Monday , February 26 2024

CFT financial improvements at different paces for each island.

The Daily Herald writes that according to the second semi-annual report for 2014 of the Board of Financial Supervision CFT, the public entities develop themselves at different paces. At times Bonaire has difficulties with keeping the budgeting process in control; St. Eustatius struggles with internal procedures while Saba expects a positive accountant’s declaration soon. CFT President Age Bakker said: “Increasingly a differentiated form of supervision is necessary for the public entities.”

Budget execution

The budget execution of Bonaire was fidgety last year, since it included a great number of mutations. The Board has urged Bonaire to structure the process in such a way that the execution of the budget will show a more stable pattern. The expectation is that the budgets of both Saba and Bonaire will have a positive result. Bonaire has implemented extensive budget adaptations during the year 2014 whereby investment means were also made available. The budgeting process of Saba showed more calmness: the expected realization for 2014 remains close to the calculated budget.

During the past year, St. Eustatius tried to prevent a budget deficit with incidental corrections. The most recent information shows that the year will probably finish with a deficit. The exact result will have to show in the 2014 annual report.

Financial management

During the past year Saba focused on implementing the last improvements in the area of financial management to consequently get an approving control declaration for the 2014 annual report. The results of the interim control by the accountant confirmed that Saba is on the right track.

On Bonaire, in consultation with the CFT, a radical improvement plan for the financial management was set up in 2014, in order to enable the handling of the gaps which were identified by the accountant. By executing the plan, which will run its course in 2015 as well, Bonaire will be able to better predict the risks for the budget in the future, which in turn will result in a more stable budgeting process. The improvement plan contains a re-organisation of the finance department of the public entity. Bonaire has also improved its cash management during the past year, resulting in a better view on the available cash.

In 2014, St. Eustatius had some difficulties with implementing improvements in the area of financial management; as a consequence; there is now a backlog in the points of improvement that were agreed upon with the CFT. St. Eustatius also has the challenge to correctly execute (legal) internal and external procedures amongst others in the area of personnel. The CFT and the public entity are discussing how this can be improved in the future.


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