The call for accountability and transparency is louder than ever

The General Audit Chamber examined whether the budget was implemented lawfully for the 2019 financial year. Developments in financial management and the achievement of goals for sustainable public finances were also examined. The General Audit Chamber received the final Annual Accounts for 2019 in September 2024. This was after an audit by the General Audit Chamber had made corrections to the annual accounts previously presented in November 2023.

Accountability by the State by means of financial statements is a condition of transparency, and good governance and is essential for achieving sustainable public finances. The fact that there is still no full account of the previous cabinet period is regrettable. How can the budgetary rights of the States be guaranteed if a draft budget is approved without accountability for the use of funds and the achievement of policy objectives of the previous year?

The consequences of not decisively pursuing and completing plans to improve shortcomings in the county’s financial management are, clearly, visible in this study. The investigation shows that the focus has not yet shifted to implementing structural improvements in financial management, nor to accountability using the timely delivery of sound financial statements. When the General Audit Chamber's reports from the last century are reviewed, it is evident that shortcomings identified at the time are still present. This can no longer go on nor be accepted.

The General Audit Chamber concludes that there are budgetary irregularities at various levels. It is more the rule than the exception that budgets are exceeded without the prior authorization of the Parliament. The granting of funds (with the approval of the Parliament) without a legal basis for this or being established has also been a common practice for years. In its report, the General Audit Chamber states that the ultimate goal of budgetary standards should be to achieve sustainable public finances. However, the research shows that budget standards are an end in themselves. The inconsistent method of entries without the necessary explanation indicates insufficient transparency and no thorough substantiation is provided for the operating balance for 2019, which leads to an incorrect image.

With this report, the General Audit Chamber wishes to contribute to ensuring that transparency and timely accountability are seen as indispensable requirements and that, without exception, this becomes automatic within a single budget cycle, resulting in the realization of sustainable public finances.

The General Audit Chamber's report, including the findings, conclusions, recommendations, the Minister of Finance's response, and the General Audit Chamber's afterword, is available at www.rekenkamer.aw.