~ SZV receives a clean audit report for the third consecutive year ~
PHILIPSBURG:--- For the third consecutive year, Social & Health Insurances SZV received a clean audit report for its financial statements. The clean audit report was issued by the government audit bureau, Stichting Overheids Accountants Bureau (SOAB). A clean audit report, also termed an 'Approved Control,' means that the auditors found that the financial reporting by SZV was accurate and transparent. Moreover, SZV finalized its 2023 audited Annual Report within the guidelines stipulated in its National Ordinance.
“Embracing one of SZV's core values, Collaboration, where the power of internal and external collaboration, dedication and determination, and an improved approach to our audit process contributed to our success in finalizing the 2023 Annual Report within the legal timeframe.” – Elton Felisie, SZV Chief Financial Officer
This milestone was achieved through continual efforts to improve the quality of the financial reporting and related processes. While there has been much progress with the quality and content of the financial reporting, the auditors gave an adverse opinion regarding the financial compliance aspects of healthcare funds, as this remains a point of attention and concern.
The concern for financial compliance is primarily due to coverage executed by SZV that falls outside the legal scope of the respective ordinances. This includes, but is not limited to:
- Medical referrals: Only expenses of treatments on Sint Maarten are to be covered by the ZV fund. Therefore, the expenses of medical referrals abroad are incompatible with the applicable laws and regulations.
- Insured elderly residents: Certain elderly residents are being provided health insurance via the ZV fund, although they are above the pension age stipulated in the ZV law and regulations.
- Legal reserves: The legal reserves of the ZV/OV funds are currently lower than 50% of the average expenses of the last five years of these funds. The reserves are currently in deficit.
“The ZV, OV, and FZOG funds continue to function under financial pressure due to the medical demands of the community for which health financing reform is being emphasized. The ability of SZV to improve its financial compliance has been hampered by longstanding pending legislative changes. Nevertheless, we continue to work closely with our government partners to address these points of concern and the need for improvement.” – Glen A. Carty, SZV Director
The condensed financial statements are available on SZV’s website, www.szv.sx. The 2023 condensed financial statements will be online within the coming weeks.
