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The report, Follow-up on past PAC recommendations 2023 – Report 1, was issued today by the Office of the Auditor General (OAG). This report is the latest in a series. It provides an update on the Government’s progress with implementing recommendations made by the Public Accounts Committee (PAC) of the Parliament for two reports; Improving Financial Accountability and Transparency: Budgeting and Improving Financial Accountability and Transparency: Financial Management and Reporting.

The two OAG reports date back to December 2020 and May 2021 and made a total of 33 recommendations. The PAC endorsed these recommendations but did not make any further of their own. As of February 2023, only two (6 per cent) of them had been implemented. There has been no or limited progress with four (12 per cent) of the recommendations and 25 (76 per cent) recommendations were in progress or action is planned. The Government didn’t accept two (6 per cent) of the recommendations.

Sue Winspear, the Auditor General, said, “It is disappointing that only limited progress has been made in implementing the recommendations made to improve Cayman’s budgeting, financial management and reporting systems”.

The report assesses progress with implementing the recommendations in Improving Financial Accountability and Transparency: Budgeting that was published in December 2020 as Red – limited progress. One (6%) recommendation has been implemented, some progress or action is planned for 14 (82%), and limited or no progress has been made for two (12%).

The Auditor General says, “The Ministry of Finance has made limited progress in improving the Government’s budgeting framework and processes, with only one recommendation implemented over the past two years.” Ms. Winspear adds, “I acknowledge that the Ministry of Finance has recently commissioned consultants to take forward much of this work. However, it is disappointing that the timeline for implementing my recommendations has now been pushed back further to December 2025. This further delay means that we will not see more user-friendly, transparent and outcomes-focused budgets until 2026 and 2027. The budgeting system is fundamental to driving the efficient and effective use of Cayman’s finite resources and so while these changes may sound a little bureaucratic, they are really important.”

The report assesses the Government’s progress with implementing the recommendations in Improving Financial Accountability and Transparency: Financial Management and Reporting from May 2021 as Red – limited progress. Two recommendations were not accepted. Of the remaining 14, one (6%) has been implemented, 11 (69%) have some progress or action is planned, and two (13%) have no or limited progress.

The Auditor General says, “Limited progress has been made in implementing my recommendations to improve the Government’s financial management and reporting.” Ms. Winspear continues, “The Ministry of Finance plans to take action as part of the overarching project on modernising the budgeting and financial reporting framework. But this means, again, it will be another five years at least before we see any improvements. The Government is not currently reporting some important information needed for proper accountability like the full cost of the liability for post-retirement benefits.”

The report provides an update on the Government’s progress with tabling its formal responses to PAC reports (known as Government minutes). 

More information about the report can be obtained by contacting Sue Winspear at (345) 938-3201. 

This report and the original OAG reports on which this report is based are available at www.auditorgeneral.gov.ky.

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