 1,356,755 1,356,755 837,166 837,166 785,268 785,268 13,465,290 13,465,290 5,126,411 5,126,411 3,892,789 3,892,789 1,453,967 1,453,967 1,356,670 1,356,670 835,900 835,900 785,268 785,268 13,451,005 13,451,005 4,694 4,694 - 776 776 7,135 7,135 12,605 12,605 6,807,429 6,807,429 3,815,644 3,815,644 2,694,798 2,694,798 2,455,406 2,455,406 15,773,277 15,773,277 6,802,735 6,802,735 3,815,644 3,815,644 2,694,022 2,694,022 2,448,271 2,448,271 15,760,672 15,760,672 37,206 37,206 2,126 2,126 224,284 224,284 786,868 786,868 15,809 15,809 4,701 4,701 1,070,994 1,070,994 31,387,946 31,387,946 25,288,089 25,288,089 24,426,856 24,426,856 23,714,179 23,714,179 6,444,787 6,444,787 958,194 958,194 112,220,051 112,220,051 31,350,740 31,350,740 25,285,963 25,285,963 24,202,572 24,202,572 22,927,311 22,927,311 6,428,978 6,428,978 953,493 953,493 111,149,057 111,149,057 1,777 1,777 27,209 27,209 7272 4,935 4,935 225 225 34,218 34,218 8,281,649 8,281,649 8,074,203 8,074,203 3,768,457 3,768,457 3,561,613 3,561,613 2,794,518 2,794,518 26,480,440 26,480,440 8,279,872 8,279,872 8,046,994 8,046,994 3,768,385 3,768,385 3,556,678 3,556,678 2,794,293 2,794,293 26,446,222 26,446,222 - 497 497 50,608 50,608 25,344 25,344 4,669 4,669 127,930 127,930 300 300 16,820 16,820 33,198 33,198 - - 259,366 259,366 109,244,778 109,244,778 80,661,680 80,661,680 20,772,202 20,772,202 12,823,180 12,823,180 8,232,394 8,232,394 7,144,051 7,144,051 4,956,317 4,956,317 3,844,942 3,844,942 649,303 649,303 (214,091,800) (214,091,800) 120,532,461 120,532,461 154,769,508 154,769,508 109,244,778 109,244,778 80,661,183 80,661,183 20,721,594 20,721,594 12,797,836 12,797,836 8,227,725 8,227,725 7,016,121 7,016,121 4,956,017 4,956,017 3,828,122 3,828,122 616,105 616,105 (214,091,800) (214,091,800) 120,532,461 120,532,461 154,510,142 154,510,142 115,535 115,535 - - 626 626 9393 116,254 116,254 113,750,780 113,750,780 18,119,000 18,119,000 2,294,396 2,294,396 2,236,267 2,236,267 1,169,462 1,169,462 137,569,905 137,569,905 113,635,245 113,635,245 18,119,000 18,119,000 2,294,396 2,294,396 2,235,641 2,235,641 1,169,369 1,169,369 137,453,651 137,453,651 - 58,395 58,395 83,256 83,256 - 141,651 141,651 152,825,516 152,825,516 27,369,614 27,369,614 13,348,181 13,348,181 10,381,093 10,381,093 203,924,404 203,924,404 152,825,516 152,825,516 27,311,219 27,311,219 13,264,925 13,264,925 10,381,093 10,381,093 203,782,753 203,782,753 5656 GovernmentofofBermuda Bermuda––Consolidated ConsolidatedFund Fund Government Schedule10(c): 10(c):Interdepartmental Interdepartmental Current Expenses By Ministry/Department Schedule Current Expenses By Ministry/Department For the year ended March 31 For the year ended March 31 2014 2014 Interdepartmental Interdepartmental Expense Expense $ $ Ministry of Environment & Planning Ministry of Environment & Planning 68 Parks 68 Parks 69 Conservation Services 69 Conservation Services 72 Environmental Protection 72 Environmental Protection 32 Department of Planning 32 Department of Planning 97 Land, Surveys & Registration 97 Land, Surveys & Registration 49 Land Valuation 49 Land Valuation 50 Ministry of Environment & Planning HQ 50 Ministry of Environment & Planning HQ 96 Sustainable Development 96 Sustainable Development Ministry of Community & Cultural Development Ministry