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HEAD 1510 – JAMAICA INFORMATION SERVICE 15. The audit of the financial transactions and operations of the captioned Agency for the year 2001/2002 disclosed the following shortcomings:

(i) Twenty-nine (29) officers were overpaid salaries and allowances amounting to $262,488 due primarily to incorrect calculations.

(ii) There was need for improvement in the controls exercised over the

disbursement process, procurement of goods and services and the stores.

CREATIVE PRODUCTION AND TRAINING CENTRE 16. The audit of the accounting records and financial transactions of the captioned entity for the year under review disclosed a generally satisfactory state of affairs. However, there was need for improved control of the stores.

HEADS 1600, 1600B – OFFICE OF THE CABINET 17. The audit disclosed that the financial transactions of the Cabinet Office for the year 2001/2002 were conducted in a generally satisfactory manner.

PUBLIC SECTOR MODERNIZATION PROJECT 18. The main objectives of the Public Sector Modernization Project are to being about major improvements in the quality of service provided by selected public sector agencies, to enhance the ability of selected ministries to formulate sound policies, technical standards and operational norms and to improve public accountability by strengthening internal and external controls. The audit of the Project for 2001/2002 disclosed a generally satisfactory state of affairs. However, $96.159M received as loan benefits-in-kind was not paid into the Consolidated Fund as required by law. This resulted in the understatement of government revenue and expenditure. The Cabinet Office expressed the intent to have the necessary provision included in the 2003/2004 Estimates of Expenditure.

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HEAD 1649 – MANAGEMENT INSTITUTE FOR NATIONAL DEVELOPMENT

19. The audit of the Management Institute for National Development (MIND) for 2001/2002 disclosed that the financial transactions and accounting records were generally satisfactory. However, the following shortcomings were noted:

(i) Eleven (11) officers were overpaid salaries amounting to $73,037 mainly due to incorrect calculations. Up to the time of this report $14,156 was recovered.

(ii) Weaknesses were noted in the controls exercised over motor

vehicle operations and the payment of motor vehicle allowances.

HEADS 1700, 1700A – MINISTRY OF TOURISM AND SPORTS 20. The audit of the financial transactions of the Ministry for 2001/2002 disclosed a generally satisfactory state of affairs. However, the Appropriation Accounts for the year were not submitted for examination up to the time of this report.

JAMAICA TOURIST BOARD 21. A test audit of the Tourist Board for the year under review disclosed the following shortcomings:

(i) Inadequate Expenditure Control There were inadequate internal financial reporting and weak cash flow management. This contributed to over expenditure in several areas. Recommendations for improvement were made. I was subsequently advised that steps were being taken to correct the weaknesses.

(ii) Contracts There was no indication that two contracts involving the payment of fees of up to $87,274,800 per annum had the required Cabinet approval. There was also no evidence that the awards of four contracts valued at $9,223,444 were based on competitive tenders as stipulated by Governments procurement procedures. Recommendation was made that there should be strict future compliance.

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Page 104

- 103 - Prepared by Policy Development Unit, Public Sector Modernization Division

 Cabinet Submissions

 Evaluation of Entities

 Parliamentary responses

PERSONAL ATTRIBUTES:

Judgement - Exercise sound judgement in arriving at decisions

Integrity - Demonstrate personal integrity, reflecting high ethical and

moral values

Self-confidence - Exercise strength of personal convictions while being

open to other ideas

Flexibility - Willing to adjust behaviour appropriately in response to

changing circumstances

Initiative - Takes action to influence events

Perseverance - Pursues objective and finds solutions to challenges

Human Resource - Respects, consults, empowers and develops employees

Management

Commitment to - Places emphasis on clients‟ needs and involves clients

Service in the decision-making process to ensure highest

quality service

KNOWLEDGE

Knowledge of global influences that impacts the public, the public service environment, the

government‟s priorities of the day, government systems and operational policies, the policies and

programmes of the Ministry‟s portfolio.

SKILLS AND ABILITIES:

Leadership - Motivating and mobilizing others through vision and

example

Analytical Skills - Applying rational and intuitive thinking in finding solutions

to complex issues

Organizational - Building and using formal and informal networks to get

Awareness results

Interpersonal - Relating to people at all levels with respect and

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June 10, 2021


Page 47

Part Six – Corporate Governance - INSPORTS

47 Auditor General’s Department Special Audits - March 2017

Parts II and III of the Second Schedule, outline the detailed information to be provided to the responsible Minister to allow for proper oversight and accountability.

