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Isle of Man Financial Services Authority Annual Report 2016/17 • 25
OPERAT IONS
F INANCE
The Authority is part of the centralised Isle of Man
Government accounting system and its income
and expenditure, although reported and audited
separately, are part of the Government’s general
revenue account.
The expenditure of the Authority is managed against
an annual budget agreed with Treasury, with any
shortfall in the Authority’s income, relative to its
expenditure, being covered by a Treasury grant.
The Authority manages its expenditure closely to
ensure that it receives value for money and, as far as
possible, that it remains within the Treasury-approved
budget. The Authority complies with the Isle of Man
Government Financial Regulations.
The statement of Income and Expenditure of the
Authority and its associated Report of the Auditors are
set out in Appendices E and F. The Authority is audited
in accordance with the Audit Act 2006.
Income from registration and licence fees was
marginally above the budgeted figure for the year.
Income was also received from the Authority’s
annual AML/CFT conference, attended by industry
representatives, and from civil penalties charged to
licenceholders.
In aggregate, operational expenditure was below
budget. Spending was broadly in line with or under
budget for all areas of expenditure with the exception
of professional fees. Professional fees are incurred
in connection with the engagement of professional
services companies to either provide additional
capacity over the short term for one-off tasks or to
secure specialist skills and knowledge to supplement
the routine services delivered by the Authority’s
staff. The overrun in professional fees for the year
arises from a relatively heavy caseload of disciplinary
and enforcement matters which require input from
independent legal practitioners. Where on-Island legal
services are engaged, appointees are drawn from the
Isle of Man Government’s central procurement list.