General Audit Chamber reviews annual accounts for Sint Maarten 2002-2005
Commissioner Roy R. Marlin
The Executive Council of Sint Maarten submitted the annual accounts for the years 2002-2005 which were as a result of a backlog which needed to be worked off expeditiously compiled by external accountants hired specifically for this purpose.
These annual accounts were submitted to the General Audit Chamber (ARNA) on September 20, 2005 and October 3, 2006 consecutively for review. The earliest response received from the General Audit Chamber has been received on Monday August 24, 2008 some two to three years later.
It is important to look at the comments of the General Audit Chamber with knowledge of certain facts. For example, year after year the ARNA refers to pre-financed deals initiated by the Island Government but fails to mention that Sint Maarten has requested over and over the right to borrow in order to be able to make capital investments instead of the more expensive forced alternative which is to finance said investments through the operational budget. A solution which is far from ideal, however, necessary in order for government to be able to live up to some of its responsibilities (road network and repairs, building classrooms, refurbishing of all public schools etc). Up to date the right to borrow has not been granted to Sint Maarten despite several protocols signed between the Federal Government, the Netherlands and St. Maarten. In fact a positive advice was received from the Netherlands but seemingly this advice and the law amendment to regulate the right to borrow has fallen on deaf ears at the Central government level.
The issue of study loans also comprises several request from the island Territory to Federal Authorities to have this matter regulated. Unfortunately this also fell on deaf ears. Is it expected that Government seize from granting scholarships in the form of study loans, to our students who want to pursue academic excellence?
The Island Territory of Sint Maarten has been engaged in projects which would improve the administration of the entire Island Government which in turn would enable government to receive a positive declaration from an accountant on the annual accounts. In the last quarter of 2005 said project was initiated by the Island Government and executed by the in house accountant the SOAB Foundation Government Accountant Bureau, which won the open bid to execute said project.
Many of the recommendations put forth by the SOAB are presently being worked on in the area of the implementation of the improvement of financial management which is an essential part of the constitutional trajectory which has been ongoing.
The finance department as well as many other big spending departments have been engaged in employing qualified personnel to strengthen the administrative arm of their operations. For example, the finance department has successfully hired 6 new staff members in the last year on HBO level. These persons are instrumental in strengthening the finance department especially as it concerns completing the annual accounts timely and with the necessary accuracy. Considering that the finance department is heavily dependent upon the big spending sectors such as Education, ROB, Healthcare, and Economics and Tourism to deliver accurate and timely financial information, a decision was made to place financial controllers at these respective sectors. In fact the decision was already made to hire someone to fill this function at the Sector Healthcare
while recruitment is taking place for persons to fill the functions of financial controllers at the other aforementioned sectors.
Other measures taken to ensure that the administration is brought up to par include expanding the financial computer system DECADE to be able to deliver accurate management reports to the management team of the government (directors) as well as the Executive and Island Council. Another important project initiated and now in the process of implementation is the strengthening of the budget control function within the Finance Department. This particular looks at the credit control system which is already in place and makes recommendations for further improvements and takes serious consideration already with the demands as laid down in the regulation for transitory financial supervision for the Netherlands Antilles, Curacao and Sint Maarten.
Last but definitely not least, the director of resources is presently charged with recruiting a head of Finance to continue the process of improvements which has been initiated by him and his team within the Finance Department. The appointment of said head would catapult the implementation of the aforementioned efforts so that the Country Sint Maarten can truly boast of being afforded a healthy start. This function will be filled by November 15, 2008.
The Island Territory recognizes the importance of having a positive declaration by its accountants on the annual accountants and we are striving to achieve this for the period 2008. However this will only be achieved if all parties involved also commit to assisting the Island Territory in obtaining its goals, which is e.g. the right to borrow in accordance with the AMVRB, the right to grant study loans etc. If these matters are also not resolved while as an Island Territory we are striding forward with the improvements within our financial administration, these items will remain as sticking points when presenting our annual accounts.
Commissioner of Finance
Roy R. Marlin