AuGD marks UDC progress but info still outstanding
Published:Wednesday | November 16, 2022 | 12:07 AMJudana Murphy/Gleaner Writer
The Urban Development Corporation (UDC) has made progress in its implementation of recommendations by the Auditor General’s Department (AuGD) in a 2022 performance audit that was tabled in Parliament in August.
Deputy Auditor General Gail Lue-Lim said six of the 16 recommendations have been fully implemented and seven partially implemented. The remaining three have not been enforced.
“Regarding improvement in financial viability, we noted some progress in the collection of rental arrears and, of course, winding up of dormant companies. However, the management of receivables remains a challenge,” she said during Tuesday’s sitting of the Public Accounts Committee (PAC).
Lue-Lim said that the UDC incurred losses or generated negligible profits based on the operations of subsidiaries, but disclosed that no information was provided for review for the period 2018-20. Similarly, no information for the audited financial statements was received for the last three years that were included in its audit report, said the deputy auditor general.
In the report, the corporation was asked to submit to the portfolio minister all outstanding annual reports and audited financial statements for tabling in the Houses of Parliament.
UDC General Manager Robert Honeyghan said the corporation’s annual report for 2017-2018 was submitted to the Ministry of Economic Growth and Job Creation in October 2022 for submission to Cabinet.
For the 2018-19 report, draft financial statements were received from external auditors KPMG on October 26, 2022.
“We’ve completed our review and review meeting was held on November 4, 2022, with KPMG. We are now awaiting the final draft financial statement from KPMG and we’re expected to finalise for distribution for the UDC board’s review by November 30, 2022,” Honeyghan told the PAC.
“For the 2019-20 audit year, we are awaiting the final audit sample for audit testing from KPMG. We expect and hope that completion will be attained by December 31, 2022, with the audit now 90 per cent complete,” Honeyghan detailed.
Further, he told the committee that UDC’s contract with KPMG ended in 2020 and the audit firm had completed audits up to that time.
The UDC general manager explained that though it is 2022 and UDC will procure the services of a new auditor, KPMG has been carrying out the retroactive audits.
It was recommended that UDC adopt a robust investment management strategy to better guide future investment decisions.
Honeyghan said the corporation is strategically activating select land assets for development partnerships. Two such transactions are Caymanas Housing and Caymanas Infrastructure – which is a well and water project – are currently being advertised. Another two are planned for advertisement early in the upcoming fiscal year.
The general manager told the committee that a request for expressions of interest has been advertised for a development partner to undertake all services and works necessary to convert approximately 132 acres of land within the Caymanas Estates Development Area into 1,200 sustainable housing solutions.
“The organisation sees where it is beneficial for the UDC to partner and collaborate with the development community. The UDC has also commenced a comprehensive strategic review of its asset portfolio to ensure that we optimise our return on investment assets. To date, arising from this ongoing review, the corporation has begun the process to develop and maximise on lands located within the Caymanas, St Catherine, region,” Honeyghan said.
Honeyghan added that other assets owned by the corporation are also being assessed for monetisation opportunities, while its other strategic focus includes improved asset management, lease management, product diversification, and housing and commercial development.