Legislature of the Virgin Islands P.O. Box 1690, Emancipation Garden Station St. Thomas, U.S. Virgin Islands 00804

Transcription

1 Legislature of the Virgin Islands P.O. Box 1690, Emancipation Garden Station St. Thomas, U.S. Virgin Islands POST AUDIT DIVISION June 17, 2015 COMMITTEE ON FINANCE FISCAL YEAR 2016 BUDGET HEARING DEPARTMENT OF TOURISM TEL: (340) FAX: (340) TITLE PAGE NUMBER BACKGROUND AND HISTORY 2 3 MISSION STATEMENT 3 4 GOALS AND ACCOMPLISHMENTS 4 5 BUDGET OVERVIEW 5 6 FY 2016 BUDGET SUMMARY 6 PERFORMANCE BASED BUDGETTING 7 12 RENTAL PROPERTY 12 VEHICLES 12 HOTEL ROOM TAX REPORT 13 TOURISM REVOLVING FUND BALANCE 13 TOURISM REVOLVING FUND APPROPRIATION 13 TOURISM IMPREST FUND BALANCE MISCELLANEOUS SECTION 14 CONTRACTS SUMMARY 15 APPENDIX 16 18

2 Page 2 of 18 BACKGROUND AND HISTORY The Department of Tourism was established on May 8, 1995 as an executive department. The Department of Tourism was formerly a part of the Virgin Islands Economic Development & Agriculture. EDA was then broken down into different departments with the Department of Tourism as one of them. The department is primarily responsible for the economic development of the Territory through the promotion of tourism and related activities. The department is under the supervision of the Commissioner of Tourism and its responsibilities include but are not limited to the formulation, implementation, administration and coordination of programs and policies pertaining to all aspects of tourism. Activities conducted by the Department of Tourism include the following: Develop strategies that will make the Territory competitive and desirable as a tourism destination Communicate and cooperate with all local tourist or tourist-related businesses to determine their needs and how best to promote the industry Promote Virgin Islands culture as a part of the tourism experience Promote an understanding of the importance of the tourism experience Develop strategies for the U.S. Virgin Islands in all businesses and industries throughout the Territory Identify and promote the unique features of St. Croix, St. John, St. Thomas, and Water Island in tourism advertising; and, develop long-term strategies to successfully develop the overall economy TOURISM ADVERTISING REVOLVING FUND This Fund was created by Act 5249 and established under Title 33, Section 3072 Virgin Islands Code. The Fund is administered by the Commissioner of Finance and consists of all sums appropriated from time to time by the Legislature, all gifts, contributions and bequests made, and 100% of all moneys received by the Government from the collection of Hotel Room Tax, which is 8% of the gross room rate or rental. Monies disbursed from the Fund are used exclusively by the Department of Tourism [formerly the Department of Economic Development and Agriculture (EDA)] for promoting the Territory as a tourist destination and for industrial promotion.

3 Page 3 of 18 The Commissioner of Finance is required to forward annually to the Governor and the Legislature a detailed accounting of the disbursements from the Fund and the un-obligated balance. The Hotel Room Tax was enacted on July 13, 1978 as part of the Fiscal Year 1979 Executive Budget. It was established as a value added tax to the gross room rate of guests who rent and are registered or assigned a room in a hotel or other place where accommodations are furnished by the day, week, and month for pay. The activity regarding the increases in the hotel room tax from its enactment to the current status is shown in the table below: Changes in Hotel Room Tax Year Rate Act # % Enacted % % % 5954 Originally, only 50% of the monies collected from the Hotel Room Tax went into the Tourism Advertising Revolving Fund. In 1989, Act No increased the contribution to 65% and limited the maximum amount of monies which could be deposited into the Fund in any given fiscal year to $6.5 million. In 1990, Act 5498 removed the cap on the amount of monies that could be deposited into the Fund and increased the contribution to 100% for Fiscal Year 1990 only. This Act also mandated that $1 million be used for a territory-wide cleanup and beautification program and that $1 million be used exclusively for advertising St. Croix, $1 million for advertising St. Thomas, and $200,000 for advertising St. John. Later, Act No extended the 100% contribution for Fiscal Year 1991, and Act No further extended it for Fiscal Years 1992 and Act No further extended the 100% contribution to Fiscal Years 1994 and It also mandated that $1 million be reserved for the exclusive promotion of the island of St. Croix. Act No further extended the 100% contribution for Fiscal Years 1996 and 1997; it also mandated that $1 million be reserved for the exclusive advertising and promotion of the island of St. Croix. MISSION STATEMENT The mission of the Department of Tourism (DOT) is to increase visitor expenditures, to aid in the economic development of the Territory as mandated by the 21 st Legislature, which created the Department on May 8, In order to fulfill its mission, the

