WILLEMSTAD - The General Court of Audit Curaçao has presented alarming findings in its most recent report concerning the financial statements for 2021. As a result, these statements are not approved.
The report highlights severe budget overruns, unauthorized obligations, deficient financial management, and uncertainties regarding the reliability of the financial statements for the year 2021.
The Court of Audit examined the financial statements of the country, revealing that not all expenditures and revenues correspond to the established National Budget. The difference amounts to nearly 663 million guilders.
The report unveils budget overruns in various ministries, including capital expenses and investments that are significantly higher than budgeted.
Furthermore, serious irregularities have been identified in relation to payments made by unauthorized officials, which goes against the laws and regulations."
Accuracy
The Court of Audit further asserts that significant uncertainty exists regarding the accuracy and completeness of the financial figures in the financial statements, particularly concerning tax revenues, subsidies, staff compensations, and financial assets. The lack of documentation and internal control procedures plays a role in this regard.
The report highlights serious deficiencies in the financial management of the country. The absence of internal control functions within ministries, the lack of updated instructions and standards for revenues, and the failing system of segregation of duties in staff cost processes are among the identified challenges.
The Court of Audit emphasizes that this situation shows no improvement compared to previous years and that the identified shortcomings could have severe consequences for the financial stability of the country. The recommendations made in previous reports have not been adequately followed.
Initiatives
The country has currently initiated two initiatives to enhance financial management, but the report underscores significant obstacles, such as a shortage of personnel and financial resources, as well as lagging decision-making. The Court of Audit calls on the Parliament to critically evaluate whether these initiatives are sufficiently feasible.
The report concludes that the financial statements do not provide a faithful representation of the financial position and results of the country. It calls for urgent measures and transparency to address the dire financial situation and restore credibility to financial management.