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Key Findings and Recommendations

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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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Key Findings and Recommendations

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inexperienced assistant lecturers not only breached the international marine guidelines1, but could

raise questions as to the standard and quality of the Institute’s programme delivery. Review of CMI’s

annual student surveys highlighted concerns regarding perceived weaknesses in the delivery of

training offered by lecturers.

2. Section 4(1)(a) of the Caribbean Maritime Institute Act states that one of the functions of the

Institute shall be to provide training for persons employed as officers and ratings in the shipping

industry. However, we found that enrolment in the School of Marine and Professional Studies has

declined by approximately one-third, moving from 215 in 2010-11 to 138 students in 2014-15. In

light of this decline, CMI’s 2012 to 2015 Corporate and Operational Plans did not indicate any

deliberate strategies to address the decrease in the Marine and Professional Studies.

3. One in three CMI cadets did not gain seafarer experience. Of the 438 enrolled cadets during the

period 2007-08 to 2011-12, 247 cadets completed seafarer experiences; and 152 cadets (or 38 per

cent of cohort) were not exposed to seafarer training in contravention of the IMO policy and CMI

policy; while the remaining 39 did not complete the studies. Consequently, the 152 students have

not received the relevant certification to be gainfully employed as seafarers and might have

difficulty obtaining employment on ships. We also noted that the percentage of cadets who

graduated declined from a high of 46 per cent in 2007-08 to a low of 20 per cent in 2011-12. Over

the period, an average of 25 per cent of cadets enrolled graduated, compared to 86 per cent

projected in CMI’s 2012-2015 Corporate Plan.


CMI should undertake a thorough assessment of the resources required to achieve the targets

outlined in its corporate plan and strengthen its control mechanism to ensure compliance with

stipulated guidelines.

1 The guidelines states; “All instructors, supervisors and assessors need to be qualified and experienced in the particular types and levels of training and assessment they give.”

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Part One



1.1 The Caribbean+Maritime+Institute">Caribbean Maritime Institute (CMI) was established in 1980 by the Government of Jamaica and the Kingdom of Norway to train professional seafarers; primarily Jamaican, to operate what was then the Merchant of Marine Fleet. The CMI was converted to an Executive Agency under the Ministry of Transport, Works and Housing in April 1, 2001 and is the only internationally recognized maritime training and educational institution in Jamaica and the Caribbean, delivering educational training across three faculties. These are: The School of Marine and Professional Studies, School of Academics Studies, and the School of Advance Skills, which caters to industry needs by providing short courses. 1.2 CMI core programmes are accredited by the International Maritime Organization (IMO) and the University Council of Jamaica (UCJ). In addition, CMI continues to maintain its ISO 9001:2008 certification from Lloyd Registers on Quality Assurance (LQRA), for its Quality Management System (QMS). 1.3 CMI operates in a global space that caters for both the core marine and allied industry courses aimed at producing internationally competitive seafarers. CMI relevance is dependent on its ability to maintain its strength as an internationally recognized institute through the provision of maritime education and ensuring that pool of competent expertise are developed to ally to industry needs. CMI continues to forge partnerships with international shipping companies to provide training and seek employment for Cadets, student and officers.

Vision Statement

1.4 The vision of CMI “is to be the premier institution of choice for maritime education, training and applied research within the Caribbean and beyond.”

Mission Statement

1.5 The mission of the CMI “is to provide solutions through the application of knowledge, talents, and skills to continue to redefine the boundaries of tertiary education and professional maritime training.”

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Part Two

Operations 2.1 CMI deliver educational training across three faculties. These are: The School of Marine and Professional Studies, School of Academics Studies, and the School of Advance Skills. 2.2 The Marine and Professional School focuses on the core seafarers STCW 95 IMO courses leading up to the level of captain, chief engineer and chief mate. The Academic School manages the Associate Degrees, Diplomas, Bachelors and Masters Degrees and spearheads general research based activities. The School of Advanced Skills concentrates on hands on competency based training to meet the needs of the growing shipping and logistics sectors including, alternative energy, engineering projects, business development, entrepreneurship and the Career Advancement Programme (CAP).

