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ST HELENA GOVERNMENT FINANCIAL REGULATIONS: A NEW ERA OF TRANSPARENCY AND ACCOUNTABILITY

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April 2019 - Page 12

In a landmark move, the St Helena Government has introduced new financial regulations aimed at enhancing transparency and accountability in its financial dealings. The new regulations come into effect from April 2019 and are designed to ensure that government finances are managed effectively and efficiently.

General Reserve Fund

Under the new regulations, returns on investments will be transferred back to the General Reserve Fund when realized through the sale of shares or distribution of profits. This move is expected to strengthen the government’s financial position and provide a cushion against any unexpected expenses.

  • The General Reserve Fund is designed to capture investment income and provide a financial safety net.
  • Returns on investments will be transferred back to the fund, ensuring that the government’s financial position remains stable.

Aid Funded Infrastructure Reserve

The government has also established an Aid Funded Infrastructure Reserve, which will capture aid-funded infrastructure assets acquired through non-exchange transactions. The reserve will be charged with depreciation over the useful life of the assets, ensuring that the government’s financial position is accurately reflected.

  • The Aid Funded Infrastructure Reserve is designed to capture and account for aid-funded infrastructure assets.
  • Depreciation will be charged on these assets, providing a more accurate reflection of the government’s financial position.

Donated Asset Reserve

In another key development, the government has introduced a Donated Asset Reserve to capture donated assets. The fund balance will be adjusted annually to reflect new donations and changes in asset values.

  • The Donated Asset Reserve is designed to capture and account for donated assets.
  • The reserve will be adjusted annually to reflect new donations and changes in asset values.

Litigation Reserve

The regulations also introduce a Litigation Reserve to capture unresolved litigation claims currently under review. The reserve will change each year as cases are settled, payments are made, or provisions are released.

  • The Litigation Reserve is designed to capture and account for unresolved litigation claims.
  • The reserve will be adjusted annually to reflect changes in the status of these claims.

Consolidated Fund Withdrawals

Under the new regulations, withdrawals from the Consolidated Fund will be subject to strict guidelines and approval procedures to ensure that public funds are managed responsibly.

  • Withdrawals from the Consolidated Fund will require approval and will be subject to specific guidelines.
  • This ensures that public funds are managed responsibly and transparently.

Annual Financial Statements

The government has also introduced new requirements for the preparation of Annual Financial Statements. The statements must be prepared in accordance with International Public Sector Accounting Standards (IPSAS) and will provide a comprehensive overview of the government’s financial position and performance.

  • Annual Financial Statements will be prepared in accordance with IPSAS.
  • These statements will provide a comprehensive overview of the government’s financial position and performance.

Executive Council Oversight

Executive Council, comprising senior officials and ministers, will oversee the strategic direction of the St Helena Government and ensure that financial reporting is accurate and transparent.

  • The Executive Council will oversee the strategic direction of the government.
  • They will ensure that financial reporting is accurate and transparent.

These new regulations mark an important step forward in promoting transparency, accountability, and good governance in St Helena. They are expected to enhance public trust and confidence in the government’s ability to manage public funds effectively.

ST HELENA GOVERNMENT CONTACT

For more information on these new regulations, please contact the St Helena Government’s Financial Secretary at [insert contact details].