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Public Accounts

The Accountant General derives his authority as Chief Accounting Officer, from the Finance (Admin.) Act 1997 section (5) and section 4 of the attendant Financial and Stores Regulations of the Act. Accounting Framework: By virtue of being Controller and Custodian of the Consolidated Fund, he ensures that a proper system of accounting is established in every Ministry, exercises supervision over the receipts of public revenue, ensuring its punctual collection to meet the requirements of Ministries.

Public Accounts Services

Section 16 of the Finance (Administration) Act requires that annual accounts be prepared.
The overall objective is to ensure that a financial management system is in place in order to provide a true and fair view of the financial status on a timely basis.

Policies are in place to ensure that all transactions related to the management of the accounts of the Government of St. Lucia are properly accumulated, classified summarized, recorded or and reported in the financial statements of the government in the fiscal year in which they are incurred and all financial transaction and reports accurately reflect the details of all operations.

The Accountant General must submit the following Accounting Reports to Parliament at the beginning of each financial Year.

1. The Accounting Policies

The accounting policies of the Government of Saint Lucia are based on the principles embodied in the Finance (Administration) Act No.3 of 1997 and the Audit Act No.26 of 1988.

2. Public Accounts

The Public Accounts of Saint Lucia consist of the accounts of all officers and authorities of the Government, the accounts of all courts of law in Saint Lucia (including any accounts of the Supreme Court maintained in Saint Lucia), the accounts of every commission established by the constitution and the accounts of the Parliamentary Commissioner, the Clerk of the Senate and the Clerk of the House.

3. Basic Concepts

The basic concepts underlying the Government’s Accounting System are found in the Finance (Administration) Act No. 3 of 1997 which provides for (1) the establishment of a Consolidated Fund and (2) the authorization by Parliament to make payments from the Consolidated Fund by an Appropriation Act or warrant issued by the Minister of Finance.

Budgetary transactions enter into the calculation of the annual deficit or surplus and are disclosed on the Government’s Statement of Revenue and Expenditure. All other transactions lead to the acquisition or disposal of financial claims or to the creation or discharge of financial obligations, and are disclosed on a net basis in the statement of Assets and Liabilities.

4. Basis of Accounting

The basis of Accounting used by the Government of Saint Lucia is the modified cash basis. The Government generally reports revenue in the year in which it is received and expenditure is recorded when incurred, with refunds of revenue allocated to the year in which they are actually paid.

Expenditure consists of all charges to budgetary appropriations, which affect the annual deficit or surplus of the Government and payments from accounts established for specific purposes.

Assets are generally defined as the financial claims acquired by the Government of St. Lucia from outside Organizations and individuals as a result of events and transactions recorded as at the closing date. However, as a result of the Government’s accounting policies described above, certain financial claims are not reported on the Statement of Assets and Liabilities. The most important of these are accounts receivable (net of refunds payable for tax and non-tax revenue) and fixed assets.

Physical Assets or Fixed Assets of the Government are charged to budgetary expenditure at the time of acquisition or construction. Their existence, however, is not acknowledged on the Statement of Assets and Liabilities, since a Physical Asset disclosure is not a requirement of current Government Accounting practice. Efforts will be made to establish a record of Government Assets for purposes of information.
Liabilities are generally defined as the financial obligations of the Government of Saint Lucia to outside organisations and individuals as result of events and transactions recorded as at the closing date. However, as a result of the Government’s accounting policies described above, no provision is made in the Annual Accounts for (a) Terminal Benefit and Pensions, (b) Doubtful Debts and (c) Accrued Interest on Government liabilities.

5. Computerized Accounting System

A new computerized accounting system was introduced in 1997 / 98. This system is an online one and allows the various Agencies to process their own invoices thereby reducing the payment cycle. In the first year of operations, this computerized accounting system was operated parallel to the previous system.

6. Supplementary Estimates

Supplementary Estimate are passed in the House of Assembly. which can effect changes in the structure of the various agencies and departments and the amounts of the total budget.

7. Advances

a. Personal
This category consists of personal loans, student loans and loans granted for the purchase of motor vehicles and motor vehicle insurance.

b. Inter Government Accounts
This shows movements for example regard to the amounts owed for Retiring Benefits for Judges of other territories. The debt must be acknowledged by the relevant government’s administration.

c. Other Advances
This category consists of all other individual advances for example, salary, subsistence and gratuity, advances made to Government Departments, Statutory Boards and Overseas Agencies.

8. Suspense Account

Unreconciled amounts were previously classified as advances or deposits. However, to enhance the comparability of the advances or deposit accounts with the prior period, the items are reclassified as suspense account in the financial statements.