of Community & Cultural Development 55 Financial Assistance 55 Financial Assistance 23 Child & Family Services 23 Child & Family Services 20 Youth, Sport & Recreation 20 Youth, Sport & Recreation 53 Bermuda Housing Corporation 53 Bermuda Housing Corporation 52 Community & Cultural Affairs 52 Community & Cultural Affairs 71 Ministry of Community & Cultural Dev. HQ 71 Ministry of Community & Cultural Dev. HQ 56 Human Affairs 56 Human Affairs 42 Rent Commissioner 42 Rent Commissioner Ministry of Public Safety Ministry of Public Safety 07 Police 07 Police 25 Corrections 25 Corrections 45 Fire Services 45 Fire Services 06 Defence 06 Defence 88 National Drug Control 88 National Drug Control 83 Ministry of Public Safety HQ 83 Ministry of Public Safety HQ Ministry of Home Affairs Ministry of Home Affairs 93 Ministry of Home Affairs HQ 93 Ministry of Home Affairs HQ 60 Labour & Training 60 Labour & Training 27 Department of Immigration 27 Department of Immigration 29 Registry General 29 Registry General 84 E-Government 84 E-Government Ministry of Public Works Ministry of Public Works 82 Works & Engineering 82 Works & Engineering 81 Public Lands & Buildings 81 Public Lands & Buildings 36 Min. of Public Works HQ 36 Min. of Public Works HQ Ministry of Economic Development Ministry of Economic Development 57 Civil Aviation 57 Civil Aviation 95 Ministry of Economic Development HQ 95 Ministry of Economic Development HQ 39 Registrar of Companies 39 Registrar of Companies 73 Maritime Administration 73 Maritime Administration 89 Energy 89 Energy 46 Telecommunications 46 Telecommunications 67 E-Commerce 67 E-Commerce TOTAL CURRENT EXPENSES TOTAL CURRENT EXPENSES 2014 2014 Actual Gross Actual Gross Expense Expense $ $ 2014 2014 Net Net Expense Expense $ $ 22,012 22,012 2,755 2,755 2,555 2,555 145 145 120 120 27,587 27,587 10,794,737 10,794,737 4,715,613 4,715,613 3,711,032 3,711,032 3,336,703 3,336,703 1,281,501 1,281,501 979,491 979,491 542,546 542,546 479,990 479,990 25,841,613 25,841,613 10,772,725 10,772,725 4,712,858 4,712,858 3,708,477 3,708,477 3,336,703 3,336,703 1,281,356 1,281,356 979,371 979,371 542,546 542,546 479,990 479,990 25,814,026 25,814,026 104,149 104,149 34,923 34,923 241,302 241,302 8,870 8,870 85 85 1,380 1,380 390,709 390,709 48,454,709 48,454,709 15,676,567 15,676,567 11,217,114 11,217,114 8,000,000 8,000,000 3,143,440 3,143,440 2,230,824 2,230,824 2,142,951 2,142,951 529,051 529,051 91,394,656 91,394,656 48,350,560 48,350,560 15,641,644 15,641,644 10,975,812 10,975,812 8,000,000 8,000,000 3,134,570 3,134,570 2,230,739 2,230,739 2,141,571 2,141,571 529,051 529,051 91,003,947 91,003,947 100,499 100,499 89,030 89,030 39,041 39,041 32,904 32,904 33,650 33,650 7,973 7,973 303,097 303,097 67,583,568 67,583,568 25,454,803 25,454,803 14,468,585 14,468,585 7,797,102 7,797,102 4,869,590 4,869,590 1,097,798 1,097,798 121,271,446 121,271,446 67,483,069 67,483,069 25,365,773 25,365,773 14,429,544 14,429,544 7,764,198 7,764,198 4,835,940 4,835,940 1,089,825 1,089,825 120,968,349 120,968,349 335 335 2,324 2,324 6,820 6,820 4,669 4,669 14,148 14,148 6,306,730 6,306,730 5,358,069 5,358,069 4,449,807 4,449,807 1,686,449 1,686,449 964,783 964,783 18,765,838 18,765,838 6,306,395 6,306,395 5,355,745 5,355,745 4,442,987 4,442,987 1,681,780 