4 Page 4 of 18 Department has developed a strategic marketing plan that positions the USVI as a unique, competitive and desirable tourist destination. GOALS Its strategic plan is based on these four (4) core goals: 1. increase the number of domestic and international visitors and expenditures; 2. improve community awareness of tourism; 3. ensure the uniqueness of each island is represented in marketing efforts; and 4. build brand equity to create growth of travel to St. Croix. In order to achieve these goals, the Department s approach involves the following: 1. maintaining good communication with partners (i.e. hoteliers, attractions, the National Park Service, tour operators, travel agents, airlines, the media and the community); 2. maintaining market share for St. Thomas and St. John with a steadfast commitment to seeking new opportunities and increased market share for St. Croix; 3. using non-traditional approaches to market the Virgin Islands so as to make us distinctive and memorable; and 4. adjusting our marketing plan as needed, evaluating tactics and measuring results to ensure we remain on course. ACCOMPLISHMENTS The following outlines some of the Department s key accomplishments in FY 2014: 1. developed a program with Virtuoso (travel agents targeted at luxury products) which delivered approximately $53 million in business to the territory last year; 2. Wendy Williams one month long promotion of the USVI which included a culinary segment featuring local Chef Lesley Gumbs, cultural segment featuring Caribbean Ritual Dancers (aired immediately prior to the St. Thomas Carnival and live performance by Delyno Pressure Buss Pipe Brown; 3. secured a second culinary spokesperson for the Department which included media training. Soon after completing the DOT sponsored training, the young chef, Digby Stridiron from St. Croix, won Chef of the Year at the Caribbean Tourism Organization s Rum & Rhythm competition; 4. attracted new Delta flights to St. Croix and St. Thomas; 5. hosted, for the first time, the FCCA Platinum Advisory Council Conference on St. Croix; 6. created a brochure for air & cruise development under the Port of the Virgin Islands banner;

5 Page 5 of reached the following social media Facebook: 13,907 new fans, 38% growth (USVI has 50,567 fans), Twitter: 1,197 new followers, 26% growth, Instagram: 487 new followers, 152% growth, Pinterest: 169 new followers, 27% growth The Department of Tourism, like all agencies, has been required to do more with less and have shown that the Department continues to be a good steward of the resources allocated to us. Despite foreseeable financial constraints, the Department would like to continue to: 1. implement a program to assess, sensitize and market to Americans with disabilities; 2. identify which recommendations can be implemented for the Global Sustainable Tourism Council Early Adopter Program (GST) for St. Croix; 3. update the MOA between the DOT & VIPD BUDGET OVERVIEW Exhibits I & II display a comparison between the General Fund appropriation received by the Department of Tourism in the amount of $2,611,046 for FY 2015 and the Governor s FY 2016 recommendation in the amount of $2,402,163. DEPARTMENT OF TOURISM GENERAL FUND APPROPRIATION FY 2015 $2,611,046 Other Svs. & Chgs. $459,000 17% Utilities $165,000 6% Miscellaneous $75, % Supplies $22,161 1% Personnel Services $1,325,888 51% Fringe Benefits $488,997 19% Capital Outlay $75,000 3% Exhibit I

