Business

PUBLIC FINANCIAL MANAGEMENT REFORM IN BARBADOS

THE EXPERIENCE OF ICAB

As a Professional Accountancy Organization (PAO), the Institute of Chartered Accountants of Barbados (ICAB) has, for many years, collaborated with the Government of Barbados in its efforts to improve the country’s public financial management (PFM) system. While there have been a number of success stories resulting from that collaboration, Barbados is on a continuous PFM reform journey with more work still to be done.

In recent weeks the Report of the Auditor General for 2021 identified a number of areas of concern with respect to accounting practices and financial reporting by the Treasury and some state owned enterprises (SOEs). This report triggered much discussion and debate on PFM in Barbados and underscored the need for increased efficiency, accountability, and transparency in public financial reporting.

The heightened interest in PFM by the citizens of Barbados must be applauded and emphasizes why it is a strategic priority for ICAB, and why ICAB is committed to continuing to collaborate with the government to progress reforms.

How did ICAB get started on this journey of collaboration with the government on PFM reform?

In 2007 the Parliament of Barbados enacted the Financial Management and Audit Act, which adopted the accrual basis International Public Sector Accounting Standards (IPSAS) as the financial reporting standards for the Barbados public sector.

ICAB’s first major step in working with the government was by serving on a steering committee for IPSAS implementation during the move from a cash based to an accrual system of accounting. Through this engagement, ICAB recognized the need to deepen its focus on accounting and auditing issues in the public sector, so in 2011 ICAB’s Council approved the creation of a Public Sector Committee as one of its standing committees, comprising of accountants in government, accountants in business, and auditors.

The first chair of the Public Sector Committee was Mr. William Layne, an ICAB member and former Permanent Secretary of the Ministry of Finance. Under his chairmanship, the immediate priorities of the committee were to:

Create relevant continuing professional development (CPD) for public sector accountants;
Establish joint initiatives with government agencies; and
Promote membership of ICAB to professional accountants in the public sector.

In addition to IPSAS, the Public Sector Committee worked with other committees to expand CPD offerings for public sector accountants, including seminars in areas such as internal controls & internal auditing, prevention of corruption, enhancing accountability and the role of the Auditor General, and pensions reform.

The work of ICAB’s Public Sector Committee caught the attention of colleagues in the Institute of Chartered Accountants of the Caribbean (ICAC). As the first PAO in the region to have such a committee in place, the Chairman of ICAB’s Public Sector Committee was invited by ICAC to share with other Caribbean PAOs, ICAB’s experience in working successfully with the public sector to promote good governance, accountability, implementation of IPSAS and other best practices.

The second major step was taken when the Public Sector Committee broadened its focus on PFM Reforms to the wider governance issues confronting the public sector. This was marked by an inaugural ICAB Public Sector Conference in 2018, co-hosted with CPA Canada and titled “Public Financial Management (PFM) Reforms in Barbados – Challenges and Opportunities”. The conference provided ICAB members access to international experts in matters relevant to the public sector such as, digital technology, governance, transformational leadership, PFM reforms and financial reporting. This conference now has a permanent place on ICAB’s calendar of events, with the next public sector conference scheduled on September 16, 2022. This will focus on the Public Procurement Act 2021, the Consolidation of Financial Statements under IPSAS and more.

The third major step occurred after the enactment the Public Finance Management Act 2019 (PFM Act) which replaced the Financial Management and Audit Act 2007. The new PFM Act is aimed at strengthening and improving PFM and includes new provisions related to the reform of SOEs particularly in the areas of governance, finance, and reporting.

The ICAB President at that time, Lydia McCollin, along with the Public Sector Committee held discussions with the Ministry of Finance to determine how ICAB could work with the government in this next important phase of PFM reforms. In November 2019 ICAB submitted a proposal to the Ministry of Finance outlining how ICAB—through its members, partnerships with professional qualifying bodies and other professional associations—could add value, provide guidance and assist the government in implementing its initiatives in the areas of corporate governance, financial accountability, reform of SOEs, training and certification for public sector finance officers, institutional strengthening of finance departments, and internal audit.

As a follow-up, ICAB also submitted to the Ministry of Finance a Corporate Governance Framework for SOEs and a paper on the establishment of audit committees at all SOEs for consideration and further discussion. Additionally, ICAB included in its CPD schedule, training on accounting fundamentals and practice to increase efficiency and effectiveness in financial reporting in the public sector.