1,681,780 964,783 964,783 18,751,690 18,751,690 208 208 16,816 16,816 587,000 587,000 604,024 604,024 51,630,779 51,630,779 40,379,859 40,379,859 15,624,303 15,624,303 107,634,941 107,634,941 51,630,571 51,630,571 40,363,043 40,363,043 15,037,303 15,037,303 107,030,917 107,030,917 120 120 6,308 6,308 1,505 1,505 24,722 24,722 18,560 18,560 120 120 51,335 51,335 7,851,018 7,851,018 7,047,555 7,047,555 4,218,546 4,218,546 2,304,199 2,304,199 730,402 730,402 650,495 650,495 583,418 583,418 23,385,633 23,385,633 7,850,898 7,850,898 7,041,247 7,041,247 4,217,041 4,217,041 2,279,477 2,279,477 730,402 730,402 631,935 631,935 583,298 583,298 23,334,298 23,334,298 3,040,273 3,040,273 1,052,497,002 1,052,497,002 1,049,456,729 1,049,456,729 57 57 57 Disposals & Adjustments $ 45,636,778 (169,810,162) - (10,656,256) (18,971,435) 1,031,369 - - - (38,257,762) (80,823,715) (53,564,429) (188,781,597) - 21,871,090 7,883,590 12,826,233 130,610,708 438,801,141 45,636,778 5,040,720 22,805,733 8,896,477 13,886,627 134,294,440 446,426,173 45,636,778 ACCUMULATED AMORTIZATION Additions - 627,582,738 (42,908,173) (5,775,925) - (15,077,821) 3,968,378 4,198,598 COST Government of Bermuda - Consolidated Fund Schedule 11: Schedules of Tangible Capital Assets and Assets Under Construction As at March 31, 2014 - 184,175,137 (76,079,159) (2,411,672) - (13,498,693) 6,300,553 768,856 31-Mar-13 Net Book Value $ 45,636,778 11,346,403 - 93,649,948 (35,846,090) (4,039,500) - (13,028,921) 770,424 1,520,011 31-Mar-14 Net Book Value $ 616,236,335 6,972,524 (1,050,390) 46,141,352 (11,038,321) (2,064,921) - (4,108,677) 1,125,913 57,875,367 Closing Balance $ Indefinite 177,202,613 4,734,551 - 36,948,911 (11,433,772) (2,415,355) 220,870 (3,708,106) 52,419,574 741,349,780 Plant, Machinery & Equipment Total Tangible Capital Assets Disposals & Adjustments $ Land 40 years 89,965,787 1,398,785 - 17,467,071 (10,613,566) (192,184) - (51,632,856) 722,214,382 43,851,920 Amortization Expense $ Buildings & Betterments 10 - 40 Years 44,742,567 3,104,857 - 19,329,474 (4,137,363) (528,656) - (462,482,577) 52,476,614 Opening Balance $ Infrastructure 5 - 7 Years 33,844,054 992,579 - 4,879,101 (3,179,450) (7,574,106) 1,252,239 - Closing Balance $ Vehicles & Heavy Equipment 5 - 10 Years 16,474,492 4,517,310 (249,124) 4,834,019 (44,058,750) (54,630,010) - $ Vessels 10 years 14,812,164 222,006 - 104,052,430 (409,104,806) - Opening Balance $ Computer Software 5 years 4,906,219 134,558 (1,299,514) 1,184,696,959 - Estimated Useful Life Office Equipment 3 - 7 years 4,699,461 2,118,313 52,476,614 Tangible Capital Assets Computer Hardware 3 - 5 years 101,934,117 35,541,886 (18,636,273) (47,275) - Capital Leases 7 years 1,150,454,587 27,260,967 Furniture & Fixtures 10 - 30 Years 43,851,920 Assets Under Construction Loss on Disposal of Vehicles 58 58 Government of Bermuda – Consolidated Fund Schedule 12: Current Expenditure - Estimates Compared to Expenditures Government of Bermuda – Consolidated Fund For the year ended March 31, 2014 Schedule 12: Current Expenditure - Estimates Compared to Expenditures For the year ended March 31, 2014 Expenses $ Expenses Non-Ministry Departments $ 02 Legislature 5,134,536 05 Office of the Auditor General 3,895,980 Non-Ministry Departments 01 Governor & Staff 1,455,585 