6 Page 6 of 18 Other Svs. & Chgs. $139,000 Supplies 6% $5,000 0% DEPARTMENT OF TOURISM GENERAL FUND RECOMMENDATION FY 2016 Utilities $2,402,163 $103,833 4% Miscellaneous $50,000 2% Fringe Benefits $640,515 27% Capital Outlay $22,500 1% Personnel Services $1,441,315 60% Exhibit II FISCAL YEAR 2016 BUDGET SUMMARY The Governor has recommended a General Fund appropriation of $2,402,163 for Fiscal Year The Department is expected to receive additional funds from its Revolving Fund in the amount of $18,150,000 and the Miscellaneous Section in the amount of $2,735,000; totaling $23,287,163. Exhibit III compares a three year Financial Summary for the Tourism Department. Description FY2014 Expenditure FY2015 Appropriation 2016 Gov. Recom. Variance Appropriated Funds: Personnel Services $1,544,361 $1,325,888 $1,441,315 $115,427 9% Fringe Benefits $567,816 $488,997 $640,515 $151,518 31% Supplies $12,791 $22,161 $5,000 $17,161 77% Other Services & Charges $388,431 $459,000 $139,000 $320,000 70% Utilities $123,925 $165,000 $103,833 $61,167 37% Capital Outlays $47,193 $75,000 $22,500 $52,500 0% Miscellaneous $0 $75,000 $50,000 $25,000 33% Total General Fund $2,684,517 $2,611,046 $2,402,163 $208,883 8% Tourism Advertising Revolving Fund Other Services & Charges $650,000 $650,000 $650,000 $0 0% Total Tourism Advertising Revolving Fund $650,000 $650,000 $650,000 $0 0% Total Appropriated Funds $3,334,517 $3,261,046 $3,052,163 $208,883 6% Non-Appropriated Funds: Local Funds: Tourism Advertising Revolving Fund Other Services & Charges $16,701,902 $17,500,000 $17,500,000 $0 0% Total Local Fund $16,701,902 $17,500,000 $17,500,000 $0 0% Total Non-Appropriated Funds $16,701,902 $17,500,000 $17,500,000 $0 0% Grand Total Funds $20,036,419 $20,761,046 $20,552,163 $208,883 1% Exhibit III % Chg

7 Page 7 of 18 PERFORMANCE BASED BUDGETING Fiscal year 2016 Executive Budget emphasizes Performance Based Budgeting (PBB). The Post Audit analysis will include a presentation of the following 6 functional areas within the Department as submitted. Visitors' Bureau $273,483 11% Strategic Goal(s): 1. Increase the number of domestic and international visitors and expenditures 2. Expand community awareness of tourism 3. Stress the uniqueness of each island 4. Develop brand equity to create growth for St. Croix Performance Goal(s): 1. Enhance the tourism product 2. Manage operational effectiveness Org Administration & Management Functional Statement: Administration $312,053 13% DEPARTMENT OF TOURISM BY ACTIVITY CENTER GENERAL FUND RECOMMENDATION FY 2016 $2,402,163 Offshore Activities $471,710 20% Public Relations $50,181 2% Administration & Management $1,294,736 54% The Administration and Management Unit is responsible for ensuring that the Department operates in accordance with local and federal rules. This Unit provides daily oversight and management of the entire financial operations of DOT, administers annual budgets and ensures that disbursal of funds accord with those allotted and with rules and regulations governing the purchase and acquisition of goods and services. This Unit provides financial leadership and support to all divisions and collaborates with division heads to meet mandates. The Unit works in tandem with other financial institutions in resolving and reporting all issues and concerns regarding the disbursement of funds. The Unit is charged

