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

Director of Youth Affairs, Cleviston Hunte, is pleased about the support for this year’s National Summer Camp Programme, which is being rebranded by the Ministry of Youth, Sports and Community Empowerment.

A donation of art supplies was received last Friday from the Prince Godwill D. Fomusoh Foundation (PGDFF) and its partner, Affinity Plus Credit Union Ltd., at the Ministry’s headquarters, Sky Mall, Haggatt Hall, St. Michael.

Mr. Hunte, who accepted the donation from the PGDFF and Affinity Plus Credit Union said: “Today is really the day that we actually see the fruits of the labours of our stakeholders…. The donation that you are giving to us here today is well received.”

Noting the crucial role that corporate sponsorship plays, he stated: “We enjoy the corporate sponsorship that we get because we know that the benefits for the children are really significant,” adding that such support ensures the well-being and holistic development of the children.

Stating that the Arts was a key component of the Summer Camp Programme, he stressed: “It gives our children an opportunity to explore themselves, explore their imagination.” He said that aspect of the programme aims to foster creativity and imagination among the youth.

Director Hunte also urged other corporate entities to join in supporting the programme. “We want to invite other corporate sponsors or stakeholders to come on board and provide these kinds of donations that really enhance the lives of the children of this nation of Barbados,” he said.

Managing Director of the PGDFF Caribbean, Anita Sundaram, expressed gratitude to the Marketing Manager of Affinity Plus Credit Union, Valerie Hope, and members of the PGDFF team for their part in the initiative.

Ms. Sundaram, in commending Ms. Hope, remarked: “When we came to you (Affinity Plus), you just trusted us with this and went with it. And, I really want to thank you for partnering with us.

“I think incorporating colouring and art into early childhood development is extremely important. It helps develop so many skills, whether it’s writing skills, … their creativity skills, or emotional management, there’s so many plus points for this. And lastly, it’s just a lot of fun. ‘Who doesn’t like to colour?’

“We’re happy that we’re able to provide this for the Summer Camp Programme, from PGDFF Caribbean, in partnership with Affinity Plus Credit Union.” (PR/GIS)

Caption: Director of Youth Affairs, Cleviston Hunte (third from left); Managing Director, Prince Godwill D. Fomusoh Foundation Caribbean, Anita Sundaram (second from left); Marketing Manager of Affinity Plus Credit Union, Valerie Hope (centre); staff of the Ministry and representatives pose with the donated art supplies.

Business

MOUNT GAY AND WEST INDIES RUM DISTILLERIES CELEBRATE CARICOM’S 50TH ANNIVERSARY WITH LIMITED EDITIONS

Mount Gay Distilleries and Stade’s West Indies Rum Distillery proudly unveiled their commemorative Caribbean Community (CARICOM) 50th Anniversary limited editions to The Prime Minister of Barbados, Hon. Mia Amor Mottley, during an intimate ceremony at Ilaro Court today.

The two local rum producers, both esteemed members of the West Indies Rum and Spirits Producers’ Association (WIRSPA), marked the significant milestone in Caribbean history with the release of the two limited editions, both available at their respective Visitor Centres.

The initiative saw rum producers in 13 CARICOM member states, under the guidance of WIRSPA, presenting limited editions highlighting this 50^th Anniversary to their respective governments across the region, during the month of June. The unique expressions not only celebrate CARICOM’s half-century, but also stand as a symbol of unity, culture and heritage across the regional rum industry.

Andrew Hasell, Managing Director, WIRD

Antoine Couvreur, Managing Director of Mount Gay Distilleries, expressed his enthusiasm and pride on this special occasion, “As the world’s oldest running rum distillery in the world, Mount Gay has played a pivotal role in Barbados’ national and global identity in the spirits industry, since crowning the island as the birthplace of rum over 320 years ago in 1703. Today, Mount Gay is synonymous with Bajan rum and Barbadian pride in more than 70 countries.

“It is an utmost privilege for us to be able to honour the heritage of CARICOM, established by the Treaty of Chaguaramas in 1973, with this limited edition 50th Anniversary label of the Mount Gay Black Barrel Cask Strength expression. It is our toast to people across the region, working side by side to create a dynamic future, with a rum which embodies the spirit of unity that defines the Caribbean.”

Couvreur explained that the Mount Gay limited edition was a blend of rums distilled in copper pot and column stills, matured in American whiskey casks and finished in charred Bourbon casks.

Andrew Hassell, Managing Director at Stade’s West Indies Rum Distillery warmly congratulated CARICOM, as it celebrates 50 years of promoting economic integration and cooperation among its members, ensuring they are better able to reap the benefits of integration equally.

Hassell explained, “The unique rum we offer today embodies the dedication and expertise that our distillery has poured into its craft every day for over 130 years. Planteray Legacy 120 is dedicated to three men who have devoted their lives to making Barbados rum.

“It celebrates their combined 120 years of distilling and blending expertise. Henderson “Digger” Skinner joined Stade’s West Indies Rum Distillery 41 years ago, and continues to operate our old copper stills. Mark Walker and John Kinch, both Master Blenders, have been tending to barrels of delicious rum at the distillery for 40 years and 39 years respectively. Together with Master Distiller Don Benn and Master Blender Alexandre Gabriel, the “120” team created an extra old Barbados rum that honors their starring roles in the unique history of Stade’s West Indies Rum Distillery.”

Hassell said, “Therefore, we are proud to present this very rare, high quality rum as our gift to the entire Caribbean Community as we celebrate the momentous occasion of their 50th Anniversary and offer our team’s continued support as they continue their mission.” (PR)

Business

Interns grasping RUBIS opportunity

The 2024 RUBIS internship program continues to deliver exciting results for ten budding professionals who are focused on grasping the opportunity for real-world experience to enhance their professional development.

The interns have already completed their first few weeks of a 10-week programme, gaining key insights into the operational aspects of RUBIS, and participating in insightful table talks with department heads. The orientation week included tours to Barbados National Terminal Company Ltd. (BNTCL), Grantley Adams International Airport, and RUBIS service stations. The interns also successfully passed CPR and First Aid courses and undertook fire safety training at Barbados Fire Academy in Arch Hall, St. Thomas.

HR Manager Delores Batson said the internship program was again proving to be a mutually rewarding experience and continued to be one of the most sought-after internships in the sector. “Each year, we look forward to the youthful exuberance and enthusiasm that comes with this internship experience, and 2024 has been no exception. This program benefits the interns with real-world experience, and we welcome the opportunity to embrace youthful energy and perspectives within our company.”

Marketing intern TaShauna Weekes, who recently earned her Bachelor’s Degree in Management with Marketing from the University of the West Indies, Cave Hill, said she was excited about the growth and network-building opportunity presented by the RUBIS internship. “I hope to gain valuable experience to help me in my future endeavours. I’m also keen to establish relationships with marketing professionals and will seek constructive feedback from supervisors and peers to find areas for growth,” Weekes said.

The keen group of interns includes local and international university students pursuing Bachelor’s and Master’s degrees in various disciplines. They have been assigned to Sales and Marketing, Operations, Legal, and Finance departments in the RUBIS Welches headquarters and Spring Garden terminals. The HR manager said this approach will allow the interns to gain experience relevant to their selected areas of study. (PR)

Caption: The 2024 group of RUBIS Summer Interns with some RUBIS employees including Delores Batson (HR Manager), Mechell Warner (Marketing Specialist) and Annette Shorey (Internal Controls Specialist).