02 Legislature 5,134,536 92 Internal Audit 1,356,755 05 Office of the Auditor General 3,895,980 63 Parliamentary Registrar 837,166 01 Governor & Staff 1,455,585 85 Ombudsman's Office 785,268 92 Internal Audit 1,356,755 13,465,290 63 Parliamentary Registrar 837,166 85 Ombudsman's Office 785,268 Cabinet Office Departments 13,465,290 09 Cabinet Office 6,807,429 26 Department of Human Resources 3,815,644 Cabinet Office Departments 14 Department of Statistics 2,694,798 09 Cabinet Office 6,807,429 51 Department of Communication & Information 2,455,406 26 Department of Human Resources 3,815,644 15,773,277 14 Department of Statistics 2,694,798 51 Department of Communication & Information 2,455,406 Ministry of Tourism Development & Transport 15,773,277 33 Tourism 31,387,946 31 Airport Operations 25,288,089 Ministry of Tourism Development & Transport 30 Marine & Ports Services 24,426,856 33 Tourism 31,387,946 35 Public Transportation 23,714,179 31 Airport Operations 25,288,089 34 Transport Control Department 6,444,787 30 Marine & Ports Services 24,426,856 48 Ministry of Tourism Dev. & Transport HQ 958,194 35 Public Transportation 23,714,179 112,220,051 34 Transport Control Department 6,444,787 48 Ministry of Tourism Dev. & Transport HQ 958,194 Ministry of Legal Affairs 112,220,051 03 Judicial Department 8,281,649 87 Ministry of Legal Affairs HQ 8,074,203 Ministry of Legal Affairs 04 Attorney General's Chambers 3,768,457 03 Judicial Department 8,281,649 74 Court Services 3,561,613 87 Ministry of Legal Affairs HQ 8,074,203 75 Department of Public Prosecutions 2,794,518 04 Attorney General's Chambers 3,768,457 26,480,440 74 Court Services 3,561,613 75 Department of Public Prosecutions 2,794,518 Ministry of Finance 26,480,440 58 Interest on Debt 109,244,778 11 Accountant General 80,661,680 Ministry of Finance 12 Customs 20,772,202 58 Interest on Debt 109,244,778 13 Post Office 12,823,180 11 Accountant General 80,661,680 43 Information Technology Office 8,232,394 12 Customs 20,772,202 28 Department of Social Insurance 7,144,051 13 Post Office 12,823,180 10 Ministry of Finance HQ 4,956,317 43 Information Technology Office 8,232,394 38 Office of the Tax Commissioner 3,844,942 28 Department of Social Insurance 7,144,051 80 Project Management & Procurement 649,303 10 Ministry of Finance HQ 4,956,317 59 Sinking Fund Contribution 38 Office of the Tax Commissioner 3,844,942 Gain on Benefits Plans Amendments (214,091,800) 80 Project Management & Procurement 649,303 Retirement Benefit Expenses 120,532,461 59 Sinking Fund Contribution 154,769,508 Gain on Benefits Plans Amendments (214,091,800) Retirement Benefit Expenses 120,532,461 Ministry of Education 154,769,508 17 Department of Education 113,750,780 41 Bermuda College 18,119,000 Ministry of Education 16 Ministry of Education HQ 2,294,396 17 Department of Education 113,750,780 18 Libraries 2,236,267 41 Bermuda College 18,119,000 19 Department of Archives 1,169,462 16 Ministry of Education HQ 2,294,396 137,569,905 18 Libraries 2,236,267 19 Ministry Department of Archives 1,169,462 of Health & Seniors 137,569,905 24 Hospitals 152,825,516 22 Health Department 27,369,614 Ministry of Health & Seniors 21 Ministry of Health & Seniors HQ 13,348,181 24 Hospitals 152,825,516 91 Health Insurance 10,381,093 