July 04, 2012 1:59 PM
SABA - The Island Ordinance Financial Management Saba was passed unanimously during the Island Council meeting on Thursday June 28th , 2012. Finance Commissioner Bruce Zagers described the ordinance as a positive outcome many years in the making.
He acknowledged it is a technical document, regulating the relationship between island government and Committee for Financial Supervision CFT, and between the Executive and Island Council setting internal procedures. It is also a required document based on current legislation and comes at the behest of the auditor in the year report 2011.
The Commissioner then provided an overview of the six chapters and 32 articles making up the document, acknowledging WIPM Island Councilman Carl Buncamper’s observation of a missing definition within the document and his subsequent request for an amendment. The Commissioner supported that adjustment.
In the first round of deliberation on the proposal, Councilman Rolando Wilson (WIPM) congratulated Commissioner Zagers and staff for putting together the document. Buncamper sustained the commissioner’s remarks of this being a positive development, reiterating that while the document is technical in nature, it needs to be manageable, outlining processes for clear understanding of implementation steps. He proceeded to read the amendment and submitted it for approval. All council members voted unanimously in favour of the amendment and subsequently voted for the ordinance.
Executive summary of the Island Ordinance Financial Management Saba
Pursuant to Article 34 of the BES Finances Act, the Island Council has to establish the starting points for the financial management and the setup of the financial organization by means of an Island Ordinance. By means of this Island Ordinance, the above is concretized, while the regulation Policy Budget and Accountability BES (BBVBES) has also been taken as a guideline.
The framework of the budget shall be established every year by the Board of financial supervision (“Cft”) in the so-called framework letter; a concept budget based on unchanged policy prior and further the choice of the Island Council based on a (draft) policy plan. The policy plan will be based on the regulation Policy Budget and Accountability BES (“BBVBES”). The policy budget shall pay attention to the following subjects in separate paragraphs: local duties; buffer capital; maintenance capital goods; management; participations; land policy; collective sector.
The financial budget shall contain next to the budget year the financial consequences for the following 3 years. The Island Council shall adopt the final budget on November 1 prior at the latest, after the Executive Council have submit a draft budget to the Island Council on September 1 at the latest. The Executive Council shall send the budget adopted by the Island Council to the Minister of the Interior and Kingdom Relations (“BZK”) before November 15.
The Executive Council shall notify the Island Council at least after every quarter of the realization of the budget of the public body by means of interim reports. The layout of the interim reports shall correspond with the job classification of the budget.
The Island Council shall authorize the Executive Council to transfer budget amounts between positions on specified conditions. The Executive Council will arrange sufficient measures of internal control built in the administrative organization. The Executive Council can cause the truthfulness of the information provided and the legitimacy of the management acts to be reviewed.
The Executive Council shall render account to the Island Council of the implementation of the budget by means of the annual report and accounts. The auditor’s report shall be included in the annual report and accounts. The Executive Council shall submit the annual report and accounts after adoption by the Island Council before July 15 to the Minister of BZK through the Cft.
Besides the earlier mentioned paragraphs the Executive Council offers a statement of subsidies and current transfers together with the budget and the financial statements. In this legislation there are rules sets of the valuation and depreciation of the fixed assets. A provision shall be created for outstanding claims on account of being uncollectable.
The Executive Council offers a statement of reserves and provisions together with the budget. The Executive Council shall see to an up-to-date and complete registration of property.
The frameworks for the organization of administrations and the financial administration are inserting in this legislation. The Executive Council shall see to it that based on the regulations laid down by the Island Council the administrative process is directed.
Source: sabanews.com / The Daily Herald