32 Entities Have Financial Statements In Arrears

October 3, 2022 | 4 Comments

“As at September 2022, roughly 32 publicly funded entities have approximately 131 years of financial statements in arrears,” Auditor General Heather Thomas said.

A spokesperson said, “The Auditor General said her constitutional and legislative role to ensure that the Government of Bermuda is spending – the Citizens of Bermuda money wisely and to enhance public sector efficiency, transparency and accountability – through the financial statements audits’. ‘The responsibility of auditing public money – your money is not transferrable”.

“Financial statement audits enable the House of Parliament and the citizens and residents of Bermuda to hold the Government and individual public bodies accountable for their use of – your money [public money]. Accreditors, and other stakeholders also rely on the financial statement audits that the audits provides assurance that management has presented a true and fair view of its financial performance and position.”

Ms. Thomas said, “No one said that her job will be easy and that criticism is anticipated from time to time.”

The spokesperson added, “And as reported previously, information provided to her office by many publicly funded entities is often incomplete or not reviewed in sufficient detail by management or those charged with governance resulting in multiple accounting adjustments, or the financial accounts not being submitted at all.

“This situation has gotten worse because of the Covid-19 pandemic. However, it should be noted that even before the Covid-19 pandemic, the Government of Bermuda had significant challenges in properly preparing its financial accounts for audit as reported also by my predecessors. These challenges have only been exacerbated over the last two years by the Covid-19 pandemic.

Ms. Thomas added, “Her office will continue to work with our auditees, which will mean that additional time will be taken to complete financial statement audits”.

“The audits in arrears also frustrates me,” she said. “It is frustrating hearing or reading about public money being spent on transactions and the financial accounts and supporting documentation are not provided to her office for audit or the information provided to her is unauditable. Audits are posited to increase accountability and the usefulness of the financial statements is diminished each year that passes’.

“There is little financial training for Board members or their volunteers. This training is the responsibility of the Ministry of Finance,” a spokesperson said.

Ms Thomas said, ‘Her Office has conducted training to Board Members on their fiduciary financial duties and how to prepare for a financial audit’.

A spokesperson added, “Significant momentum has been gained on the reviews of the Parish Council. See here for the status of the Parish Councils. As at September 2022, roughly 32 publicly funded entities have approximately 131 years of financial statements in arrears. Of the 131 accounts in arrears 55 or [42%] are under the auspices of the Ministry of Finance and the timeline for when these accounts may be available for audits remains outstanding.

“Below is a listing of the entities and the years in arrears.

11 years in arrears

  • Confiscated Assets Fund

9 years in arrears

  • Contributory Pension Fund [Jul]
  • Government Employee Health Insurance
  • Public Service Superannuation Fund

7 years in arrears

  • The Berkeley Institute Capitation Grant Account
  • Whitney Institute Middle School Capitation Grant Account
  • Bermuda Educators Council

6 years in arrears

  • Ministers and Members of the Legislature Pensions Fund
  • Sandys Secondary Middle School Capitation Grant Account

5 years in arrears

  • Trustees of the National Sports Centre
  • CedarBridge Academy
  • Board of Trustees of the Golf Courses
  • Government Borrowing Sinking Fund

4 years in arrears

  • FutureCare Fund
  • Health Insurance Fund
  • Mutual Re-insurance Fund

3 years in arrears

  • Bermuda Land Development Company
  • Bermuda Economic Development Corporation
  • Pension Commission [Dec]

2 years in arrears

  • Bermuda Casino Gaming Commission
  • Bermuda Housing Corporation
  • Regulatory Authority
  • FinTech Development Corporation
  • Government Reserves Fund
  • Unemployment insurance Fund

1 year in arrears

  • West End Development Corporation
  • Privacy Commissioner’s Office
  • Office of Information Commissioner
  • Bermuda Shipping and Maritime Authority
  • Bermuda Civil Aviation Authority
  • Bermuda Hospitals Board
  • Bermuda Deposit Insurance Corporation

“The Office also provided a high-level summary of their Work in Progress

“The definitions of the audit status are as follows:

  • In –Progress – Financial statements submitted and audit in progress
  • Substantially completed – Financial statements submitted and audit fieldwork completed subject to quality reviews
Entity Fiscal Year Date Audit Completed or In Progress
Bermuda Arts Council 2021 22-Jun
Bermuda Airport Authority 2022 In- Progress
Bermuda Civil Aviation Authority 2021 In- Progress
Bermuda College 2022 22-Sep
Bermuda Deposit Insurance Corporation 2020 22-Mar
Bermuda Deposit Insurance Corporation 2021 In- Progress
Bermuda Deposit Insurance Corporation 2022 In- Progress
Bermuda Heath Council 2021 22-Jul
Bermuda Hospitals Board 2020 22-Mar
Bermuda Hospitals Board 2021 In- Progress
Bermuda Housing Corporation 2020 Substantially completed
Bermuda Housing Corporation 2021 In- Progress
Bermuda Housing Trust 2021 22-Feb
Bermuda Housing Trust 2022 In- Progress
Bermuda Land Development Company Limited 2019 In- Progress
Bermuda Land Development Company Limited 2020 In- Progress
Bermuda Land Development Company Limited 2021 In- Progress
Bermuda Monetary Authority 2021 22-Apr
Bermuda Public Accountability Board 2022 22-Sep
Bermuda Shipping and Maritime Authority 2021 In-Progress
Bermuda Sport Anti-Doping Authority 2022 22-Jun
Bermuda Tourism Authority [Dec] 2021 22-Jun
Financial Intelligence Agency 2021 22-Mar
Office of Ombudsman 2019 22-Mar
Office of Ombudsman 2020 22-Mar
Office of Ombudsman 2021 22-Mar
Regulatory Authority 2020 In- Progress
West End Development Corporation 2021 In- Progress
Consolidated Fund 2021 22-Jan
Consolidated Fund 2022 In- Progress
Future Care Fund 2017 22-Mar
Health Insurance Fund 2017 22-Mar
Mutual Re-Insurance Fund 2017 22-Mar
Unemployment Insurance Fund 2020 In-Progress
Unemployment Insurance Fund 2021 In-Progress
St. George’s Preparatory School Capitation Grant Account 2021 22-Mar
St. George’s Preparatory School Capitation Grant Account 2022 In-Progress

“There are many entities, including Bermuda Sport Anti-Doping Authority, Bermuda Monetary Authority, Bermuda Public Accountability Board, Bermuda Tourism Authority and St. George’s Preparatory School Capitation Grant Account, this list is not exhaustive, who consistently produced timely accounts for audit, in accordance with the prescribed standards.”

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Comments (4)

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  1. gwaine says:

    Embarrassing.

    With a straight face, how can the schools here teach punctual school work.

  2. Gwan says:

    Incompetent or suspect? What do you all think. Hey you what? They are doing a remarkable job, why aren’t they managing the corporations or Hamilton at St George’s. You all still thing more government is the answer.

  3. Joe Bloggs says:

    “it should be noted that even before the Covid-19 pandemic, the Government of Bermuda had significant challenges in properly preparing its financial accounts for audit as reported also by my predecessors. These challenges have only been exacerbated over the last two years by the Covid-19 pandemic.”

    How odd. It seems like only yesterday Col. Burch was berating the Auditor General for taking so long to publish her results.

  4. sandgrownan says:

    Turn off the cash.

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