6.5 Further, INSPORTS has not caused to be prepared, audited financial statements for 23

years, in breach of Section 3 of the PBMA Act. The last audited financial statement was for the financial year 1991/1992. Audited financial statements are the main source of accountability of management’s performance and provide reasonable assurance over the accuracy of financial statements.

6.6 INSPORTS’ failure to prepare audited financial statements was the subject of our special

audit report (dated November 2011), which recommended that INSPORTS should prepare and submit, without undue delay, to the portfolio Minister all outstanding annual reports and audited financial statements for tabling in the Houses of Parliament. INSPORTS has not engaged the service of an external auditor to be able to submit audited financial statements to ensure compliance with the PBMA Act. The inaction by INSPORTS management and the Board have deprived the portfolio Ministry+and+%0AParliament">Ministry and Parliament of its oversight function regarding the financial and operational performance. INSPORTS failure not only breached the Law, but is worrying from a fiduciary responsibility position, given that its accounting records showed that for the six-year period 2005-06 to 2010-11, total revenues amounted to $1.4 billion, while expenditure totaled $1.5 billion.

The Ministry is actively considering the reassignment of an officer from another Agency within the Portfolio of the Ministry who has the requisite skills and track record to act as a project manager to oversee the delivery of up to date financials and annual reports for INSPORTS. Source: Letter from MCGES (Portfolio Ministry) dated May 24, 2016.in response to AuGD draft report.

6.7 The absence of the related plans and reports may impact the monitoring arrangements

by the portfolio Ministry as outlined in the Cabinet-approved Corporate Governance Framework. Principle 15 states that:

The Permanent Secretaries as chief advisors to the Ministers are required to monitor performance against expected results, manage risks and advise/inform the Minister accordingly on Public Bodies, which operate within the portfolio responsibility of the Ministry. They also ensure coordination among Public Bodies within the Ministrys portfolio, which enhances policy coherence. They should know what is happening in the Public Bodies in order to assess whether the strategic objectives of the Ministry are being met through the Public Bodies. Source: GoJ Corporate Governance Framework.

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Page 48

Part Six – Corporate Governance - INSPORTS

48 Auditor General’s Department Special Audits - March 2017

6.8 INSPORTS has not submitted any Board Minutes to the Permanent Secretary in compliance with Decision 17 of the Cabinet approved GoJ Accountability Framework for Senior Officers (January 2010).

INSPORTS Board’s failure to meet regularly denies the entity the benefit of efficiencies to be derived from proper oversight

6.9 The Board’s role is to oversee the management and governance of INSPORTS in ensuring transparency and accountability in its operational and financial activities, as required by the GoJ Corporate Governance Framework for Public Bodies and the PBMA Act. However, this oversight responsibility may be impaired as the Board failed to hold regular meetings. We found that since the start of the financial year 2015-16, the Board has only met twice in May and October 2015. The Board met seven times in each of the financial years 2013-14 and 2014-15 and six times in 2012-13. (Figure 13).

Figure 13 Number of Board and sub-committee meetings held (Mar-12 to Oct-15)

Year Months No.

2015-16 May, October 2

2014-15 April; May; June; July; October; November, March

7

2013-14 May; July; August; September; November; December; January.

7

2012-13 April; May; June; January; February, March 6

Total 22

Note: *INSPORTS did not provide the minutes for meetings reportedly held March, May and Oct. 2015 Source: AuGD’s analysis of board minutes and information provided by INSPORTS

6.10 In addition, the Board is operating without a Charter37, while its sub-committees did not

have terms of reference to define the roles and responsibilities of the directors, including their responsibilities for corporate governance, as required by the GoJ Corporate Governance Framework. We observed that the Board complied with the recommended practice of the Corporate Governance Framework to establish appropriately constituted sub-committees to give oversight of specialized functions. The Board established a finance and audit committee in 2012 and corporate governance and human resource committees in 2013. However, the Board did not develop the required Terms of References for the committees, as required by the Corporate

37 Recommended Practice No. 1 (PRINCIPLE 2 -ROLES AND RESPONSIBILITIES OF THE BOARD)

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June 10, 2021


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