The Jamaica Olympic Association says the significant increase in administrative expenses over the past two years is as a result of changes made to its organisational structure as it moved to become more professional in its operations.
The JOA was responding to a report in Jamaican media on Thursday that placed the spotlight on the organisations ballooning operational expenses over the last two years. In the report aired in Television Jamaica, it was revealed that salaries moved from JMD$9.7M in 2017 to J$34.7M in 2018, while administrative expenses spiralled almost 100 per cent - from J$32M to J$60M over the same period.
Meanwhile, JOA’s assets declined from J$178.1M in 2017 to J$147.8m in 2018 all while per diem payments for athletes was reduced from USD$30 to USD$25.
Earlier Friday, the JOA issued a lengthy statement detailing the changes to its operations as it sought to justify its expenditures.
“The increase in the administrative expenses of the JOA was as a result of the full establishment of a corporate organizational structure. This involved the modernization of the operations of the JOA again in keeping with the “Pathway to Success” program and entailed the full computerisation of our accounting systems, the introduction of a payroll system to replace the paper-based manual system and a complete revamp of the website,” the JOA said in its statement.
“Sixty-seven per cent of the increase in administrative expenses over 2017 was as a result of the increase in salaries and wages which was a function of the decision of the Board and mandate it received from member associations to restructure and professionalize the association.”
The JOA said 10 per cent of the increase in administrative expenses over the prior year 2017 was as a result of a decision taken by the new administration to rectify the reconciliations and finalise outstanding financial reports from the prior quadrennial period (2013-2016) for submission to its main stakeholder, the International Olympic Committee (IOC). “This saw a reduction in our receivables from J$85M in 2017 to J$20M in 2018,” it said.
The JOA explained that salaries increased as a result of a decision taken by the board to restructure and professionalize the office in keeping with the “Pathway to Success” vision which was articulated to our members in 2017.
“In expanding the services to our members, the Board identified four critical areas: Business Development, Member Relations, IT Services and Marketing and Corporate Communications. This necessitated the engagement of persons with the skill sets and experience in alignment with the services being offered,” the JOA said.
This, it said, resulted in increased sponsorships and revenue to the JOA with income levels doubling in 2018, which was a direct result of the JOA leveraging more income opportunities through existing stakeholders and new partners.
The JOA also claimed that leveraging increased grant income through Olympic Solidarity to support the development activities carried out by our various member associations while also continuing its efforts to increase other income streams through new sponsorships.
The redevelopment and branding of the JOA Website and the development of websites for some Member Associations at no cost to them.
According to the JOA, significant improvement in member relations through its educational workshops, increased training opportunities for its members locally and overseas and the hosting of its “Sports for Breakfast” series, which allowed its member associations to interface and network with corporate Jamaica. Membership support increased by JMD$80M over the prior year and across various sports facilitating their development and assisting with Olympic qualification efforts.
In relation to communications, the JOA said the professionalization of its communication network with its members' associations and external partners as well as press conferences and briefings hosted by the JOA led to the creation of a strong brand presence locally and globally.