What lessons can be learnt from the ICAB experience in supporting reforms in public financial management?

First, as a small PAO with limited resources, much can still be achieved by drawing on the time and talents of members through committees. The ICAB Public Sector Committee is one of the newer committees but its clear mandate and ICAB’s governance polices have facilitated its strong performance in support of PFM reforms and contribution to the professional development of ICAB members in the public sector.

Second, while changes to laws, regulations and accounting policies are necessary for PFM reform, they are not sufficient to ensure success. Those high-level changes must be supported by clear interpretation and articulation of accounting policies by senior management, training and development for staff at all levels, changes in administrative procedures, and timeliness and accuracy in reporting at all levels.

Thirdly, celebrate the reform successes, even while still struggling with the more difficult and slower aspects of reform. This can be an inspiration to the agencies and individuals who still have their “mountain to climb” with the reforms.

(by Lydia McCollin, Member of the ICAB Public Sector Committee and Immediate Past President of ICAB)

Business

COURTESY GARAGE INTRODUCES HYUNDAI GREEN MOBILITY FLEET

As Barbados moves towards the United Nations Sustainable Development Goals (SDG,) members and friends of BIBA, the Association for Global Business, recently had a first hand look at the new Hyundai electric and hybrid vehicles as Courtesy Garage unveiled its Green Mobility Fleet.

The new 2025 Santa Fe and Tucson models were unveiled by officials of Courtesy and BIBA – President, Marlon Yarde and Executive Director, Carmel Haynes; along with Allan Bayne, CEO of the Automotive Division of the Goddard Group and Andrez Greene, General Manager of Courtesy Garage, while the Ioniq 5 and Kona electric and hybrid vehicles were on display on arrival at the Mahogany Ridge event.

*Allan Bayne and Carmel Haynes unveil the new Hyundai Tucson*

In welcoming guests to the event, General Manager Andrez Greene, stated that the launch marked the 103-year-old company’s move into a new sustainable chapter that aligned with the island’s visions of becoming a clean and resilient energy economy, that will support the National Energy Policy. He also explained that the Courtesy service team had undergone extensive training in EV Technology to ensure that clients were supported throughout their experience.

*Some of the guests who attended the Launch of the Courtesy Hyundai Green Mobility Fleet*

“Our skilled technicians are trained to work on these advanced hybrid systems, ensuring your Hyundai receives the expert care it deserves. From routine maintenance to any potential repairs covered under the vehicle or high-voltage component warranties, we have the tools, technology, and expertise to keep your vehicle running smoothly and efficiently for years to come” stated Scott Bentham, the Service Manager at Courtesy Garage as he reinforced the words of General Manager Greene.

Just before Hyundai Sales Manager Ryan Morris unveiled the new vehicles, he introduced the Sales Team of Lisa Boyce, Mechelle Clarke & Derek Harris to the audience and spoke about the Hyundai commitment to sustainable new energy and the company’s strategy for electrification.

He explained that as the 3rd largest car manufacturer in the world, Hyundai still intended to grow, aiming to sell 2 million EV’s per year globally by 2030. He stated that they intend to offer a full lineup of 21 EV Models by 2030 ranging from affordable to luxury and high-performance vehicles.

“This is a demonstration of what’s possible when the private sector aligns with the national development goals; and BIBA is proud to stand with Courtesy’s green initiative which reminds us of the power of partnerships in advancing sustainability” stated President of BIBA Marlon Yarde, as he welcomed all to the event. He urged the guests to make more conscious choices generally, ‘as we look to a low carbon future and we journey to a more resilient Barbados.’

In explaining the various conveniences which Courtesy had put in place for clients, Andrez Greene stated that with every EV purchase, Courtesy will provide a free home charger installation, “because charging should be easy, accessible and on your terms” he added. (PR/GIS)

Business

EXPORT BARBADOS TO LAUNCH ITS EXPORT-IMPACT (EXIM) PROGRAMME

Export Barbados is set to roll out a comprehensive suite of support mechanisms with the focus on protecting gains, expanding exports and strengthening the sector.

Business

Young Upcoming Executives Spend Time with Regional Executives

Eleven eager young men with aspirations to become executives or entrepreneurs when they grow up, had a unique opportunity recently when they visited and sat with the most senior executives at the regional head office of CIBC Caribbean.

The semi-finalists and finalists in the 2025 Mr. Executive Challenge had the opportunity to meet and ask questions of the members of the executive suite of the bank.

