The Jamaica Urban Transit Company, JUTC, Board has summoned all senior managers to a meeting to discuss the findings of a recent Auditor General performance audit.
The report urgently recommended that the JUTC immediately improve its inventory management systems to reduce the risks of pilferage that has led to financial losses.
The performance audit report was tabled in parliament on Tuesday.
It found that the company had an unapproved staff capacity costing an accumulated 1-point-1 billion dollars.
And, the audit says the JUTC’s management was ineffective in implementing strategies to improve the company’s operational efficiency and financial viability, including tracking the use of fuel and other resources.
According to the performance audit, the JUTC’s board failed to implement the necessary internal controls to protect the financial resources of the State-owned bus company.
It says the JUTC is characterized by poor Human Resource practices and weak financial management resulting in un-budgeted and unapproved expenditures.
The AG report says it found that the JUTC’s management exceeded the overtime budget by 728-point 6-million dollars, despite the existence of excess staff capacity.
It also found that despite excess mechanics on the JUTC’s staff and available funding for training, the company’s management outsourced maintenance and repair services, costing approximately 419-million dollars.
It says that costs increased by approximately 3-hundred and 64 per cent in the 2018/2019 financial year when compared to the 26-point 1-million dollars in the 2014/2015 financial year.
The performance audit report says the company is yet to implement the Automated Vehicle Locator system acquired in 2017.
That system was acquired to improve efficiency through tracking of various areas including geographic location, idling and speeding, and also to assist with scheduling and bus rotation.
In addition, the audit found that despite the availability of an automated system to monitor fuel, the company’s management of its fuel inventory was manual and largely paper-based.
It says that the automated system has been in a state of disrepair and that there was no evidence that the JUTC was moving to fix it.
The audit also says the Transport Ministry is deficient in its oversight of the JUTC to ensure adherence to the Public Bodies Management and Accountability Act.
It’s why the audit is recommending that the JUTC conducts a cost-benefit analysis to determine the feasibility of its bus routes.
And, the Auditor General is also proposing that the Ministry considers the development of a competency profile for the JUTC Board in accordance with the GOJ Corporate Governance Framework.
In a statement last evening, the JUTC says its board takes the findings of the performance audit seriously as the company is a public body subject to Government regulations.
It says the meeting is set for this morning at 8.