The financial health and accountability of the Marshall Islands showed its best results on record in FY2017, according to the annual Performeter report. The Performeter analysis uses financial indicators and ratios to assess the government’s financial performance and sustainability. The evaluation tool was developed by Crawford & Associates, LLC with support from the Graduate School USA, which works with US-affiliated islands on economic reviews, statistical analysis, and training programs.
The RMI government in FY2017 achieved its highest rating ever at 6.25 out of 10. This reflects improvements in key areas such as net position, inter-generational equity, short-term solvency, debt management, and carryovers. Two areas that remain a challenge are the condition of capital assets and the social security funding ratio.
The Performeter analysis shows that the government’s overall performance has risen from 3.48 in 2008.
“The continued consistency related to the increase in overall net position, the decrease of the overall unrestricted net position deficit, and the growth and continuation of a positive position of the General Fund unassigned fund balance are the primary reasons for most ratios being better than prior year scores,” said the Performeter report.
Accompanying the Performeter is the Audit Findings, Timeliness and Exception Resolution (known as the “AFTER”) analysis, which reviews the status of audit findings and timeliness, and resolution of certain audit exceptions. The AFTER analysis for FY2017 shows the percentage of repeated findings has declined, an on-time delivery of the audit, and relatively low questioned costs. All of this suggests continued improvement in the national government’s accountability.
A Public Financial Management and procurement reform program is now underway, under the guidance of Finance Minister Brenson Wase, Chief Secretary Benjamin Graham, and Finance Secretary Maybelline Bing.
Responding to the Performeter and AFTER results, Bing remarked that, “Our main objective has always been to improve financial management and fiscal responsibility. Ultimately, the vision is to have a sustainable and effective PFM system that supports better service delivery for our people.”
The RMI’s ratings on the Performeter and AFTER analysis place it above most other US-affiliated territories and freely associated states. The report can be accessed online at: http://pitiviti.org/initiatives/performeter.php
Read more about this in the November 23, 2018 edition of the Marshall Islands Journal.