CMI did not conduct resource audit to ascertain impact of planned increased enrolment

2.3 Over the financial years 2010-11 to 2014-15, CMI enrolment increased by 105 per cent, moving from 1,090 to 2,236 students. This surpassed CMI’s target for enrolment of 1,424 (Table 1). However, CMI did not conduct a resource audit to inform management and other stakeholders of available resources and how to efficiently employ the resources for optimum maximization. Failure to conduct a resource audit does not allow for effective planning and can expose the institute to risk or unplanned expenditure.

2.4 The absence of the resource audit also resulted in difficulties meeting the stipulated classroom space despite CMI renting three additional classroom spaces at three locations at a cost of $5.54 million, to accommodate the excess intake, over the three year period (April 2012 to March 2015). Further, CMI did not provide the status of the current capacity of students the institution can accommodate. IMO guidelines2 indicate that class sizes should be limited to no more than 24 students in order to allow the instructor to give adequate attention to individual trainees. However, our audit revealed that the current class size ranged from a low of 38 to a high of 48 students. .

Table 1 CMI Student Enrollment (2010-11 to 2014-15)

SCHOOL 2014- 15

2013- 14

2012- 13

2011- 12

2010 - 11

Change Change (%)

Marine and Professional Studies 138 101 224 198 215 (77) -36% Academic Studies 1,741 1,244 1,043 871 725 1,016 140% Advance Skills 357 584 339 240 150 207 138%

Total 2,236 1,929 1,606 1,309 1,090 1,146 105% Source: AuGD compilation from CMI records

2 Model Course 7.03 (the Officer in Charge of a Navigational Watch 1999 Edition)

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outstanding tuition fees amounting to $22.46 million. CMI’s failure to collect these amounts could impact negatively its operating cash flow. Table 2 – Analysis of Outstanding Tuition Fees as at March 31, 2015

Status Number of Students

Outstanding Tuition Fees ($)

Completed 54 3,109,658.73 Completed and Awaiting graduation 6 231,197.63 Currently enrolled 1,542 190,797,760.12 Deceased 6 670,590.81 Did not Complete 507 43,179,281.06 Did not start 2 134,425.00 Graduated 151 19,122,474.46 Unidentified 834 69,169,588.80

Grand Total 3,102 326,414,976.61 Source: AuGD compilation from CMI records

2.9 A disaggregation of the outstanding tuition fees revealed that there were individual pursuing post graduate studies that had not paid their tuition fees amounting to $23.14 million, of which $19.02 million has been owed for more than five years. CMI was unable to indicate the status of 834 students with outstanding tuition fees totaling $69.2 million (or 21 per cent).

CMI’s strategy does not address the steady decline in core marine education

2.10 Section 4(1)(a) of the Caribbean Maritime Institute Act states that one of the functions of the Institute shall be to provide training for persons employed as officers and ratings in the shipping industry. Of the three faculties, the School of Marine and Professional Studies is tasked with training seafarers, IMO certified courses that will lead to professions up to the level of captain, chief engineer and chief mate. However, we found that enrolment in this core faculty declined by approximately one- third, to 138 students in FY2014/15 from 215 in FY2010/11 (Table 1). Further, review of CMI’s Corporate and Operational Plans covering the period FY2010/11 to FY2014/15, revealed that no strategies were developed by CMI to address the fall in enrolment for the Marine and Professional Studies. While CMI’s Corporate and Operational plans articulated a targeted growth in the overall student enrolment to 1,424; no breakout for the individual faculties was provided, despite our request.

CMI did not have an adequate complement of lecturers for its core Marine programmes

2.11 CMI did not have in place an adequate complement of qualified marine and nautical lecturers to deliver core marine education. We found that the Staff Establishment allows for the employment of 30 staff, which includes 11 senior lecturers, 8 lecturers and 6 assistant lecturers in the School of Marine and Professional Studies. At the time of our audit, only 20 of the 30 positions were engaged for the Schools of Marine and Professional Studies; of which 11 of the 20 positions were filled by assistant lecturers. We found that contrary to CMI’s policy, 6 of the 11 assistant lecturers were engaged without the requisite

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