32 Entities Have Financial Statements In Arrears

“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

“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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