Milk River Bath & Spa
Auditor General Department Annual Report for FY2018/2019 reported that the Milk River Bath Hotel and Spa did not maintain an updated Master Inventory record to account for inventory items under its custody. The records did not accurately reflect the balance of inventory items on hand at any given time. According to the Auditor-General, “we saw no evidence that periodic stock counts were conducted to determine the existence and condition of items; as well as to reconcile items found on hand with the inventory records. Milk River Hotel and Spa’s inability to maintain a proper perpetual inventory system increases the risk of misappropriation of the entity’s assets.”
Bath Fountain Hotel & Spa
In previous audit reports from the Auditor General Depatrtment and the recent Annual Report for FY 2018/19, Bath Fountain Hotel and Spa was advised to improve the system of internal control over the management of its inventory records. Bath Fountain Hotel and Spa did not properly label items of furniture and equipment; the Master Inventory record was not consistently updated and the requisite location record was not maintained. As such, in 88 instances, the AUGD was unable to reconcile assets seen on the inventory records.
Bath has not taken appropriate steps to reduce the risk of financial losses over the management of stock items. During the period under review, Bath purchased foods and drinks costing $3.2 million for the restaurant; but the requisite certification that the items purchased were received and recorded was not done. Bath did not conduct routine or independent annual stock count, which would have assisted management in identifying the discrepancies that may exist.
Permanent Secretary (current): Jennifer Griffith
Permanent Secretary (at breach): Jennifer Griffith
Breach Category: Resource Management
Breach Type: Poor Inventory Management
Status: Partial Compliance
Year Reported: 2019
Last Assessed: May 9, 2020
Year Resolved: 2020
Milk River and Bath Spas were advised to implement controls to ensure that the management of its inventory is done in accordance with the Government of Jamaica guidelines and to prevent financial loss.
Management was advised to strengthen the system of control over its store inventory to ensure that the movements of items in and out of stock are brought to account in a timely manner and assets are safeguarded at all times.
The Ministry of Tourism has furnished JAMP with an outline of the steps taken to remedy the breaches and samples of Inventory Sheets from the Milk River Bath and Bath in St. Thomas.
See links to access documents below
The Ministry’s efforts have included engaging a Storekeeper/Inventory Officer for the Bath Fountain & Spa Hotel, updating the inventory records and increasing oversight of Ministry staff for both properties.
No Calls To Action are currently associated with this breach.