8 Page 8 of 18 with providing all financial data when reporting to legislative inquiries and making appearances at budget hearings. Periodically, the Unit conducts audits of the financial operations of all offices operating outside of the Territory of the Virgin Islands. This Unit is also responsible for overseeing the Department s human resource needs and services, such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, training, and collective bargaining. The Administration and Management unit is expected to receive fifty-four percent (54%) of the departments General Fund budget in the sum of $1,294,736 for Fiscal Year This is $370,298 less than the total appropriated for Fiscal Year 2015, due to a decrease in Supplies, Other Services and Charges, Utilities and Capital Outlay. Personnel Fringe Other Svcs. Capital Supplies Utilities Services Benefits & Chgs. Outlay Total FY 16 $715,764 $308,639 $5,000 $139,000 $103,833 $22,500 $1,294,736 FY 15 $684,764 $259,109 $22,161 $459,000 $165,000 $75,000 $1,665,034 Variance $31,000 $49,530 $17,161 $320,000 $61,167 $52,500 $370,298 % Change 22% Personnel Services cost for the Administration & Management section in Fiscal Year 2016 will cover fourteen (14) positions under the General Fund. The Unit will see a decrease in Supplies, Other Services & Charges, Utilities and Capital Outlay in the amount of $450,828 for FY Fund Administration & Management Total Total Personal Positions Services Cost Unclassified Filled 10 $578,000 Classified Filled 4 $137,764 Adjustment $0 Total Fund Administration & Management 14 $715,764 Org Marketing/Public Relations Functional Statement: The Marketing Unit manages the daily operations of the Department, including planning, implementation, supervision, and coordination of all programs. It has oversight of all advertising, public relations, and promotional programs for the U.S. Virgin Islands. The Marketing/Public Relations unit is expected to receive two percent (2%) of the departments General Fund budget in the sum of $50,181 for Fiscal Year This is $1,170 more than the total appropriated for Fiscal Year 2015 due to an increase in Fringe Benefits.

9 Page 9 of 18 Personnel Fringe Other Svcs. Capital Supplies Utilities Services Benefits & Chgs. Outlay Total FY 16 $39,000 $11,181 $0 $0 $0 $0 $50,181 FY 15 $39,000 $10,011 $0 $0 $0 $0 $49,011 Variance $0 $1,170 $0 $0 $0 $0 $1,170 % Change 2% Personnel Services cost for the Marketing section in Fiscal Year 2016 will cover one (1) position under the General Fund. The Department will see an increase in Fringe Benefits in the amount of $1,170 for FY Org Film Promotion Functional Statement: Fund 100 Marketing Total Total Personal Positions Services Cost Unclassified Filled 1 $39,000 Adjustment $0 Total Fund Marketing 1 $39,000 The Office of Film Promotion advances markets and advertises the U.S. Virgin Islands as a location for the production of audio-visual commodities. Activities within the Film Division remain an important part of the destination s tourism mix, contributing millions to the local economy. The Department will continue to encourage a variety of productions such as television, still shoots, music videos and feature films, using the USVI as backdrop. With the recent passing of the S.T.A.R.S. Act, the Department anticipates increased activity during this fiscal year. No monies were recommended by the Governor in the FY 2016 Budget Book for this Unit neither was any money found in the Management Letter for this Unit. Org Tourism Administration Functional Statement: The Administration Unit manages the daily operations of the Department, such as planning, implementation, supervision, and coordination of all programs, including the Greeters, the Stranded Passengers programs, the Visitor s Bureau and Welcome Centers. It has oversight of all advertising, public relations, and promotional programs for the U.S. Virgin Islands. This Unit coordinates and executes all internal and external activities for the Department, serving as liaison between the client and vendors. Tourism Administration has an unwavering commitment to build productive, beneficial and collaborative relationships

10 Page 10 of 18 with other government agencies, the private sector and other organizations. Good customer service before, during and after each guest's visit is essential to the overall promotion of the U.S. Virgin Islands as premier tourism destination. Stationing Greeters at airports, cruise ports, and downtown ensures that guests receive a hassle-free experience and obtain guidance, directions, information and assistance as needed. The Stranded Passengers Assistance Program provides support during unforeseen events, such as lost luggage or rescheduled flights, and procures transportation, meal and hotel vouchers during long delays. By offering emotional support as an island friend, trained team members transform travel setbacks into positive experiences for guests. The Tourism Administration unit is expected to receive thirteen percent (13%) of its General Fund budget in the sum of $312,053 for Fiscal Year This is $14,465 more than the total appropriated for Fiscal Year 2015, due to an increase in Personnel Services and Fringe Benefits. Personnel Fringe Other Svcs. Capital Supplies Utilities Services Benefits & Chgs. Outlay Total FY 16 $221,386 $90,667 $0 $0 $0 $0 $312,053 FY 15 $219,459 $78,129 $0 $0 $0 $0 $297,588 Variance $1,927 $12,538 $0 $0 $0 $0 $14,465 % Change 5% Personnel Services cost for the Tourism Administration section in Fiscal Year 2016 will cover four (4) positions under the General Fund. The Department will see an increase in Personnel Services and Fringe Benefits in the amount of $14,465 for FY Fund Tourism Administration Total Total Personal Positions Services Cost Unclassified Filled 3 $174,000 Classified Filled 1 $47,386 Adjustment $0 Total Fund Tourism Administration 4 $221,386 Org Convention & Visitors Bureau STT/STJ/STX Functional Statement: The Convention and Visitor s Bureau provides direct support services to current and prospective visitors through various means, including disbursement of informational brochures, pamphlets, and other promotional materials. The Cruise Ship Division compiles relevant statistics concerning passengers, provides promotional and support services in cooperation with cruise ship companies, and distributes information at disembarkation sites. The Bureau also prepares the bi-annual cruise ship schedules.

