Age Bakker (Cft): “Step forward in quality of reports”
Bonaire benefits of upgraded financial system
KRALENDIJK - The steps taken towards the improvement of the financial reports were the central topic of discussion during the visit of the Board of financial supervision Bonaire, Sint Eustatius and Saba (Cft) to Bonaire. The public entity has included the requested explanation in the figures that were presented in the third performance report. However, in the future more attention needs to be paid to the legitimacy and the policy aspects. Furthermore the 2016 budget - which was drawn up cautiously - has been adopted. For both the year 2015 and 2016 the Cft maintains particular attention for the liquidity position of the public entity.
The Cft met on December 14th with the Executive Council and the Island Council of Bonaire. The third execution report 2015, the 2016 budget and the liquidity position were the main subjects. Particularly the liquidity position is a recurrent focal point in the talks between the Cft and the public entity.
Third performance report, until September 2015
The third performance report has timely been submitted to the Cft. This was possible amongst others because of an upgrade of the financial system. In addition, the detailed explanations requested by the Cft regarding the budget implementation were provided. These explanatory notes provide insight into how the implementation of the budget in 2015 is proceeding, meanwhile providing correct interpretation in the event the implementation deviates. This is a substantial step in the right direction because adequate disclosure contributes to the quality of the performance reports as a management tool. The Cft recommends for the future a clear connection between the policy intentions and the annual reports.
Bonaire has submitted the 2016 budget timely to the Cft. The Cft has provided the budget with a positive advice and, after this was adopted by the Island Council, forwarded the budget to the Minister of Interior Affairs and Kingdom Relations (BZK). The 2016 budget has an income and expenses total of approximately USD 46.5 million. In the opinion of the Cft the budget has been drawn up cautiously. In the budget the special benefits that are provided by the departments were taken into account correctly.
The Cft has advised the Executive Council and the Island Council that there will be more attention for the liquidity position of the public entity as well as for the pertaining special benefits in 2016. The Cft agreed with the Executive Council that a cash flow forecast will be prepared on a regular basis for the Cft. The Cft recommends that this cash flow forecast should provide clear insight whether changes in the liquidity position are the result of earmarked special benefits or discretionary funds. Cft looks forward to receiving this forecast and will discuss this further with the public entity.