Published On: Fri, Jul 24th, 2015

Auditors: In 2013 the case of serious failing financial management

jaarrekening-1WILLEMSTAD - The financial information in the Financial Statements 2013 of the country Curaçao does not (yet) meet the requirements of the Ordinance 2010 compatibility, despite some positive developments.

According to the Court of Auditors (ARC), the operation of the government ministries is not under control. Also, the information value of the accounts is insufficient. This was also the case with the financial statements of 2011 and 2012. According to the Court, there is a serious failing financial management.

This is according to the ARC in its report on the legality of the 2013 Annual Report. The report was presented to the parliament of Curaçao this month. The lack of information value in the financial statements does not make the parliament able to form an opinion on the implementation of the policy and the management of the government, according to the Court. Thus, there are errors and uncertainties in the financial statements. Most errors and uncertainties are easily solved, according to the ARC. “This means that it may be expected that within a reasonable period of several years the financial statements will not have faults and insecurities.”

Because the ARC considered it important that in the future there is a sound accountable financial management, the made several recommendations. All the Ministers should adopt and improve their financial plan and present this to the Minister of Finance. The Minister of Finance must review these plans together with the responsible Minister on realism and priorities. The Council of Ministers must approve the improvement plans and then present this to parliament with a commitment that the MPs will be regularly informed on the implementation of the plan, including the assessment of the SOAB (Government Accountants Bureau).

Also, agreements must be made about the role of the Minister of Finance in monitoring the implementation of the plans. The Court's role is conducted to assess financial management and material management of the ministries of Curaçao. Also, the Court examined whether the information in the financial statements of the ministries of finance, operations and policies has been established according to the applicable rules, and should appear in the financial statements. The financial statements constitute the major culmination of the annual budget cycle.

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