11 Page 11 of 18 Communication is essential to the successful promotion of the U.S. Virgin Islands. Visitors Bureau and Welcome Centers provide information about the Territory as passengers disembark the cruise ships. Trained staff offer direct support services to onisland and prospective visitors from convenient, handicap-accessible locations. DOT s team also handles a substantial volume of communications verbal, , post, and fax responding cordially to a wide variety of queries and requests for assistance on any topic related to the Virgin Islands. The Bureau regularly reviews and analyses complaints and takes prompt, corrective action. The Convention and Visitors Bureau unit is expected to receive eleven percent (11%) of the departments General Fund budget in the sum of $273,483 for Fiscal Year This is $36,521 more than the total appropriated for Fiscal Year 2015, due to an increase in Fringe Benefits. Personnel Fringe Other Svcs. Capital Supplies Utilities Services Benefits & Chgs. Outlay Total FY 16 $176,665 $96,818 $0 $0 $0 $0 $273,483 FY 15 $176,665 $60,297 $0 $0 $0 $0 $236,962 Variance $0 $36,521 $0 $0 $0 $0 $36,521 % Change 15% Personnel Services cost for the Convention & Visitors Bureau in Fiscal Year 2016 will cover five (5) positions under the General Fund. The Bureau will see an increase in Fringe Benefits in the amount of $36,521 for FY Fund Convention & Visitors' Bureau Total Total Personal Positions Services Cost Unclassified Filled 2 $92,700 Classified Filled 3 $83,965 Adjustment $0 Total Fund Convention & Visitors' Bureau 5 $176,665 Org Offshore Activities Functional Statement: The Offshore Activities Unit promotes the United States Virgin Islands as an upscale, yearround destination by engaging in promotional activities designed to influence travel agents, wholesalers, tour operators, group and incentive planners, airlines, consumers and other travel-related entities on the U.S. mainland. The Offshore Activities unit is expected to receive twenty percent (20%) of the departments General Fund budget in the sum of $471,710 for Fiscal Year This is $109,259 more

12 Page 12 of 18 than the total appropriated for Fiscal Year 2015, due to an increase in Personnel Services and Fringe Benefits. Personnel Fringe Other Svcs. Capital Supplies Utilities Miscellaneous Total Services Benefits & Chgs. Outlay FY 16 $ 288,500 $ 133,210 $ - $ - $ - $ - $ 50,000 $ 471,710 FY 15 $ 206,000 $ 81,451 $ - $ - $ - $ - $ 75,000 $ 362,451 Variance $ 82,500 $ 51,759 $ - $ - $ - $ - $ 25,000 $ 109,259 % Change 30% Personnel Services cost for the Offshore Activities unit in Fiscal Year 2016 covered six (6) positions under the General Fund. The Department will see an increase in Personnel Services and Fringe Benefits in the amount of $134,259 for FY RENTAL PROPERTY Fund Offshore Activities Total Total Personal Positions Services Cost Unclassified Filled 6 $288,500 Unclassified Vacant 0 $0 Adjustment $0 Total Fund Offshore Activities 6 $288,500 The Department s Fiscal Year 2015 real has property listing of $27,000. Exhibit IV displays a listing of Tourism s rental property. Landlord V.I. Public Finance Authority Address Sq. Ft Annual Rent Status /Comments P.O. Box , Christiansted, St. Croix, V.I ,250 $27,000 Exp. May, 2015 Total 2,250 27,000 Exhibit IV VEHICLES Exhibit V provides a listing of Tourism s vehicles for FY Year Make Model Funding Plate Maintenance Gas Lease/Own Condition Office Division Source No. Cost Amount 2015 Chevrolet Equinox General Fund Own New STT Commissioner's Office TD-1 $0 $ Chevrolet Equinox General Fund Own Good STX Commissioner's Office TD-2 $0 $ Chevrolet Trailblazer General Fund Own Poor STX Visitor's Bureau TD-3 $0 $245 Exhibit IV

