Framework for Fiscal Responsibility

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Here are some of the major requirements of the UK-Cayman Framework for Fiscal Responsibility:

• Cayman must “suitably appraise” all public projects before the procurement {bidding} process begins and all projects must have a sound business case, including a risk-assessment completed prior to bidding.
• Projects above a lifetime value of $10 million, as well as any projects that use public-private partnerships, must be reviewed by independent legal and financial advisers. These projects will also have to be made public for consultation prior to procurement.
• Public private partnership projects will not be considered if those projects are worth less than $15 million.
• Cayman will not borrow fund capital expenditure unless the project will yield sufficient revenues to pay for debt service; or if the government has enough surplus funds to cover the costs of repaying debt.
• Cayman will comply with all principles of responsible financial management by the end of the 2015/16 fiscal year (30 June, 2016).
• The government will produce timely audits and account statements for all budget years.
• If the Cayman Islands breaches of the Framework for Responsibility, it must present a plan to correct such a breach to the UK Secretary of State which will be reflected in the government’s annual Strategic Policy Statement.