📊 Cayman Islands Government continues to struggle with financial accounting

Auditor General Sue Winspear has expressed ongoing concerns about the quality of financial statements submitted by government entities in the Cayman Islands. Despite improvements in recent years, Winspear noted that there were still significant issues, particularly in relation to compliance with procurement legislation. She highlighted that over 280 audit adjustments, valued at $115 million, were made to the 2022 accounts after they had been submitted for audit. This resulted in expenditure changes of over $26.5 million, affecting the financial performance of public bodies. 📉

Winspear also pointed out that the internal controls for most public entities need strengthening and that accounting policies were often inadequate. She raised concerns about statutory authorities and government companies not complying with the law, with some public bodies procuring goods and services without approval from the Public Procurement Committee. Winspear warned that these issues must be addressed to ensure that public bodies get value for money when procuring goods and services using public funds. 📚

Furthermore, the Auditor General detailed the challenges the government faces over its consolidated accounts. Due to the failure to implement corrective measures to improve the quality of these statements, her office is likely to issue an adverse opinion. The Ministry of Finance has been advised to develop a roadmap for moving from an adverse opinion to a qualified audit opinion in the first instance, and an unqualified one in the longer term. 💼