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Key Findings and Recommendations

4 | P a g e

Summary

The Institute">Caribbean Maritime Institute (CMI) is a tertiary institution that specializes in maritime education and training for professional seafarers, allied industry personnel and the wider industry covering land, sea and air. CMI was originally established as the Jamaica+Maritime+Institute">Jamaica Maritime Institute (JMI), a joint project between the Jamaican and Norwegian Governments in September 1980. The Institute became a statutory body under the laws of Jamaica on January 4, 1993, and was renamed the Caribbean Maritime Institute in 2001.

CMI’s main operation is carried out through three schools. The main facility, the School of Marine and Profession Studies currently provides training in seafarers, which is delivered in accordance with the International Marine Organization Standards. The School of Academic Studies provides training in allied courses supporting the shipping industry, while the School of Advance Skills caters to industry needs.

The scope of the audit covered the period April 2010 to March 2015. The audit aimed to determine whether the institute had adequate systems, policies and procedures in place to effectively manage its core function in accordance with its mandate.

The key findings are outlined below.

Key Findings

Financial and Operational Performance 1. CMI did not conduct a resource audit to ascertain the impact of its planned strategy to increase

enrolment. This impacted CMIs ability to engage qualified lecturers to deliver the curriculum and

resulted in CMI being unable to achieve the planned reduction in its dependence on government

subvention. We noted that between the periods 2010-11 to 2014-15, CMI enrolment increased by

105 per cent, moving from 1,090 to 2,236 students. However, CMI did not conduct any resource

audit to inform management of the financial, human and physical resources capacity of the

Institution to respond to the increase student enrolment. CMI indicated that by March 2015, 90 per

cent of its total revenue should be earned from tuition fees, while the remaining 10 per cent would

be obtained from Government subvention. However, by March 2015, CMI still did not achieve its

target as tuition fees comprised 77 per cent of total revenue, and Government subvention the

remaining 23 per cent. CMI contends that the strategy is deliberate to seek resources after

enrolment. However, this may result in CMI over extending its resources, thereby causing

reputational risk and breach of the International Marine Organization (IMO) standards of operation.

Despite the anticipated increase in enrolment, CMI did not seek Ministry of Finance’s approval for

any consequent increase in its staffing level. As a result, CMI employed 253 part time adjunct

lecturers at a cost of $135.6 million, without approval from the Ministry of Finance. Further, CMI

employed six assistant lecturers who did not possess the requisite three year post qualification

teaching experience or formal training, contrary to CMI’s policy. CMI’s decision to employ

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June 09, 2021


Page 84

ASSESSMENT OF THE PERFORMANCE OF THE AUGD JAMAICA AGAINST THE ISSAI’S

Final Report Page 84

4.3.7 SAI-14: Performance audit results

4.3.7.1 Narrative

This indicator assesses outputs of the financial audit function in the AuGD. The outputs of the performance audit are assessed using three dimensions:

i. Timely Submission of Performance Audit Results ii. Timely Publication of Performance Audit Results iii. SAI Follow-up on Implementation of Performance Audit Observations and

Recommendations

Dimension i:

The timely submission is calculated as the time between the approval of the AG and the submission to Parliament. Based on the table below, this time gap is generally less than 15 days.

Table 18 Publication dates of selected performance audit reports

PA Report Submitted to Parliament

Tabled in Parliament Auditor General Sign- Off

Jamaica Mortgage Bank December 23, 2016 January 10, 2017 December 13, 2016 Bureau of Standards Jamaica

November 10, 2016 December 06, 2016 November 04, 2016

Housing Agency of Jamaica

November 02, 2016 November 10, 2015 October 29, 2015

Caribbean Maritime Institute

December 15, 2015 January 12, 2016 December 11, 2015

Dimension ii: Timely Publication of Performance Audit Reports

This dimension considers the timeliness of publication. Publication is legally allowed after the report is tabled in Parliament and the AuGD usually uploads the reports on the SAI’s website after two days of tabling.

Tabling is not under the control of the AuGD. The table shows that tabling in Parliament is generally done within one month of the date of submission by the AuGD.

Dimension iii: SAI Follow-up on Implementation of Performance Audit Observations and Recommendations

After a reasonable time, the AuGD produces a follow-up report on the recommendations issued in the performance audit reports. The follow-up report is tabled, and it goes to the Parliament accompanied by a briefing report to the PAC.

The note to the PAC includes a table describing the major findings, AuGD recommendations, management response, AuGD verification and an assessment whether or not the issue has been cleared. It also includes a table where a materiality assessment is made.

The follow-up report describes the corrective actions adopted by the auditee, but there is no assessment of the impact of those measures.

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June 09, 2021


Page 122

____________________________________________________________________________________ Auditor General’s Department Page 122 of 130 2019/2020 Annual Report December 2020

Section 3: Summary of Audit Findings

Issue/Concerns Financial Exposure

Resource Management

3.2.250. Management was advised to strengthen its system of commitment planning and control to ensure that funds are available before expenditure is incurred. 3.2.251. MTM has since indicated that steps have been taken to reduce the risk of recurrence and that they were advised by the Ministry+of+%0D%0AFinance">Ministry of Finance that the excess would be regularized in the Final Supplementary Estimates for 2017/2018. Outstanding Advance to Caribbean Maritime Institute (now Caribbean Maritime University). 3.2.252. The Ministry has not received value for money in relation to payment of approximately $19.8 million made to the Caribbean Maritime Institute (now Caribbean Maritime University) as part of a $39.7 million contract to construct containerized offices at its head office at 138H Maxfield Avenue. The Project was scheduled to be completed over 24 weeks beginning March 20, 2017. The Ministry paid the Caribbean Maritime Institute $19.8 million on March 24, 2017, as an advance on the Project. However, to date, construction has not started and the sum has not been returned to the Ministry despite its written request for a return of the funds in May 2019. 3.2.253. MTM has since indicated that it is in dialogue with the new CMU executives to resolve this matter.

$19.8 million

HEAD 72000: MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT Issue/Concern Financial Exposure

Resource Management

3.2.254. The audit of the accounting records and financial transactions for the Ministry of Local Government and Community Development 2015/2016 to 2018/2019 Appropriation accounts (Head 72000, 72000A,72000B) revealed the following: NSWMA Spends Excess AIA collections without Parliamentary Approval 3.2.255. Excess A-I-A of $16.299.6 million collected by the National Solid Waste Management Authority (NSWMA) was used to supplement the budget for garbage collection and disposal as well as to facilitate payment for the insurance of motor vehicles (garbage trucks) instead of being surrendered to the Consolidated Fund as required by Section 4.5.8 and 4.5.9 of the FAA Act, Instructions. The necessary approval was not obtained prior to making the respective payments. Management’s failure to obtain the requisite prior approval to expend the funds not only overrides GoJ’s established budgetary

$6.69 million

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June 09, 2021


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