13 Page 13 of 18 HOTEL ROOM TAX REPORT According to the Internal Revenue Bureau website, the following amounts were listed as collection of room tax fees; FY 2014 actual collection of $22,141, and FY 2015 collections as of May 2015 a total of $17,324, TOURISM REVOLVING FUND BALANCE The Department of Finance has reported as of March 31, 2015 an ending balance of $30,471, before deductions for encumbrances of $2,523, and a budgetedbalance-unobligated budget of $15,202, This leaves an available balance for budget of $12,746, TOURISM REVOLVING FUND APPRORIATION In addition, the Governor has recommended the following from the Tourism Revolving Fund Section of the budget for Fiscal Year ,000 STJ St. John Carnival 275,000 STX- Crucian Christmas Festival 300,000 STT - VI Carnival $650,000 FY 2016 Total Tourism Revolving Fund Recommendations TOURISM IMPREST FUND BALANCE Exhibit V depicts funds deposited into the Tourism Imprest Fund from October 2014 to April 2015 as submitted. This fund source serves as petty cash to the Department. Account Name Bank Name Location Deposit Deposit Expenditures Month Amount Per Month Beginning Balance (ST. THOMAS) $ 1, DOT Imprest Fund Banco Popular de P.R. STT October $ 4, $ 5, DOT Imprest Fund Banco Popular de P.R. STT November $ 3, $ 3, DOT Imprest Fund Banco Popular de P.R. STT December $ 2, $ 3, DOT Imprest Fund Banco Popular de P.R. STT January $ 11, $ 4, DOT Imprest Fund Banco Popular de P.R. STT February $ 4, $ 8, DOT Imprest Fund Banco Popular de P.R. STT March $ 9, $ 12, DOT Imprest Fund Banco Popular de P.R. STT April $ 10, $ 5, Total Deposited/Expended 10/14/2014-4/30/2015 $ 47, $ 43, Beginning Balance (ATLANTA OFFSHORE OFFICE) $ 12, USVI Department of Tourism Suntrust Bank ATLANTA October $ $ 8, USVI Department of Tourism Suntrust Bank ATLANTA November $ $ 4, USVI Department of Tourism Suntrust Bank ATLANTA December $ 1, $ USVI Department of Tourism Suntrust Bank ATLANTA January $ 36, $ 28,492.74

