Auditor General concludes that good progress has been made with recommendations made in three reports

The report “Follow-up on past PAC recommendations 2022 – Report 1” was issued today by the Office of the Auditor General (OAG).

The report provides an update on the Government’s progress with implementing recommendations made by the Public Accounts Committee (PAC) of the Parliament for three reports. The reports cover the Government’s use of consultants and temporary staff, the Government’s use of outsourced services, and fighting corruption in the Cayman Islands. The PAC and OAG had made a total of 61 recommendations in these reports.

Sue Winspear, Auditor General said “I am pleased to report that the Government has made good progress in implementing the recommendations made by the PAC and my office in the reports relating to the Government’s use of consultants, temporary staff, and outsourced services, and in fighting corruption. Overall, 76 per cent of the 61 recommendations made have been implemented or are in progress.” Ms. Winspear adds. “That said, some important recommendations have yet to be implemented. We still have a situation where the tender limits given in the Procurement Act regulations are different to those given in Financial regulations made under the Public Management and Finance Act. It is also not clear if the Government has actually started to centrally monitor and report its expenditure on consultants or outsourced services. This is essential information for decision making.”

The report states that as at the end of December 2021 the Government had not responded to seven PAC reports.

“I am concerned that the civil service continues to fall further behind in responding to PAC reports.“ Ms. Winspear continues. “Reporting back on progress with the implementation of recommendations is a fundamental part of the accountability process. The delays in responding to the PAC undermine this process.”

More information about the report can be obtained by contacting Sue Winspear at (345) 938-3201 or Angela Cullen, Deputy Auditor General (Performance Audit) at (345) 922-3220.

1. The Public Accounts Committee considers reports made by the Auditor General and generally endorse the recommendations made by the Auditor General in her report and make further recommendations of their own based on the witness hearings they hold at the time.
2. The Cayman Islands Government is required to formally respond to the PAC recommendations within three months of the PAC laying an Auditor General report in the House of Parliament.
3. The OAG has assessed Government’s progress with implementing recommendations for the following three reports as having made significant progress (see Exhibit 2 in the report):
   • Government’s use of consultants and temporary staff (February 2018) – see Appendix 1 for detail.
   • Government’s use of outsourced services (June 2019) – see Appendix 2 for detail.
   • Fighting Corruption in the Cayman Islands (November 2019) – see Appendix 3 for detail.
4. The OAG has assessed progress with the 61 recommendations as (see Exhibit 2 in the report): Not accepted – 7 (11%), implemented – 37 (61%), partly implemented or in progress – 9 (15%), and no or limited progress – 8 (13%).
5. As at the end of December 2021, the formal Government responses to the following seven PAC reports were late – see Exhibit 1 in the report. The date in brackets is when the PAC report was tabled in the House of Parliament:
   • Report on the Segregated Insurance Fund 2015/16 Accounts (6 September 2018)
   • Report on the Cayman Islands Monetary Authority 2015/16 Accounts (6 September 2018)
   • Report of the Information and Communications Technology Authority 2015/16 Accounts (22 November 2018)
   • Report of the Office of the Auditor General on Follow-Up of past PAC recommendations - October 2018 (10 April 2019)
   • Report of the Office of the Auditor General on the Efficiency and Effectiveness of Summary Courts – November 2019 (1 July 2020)
   • Report of the Office of the Auditor General on Efficiency and Effectiveness of the Utility Regulation and Competition Office (OfReg) - June 2020 (12 December 2020)
   • Reports on the Office of the Auditor General on: (1) Owen Roberts International Airport (ORIA) Terminal Redevelopment Project – Progress Updates as at August 2018 (January 2019); (2) Financial Reporting of the Cayman Islands Government: General Report 2019 (December 2020); and (3) Improving Financial Accountability and Transparency: Budgeting (December 2020) (15 July 2021).