Alarming failures uncovered @ BVITB in PwC Special Audit
The review, commissioned by the BVITB, sheds light on troubling inefficiencies, lost documentation, and serious lapses in adherence to the Tourist Board Ordinance (Chapter 280, Ordinance 1969).
The PwC report, finalised in May 2021, revealed that the BVITB consistently failed to meet its statutory obligations, including submitting audited financial statements and annual reports to the Minister of Finance by the legally mandated deadlines.
Missing records
Despite unqualified opinions on financial statements from external auditors, delays in audit completions ranged from seven to fourteen months.
“The delays were attributed to the lack of organization in compiling relevant documentation and securing the necessary approvals,” the report states and delays resulted in “non-compliance with the Tourist Board Ordinance for four out of the five years under review”.
Further exacerbating the situation, extensive gaps in documentation were identified, compounded by the destruction of records during Hurricanes Irma and Maria in 2017.
The now ‘missing records’ included procurement documents, payroll processing records, and performance evaluations.
PwC in a copy of its report, seen by Virgin Islands News Online (VINO), noted, “The BVITB’s storage location was significantly affected, and key records were destroyed. As such, our assessment relied heavily on discussions and limited information provided by current personnel.”
Inconsistencies in financial transactions
Inconsistencies in financial transactions raised additional red flags, with PwC identifying discrepancies in payments to key vendors.
One such discrepancy identified was for payments to Treasure Isle Hotel that illustrated in a most pellucid fashion, differences between purchase orders and actual payments, while statements from Maria by the Sea, also were found to not align accurately with recorded purchase orders.
PwC also highlighted in its document, significant risks tied to governance stating, “The investigation revealed gaps in compliance with conflict-of-interest declarations, raising concerns about potential fraud or misconduct.”
Interviews with BVITB personnel further underscored the challenges, as many senior staff members during the review period were no longer employed.
In a particularly stark observation, PwC also pointed out that despite the use of International Financial Reporting Standards, the Board had failed to adopt fund accounting principles that align with public sector best practices.
PwC calls for sweeping reforms
PwC has since called for sweeping reforms, including improved record-keeping, stricter internal controls, and enhanced compliance protocols to mitigate future risks, stressing the importance of better preparedness to meet statutory obligations and calling for a robust governance framework to restore public confidence.
“The findings outlined in this report serve as a wake-up call for the BVITB to address fundamental weaknesses in its operations and governance,” the report concluded.
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33 Responses to “Alarming failures uncovered @ BVITB in PwC Special Audit”
What’s to become of the recommendations made?
run chat dat
2. Pier Park overrun 40 million
3. Sewage 8 million
4. The Wall 1 million
The BVI just continuing to show the world how slack, lackadaisical and unprofessional and unorganized we are! From every direction, yal jus making the dog $%%^ with SHAMEEEEE MY GODDDD