Guernsey Water 2016 Annual Report ACCOUNTS 28 water.gg/ annualreport2016 ACCOUNTS Actual 2016 £’000s Budget 2016 £’000s Actual 2015 £’000s Revenue 15,707 15,737 15,724 Surplus for the financial year 706 444 949 Capital Expenditure 4,788 7,259 23,991 Financial Highlights Statement of Activities and Performance for the year ended 31 December 2016 During the financial year ended 31 December 2016, responsibility for Guernsey Water fell initially within the mandate of the Public Services Department until 30 April 2016 and then, under new arrangements agreed by the States of Guernsey for the organisation of States' affairs, responsibility for Guernsey Water was transferred to the mandate of the new States' Trading Supervisory Board (the “Board”) with effect from 1 May 2016. All references in this document to the States' Trading Supervisory Board should be read as relating to the Public Services Department if prior to 1 May 2016. Principal Activities Guernsey Water, a business unit of the States' Trading Supervisory Board, delivers to its customers: • A reliable supply of high quality drinking water in sufficient quantity that satisfies normal daily demand at the lowest cost consistent with meeting a high level of customer service and confidence. • A reliable wastewater collection service which treats and returns flow to the environment sustainably and efficiently. During 2016 there were significant changes that had a material impact on the financial position. i) Following the approval of the Water Treatment Strategy, Juas Water Treatment Works is being recommissioned and once completed Longue Hougue Water Treatment Works will be decommissioned. As a result of this, those assets that cannot be utilised have had their useful life shortened and hence additional depreciation of £476,659 has been incurred. ii) The States of Guernsey resolved on 2 November 2016 to direct Guernsey Water to transfer a maximum of £19,900,000 to the Capital Reserve to reimburse the total cost of Belle Greve Wastewater Outfalls Project. As a result of this the original grant received has been converted into a short term creditor and any release to the Statement of Comprehensive Income has been reversed. iii) As a result of the performance of the States of Guernsey’s investments, Guernsey Water has received £898,275 in investment return on balances held with States Treasury. In relation to capital expenditure, Wastewater has now been integrated into Guernsey Water’s remote control systems (SCADA), 5km of sewers have been rehabilitated, La Villette pumping station has been refurbished, the Kings Mills Water Treatment Sludge Thickening project and the Water Resource Management & Drought Plan have been completed.