22 Health Department 27,369,614 203,924,404 21 Ministry of Health & Seniors HQ 13,348,181 91 Health Insurance 10,381,093 * Adjusted for Non-Budgeted, Non-Cash Items 203,924,404 ** Includes all Approved Supplementary amounts during the year * Adjusted for Non-Budgeted, Non-Cash Items Expenditure * $ Expenditure * Adjusted Estimates ** $ Adjusted Estimates ** Under (Over) Spent $ Under (Over) Spent $ 5,025,579 3,840,791 1,452,299 5,025,579 1,355,046 3,840,791 825,337 1,452,299 780,681 1,355,046 13,279,733 825,337 780,681 13,279,733 6,794,388 3,785,826 2,674,198 6,794,388 2,432,453 3,785,826 15,686,865 2,674,198 2,432,453 15,686,865 29,882,213 23,442,811 22,265,388 29,882,213 21,689,851 23,442,811 5,838,944 22,265,388 956,106 21,689,851 104,075,313 5,838,944 956,106 $ 6,078,795 3,846,170 1,638,380 6,078,795 1,773,174 3,846,170 1,254,835 1,638,380 821,761 1,773,174 15,413,115 1,254,835 821,761 15,413,115 7,090,733 4,247,255 2,975,356 7,090,733 2,560,656 4,247,255 16,874,000 2,975,356 2,560,656 16,874,000 31,523,497 22,244,000 22,299,700 31,523,497 22,789,531 22,244,000 6,331,908 22,299,700 964,364 22,789,531 106,153,000 6,331,908 964,364 $ 1,053,216 5,379 186,081 1,053,216 418,128 5,379 429,498 186,081 41,080 418,128 2,133,382 429,498 41,080 2,133,382 296,345 461,429 301,158 296,345 128,203 461,429 1,187,135 301,158 128,203 1,187,135 1,641,284 (1,198,811) 34,312 1,641,284 1,099,680 (1,198,811) 492,964 34,312 8,258 1,099,680 2,077,687 492,964 8,258 104,075,313 7,863,210 8,072,448 3,658,836 7,863,210 3,530,288 8,072,448 2,790,300 3,658,836 25,915,082 3,530,288 2,790,300 106,153,000 8,366,976 7,883,285 4,180,496 8,366,976 3,935,392 7,883,285 2,996,637 4,180,496 27,362,786 3,935,392 2,996,637 2,077,687 503,766 (189,163) 521,660 503,766 405,104 (189,163) 206,337 521,660 1,447,704 405,104 206,337 25,915,082 109,244,778 79,762,858 19,054,975 109,244,778 12,635,987 79,762,858 6,970,284 19,054,975 7,110,951 12,635,987 4,942,354 6,970,284 3,090,623 7,110,951 638,706 4,942,354 37,625,000 3,090,623 638,706 37,625,000 281,076,516 - 27,362,786 109,400,000 84,636,421 20,000,000 109,400,000 13,548,737 84,636,421 7,328,728 20,000,000 6,852,563 13,548,737 5,039,653 7,328,728 3,177,770 6,852,563 976,531 5,039,653 37,625,000 3,177,770 976,531 37,625,000 288,585,403 - 1,447,704 155,222 4,873,563 945,025 155,222 912,750 4,873,563 358,444 945,025 (258,388) 912,750 97,299 358,444 87,147 (258,388) 337,825 97,299 87,147 337,825 7,508,887 - 281,076,516 112,300,060 18,119,000 2,294,396 112,300,060 2,207,359 18,119,000 1,143,839 2,294,396 136,064,654 2,207,359 1,143,839 136,064,654 152,825,516 288,585,403 120,975,018 18,119,000 2,477,226 120,975,018 2,273,292 18,119,000 1,547,168 2,477,226 145,391,704 2,273,292 1,547,168 145,391,704 152,825,504 7,508,887 8,674,958 182,830 8,674,958 65,933 403,329 182,830 9,327,050 65,933 403,329 9,327,050(12) 25,297,823 13,310,929 152,825,516 10,381,093 25,297,823 201,815,361 13,310,929 10,381,093 201,815,361 27,428,357 15,422,106 152,825,504 11,050,481 27,428,357 206,726,448 15,422,106 11,050,481 206,726,448 2,130,534 2,111,177 (12) 669,388 2,130,534 4,911,087 2,111,177 669,388 4,911,087 5959 59 Government of Bermuda – Consolidated Fund Schedule 12: Current Expenditure - Estimates Compared to Expenditures Government Bermuda – Consolidated Fund For the yearof ended March 31, 2014 Schedule 12: Current Expenditure - Estimates Compared to Expenditures For the year ended March 31, 2014 Expenses Ministry of the Environment & Planning 68 Parks 69 Conservation Services Ministry of the Environment & Planning 72 Environmental Protection 6832Parks Department of Planning 6997Conservation Services Land, Surveys & Registration 7249Environmental Protection Land Valuation 3250Department Planning & Planning HQ Ministry of of Environment 9796Land, Surveys & Registration Sustainable Development 49 Land Valuation 50Ministry MinistryofofCommunity Environment && Cultural Planning Development HQ 96 Sustainable Development 55 Financial Assistance 23 Child & Family Services Ministry of Community & Cultural Development 20 Youth, Sport & Recreation 55 Financial Assistance 53 Bermuda Housing Corporation 23 Child & Family Services 52 Community & Cultural Affairs 20 Youth, Sport & Recreation 71 Ministry of Community & Cultural Dev. HQ 5356Bermuda Housing Corporation Human Affairs 5242Community & Cultural Affairs Rent Commissioner 71 Ministry of Community & Cultural Dev. HQ 56 Human Affairs Ministry of Public Safety 42 Rent Commissioner 07 Police 25 Corrections Ministry of Public Safety 45 Fire Services 07 Police 06 Defence 25 Corrections 88 National Drug Control 45 Fire Services 83 Ministry of Public Safety HQ 06 Defence 88 National Drug Control Ministry of Home Affairs 83 Ministry of Public Safety HQ 93 Ministry of Home Affairs HQ 60 Labour & Training Ministry of Home Affairs 27 Department of Immigration 93 Ministry of Home Affairs HQ 29 Registry General 60 Labour & Training 84 E-Government 27 Department of Immigration 29 Registry General of Public Works 84Ministry E-Government 82 Works & Engineering 81 Public Lands & Buildings Ministry of Public Works 36 Ministry of Public Works HQ 82 Works & Engineering 81 Public Lands & Buildings Development 36Ministry MinistryofofEconomic Public Works HQ 57 Civil Aviation 95 Ministry of Economic Development HQ Ministry of Economic Development 39 Registrar of Companies 5773Civil Aviation Maritime Administration 9589Ministry Energyof Economic Development HQ 39 Registrar of Companies 46 Telecommunications 73 Maritime Administration 67 E-Commerce 89 Energy 46 Telecommunications 67 E-Commerce TOTAL CURRENT EXPENDITURE TOTAL CURRENT EXPENDITURE * Adjusted for Non-Budgeted, Non-Cash Items ** Includes all Approved Supplementary amounts during the year * Adjusted for Non-Budgeted, Non-Cash Items ** Includes all Approved Supplementary amounts during the year 60 Expenditure* Adjusted Estimates ** Under (Over) Spent $ $ Expenses 10,794,737 $ 4,715,613 3,711,032 10,794,737 3,336,703 4,715,613 1,281,501 3,711,032 979,491 3,336,703 542,546 1,281,501 479,990 979,491 25,841,613 542,546 479,990 48,454,709 25,841,613 15,676,567 11,217,114 48,454,709 8,000,000 15,676,567 3,143,440 11,217,114 2,230,824 8,000,000 2,142,951 3,143,440 529,051 2,230,824 91,394,656 2,142,951 529,051 67,583,568 91,394,656 25,454,803 14,468,585 67,583,568 7,797,102 25,454,803 4,869,590 14,468,585 1,097,798 7,797,102 121,271,446 4,869,590 1,097,798 6,306,730 121,271,446 5,358,069 4,449,807 6,306,730 1,686,449 5,358,069 964,783 4,449,807 18,765,838 1,686,449 964,783 51,630,779 