[{"bbox": [85, 151, 437, 179], "category": "Section-header", "text": "### 2.3.3 Public Financial Management"}, {"bbox": [97, 193, 1134, 300], "category": "Text", "text": "Public financial management of Saba is organised according to the rules of the Financial Law for the Public Entities as well as in the General Law on the Public Entities and the Special Administrative Regulation. Since 10 October 2010, the relations between the European Netherlands and Saba are coordinated through the Dutch Ministry of Internal Affairs and Kingdom Relations."}, {"bbox": [97, 312, 1134, 443], "category": "Text", "text": "A supervisory board, the Colleges Financieel Toezicht (CFT) for Dutch Overseas Countries and Territories, controls the public financial management of Saba. The supervisory board actually controls the income and expenditure of Saba. Weaknesses in the financial or banking sectors (accumulation of bad loans, difficulties to refinance) are not expected to threat the Saban economy because of the minimal role the banking sector and the direct financial link to the Netherlands."}, {"bbox": [97, 457, 1134, 590], "category": "Text", "text": "Because Saba is part of the Netherlands and Dutch rules and regulations stated in the Law on Finance apply, Saba has no external accounts. Without approval of the Dutch central authorities, Saba, as a public entity, cannot independently and directly obtain funding from external lenders such as the European Investment Bank, even for blending and guarantee purposes. It requires approval by the Central government according to This is not possible, based on the 2010 constitutional changes and the new fiscal framework."}, {"bbox": [97, 602, 1134, 816], "category": "Text", "text": "The performance of public financial management in Saba is under constant review of the supervisory board. This guarantees solid public financial management and drives constant improvements. Funds from the income account are placed on a clearing account and are used to replenish the expenditure account so that it meets a standard requirement of USD 200 000 daily (this sum is only increased upon request by the island government and upon the supervisory board's formal approval). The supervisory board also performs the task of scrutiny and internal audit, while internal control is conducted by the controller's office staff of the island government. The creation of a local chamber of audit (Rekenkamer) in Saba is foreseen by 2025 and will increase transparency and accountability of the public finances."}, {"bbox": [97, 828, 1134, 907], "category": "Text", "text": "External audit on the financial year report is done by a private audit firm. This audit firm has consistently declared the annual report to be an accurate representation of Saba's public financial system. Since 2014 the accountant has also given an unqualified opinion regarding compliance with laws and regulations."}, {"bbox": [97, 919, 1134, 973], "category": "Text", "text": "Saba uses the 'Key to Finance' software system applied by a significant number of Dutch municipalities and includes salary administration."}, {"bbox": [97, 985, 1134, 1065], "category": "Text", "text": "The public financial management system, as well as the regulatory framework are fully functioning according to international standards. This is reflected in the External Accountant Reports of the audit firm for the financial years up to 2020 as well as in the reports of the supervisory board up to 2021."}, {"bbox": [97, 1077, 1134, 1157], "category": "Text", "text": "The Government of Saba is committed to continuously enhance its public financial management system and maintain good standards. This assessment is supported by the evaluation of the external audit, the reports of the supervisory board and the findings of the controller's office."}, {"bbox": [97, 1170, 1134, 1224], "category": "Text", "text": "**In conclusion, the public financial management reform strategy is sufficiently relevant and credible, including on domestic revenue mobilisation, and the eligibility criterion is met.**"}, {"bbox": [85, 1249, 550, 1277], "category": "Section-header", "text": "### 2.3.4 Transparency and Oversight of the Budget"}, {"bbox": [97, 1291, 1134, 1505], "category": "Text", "text": "The Government of Saba has published its budget for the year 2022 well before the end of 2021. The budget is drafted according to the rules set by the Financial Law for the Public Entities. The Dutch Ministry of Interior and Kingdom Relations approved the budget in December 2021. The Government of Saba had the adoption of the budget published by public notice in November 2021. The comprehensiveness and quality of the budget is largely sufficient. In terms of budget execution and review, it has been found that the development of quarterly, half-year and annual reports are in good order. The budget is presented in a format that reflects the most important classifications. This classification is embedded in the government's chart of accounts to ensure that all transactions can be reported in accordance with any of the classifications used."}, {"bbox": [1038, 1680, 1143, 1706], "category": "Page-footer", "text": "Page 8 of 22"}]