9. Investments

Investments as shown in the Balance Sheet do not include investments in shares and appropriation made for Sinking Funds. However, the expenditure relating to these items is accounted for as part of the appropriation for the respective years, and is therefore reflected in the notes to the Financial Statements.

The main Foreign Investments of the Government of Saint Lucia maintained by the Crown Agents in the United Kingdom. (circa 1998)

Also included in the investment accounts are the cash amounts held at the Crown Agents for various accounts namely:

Savings Bank $
St. Lucia Reserve Fund $

10. Vouchers Payable

1. The Vouchers payable figure, as reflected in the Government’s Accounts, should represent Government’s indebtedness for invoices in respect of goods and services at the year-end.

11. Special Funds

The amounts of these are always are always stated for example, New Hospital Building Fund (circa 1998)

12. Contingency Fund

As per Section 11 of the Finance Act No. 3 of 1997 a Contingency Fund can be set up. The main purpose of this fund should be stipulated.

13. Promissory Notes

The Government of Saint Lucia, in fulfillment of its obligation for membership in the under-mentioned International Organizations issues an amount through the Eastern Caribbean Central Bank in promissory notes.

International Monetary Fund

St. Lucia’s cash balance in respect of compulsory participation in the SDR Department of International Monetary Fund at 31st March 1998 stood at ECD $40,555,899.

14. Public Debt

Public sector loans comprising those which are both the direct and the indirect responsibility of the Government of St. Lucia (GOSL) are included in the Public Debt listing.

15. OECS Pharmaceutical Procurement Services (OECS-PPS)

Participating Governments and the Government of the British Virgin Islands utilize OECS-PPS to obtain medical and pharmaceutical supplies at reduced costs. This is achieved through the pooling of purchases. The Eastern Caribbean Central Bank facilitates this arrangement by holding an OECS-PPS current account on behalf of the Government of St. Lucia and all other members. Regional and International payments are settled from this account.

A specified float amount is maintained by the Government of St. Lucia.

16. Government of St. Lucia Operating Account

The operating account was established by the ECCB on the authority of the Monetary Council, and is used to make and/or receive payments on behalf of the Government of St. Lucia.

The account is kept in a credit balance.

17. Other Liabilities

There are sometimes bills for collection and letters of credit outstanding with the bank (Bank of St. Lucia) on behalf of various ministries and departments.

18. General Post Office and Out District Post Offices

The total value of cash on hand, stamps and stamped stationery, postal orders and phone cards at March 31st is stated.

In addition to the above, items which cannot be quoted in monetary terms, include: -

• Registered Letters
• Parcels and Small Packets.
• EMS Letters/Packets
• Un-issued Money Order Forms

19. Government Shareholdings

The Government of Saint Lucia’s shares/investments as at March 31st in Corporations and Institutions such as the following is always stated.
Caribbean Development Bank
Caribbean Food Corporation
International Finance Corporation
LIAT (1974) Limited
National Commercial Bank of St. Lucia Ltd. / Bank of Saint Lucia
Saint Lucia Development Bank
Saint Lucia Electricity Services Limited
Saint Lucia Fish Marketing Company Ltd.
Saint Lucia Mortgage Finance Company Ltd.
Saint Lucia Joint Venture Capital Fund
W.I.N.E.R.A.
Computer Centre Ltd.
Saint Lucia Livestock Development Ltd.
Nationwide Properties Limited
East Caribbean Investment Ltd. Carib Express Inc.
Windward Island Banana Development and Export Co. Ltd. "WIBDECO"
Jalousie 1996 Limited .
Subtotal


OTHER INVESTMENTS
International Monetary Fund
Housing & Urban Development Corporation
National Development Corporation
Saint Lucia Air & Sea Ports Authority
Saint Lucia Broadcasting Corporation
Saint Lucia Fish Marketing Corporation
Saint Lucia Marketing Board
Water & Sewage Authority
Computer Centre Ltd.
St. Lucia Livestock Development Co. Ltd.

ADDITIONAL DATA
Confirmations are received from the various corporations and institutions to support Government’s total shareholdings and investments at March 31st .

20. Subsequent Event

Any events affecting Government of St. Lucia’s shares in Companies as at 31st March are reported.

21. Sinking Funds

Balances of the following funds usually held in fixed deposits are reported as at 31st March:

The amount of the total purchase price is represented with the discount to be recorded as expenditure on the due date of each bill.

22. Exchange Gains and Losses

Exchange gains and losses incurred through exchange transactions form an integral part of the Surplus/Deficit account for the financial year. Assets resulting from foreign currency transactions are reported at the year-end closing rates of exchange.