18,765,838 40,379,859 15,624,303 51,630,779 107,634,941 40,379,859 15,624,303 7,851,018 107,634,941 7,047,555 4,218,546 7,851,018 2,304,199 7,047,555 730,402 4,218,546 650,495 2,304,199 583,418 730,402 23,385,633 650,495 583,418 23,385,633 Expenditure* 10,619,832 $ 4,671,935 3,626,434 10,619,832 3,324,274 4,671,935 1,264,075 3,626,434 944,232 3,324,274 541,798 1,264,075 479,990 944,232 25,472,570 541,798 479,990 48,385,807 25,472,570 15,601,240 11,158,931 48,385,807 8,000,000 15,601,240 3,136,948 11,158,931 2,218,116 8,000,000 2,080,887 3,136,948 529,051 2,218,116 91,110,980 2,080,887 529,051 66,125,227 91,110,980 25,242,152 12,750,526 66,125,227 7,711,686 25,242,152 4,532,258 12,750,526 1,097,248 7,711,686 117,459,097 4,532,258 1,097,248 6,303,057 117,459,097 5,311,990 3,450,360 6,303,057 1,638,039 5,311,990 958,443 3,450,360 17,661,889 1,638,039 958,443 32,957,542 17,661,889 23,595,430 10,324,834 32,957,542 66,877,806 23,595,430 10,324,834 7,809,768 66,877,806 7,044,248 2,466,309 7,809,768 2,236,728 7,044,248 730,402 2,466,309 634,112 2,236,728 586,023 730,402 21,507,590 634,112 586,023 21,507,590 $ Adjusted Estimates ** 10,536,611 $ 4,851,011 4,073,788 10,536,611 3,732,698 4,851,011 1,604,637 4,073,788 1,055,892 3,732,698 1,068,767 1,604,637 523,182 1,055,892 27,446,586 1,068,767 523,182 48,522,642 27,446,586 18,148,366 11,661,852 48,522,642 8,000,000 18,148,366 3,682,938 11,661,852 2,530,257 8,000,000 2,294,210 3,682,938 569,134 2,530,257 95,409,399 2,294,210 569,134 69,036,001 95,409,399 27,868,990 13,409,214 69,036,001 7,658,832 27,868,990 4,780,073 13,409,214 1,613,795 7,658,832 124,366,905 4,780,073 1,613,795 7,221,371 124,366,905 5,691,704 4,893,676 7,221,371 2,205,056 5,691,704 1,059,155 4,893,676 21,070,962 2,205,056 1,059,155 35,263,809 21,070,962 23,518,489 7,133,340 35,263,809 65,915,638 23,518,489 7,133,340 10,360,000 65,915,638 7,984,590 3,108,750 10,360,000 2,419,208 7,984,590 795,358 3,108,750 1,257,228 2,419,208 924,866 795,358 26,850,000 1,257,228 924,866 26,850,000 $ Under (Over) Spent (83,221) $ 179,076 447,354 (83,221) 408,424 179,076 340,562 447,354 111,660 408,424 526,969 340,562 43,192 111,660 1,974,016 526,969 43,192 136,835 1,974,016 2,547,126 502,921 136,835 2,547,126 545,990 502,921 312,141 213,323 545,990 40,083 312,141 4,298,419 213,323 40,083 2,910,774 4,298,419 2,626,838 658,688 2,910,774 (52,854) 2,626,838 247,815 658,688 516,547 (52,854) 6,907,808 247,815 516,547 918,314 6,907,808 379,714 1,443,316 918,314 567,017 379,714 100,712 1,443,316 3,409,073 567,017 100,712 2,306,267 3,409,073 (76,941) (3,191,494) 2,306,267 (962,168) (76,941) (3,191,494) 2,550,232 (962,168) 940,342 642,441 2,550,232 182,480 940,342 64,956 642,441 623,116 182,480 338,843 64,956 5,342,410 623,116 338,843 5,342,410 1,052,497,002 1,118,003,456 1,167,565,946 49,562,490 1,052,497,002 1,118,003,456 1,167,565,946 49,562,490 60 60 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Schedule 13: Commitments - Legislated Schedule 13: Commitments - Legislated For the year ended March 31 For the year ended March 31 2014 2014 2013 2013 Actual Actual $ $ Actual Actual $ $ Unspent Capital Appropriations Unspent Capital Appropriations In accordance with Section 6 of the Appropriations Act 2013, unspent capital In accordance with Section 