(CNS): In the first three months of 2022, the Cayman Islands government spent more than $ 15.7 million on major capital projects and roads, but some of the recommendations made by the Directorate General for Public Development oversight. 5 years ago It is implemented.
The utility sector manages many active government-capitalized projects such as mental health facilities, John Gray High School campuses, major airports, general terminal preparations, court buildings, waste management facilities, and more.
At a hearing of the Public Accounting Commission on May 25, authorities revealed that PHD is overseeing or coordinating an additional 50 smaller public projects. However, the process and challenge gaps that have led to time and cost overruns in major past projects have not always been addressed.
Treasury Secretary Kenneth Jefferson told PAC that the government’s process of managing and monitoring spending on major capital projects needs to be addressed in many areas, with Tristan Hydes and PWD, Deputy Chief Executive Officers of the Ministry of Infrastructure. Deputy director Troy Whorms leaves all major public spending oversight vulnerable to all the human resource challenges they face.
Accountant President Matthew Tibbetts told the PAC that the lack of a national plan for infrastructure presented challenges for the Treasury with long-term management of investment in public projects, as the priority shifts from executive branch to executive branch. This means that government accountants can only budget what is expected to be spent on major infrastructure projects for four years.
When he appeared as a witness before the PAC, Jefferson was asked about the progress of the recommendations made in the 2017 OAG report. This was a follow-up to an older audit outlining key issues related to government management of infrastructure projects. He admitted that even after 10 years, there are still issues surrounding the budget report on this capital spending.
“The amount of capital spending information in the annual budget process is limited,” he said. “It doesn’t go far beyond the two-year period we are currently facing … it doesn’t indicate daily operating costs … it’s not in our budget document at this time.”
Jefferson explains that the ministry has begun to create a schedule to document budgets and spending for major projects that cost more than $ 1 million, which first appeared in the government’s audited quarterly financial report ().See page 33). But he said it was just a starting point and more work was needed to help the government manage its investment in capital development better.
He said more information will be added over time as it is designed to provide better information to the government about the amount of money already spent on all projects. He said that the area of greatest need for improvement is the estimated future cost of a particular project, when work is likely to take place.
The PAC also heard that the ministry is still developing a long-term investment plan, but no political commissar has yet been established to prepare for the next budget cycle.
“The ideal situation for a long-term fixed investment plan is to have a country-wide plan to guide the capital projects we undertake because we know where we are heading as a country,” Tibbetts said. Said when asked. Delay in deploying this plan.
“If there is no long-term national plan, we must take an approach to do it every four years for the elected government at the time,” he said, and these plans may be implemented. He added that it may not be done. Transfer by the next government.
Tibets said the committee to develop the capital plan must consist of politicians, but the ministry and PHD are working on a comprehensive list of projects already underway and are planning or under discussion. Is proposing.
See the PAC conference on CIGTV below.