PSPB Answers Compass
The Public Service Pensions Board (the "PSPB") would like to respond to the article that appeared in the Caymanian Compass 21st October 2011 edition under the headline "Audit: Pension Board Staff Received Lucrative Bonuses". Within the article a number of items were identified as having potential for a conflict of interest or unclear practices.
Under Section 54 (n) of the Public Management and Finance Law (2010 Revision), there is a requirement for the management systems of all ministries, portfolios, statutory authorities and government companies, to be reviewed. This function is normally carried out by the Government's Internal Audit Unit (IAU). At the request of the Board, and pursuant to the 2009/2010 Audit Plan of the IAU, the IAU carried out a review of the internal controls relating to the expense/disbursements function of the PSPB for the 2008/2009 fiscal year.
The final Report was released in February 2011 and made note of most of the procedural matters which had already been highlighted for improvement by the Board, and which led the Board to request the audit in the first place. Prior to requesting the audit, the Board gave the management of the entity ("management") several directives to resolve those issues and many of them were already resolved or were in process of being resolved before the final audit report was released.
The PSPB welcomed the audit as an opportunity to review its internal controls. The recommendations made by the IAU on how to strengthen or improve the internal controls in question were similar to the directives given by the Board to management. Most of those recommendations have been implemented by management, prior to the commencement of the audit, as per the directives of the Board.
Additionally, a series of measures intended to improve the management of the organization as a whole as well as to provide increased transparency and accountability for the disbursement of funds have been implemented, also following upon the directives given by the Board to management.
The PSPB takes this opportunity to assure all participants and pensioners of the Public Service Pension System that it continues to place a high priority on ensuring that contributions paid into the Fund are approved for disbursements based on objective and comprehensive policies, in accordance with best governance principles and practice.