Audit 2022: Strengthening financial transparency and accountability in St. Eustatius

20231031 FINAL Strengthening financial transparency and accountability in St. Eustatius

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The Court of Audit plays a vital role in ensuring transparency, accountability, and sound financial management within the public sector. Our aim with this report is to add value by identifying areas of concern, highlighting potential risks, and offering recommendations to enhance governance, financial reporting, and decision-making processes.

We conducted an audit inventory of the government directorates, government-owned companies, and subsidized foundations, based on the financial statement of the Public Entity of St. Eustatius for the year 2021. The intended objective of this audit is to provide an accountability overview of each entity and examine the articles of incorporation, focus on the entity's responsibility for financial reporting, the process of appointing board members, and the involvement of the public entity, if any.

By examining the financial statements and articles of incorporation, we sought to assess the effectiveness of financial reporting mechanisms, the adherence to governance practices, and the alignment of activities with objectives. Regrettably, despite our efforts, we did not receive any further information from the government aside from the financial statement from the Department of Finance. This lack of cooperation inhibits their ability to benefit from our report, as it prevents us from providing them with valuable insights and recommendations for improvement. Nevertheless, we remain committed to promoting transparency, accountability, and good financial practices, and we encourage the government to engage with us to facilitate effective reporting and improved decision-making.

An important insight from this audit is the necessity to enhance internal communication and to educate government-related entities about the Court of Audit's role, functions, and the requirement to provide information for audit substantiation.

Our objective is to support the government in achieving its goals, promoting responsible resource allocation, and enhancing public trust in the management of public funds.