14 Page 14 of 18 USVI Department of Tourism Suntrust Bank ATLANTA February $ 1, $ 12, USVI Department of Tourism Suntrust Bank ATLANTA March $ 109, $ 6, USVI Department of Tourism Suntrust Bank ATLANTA April $ $ 9, Total Deposited/Expended 10/14/2014-4/30/2015 $ 150, $ 70, Beginning Balance (CHICAGO OFFSHORE OFFICE) $ 11, USVI Division of Tourism CITIBANK CHICAGO October $ 1, $ 5, USVI Division of Tourism CITIBANK CHICAGO November $ $ 2, USVI Division of Tourism CITIBANK CHICAGO December $ - $ 21, USVI Division of Tourism CITIBANK CHICAGO January $ $ 1, USVI Division of Tourism CITIBANK CHICAGO February $ 10, $ 1, USVI Division of Tourism CITIBANK CHICAGO March $ 18, $ 9, USVI Division of Tourism CITIBANK CHICAGO April $ $ 6, Total Deposited/Expended 10/14/2014-4/30/2015 $ 30, $ 47, Beginning Balance (MIAMI OFFSHORE OFFICE) $ 9, USVI Government of Tourism Total Bank MIAMI October $ 10, $ 6, USVI Government of Tourism Total Bank MIAMI November $ $ 7, USVI Government of Tourism Total Bank MIAMI December $ - $ 1, USVI Government of Tourism Total Bank MIAMI January $ $ 3, USVI Government of Tourism Total Bank MIAMI February $ 9, $ 2, USVI Government of Tourism Total Bank MIAMI March $ 18, $ 3, USVI Government of Tourism Total Bank MIAMI April $ $ 3, Total Deposited/Expended 10/14/2014-4/30/2015 $ 40, $ 28, Grand Total Deposits and Expenditures 10/01/2014-4/30/2015 $ 235, $ 147, Exhibit V MISCELLANEOUS SECTION In addition, the Governor has recommended the following from the Miscellaneous Section of the budget for Fiscal Year ,000 STJ St. John Carnival 245,000 STX- Crucian Christmas Festival 245,000 STT - VI Carnival 2,000,000 Tourism Promotion $2,735,000 FY 2016 Total Miscellaneous Section Recommendations CONTRACT LISTING Exhibit VI provides a listing of the Tourism s contracts for FY Contractor Contract # Fund Amount Expiration Description Aloma Dawson Cancelled TRF $ 110,000 Oct-15 North East Region Rep Tourism Department Atlantic Link Pending TRF $ 256,800 Jan-15 Scandinavian rep for the Tourism Department Basketball Travelers Pending TRF $ 1,185,000 Oct-16 Paradise Jams Basketball games Basketball Travelers Pending TRF $ 345,000 Dec-17 Paradise Jams Basketball games Bravo Tours Pending TRF $ 250,000 Oct-15 Marketing and Promotion of Danish Charter Canlink PC-004-DOT-13 TRF $ 68,000 Aug-15 Canadian Rep for the Tourism Department Glenn Freeman DBA Millenenium Phone and Cable Pending TRF $ 200,000 Oct-16 Information Tech Contract Day One Perspective PC-008-DOT-15 TRF $ 249,000 Oct-15 Social Media Consultant

15 Page 15 of 18 Day One Perspective Amendment PC-008-DOT-15 TRF $ 7,500 Oct-16 Social Media Consultant Delta Airlines Inc PC-011-DOT-15 TRF $ 650,000 Nov-15 Contractor to provide St. Croix flight Excelsior Integrated Pending TRF $ 299,975 Jan-16 Fullfillment House and E-Commerce consulting Judith Akerman PC-020-DOT-115 TRF $ 79,750 Dec-13 New England rep for Tourism Department JWT PC-003-DOT-13 TRF $ 13,828,000 Sep-15 Ad Agency Lucre Ruisanchez PC-133-DOT-14 TRF $ 35,000 Aug-13 Puerto Rico Rep for the Tourism Department Marketplace Excellence PC-036-DOT-15 TRF $ 230,000 Dec-15 Ad Agency Marketplace Excellence Amendment Pending TRF $ 40,000 Dec-16 Ad Agency Development Counselors Int'l. PC-016-DOT-13 TRF $ 3,700,000 Sep-15 PR Agency Project STX Pending TRF $ 125,000 Dec-15 Triathlon Contract STX Seaborne Virgin Islands, Inc PC-149-DOT-14 TRF $ 600,000 Jan-15 Provide Inter Island transport via airplane Thema Nouvi Mondi Pending TRF $ 100,000 Mar-16 Italy Rep for the Tourism Department VI E-Cell Broadband VI PC-118-DOT-14 TRF $ 50,000 Jun-15 Customer Service Training TOTAL $ 22,409,025 Exhibit VI SUMMARY The Department of Tourism Fiscal Year 2016 Governor s Recommendation Budget is as follows: $ 2,402,163 General Fund FY 2016 Recommended Budget $ 650,000 Tourism Adv. Revolving Fund FY 2016 Recommended Budget $ 2,735,000 Miscellaneous Section FY 2016 Recommended Budget $ 5,787,163 FY 2016 Total Appropriated Funds $ 17,500,000 Local Funds (Tourism Advertising Revolving Fund) $ 23,287,163 Total Recommended FY 2016 Operating Budget Jose L. George Post Auditor

