#Bahamas, November 14, 2017 – Nassau – As news reports swirl now about a new stream of borrowing to the tune of nearly $1b by the Bahamas Government, the FNM Administration is continuing to introduce measures to make government more honest. From a Bahamas Information Services report we learn that the Government is in the process of moving away from the cash-based form of accounting it presently employs to an accrual based accounting system, this according to Prime Minister Dr. the Hon. Hubert A. Minnis on Monday.
The move, which is foreshadowed to be implemented at the end of June 2022 for the central government and 2023 for the public sector, is aimed at better strengthening the Government’s accounting framework by ensuring greater transparency and accountability in public sector finances, while allowing officials to better monitor government debt and liabilities.
An accrual method of accounting records revenues and expenses when they are incurred, regardless of when cash is exchanged. The term “accrual” refers to any individual entry recording revenue or expense in the absence of a cash transaction. Prime Minister Minnis said the new system would also allow for government’s use of high-quality information to make informed and sound spending decisions, while properly managing the nation’s assets and liabilities.
Addressing a Bahamas Institute of Chartered Accountants Seminar Monday (November 13, 2017) at Melia Nassau Beach resort, Prime Minister Minnis said the current system of accounting employed is “woefully lacking” in providing government with a complete and accurate view of financial activities and reporting.