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Constitution of Public Debt Management Committee

SECOND SCHEDULE (Sections 7(3) and 8(3»

PART I

Public Debt Management Committee

1.-( I) The Public Debt Management Committee shall consist of six ex-officio members and a maximum of three appointed members.

(2) The following persons shall be ex-officio members of the Public Debt Management Committee, that is to say­

(a) the Financial Secretary, who shall be the chainnan;

(b) the Deputy Financial Secretary in charge of economic management, who shall be the deputy chainnan;

(c) the Governor of the Bank;

(d) the Accountant-General;

(e) the Director-General of the Planning Institute of Jamaica; and

(f) the Head of the unit in charge of debt management in the Ministry responsible for finance.

(3) The appointed members of the Public Debt Management Committee shall be­

(a) one member appointed by the Minister. being an employee of a public body who is knowledgeable of, or experienced in, public debt management, public expenditure, or the fonnulation or implementation of macro-economic and fiscal policies; and

(b) a maximum of two other members appointed by the Minister, being persons knowledgeable of. or experienced in, public debt management, public expenditure, or the fonnulation or implementation of macro-economic and fiscal policies.

(4) An appointed member of the Public Debt Management Committee shall hold office for a period not exceeding three years and each appointed member shall be eligible for re-appointment.

(5) Subject to the provisions of this Act. the Public Debt Management Committee shall regulate its own proceedings.

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June 09, 2021


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Part Six – Corporate Governance - INSPORTS

44 Auditor General’s Department Special Audits - March 2017

4. Between June 2013 and February 2015, INSPORTS re-engaged the services of nine retired officers without the prior approval of the Ministry of Finance and the Public Service (MoFPS) as required by Section 20 of the PBMA Act and MoFPS Guidelines. The officers were engaged with annual salaries and travelling allowances totalling $14.02 million. We observed that it was not until February 25, 2015 that the Administrative Director sought approval from the MoFPS for engagement of the officers. INSPORTS sought approval in February 2015 and MoFPS granted retroactive approval for four of the nine officers in March 2015.

The new Board to govern the operation of the Institute has been in place since July 2016. An official meeting with the Board was held in July 2016. Immediate training and capacity building will be delivered to the new Board of Directors in relation to the Corporate Governance Framework and other relevant GoJ legal frameworks, policies and procedures. Institution of Board Charter, establishment of requisite Sub Committee as well as terms of reference for all sub-committees will also be incorporated. Source: Letter from MCGES (Portfolio Ministry) dated May 24, 2016 in response to AuGD draft report.

Weaknesses in Internal Controls

INSPORTS did not employ strong systems of internal controls over its accounting, financial and human resource practices.

5. INSPORTS failed to develop and implement adequate standard operational

procedures (SOPs) and procedural manuals to guide the administration of its financial and human resource management activities. At the time of our audit, INSPORTS Financial Policies and Procedures Manual and the Human and Resource Manual were in draft. This may have contributed to a general lack of accountability and transparency over the purchase of goods and services whereas an approved document would have demanded the required level of enforcement. INSPORTS did not provide adequate documentation to support 116 cheque payments totalling $2.03 million made during the period March 2013 to May 2014. Also, INSPORTS failed to present to us vouchers in relation to payments made during 2015-16. Further, weaknesses in the maintenance of accounting records at INSPORTS prevented us from analysing the Institute’s outstanding payables and statutory returns. For example, INSPORTS failed to present a schedule of aged payables and outstanding statutory payments despite repeated requests.

6. INSPORTS did not implement a proper inventory management system to account for the receipt and storage of sporting gears. INSPORTS provided data, which showed that over the period, April 2012 and October 2015, the Institute purchased sporting gears valuing $12 million for distribution to various sports clubs, schools and other community

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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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51 | P a g e

REPORTS

2.1.22 We found that the controls established by the EXIM Bank were generally satisfactory. However,

there was need for improvement in the controls related to expenditure, fixed assets and

payment of emoluments. These were subsequently addressed by management.

STRATEGIC PUBLIC SECTOR TRANSFORMATION PROGRAMME (SPSTP) - LOAN CONTRACT NO.

8406JM/DFID GRANT TFOA 1633 JM

2.1.23 An audit of the accounting records and financial transactions of the Strategic Public Sector

Transformation Project (SPSTP) was conducted for the 18-month period ended March 31, 2016.

Our main findings were as follows:

2.1.24 An appropriate accounting software was not in place to record the financial transactions of the

Project. These transactions were instead recorded using an Excel Workbook. Subsequent to the

audit, management advised that an accounting software was procured after the close of the

financial year and that full implementation is expected by the end of the 2016-2017 financial

year.

2.1.25 Assets costing US$119,464.96 procured with project funds were not marked with a unique asset

identification number, as required by the Procedure Manual for Control of Government

Furniture, Office Machinery and Equipment. Failure to mark the asset may facilitate

unauthorized use or misappropriation.

Recommendations

Management was advised to take the necessary steps to ensure that the implementation of an

accounting software is done in the timeline given. In addition, a suitable system of control

should be instituted to ensure all transactions are accurately inputted.

All fixed assets procured should be appropriately labelled to comply with the guidelines and to

assist in safeguarding them.

HEAD 20011: ACCOUNTANT GENERAL ’S DEPARTMENT (ACGD)

2.1.26 The audit of the financial transactions and accounting records of the Accountant General’s

Department revealed a generally satisfactory state of affairs. Management was advised to take

steps to correct the few weaknesses identified.

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Audit Observations and Recommendations

Auditor General’s Department – Annual Report – 2007/2008 60

Consequently, it was exposed to the risk of making improper or duplicated payments. The Agency was advised to implement measures to mitigate this risk.

HEAD 4220 REGISTRAR GENERAL’S DEPARTMENT

254. The audit of the financial transactions and accounting records of the captioned Agency disclosed the following areas of concern: Outstanding Accounts 255. At the date of this report, the Appropriation Accounts for 2006/2007 and 2007/2008 were not presented for examination in contravention of the law. Internal Control Weaknesses 256. Deficiencies were noted in the controls exercised over expenditure transactions, fixed assets, motor vehicles, receipt books and blank cheques. There was also no evidence that the Agency implemented appropriate measures to allow for the verification of payments made to courier service providers although this was the subject of prior reports. These weaknesses could contribute to the loss of public resources. It was recommended that early corrective measures be implemented. Breach of Procurement Guidelines 257. Written agreements were not presented to support payments totalling $2,726,949 made to two (2) contractors during the period April 2006 to September 2008. Emoluments 258. a) Surcharge of $3,175,618 instituted against an officer of the Agency is yet to be recovered, and no evidence was presented that an appeal was in progress. I was subsequently informed that the officer was granted approval of extension for an appeal.

b) Vacation leave payments totalling $636,776 were improperly made to four (4)

employees who were subsequently separated from the Agency. Also, overpayments of salary and allowances totalling $278,427 were made to four (4) employees of the Department.

c) Performance incentives amounting to $350,391 were improperly paid to sixteen

(16) employees.

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June 09, 2021


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