Gross financial mismanagement @ BVITB underscored in PwC investigation
The investigation, conducted over the period 2014 to 2018, aimed to assess the BVITB’s fiscal standing, internal controls, and compliance with the Tourist Board Act.
During the probe PwC’s investigation revealed that nearly 100 percent of the BVITB’s revenue during the review period was derived from central government grants, citing that this highlights the Board’s significant dependence on public funding to carry out its mandate.
To this end, the report affirmed, “The BVITB’s revenue is almost entirely dependent on government grants, making the organisation reliant on central funding for its operations.”
Investigation focused on four major areas of expenditure
Engaged in October 2020, with its final report issued in May 2021, the PwC findings, which were based on data provided by BVITB representatives, have since illustrated several key areas of fiscal operations and challenges with the investigation focusing primarily on four major areas of expenditure by the entity.
These include expenditure, averaging $4 million annually, or 38 percent of total revenues. This covered approximately 62 employees consistently throughout the review period.
PwC also noted, “Personnel costs and training remain the most significant expense for the BVITB, reflecting the organisation’s human resource commitments”.
Marketing activities accounted for an average of $1.6 million annually, representing 15 percent of total revenues. These efforts were undertaken through agencies with which the BVITB had historical relationships.
Expenses increased in 2018
PwC observed, “Increased marketing expenses in FY2018 were directly related to intensified efforts to revive tourism following the 2017 hurricanes.”
Advertising and promotion costs, which included engaging agencies to promote the BVI as a tourist destination, averaged $1.7 million annually, or 16.08 percent of revenues.
Additionally, expenses showed substantial increases in Financial Year 2018 due to roadshows and other promotional events aimed at re-establishing the Virgin Islands (VI) as a prime tourist destination.
To this end, the report highlighted, “Increased travel expenses reflected the BVITB’s proactive approach to marketing the BVI internationally after the natural disasters.”
Another significant concern raised in the report was the accumulation of outstanding receivables, particularly payments made on behalf of the Premier’s Office. Approximately 95 percent of these balances lacked supporting documentation.
Additionally, the report revealed that the BVITB continued to pay the salary of an employee seconded to the Premier’s Office between January 2014 and June 2015, despite pending reimbursement. Quarterly invoices were sent to the Premier’s Office, but no payments were received.
Financial surplus achieved
Despite these challenges, the report found that BVITB did manage to achieve financial surpluses in three of the five years under review while realising deficits in the other two years remaining below 3 percent of revenues.
As such, PwC remarked, “The financial performance demonstrates that while the BVITB faced operational challenges, its overall fiscal management remained relatively stable.”
Kofi Boxill, Executive Director at PwC, in the report did qualify the document saying, “The findings are intended solely for the BVITB’s internal use and legal representatives.”
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19 Responses to “Gross financial mismanagement @ BVITB underscored in PwC investigation ”
RIPPING OFF OURSELVES AND THE COUNTRY ???? BY USING THEIR EDUCATION TO MANIPULATE THOSE OF US THAT IS BELOW THEM , THEY THINK THEY ARE GODS AND WE IS SUPPOSED TO WORSHIP THEM , ( AND DOME OF THEM REALLY BELIEVE IT TOO ) ESPECIALLY FOR YOU , " O THOU WIGGED ONE " , LETS SEE HOW YOU CAN TWIST & TURN THIS ONE INTO ANOTHER DRAMA OF HOW ITS YHOSE SLAVE MASTERS DOING TO US AGAIN , WD KNOW YOU ARE FAMOUS FOR CREATING FAKE NEWS & AND DRAMA OUT OF THIN AIR ???? WHAT A PITY ALL THAT KNOWLEDGE AND CREATIVITY WASN'T APPLIED TO SOMETHING POSITIVE FOR THE COUNTRY AND ITS PEOPLE . SADLY YOUR EGO WON'T ALLOW IT ????
AS ALWAYS YOU HOT TO THROW IN YOUR RACIAL SARCASM , SINCE YOU LOVE OVER YONDER SO MUCH - WHY DON'T YOU GO AND LIVE OVER YONDER ❓️???? ■ LET US KEEP HERE CLEAN , THAT IS WHAT WE WANT , NOT COMPARING WHAT THEY DO OVER YONDER ( UNLESS ) ITS SOMETHING BPOSITIVE , THAT WE CAN LEARN FROM / AND YES WE HAVE TO OPEN OUR EYES ON WHATS GOING ON HERE IN OUR OWN BACK YARD , AND NOT YAP YAP YAP ABOUT IT / AND SAY THEY DOING *&^% OVER YONDER , SO IT AIN'T NO BIG DEAL IF WE DO IT HERE TOO ❓️???? DUHHHHH
some of you when mr white says jump u asking how high sir: it is our people that built this territory after London abandoned the territory and branded the British Virgin Islands a Bird Sanctuary
Born & Raised in Road Town since 1952(run chat that) before you invite our people to come together and stop fighting each other U desire the former slave Masters back up in here
Might is remind they Kill off black folks from throughout the West Indies