Thirty of 42 Cayman Islands government entities received the highest possible rating on audits of their finances during the 2015/16 budget year, Auditor General Sue Winspear reported Tuesday.
Six others received “qualified” opinions – meaning auditors detected a few issues with the financial statements they received – and six more entities did not have audits for the year completed yet.
The overall financial statements for the government in 2016 received an adverse opinion due to a number of factors. However, compared to a decade ago, when auditors disclaimed half of the entity financial statements that were submitted, Ms. Winspear said vast improvements have been made.
“The improvements in the timeliness and quality of financial reporting in the Cayman Islands public services has been considerable over recent years,” Ms. Winspear wrote. “We are now at a point where nearly all of the financial statements present fairly the financial results of entities.”
The remaining audits outstanding for the 2015/16 government budget year are due from the Cabinet Office, the Ministry of Education, which has yet to compete three years’ worth of audits, the Ministry of Home Affairs, the Cayman Islands Airports Authority, also owing three years of audits, the Cayman Islands National Insurance Company and the Tourism Attraction Board.
The adverse opinion given for the entire public sector in 2015/16 was largely due to unknown revenue collection figures, unknown values for property held by government and healthcare liabilities that were unreported for a number of entities.
“The most significant issue I included in these audit reports was my concern relating to some entities’ ability to continue operating without the financial support they were receiving from core government,” Ms. Winspear noted.