6 of the Appropriations Act 2013, unspent capital appropriations for incomplete capital projects to be carried forward to future years appropriations for incomplete capital projects to be carried forward to future years are as follows: are as follows: Capital Development Capital Development Capital Acquisition Capital Acquisition 5,511,234 5,511,234 2,000,000 2,000,000 7,511,234 7,511,234 32,052,111 32,052,111 6,506,760 6,506,760 38,558,871 38,558,871 Total Authorized Funding Total Authorized Funding Total Authorized Funding represents the estimated total cost of capital development Total Authorized Funding represents the estimated total cost of capital development projects and is subject to the voting of supply by the Legislature. Estimated future projects and is subject to the voting of supply by the Legislature. Estimated future expenditure for continuing capital development projects is as follows: expenditure for continuing capital development projects is as follows: Total Authorized Funding Total Authorized Funding Projects Completed during the year Projects Completed during the year Supplementary Estimate No.1 Supplementary Estimate No.1 889,850,476 889,850,476 (126,370,000) (126,370,000) 2,128,000 2,128,000 921,871,431 921,871,431 (16,471,271) (16,471,271) 25,015,759 25,015,759 Revised Total Authorized Funding Revised Total Authorized Funding Appropriated Capital Development Appropriated Capital Development 765,608,476 765,608,476 (330,782,820) (330,782,820) 930,415,919 930,415,919 (514,932,756) (514,932,756) Unappropriated Capital Development Commitments Unappropriated Capital Development Commitments 434,825,656 434,825,656 415,483,163 415,483,163 61 61 61 Government of Bermuda – Consolidated Fund Government of Bermuda – Consolidated Fund Schedule 14: Public Debt - Legislated Limit Schedule 14: Public Debt - Legislated Limit As at March 31 As at March 31 2014 2014 2013 2013 Actual Actual Actual Actual $ $ $ $ The Government Loans Act 1978, as amended (2011), defines public debt as debt owed or The Government Loans Act 1978, as amended (2011), defines public debt as debt owed or guaranteed by the Consolidated Fund, but only if and when, and to the extent that, the guaranteed by the Consolidated Fund, but only if and when, and to the extent that, the guarantee obligation becomes due and payable by the Government. guarantee obligation becomes due and payable by the Government. Section 2A(1) of the Act limits public debt (net of sinking fund assets) to $2.50 billion, Section 2A(1) of the Act limits public debt (net of sinking fund assets) to $2.50 billion, as amended February 22, 2013. as amended February 22, 2013. 2,305,000,000 2,305,000,000 - 1,505,000,000 1,505,000,000 69,000,521 69,000,521 2,305,000,000 2,305,000,000 1,574,000,521 1,574,000,521 536,557,729 536,557,729 97,141,966 97,141,966 Public Debt Public Debt Legislated Limit Legislated Limit 1,768,442,271 1,768,442,271 2,500,000,000 2,500,000,000 1,476,858,555 1,476,858,555 2,500,000,000 2,500,000,000 Available Limit Available Limit 731,557,729 731,557,729 1,023,141,445 1,023,141,445 Debt (Schedule 7) Debt (Schedule 7) Overdraft Facility Drawdown (Note 15) Overdraft Facility Drawdown (Note 15) Less: Less: Sinking Fund (Schedule 7) Sinking Fund (Schedule 7) 62 62 62