16 Page 16 of 18 APPENDIX I LEGISLATURE OF THE VIRGIN ISLANDS POST AUDIT DIVISION COMMITTEE ON APPROPRIATIONS & BUDGET BUDGET HEARING FISCAL YEAR 2016 DEPARTMENT OF TOURISM PERSONNEL LISTING POSITION TITLE SALARY STATUS 920 DEPARTMENT OF TOURISM 9200 OFFICE OF THE COMMISSIONER ADMINISTRATION & MANAGEMENT UNCLASSIFIED ASST. DIRECTOR OF COMMUNICATION $52,000 FILLED COMMISSIONER $117,000 FILLED CONFERENCE PLANNER $48,000 FILLED DEPUTY COMMISSIONER $75,000 FILLED DIRECTOR OF ADMIN. & MANAGEMENT $70,000 FILLED EXECUTIVE ASST. TO COMMISSIONER $40,000 FILLED EXECUTIVE ASST. TO COMMISSIONER $55,000 FILLED FISCAL & PERSONNEL SVC ASSISTANT $44,000 FILLED MARKETING COORDINATOR $42,000 FILLED SECRETARY TO MARKETING DIVISION $35,000 FILLED SUB-TOTAL $578, CLASSIFIED ACCOUNTANT II $30,524 FILLED FINANCIAL ANALYST $44,595 FILLED INFORMATION OFFICER $22,364 FILLED PROGRAM ADMINISTRATOR $40,281 FILLED SUB-TOTAL $137, FUND 100 TOTAL $715, ACTIVITY $715, DEPARTMENT OF TOURISM 9200 OFFICE OF THE COMMISSIONER MARKETING UNCLASSIFIED MANAGER, PUBLIC RELATIONS $39,000 FILLED SUB-TOTAL $39, FUND 100 TOTAL $39,000 1

17 Page 17 of ACTIVITY $39, DEPARTMENT OF TOURISM 9210 TOURISM ADMINISTRATIVE UNCLASSIFIED ASSISTANT COMMISSIONER OF TOURISM $85,000 FILLED CUSTOMER CARE MANAGER $39,000 FILLED DIRECTOR PORT ACTIVITIES $50,000 FILLED SUB-TOTAL $174,000 3 CLASSIFIED SPECIAL EVENTS COORDINATOR $47,386 FILLED SUB-TOTAL $47, FUND 100 TOTAL $221, ACTIVITY $221, DEPARTMENT OF TOURISM 9210 TOURISM VISITORS BUREAU - STT UNCLASSIFIED COMMUNICATION SPECIALIST $47,000 FILLED DIRECTOR OF CRUISE SHIP ACTIVITIES $45,700 FILLED SUB-TOTAL $92,700 2 CLASSIFIED CUSTODIAL WORKER $20,527 FILLED SENIOR INFORMATION OFFICER $38,978 FILLED SENIOR INFORMATION OFFICER $24,460 FILLED SUB-TOTAL $83, FUND 115 TOTAL $176, ACTIVITY $176, DEPARTMENT OF TOURISM 9210 TOURISM OFF SHORE ACTIVITIES CLASSIFIED DIRECTOR OF SALES $70,000 FILLED ADMINISTRATIVE ASSISTANT $40,000 FILLED ADMINISTRATIVE ASSISTANT $35,000 FILLED MANAGER-MI $48,000 FILLED NATIONAL MARK REP $47,500 FILLED SALES MANAGER $48,000 FILLED SUB-TOTAL $288,500 6

18 Page 18 of FUND 100 TOTAL $288, ACTIVITY $288, DEPARTMENT $1,441, FUND 100 UNCLASSIFIED FILLED $883, UNCLASSIFIED VACANT $0 0 CLASSIFIED FILLED $557, CLASSIFIED VACANT $0 0 ADJUSTMENTS $0 0 SUB-TOTAL $1,441,315 30