PHILIPSBURG:--- The General Audit Chamber presented its report entitled ‘Compliance Audit: 2022 Financial Statements St. Maarten’ to Parliament. The Audit Chamber assesses whether the government has managed St. Maarten's public funds in a legally consistent and effective manner.
By law, the Financial Statement 2022 should have been drafted before September 1, 2023. However, the Audit Chamber, together with the internal accountant SOAB, received the 2022 Financial Statements on January 4, 2024. Following SOAB’s audit, which was completed on July 29th, 2024, the Audit Chamber had six weeks to present their report to Parliament. They met this legal deadline by submitting their report on September 6th.
Similar to the findings in the 2021 Financial Statements, the Audit Chamber concludes that the 2022 Financial Statements do not provide a true and fair representation of the government's income, expenses, and financial position as of December 31, 2022. The Audit Chamber has identified ongoing irregularities and deficiencies, including significant legal and structural errors, which undermine the accuracy and reliability of financial reporting.
The unreliability of the 2022 Financial Statements makes it challenging, if not impossible, to use the actual performance figures in preparing the next budget. Moreover, the ongoing lack of transparency and accountability in financial management has led to serious legal concerns. This resulted in an audit in 2024 specifically into the allocation of vehicle taxes. This audit marked a preparatory phase in the process of formal objection. The Audit Chamber can take measures, such as the objection, to enforce accountability and safeguard that recommended actions for improved financial management and governance are seriously considered and not ignored without just cause.
The Audit Chamber also notes that Parliament lacks sufficient insight to adequately assess the efficiency of financial management and the achievement of policy goals. “We stress the importance of sound financial management, as it not only ensures efficient use of tax revenues but also builds public trust in government, increases tax income, reduces financial dependence on the Kingdom, and diminishes the need for stricter financial oversight” the Chairman of the Audit Chamber concluded.
The report is published in both English and Dutch and is available on the website of the General Audit Chamber (www.arsxm.org).
