TPDCo Tourism Product Development & Management Audit
This document outlines the audit rationale, objectives, scope, and key questions related to the Tourism Product Development Company (TPDCo). The audit focuses on assessing TPDCo's procurement, project management, and governance practices to ensure alignment with value-for-money principles and the goals of the tourism sector under Vision 2030 Jamaica National Development Plan.
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Presentation Transcript
G GOVERNANCE OVERNANCE & R Tourism Product Development Company (TPDC & RESOURCE ESOURCE M MANAGEMENT ANAGEMENT (TPDCO O) ) March 2022
TPDCos Mandate TPDCo s Mandate Slide 2 To facilitate the diversification, development and improvement of the tourism product, utilizing an experienced and qualified staff to enhance visitor experience by building consensus and strategic alliances with industry stakeholders in order to engender socioeconomic growth. The achievement of TPDCo s mandate is a significant outcome for Vision 2030 Jamaica NDP which identifies Tourism National Outcome #12 of Vision 2030 Jamaica National Development Plan (NDP) identifies tourism as one of Jamaica s leading industries, major contributor to GDP and employment, as well as the largest foreign exchange earner.
Rationale for the Audit Rationale for the Audit Slide 3 The audit of TPDCo was identified in the AuGD s annual strategic audit planning process as a high-risk area, given TPDCo s mandate to facilitate the maintenance, development, and enhancement of the tourism product, and industry under Vision 2030 Jamaica NDP. TPDCo s main source of funding is through the Government of Jamaica (GOJ). A total of $5.7 billion was allocated to TPDCo over the period 2014- 15 to 2018-19. This allocation reflected an increasing trend overall, with a 19 per cent increase in 2016-17 and a 130 per cent increase in 2017.
Objective of the Audit Objective of the Audit Slide 4 To determine if TPDCo s procurement and contract practices were consistent with value for money principles. To determine if TPDCo was effectively managing its project related activities towards the achievement of the goals and objectives for the tourism sector. Assess the adequacy of TPDCo s governance system to provide strategic direction and oversight of their activities.
Audit Scope Audit Scope Slide 5 The audit focused on three key questions relating to project management, procurement and contracts management and governance arrangements. Focus To determine how well TPDCo was managing its resources to deliver tourism related projects to enhance the overall tourism product. Aim
Key Audit Question Key Audit Question Is TPDCo efficiently managing its project management activities towards the achievement of the goals and objectives for the tourism sector?
Key Data Key Data Slide 7 In 2018, the direct contribution of tourism to Jamaica s GDP was 9.2 per cent TPDCo s records showed that 315 contracts valued at $1.078 billion were executed over the period 2014-15 to 2019-20. Tourism is the third generator of foreign exchange for the Jamaican economy. TPDCo facilitates the maintenance, development and enhancement of the tourism product.
What we found What we found
Procurement and Contract Management Slide 9 TPDCo adopted a consultative approach in engaging stakeholders in the identification of tourism related projects and considered projects based on review of the established Master Plan for Sustainable Tourism Development (2002) as well as the Comprehensive Resort Upgrading Programme (CRUP). Stakeholder Engagement
Procurement and Contract Management Slide 10 From a sample of 11 projects selected for review, with a contractual value of $478 million, we saw no evidence that TPDCo assessed the feasibility of the projects or conducted risk assessments prior to Board approval. Lack of feasibility studies TPDCo did not adhere to its own SOP, which require the development of Project Concept and carry out feasibility studies - develop Initial Budget and financial viability studies prior to detailed designs, when deciding on a project .
Slide 11 Project Management Project Management Tourism Improvement Programme (TIP) TPDCo manages the Tourism Improvement Programme (TIP)1, which spans the 63 constituencies and involves several municipal corporations and licensed agencies. We expected TPDCo to select and prioritize projects based on established criteria that align with the main objective of enhancing the tourism product and offering best value for money spent TPDCo did not provide evidence of the criteria used to select the projects.
Government Arrangements Government Arrangements Slide 12 TPDCo s Strategic Planning TPDCo was up to date in its Strategic Business Plans for the five-year review period. The plans identified strategies, performance indicators and targets for major projects & programmes. TPDCo s priority programmes included Tourism Entity Management Systems (TEMS) community tourism programs, resort upgrading and attraction and craft development.
Government Arrangements Government Arrangements Slide 13 TPDCo s Strategic Planning TPDCo did not conduct impact assessment to justify project expenditures. Given the absence of performance results for project implementation, we were unable to ascertain how the Board and the portfolio Ministry assessed the contribution of TPDCo s projects to the overall tourism product enhancement and whether full value was obtained for the funds spent.
TPDCos Employment & Recruitment Practices Slide 14 TPDCo s recruitment & selection process not always consistent with its Employment & Recruitment policy and related MOFPS circulars. TPDCo was compliant with its HRMD policy when it engaged 13 officers utilizing a competitive process involving advertisements and the conduct of formal interviews. TPDCo employed and/or promoted eight employees, including 5 executive level staff, who did not possess the minimum education qualification for the substantive positions to which they were recruited and confirmed. TPDCo s records did not cite justification for the deviations from its recruitment policy, and hence, we could not confirm how TPDCo assured itself that the most suitable candidates were selected for the respective positions.
Slide 15 Financial and Performance Reporting Financial and Performance Reporting TPDCo submitted annual reports and audited financial statements to the Ministry of Tourism for the period 2014-15 to 2017-18 in compliance with the Law. TPDCo is yet to submit the reports and financial statements for 2018-19 to 2020-21. Ministry of Tourism did not conduct an annual assessment of TPDCo s Board, along with its committees, contrary to the Cabinet approved Corporate Governance Framework for Public Bodies, 2012.
What should be done What should be done
Human Resource Administration Project Management TPDCo should strengthen its project management processes and fully implement the Standard Operating Procedure (SOP) approved in March 2019, which requires the conduct of feasibility studies prior to board approval and project implementation. TPDCo must immediately take steps to improve its HRA practices to ensure compliance with its human resources policy and best practice.
