MINISTRY PAPER 0::::::> r'\ t , '\'::::1<) d-V '/PLANNING INSTITUTE OF J CA \

ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31,2010

INTRODUCTION

1. The matter for tabling in the Honourable House of Representatives is the Annual Report of the Planning Institute of Jamaica (PIOl) for the year ended December 31, 2010.

2. The PIOJ was established on April 9, 1984 as a corporate body under the Planning Institute of Jamaica Act. The Institute is mandated to initiate and co-ordinate plans for the economic, financial and social development of Jamaica. This is executed through the provision of policy and technical advice to the Government of Jamaica (GOl) on social and economic issues and external co-operation management. PIOJ is also focussed on the transformation of Jamaica under Vision 2030 through strategies such as monitoring, forecasting and reporting on the economy against targeted objectives.

DISCLOSURES

Auditors' Report

3. Deloitte and Touche, independent auditors of the PIOl expressed their opinion on the entity's financial statements as at December 31, 2010. The examinations were done in accordance with the International Standards on Auditing and the fmancial statements complied with the provisions of the Planning Institute of Jamaica Act. The auditors informed that the financial statements accorded with International Financial Reporting Standards and give a true and fair view ofthe financial performance and cash flows ofthe Institute as at December 31, 2010.

Compensation for Senior Executives

4. Pursuant to the Second Schedule (Part 1) of the Public Bodies Management and Accountability Act (Amendment 2011), details of the compensation packages for the Institute's seven (7) senior directors are included in the Annual Report. Total compensation amounted to $25.49 million and accounted for 21.9% of total staff costs. Individual compensation packages ranged from $1.13 million to $5.24 million and are detailed in the Annual Report.

OPERATIONAL REVIEW

5. During the review period, PIOJ undertook several major projects that are highlighted in Table 1.

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Table 1 Major Projects Undertaken in 200911 0 PIOJ monitored and evaluated macroeconomic, sectoral performance, trade

Sectoral Policy and Economic and

related negotiations and provided timely and appropriate policy advice. The Planning Institute played a major role in the IMF arrangement and provided

consultations regarding the ~erformance and projections for the real sectors. Technical Advice Technical advice was provided on several documents including the World

Bank: Country Partnership Strategy 2010-13, lOB's Country Programme Evaluation and Draft Tax Waiver Policy to the GOJ, blue print on Tax Reform, Debt Dynamics and growth Strategies, Registrar General Department's proposed fee increase and the impact of the financial and economic crisis on energy investment in the Caribbean.

Social Policy and PIOJ provided evidence-based policy and planning advice which included Planning Jamaica's rank in the United Nations Human Development Report 2010,

National Disability Bill, development of a National Education Strategy Plan 2010-2020, National Policy on Homelessness, Crime Prevention and Community Safety Strategy and the merger of the Citizen Security and Justice Programme. The PIOJ through its Inter-Sectoral Programme Development and Co-ordination provided technical advice to Boards, commissions and committees.

Sustainable The strategic foci for the Institute were in the areas of climate change Development and adaptation and disaster risk reduction; improving the development planning Regional Planning process, and expanding the use of science and technology towards achieving

Vision 2030 Jamaica. Technical support and advice was given to stakeholder Ministries, Departments and Agencies with policies, strategies, and projects and programmes related to energy management, land management and urban and regional planning.

Programme Work continued on the implementation of Jamaica's first long-term strategic Development Plan Vision 2030 Jamaica-National Development Plan and the (Medium

Term Socio-Economic Policy Framework (MTF) 2009-2012. The comprehensive planning framework included the economic, social, environmental and governance aspects of national development and is expected to place Jamaica in a position to achieve development country status by 2030.

Programme, Co­ PIOJ managed a combined portfolio of US$2,900 million which comprised ordination and loans, grants, technical assistance and counterpart resources. The Institute co­Monitoring ordinated the development of the Community Renewal Programme and the

identification of resources from the International Development Partners to support the implementation. Technical assistance on a bilateral basis as well as the co-ordination and monitoring of other Caribbean Regional Programmes supported GOJ's priority projects and programmes in areas such as public sector reform, social and economic infrastructure. This portfolio of projects and programmes managed amounted to approximately to US$974 million.

Research and Publications by the Institute which provided socio-economic data to Information Services stakeholders and the general public included the Jamaica Survey of Living

Conditions and the quarterly Economic Update and Outlook.

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FINANCIAL HIGHLIGHTS

Income and Expenditure

Income Govt. Subvention

Interest Income

Other Income

Expenses Staff Costs

Property Expenses Consultancy and Professional Fees

Depreciation

Other Operating Expenses

338.53 3.61

30.95

116.16 37.69

3.13 41.17 10.79

338.26 5.28

26.13

358.59 37.76

3.41 39.95 19.93

0.27 0.08 -1.67 -31.63 4.82 18.45

242.43 67.61 0.07 0.19 0.28 8.21

-1.22 -3.05 9.14 45.86

6. Table 11 highlights that PIOJ recorded a net surplus of $164.15 million, an increase of $254.12 million over the deficit of $89.97 million incurred in the prior year. The improvement in the Institute's financial perfonnance resulted directly from a credit to the Institute's staff retirement benefit plan. Notably, an overall credit of $143.65 million was made as the define.d benefit plan was recently valued and gains, past service costs and increases in unrecognised assets were recorded. This was the primary contributor to the $242.43 million reduction to $116.16 million in total staff costs.

Balance Sheet Highlights

Liquidity and Solvency

8. The PIOJ's total assets base grew by $154.75 million to $702.55 million at December 31, 2010. The increase was influenced mainly by positive adjustments in current and non-current assets including cash and bank balances. Solvency levels also rose to $185.11 million compared to $20.96 million in the previous year and resulted directly from the Institute's accumulated surplus. At year-end, PIOJ registered an improved positive working capital of $4.06 million compared to negative working capital of $31.33 million in the prior period. This was an indication that the Institute had improved its ability to satisfy its current obligations if the need arose. Adequate cash resources were generated from operating activities and inflows were also boosted by returns from investment income and grant funding from local and foreign partners. Outflows of cash were largely used to facilitate the acquisition of fixed assets and also to offset operational expenses during the period.

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CONCLUSION

10. The PIOJ remained committed to the development of Jamaica and continued to provide sound policy advice to the GOJ on social, economic and environmental issues with a view to achieving national sustainable development. This resulted in special emphasis being placed on critical areas to maintain macroeconomic stability, promotion of social well-being and fostering an enabling environment for private sector development. Publications by the Institute included the Jamaica Survey of Living Conditions and the Economic Update and Outlook, which provided socio-economic data to stakeholders and the general pUblic.

f .(v?h~

Peter D. Phi11i~s, PhD, M .. Minister ofFinance

Marc ,2012

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