IOC commends local body for financial governance

SPORTS’ LOCAL apex body, the Jamaica Olympic Association (JOA), has received commendations for its financial governance from the International Olympic Committee’s (IOC) Olympic Solidarity.

In a letter evaluating the JOA’s management of Olympic Solidarity funding, the IOC noted that it “found no matters raised”.

Further, the umbrella association for Jamaica’s sporting bodies was exhorted via sports’ world governing body’s direction “to continue on this trend”.

This assessment came on the heels of a routine local audit of the financial governance and administrative systems of the JOA , which was carried out under the aegis of the IOC. An evaluation of internal controls, financial risk management, budgetary discipline, investment policymaking, constitutional safeguards of the association’s financial framework, legal preparation of documents, segregation of duties, transactional transparency and governance of commissions were all scrutinised in determining the health of the national body.

“We deem our responsibility as custodians of human and financial capital, the aspirations of our members and the sporting assets of Jamaica as sacrosanct, and for us, good governance is a DNA culture and non-negotiable,” JOA President Christopher Samuda commented, noting that the national body has transformed sport administration into sport governance, and the business of sport into the monetisation and commercialisation of sport.

SUCCESSIVE FINANCIAL YEARS

Since the advent of the current administration, a corporate and business infrastructure has been established, which has resulted in a culture of unqualified audits for successive financial years since 2017, significant growth in revenue, cost-efficient information technology systems, increased retained earnings, and the strengthening of the balance sheet.

There has also been greater spend and dividend returns, investments in the development of its members, particularly those deemed ‘smaller and non-traditional’ sports.

Ryan Foster, the JOA’s Secretary General/CEO, credited the association’s success to “strong monetary and fiscal discipline, innovative and strategic policymaking, commercial prudence, and simply an instinct for the business of sport, which we humanise in being sensitive to our members’ development needs”.

The IOC’s findings have been galvanised by the unaudited JOA results of the past financial year (2021), which show a 21 percent growth in the general fund and a 15 percent growth in surplus over 2020, this despite a $94-million increase in members’ and Games expenses, plus the cost of courses over 2020.

Foster said this reflects “an onward and upward journey, and a safe flight to the destination”.

Samuda, meanwhile, says it captures the essence of what the JOA is about.

“Leadership goes beyond frontline duties, and resides in self-mastery and mastering and inspiring the human capital and complementing both, with a deep understanding that it takes cash to care but, more importantly, it takes a frugal mind in spending, so that you don’t become cashless.”

The global sport industry is, arguably, awash with cash, and as commercialisation of brands, events and the fan base continues to expand exponentially, resource management is becoming increasingly imperative.

Foster said the handling of its resources is critical to the development of its member associations.

“Resources must be managed in ensuring that the well does not run dry and drought becomes the climate. For that reason, the JOA will not only weather any storm that may come, but will create for our members sunny and rewarding days.”