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St Helena Government’s Financial Regulations Found Riddled with Errors

A thorough review of the St Helena Government’s Financial Regulations has uncovered a plethora of errors and inconsistencies, casting doubt on the accuracy of the government’s financial reporting.

Debt Charges Disrupted

Section 4.11 of the regulations, which outlines public debt charges, was found to be lacking clarity on what constitutes a debt charge. The regulation failed to define key terms such as:

Interest
Repayment or amortisation of debt
Costs and charges and expenses incidental to the management of debt

Financial Reporting Framework in Question

Section 5 of the regulations, which deals with financial reporting frameworks, was found to be inconsistent with international standards. The regulations failed to provide clear guidance on:

Preparation of annual financial statements
Basis of preparation
Accounting policies
Year-end process

Going Concern Assessment Ignored

The investigation also discovered that the going concern assessment, a critical component of financial reporting, was not adequately addressed in the regulations. This assessment determines whether an organization can continue to operate without significant changes to its operations or financing.

Concerns Raised About Accounting Policies

The review also raised concerns about accounting policies, which were found to be lacking transparency and consistency. The regulations failed to provide clear guidance on:

How accounting policies would be developed
Approved
Applied in practice

Call to Action

In light of these findings, the St Helena Government is being urged to take immediate action to rectify the errors and inconsistencies in its financial regulations. This includes revising the regulations to ensure clarity, consistency, and compliance with international standards.

The government’s failure to properly manage its finances has far-reaching implications for taxpayers, investors, and stakeholders. It is imperative that the St Helena Government takes swift and decisive action to restore confidence in its financial reporting practices.