Cft: "More insight needed in liquidity"
Willemstad – If the Board of financial supervision Bonaire, Sint Eustatius and Saba (Cft) found in its previous semiannual report that the progress in the field of financial management showed a mixed picture, six months later this is still the case. Saba and Sint Eustatius are progressing, whilst Bonaire shows stagnation. Cft is concerned about the fact that the bank balances apparently could quickly decrease with no timely and adequate explanation given for said decline.
Saba and Sint Eustatius have taken the necessary steps in the improvement of their financial management. With their 2012 financial statements Saba and Sint Eustatius reached a milestone. Saba obtained a positive opinion from the auditor based on the trustworthiness of its financial statement. In the past year Sint Eustatius made great progress in cleaning up its administration files. As a result, for the first time it has become clear what the real financial position of the public entity is. With regard to Bonaire it is remarkable that according to the auditor the high percentage of uncertainties in the 2012 financial statements is comparable in size and number with the uncertainties in the financial statements of 2011. Hence, there is no improvement in the financial management of Bonaire.
The implementation reports for 2013 show that the public entities are probably heading towards an operating surplus in 2013, whereby it should be noted that some special benefits originating from the Netherlands will be transferred with the financial statement to 2014. These funds were not, or not fully, spent in 2013.
At the same time it appears that the liquid assets of the public entities have declined sharply. Often the real cause behind such development becomes clear only after some time. The deteriorating liquidity position may indicate that investments projected for a previous period, were only committed in 2013, but it can also be an indication of lagging revenues. For example, the repayment of interest-free loans along with the compulsory repayment of the target funding made available in the past by the minister of BZV, may lead to a further deterioration of the liquidity position. Cft chairman Age Bakker: "This means that the relationship between the operating results and the liquidity should be properly monitored, and that in the coming period steps should be taken forward in the area of liquidity management and planning. Furthermore, in order to avoid possible arrears, the liquidity position should be stabilized."
The preparation of the 2014 budgets went smoothly. Prior to the officially permissible date of November 15th Saba, Sint Eustatius and Bonaire disposed of a budget adopted by the Island Council, for which the minister of BZK gave his approval before the start of the new budget year.