New Procurement Reform Brings Greater Accountability, Transparency, and Financial Control
Philipsburg, Sint Maarten – The Minister of Finance is pleased to provide a concise overview of the Government’s Procure-to-Pay process, offering greater clarity on how public funds are used when purchasing goods and services on behalf of the people of Sint Maarten.
Procure-to-Pay is the process that begins when a need for goods or services is identified and ends when the supplier is paid. While it may sound administrative, it is one of Government’s most important financial control mechanisms, helping to ensure that public funds are spent responsibly, transparently, and in accordance with the law.
In recent months, Government has introduced several important improvements to strengthen this process, including:
- the implementation of a new financial management system;
- the mandatory digital handling of invoices and advices with financial consequences;
- the phased introduction of Purchase Orders.
These measures help ensure that established procedures are followed consistently, strengthen financial oversight, and create a clear audit trail from the initial request through final payment.
Under the National Accountability Ordinance, Government must verify that budget is available before committing to any expenditure. The Ordinance also establishes who is authorized to financially bind the Government through the mandate registry and sets out the requirements for the procurement of goods, services, and works.
Same Policy, Stronger Enforcement
The underlying procurement policy has not changed. Government purchases must still fit within the approved budget and be authorized by the appropriate official in accordance with the mandate register.
- Purchases under Cg 5,000 require one quotation and are processed through a requisition.
- Purchases between Cg 5,000 and Cg 50,000 require three quotations and must be supported by an advice containing the necessary justification and documentation. These purchases require ministerial approval.
- Purchases above Cg 50,000 require a public tender process* and approval by the Council of Ministers.
What Has Changed
The policy remains the same. What has changed is the digital and consistent implementation of that policy. Once the necessary approvals have been obtained, a Purchase Order (PO) is issued to the supplier. The Purchase Order serves as Government’s formal authorization to proceed with the purchase. It confirms that the required approvals have been obtained, the funds have been committed, and the expenditure has been authorized.
As Purchase Orders continue to be rolled out across Government, the objective is for every procurement to be supported by a PO. The principle is simple: No PO, No Payment.
After goods or services have been delivered, the supplier submits an invoice referencing the Purchase Order number. Government then verifies that the invoice is accurate, complete, and consistent with what was ordered and received before payment is processed. The full process is as follows:
Step 1: Get Prices or Run a Public Tender
The process starts when Government identifies a need for goods or services. Depending on the cost, suppliers may be asked to provide prices (quotations), or a public tender may be issued.
This helps ensure purchases are made fairly and openly.
Step 2: Create a Purchase Request
Once prices have been received, the purchase request is entered into the system. Smaller purchases use a purchase requisition, while larger purchases require an advice, which contains additional information and supporting documents. This officially starts the purchase process.
Step 3: Get Approval
The request is checked to make sure there is enough budget available and that all requirements have been met. It is then sent to the appropriate person or authority for approval. The approval needed depends on the cost of the purchase.
Step 4: Issue a Purchase Order (PO)
After approval, a Purchase Order (PO) is created. The PO number is sent to the supplier via email from purchaseorder@sintmaartengov.org. A PO is Government’s official confirmation that it wants to proceed with the purchase.
Step 5: Receive the Invoice
After the goods or services have been delivered, the supplier sends an invoice to Government at accounting@sintmaartengov.org. The PO number must be referenced on the invoice.
Step 6: Check and Approve the Invoice
Government checks the invoice to make sure it matches what was ordered and received. If everything is correct, the invoice is approved for payment.
Step 7: Pay the Supplier
Once the invoice is approved, payment is made to the supplier. This is the final step in the Procure-to-Pay process.
The Minister of Finance emphasizes that these reforms are not about adding bureaucracy. They are about ensuring that public funds are spent responsibly, transparently, and in accordance with the law.
By strengthening financial controls and applying established procedures, Government is building a more reliable public financial management system and reinforcing public trust
