Publication 2e semiannual report 2014 Board of financial supervision BES Cft: “Each public entity knows its own pace in improvement processes, which also determines the intensity of the supervision”

Willemstad – According to the 2nd semiannual report for 2014 of the Board of financial supervision the public entities develop themselves at different paces. At times Bonaire has difficulties with keeping the budgeting process in control, Sint Eustatius struggles with internal procedures, while Saba expects a positive accountant’s declaration soon. President Age Bakker: “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 Sint 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 on the area of financial management, to consequently get an approving control declaration for the annual report for 2014. The results of the interim control by the accountant confirm that Saba is on the good road.

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 reorganization 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 Sint 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. Sint Eustatius also has the challenge to correctly execute (legal) internal and external procedures, among others in the area of personnel. The Cft and the public entity are discussing how this can be improved in the future.