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MONITORING & EVALUATION

The Monitoring and Evaluation department consists of specialist auditors, financial analysts, and accountants, who work with the Intervention and Rehabilitation-Banking and the Intervention and Rehabilitation-Insurance teams.

The department is thus responsible for the ongoing assessment of the overall performance of all FINSAC–intervened entities, including their regulatory and statutory compliance, and for monitoring their financial turnaround. It also monitors the intervened entities for their compliance with all Financial Assistance Agreements signed with FINSAC.

Functions performed by the department’s specialists include:

• Benchmarking of institutions to international and domestic standards;

• Analysis and monitoring of FINSAC’s loan portfolio; and

• Resolution of institutions in liquidation.

• The department also constantly reviews all FINSAC–intervened entities to ensure they have in place:

• Effective mechanisms to facilitate efficient and proper management;

• A proper framework for the evaluation of risk by the institution; and

• A proper framework for corporate governance and shareholder oversight.

Monitoring and Evaluation specialists are also responsible for FINSAC’s Internal Audit function, which includes the monitoring of FINSAC’s compliance with the guidelines set out by the Government of Jamaica for the operations of limited liability companies. 

Installation of a new computer system in late 1999 has greatly facilitated the activities of the department. This is especially evident in the area of loan portfolios, and of FINSAC bond issuance, where the new system provides enhanced report writing and a capability to programme our customised report requests.

Additionally, the Monitoring and Evaluation department participates in a Cash Management Working Group consisting of representatives from the Ministry of Finance, the Bank of Jamaica, the Accountant General’s office and FINSAC.

This function was taken over from the Intervention and Rehabilitation-Banking department during fiscal 1999/2000.This Cash Management Working Group meets monthly. Its purpose is to ensure that any short-term liquidity issues in FINSAC–intervened entities are adequately discussed and supported, whenever they arise. 

The Group initiates appropriate actions after carefully weighing a range of interacting factors including marketplace liquidity, Government’s issuance or repayment of bonds, Bank of Jamaica’s monetary operations, asset sales achieved by FINSAC, and Ministry of Finance’s budgetary commitments for liquidity to FINSAC institutions. 

As divestment proceeds, the Monitoring and Evaluation department expects to play a leading role in the expeditious resolution of the assets owned by FINSAC and its subsidiaries Recon Trust Limited and Refin Trust Limited.

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