Governor Wanda Vázquez Garced and the Secretary of the Treasury Department, Francisco Parés Alicea, reported today the issuance of the Audited Financial Statements of the Government of Puerto Rico, for the fiscal year that ended on June 30, 2017.
“The report of the independent auditors of the KPMG firm, which includes 11 separate opinions on the components of the Financial Statements, reflects a marked improvement in their reliability, with respect to fiscal years 2015 and 2016,” said the Governor .
The Financial Statements include all the operations of government agencies, public corporations, the University of Puerto Rico (UPR) and other entities that make up the government in general and reflect their economic situation in a specific period.
“Contrary to what happened in previous years, for the Financial Statements corresponding to the year 2017, the independent auditors did not express any qualification in their opinions. For 2015, the independent auditors did not issue an opinion on three of 13 components; they issued an adverse opinion for one component and modified opinions for three other components, ”Parés said.
The official added that, in the case of 2016, the independent auditors issued opinions on all 13 components, five of them with modifications.
“Both the General Fund and the central government debt service funds, including Cofina, received opinions without modifications for both 2017 and 2016 and 2015. In these two years, the opinions with modifications were mainly related to the registration of the pension obligations and at the loss of deposits in the Government Development Bank ”, highlighted the secretary.
For 2017, the Financial Statements of the primary government reflected total assets and deferred, of $ 23,942 million and total liabilities and deferred of $ 95,002 million, including public debt that reflected an accumulated deficit of $ 71,060 million.
The component units of the Financial Statements reflected total assets and deferred amounts of $ 40,944 million and total liabilities and deferred payments of $ 53,030 million; a deficit of $ 12,086 million. For 2017, primary government revenues were reduced by $ 441 million, when compared to 2016.
In turn, expenses were reduced by $ 2,571 million. While the expenses of the component units exceeded their income by $ 4,264 million. Income and expenses from the General Fund – Budget Base amounted to $ 9,203 million and $ 8,626 million, respectively, reflecting an excess of income over expenses of $ 577 million. During fiscal year 2017, the government defaulted on payments on certain bonds, including general obligation bonds.
In the notes to the Financial Statements, the uncertainty affecting the government, the liquidity risk and the impairment to the government’s ability to continue operating are discussed. In addition, the approval and implementation of Promesa and other legislation related to the restructuring of government debt is disclosed.
The Audited Financial Statements for the year 2017 are available on the website, www.hacienda.pr.gov Investors section.