*Mark St. Hill chats with the students as he welcomed them to the Job Shadow Day at the bank, to his left is Donna Wellington, Chief Country Management Officer.*

The students, representing their respective secondary schools, met with Chief Executive Officer, Mark St. Hill; Chief Financial Officer, Carl Lewis; Chief Risk Officer, Patrick McKenna; Chief Auditor, Khadija Bourne; Chief Country Management Officer, Donna Wellington; Deputy Chief Information Officer, Infrastructure, Neil Matthews deputising for the Chief Information Officer Esan Peters; Managing Director, Transformation Governance and Control, Doug Williamson; and Head of Country Barbados, Kemar Polius.

*The students engaging with Michelle Whitelaw – Director Personal and Business Banking as they visit the Warrens branch*

St. Hill welcomed the young men to the bank, congratulating them on being a part of what he considered to be an excellent initiative, explaining that they had left a serious impression on him when they met at the entrepreneurship graduation ceremony a few weeks ago. He urged them to ‘Live your dreams and go for what you want to do.’ He congratulated all of them saying, “You have shown that you are a cut above the rest”

*Kemar Polius, the bank’s new Head of Country for Barbados and Joseph Taitt-Small of Alleyne School engaged in active conversation just prior to lunch*

The CEO said 70% of the bank’s workforce, and 50% of its leadership is female, noting “that is why it is important for the bank to be involved in programmes like this one, where males are encouraged to step up”.

The various executives also gave inspiring and reassuring words to the students, Donna Wellington explained that the day will serve to open their eyes to the many careers available to young men in the bank. She explained that while people normally think only of counting money in a branch, there are so many other careers in technology, marketing, risk, legal, human resources, and property management. She therefore urged them to “embrace, learn what you can, we want to open your eyes to what is possible.”

Barbados’ new Head of Country, Kemar Polius shared with the students that he never saw himself sitting in a board room like the one they were in, and working at this level in a bank, but he was given an opportunity which he grabbed with both hands and made the best of it. He encouraged them to do the same.

The general direction from the other Executives was for the young men to focus on what they wanted to do, examine every opportunity given and recognise that life is not a straight line.

Neil Matthews, in addition to his post at the bank is also a Lieutenant Commander of the Barbados Defence Force and has been coopted to head the Cyber Security and Drone Units to help protect the country from cyber-attacks. He said that as a teenager, he never envisaged himself being in this position, but people recognised some value in him and pushed him to achieve and he has never stopped learning. He added that he would be back in ‘school’ to do a course from the following day.

Coordinator of the Mr Executive Challenge, Winston Cumberbatch, explained how the students reacted “For weeks they had been looking forward to the Job Shadow with great anticipation. However, none of them could have envisioned what actually took place. They were totally blown away by the level of interest, hospitality and inspiration that the CIBC Executives gave.”

Following that eventful meeting with the executives, the boys were taken on a tour of the bank’s departments where they were able to meet staff members who explained the duties and operations of their departments and answered many questions from the curious young men, as they sought to understand the areas and the opportunities there.

They visited the Treasury department, where the team explained the department that manages the bank’s financial resources – the cash in circulation, capital management on a regional level. This department is the one that makes sure there is cash available when and where it is needed. The young men quizzed this team on how they managed the foreign exchange with the amount of shopping that Barbadians do online with Amazon and Shein, and they also wanted to know if the bank had adopted AI as yet.

The Compliance team told them about the three areas under their portfolio – AML (Anti Money Laundering), Compliance and Advisory Sanctions. The next stop at HR (Human Resources) was where they had a chat with Jacintha Hinds, Officer, Human Resources, who shared her passion for HR and answered their many questions about qualifications and the issues that affect how people behave.

Other departments which the students enjoyed visiting were the Legal department, Corporate and Investment Banking, before they went on a tour of the Warrens branch across the street, following which they sat down to a sumptuous lunch with the executives in the company’s board room.

The afternoon session saw them visiting the Marketing, Communications, Engagement and Technology units before they left and headed home, full of information which they can now process for their own careers.

In wrapping up the session, Coordinator Winston Cumberbatch added “The operations knowledge imparted during the tour of the office and the bank, along with the questions that followed, made the occasion an educational engagement of the highest order, which could not have been possible in the classroom. As Coordinator, I am extremely grateful to CIBC Caribbean for going beyond their financial support to offer such a life changing experience to these well deserving young men from eleven of our secondary Schools.” (PR)