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U.S. Virgin Islands Economic Development Authority FISCAL YEAR 2017 ANNUAL BUDGET “HELPING TO SPUR AN ECONOMIC REVOLUTION” U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY FISCAL YEAR 2017 BUDGET October 1, 2016 – September 30, 2017 St. Thomas: 8000 Nisky Shopping Center, Suite 620 St. Thomas, U.S. Virgin Islands 00803 Phone: (340) 714-1700 www.usvieda.org St. Croix: 116 King Street, Frederiksted St. Croix, U.S. Virgin Islands 00840 Phone: (340) 773-6499 www.usvieda.org U.S.VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY FISCAL YEAR 2017 BUDGET October 1, 2016 – September 30, 2017 TABLE OF CONTENTS I. Introductory Section CEO's Budget Message to Chairman of the Legislature Committee on Finance………………………… 1 Principal Officials .............................................................................................................................. 2 Mission Statement ........................................................................................................................... 3 Scope and Overview ........................................................................................................................ 4 Organizational Chart ........................................................................................................................ 5 Accounting System and Financial Reporting Roles and Responsibilities ......................................... 6 USVIEDA Direct and Indirect Cost Allocations ................................................................................. 7 Goals, Objectives, Performance Measurement, and Performance Evaluation ............................... 9 Annual Budget Processes ............................................................................................................... 10 II. Departmental Goals and Objectives 1.0 USVIEDA Administrative Departments .................................................................................... 13 1.1 Board of Directors .................................................................................................................... 13 1.2 Executive Office ....................................................................................................................... 16 1.3 Administration and Finance Department ................................................................................ 19 1.4 Human Resources (HR) Department ........................................................................................ 22 1.5 Legal Department .................................................................................................................... 25 1.6 Marketing / Public Relations Department ............................................................................... 28 1.7 Economic Development Management (EDM) ......................................................................... 31 2.0 USVIEDA Operational Divisions ........................................................................................................... 34 2.1 V.I. Economic Development Commission Division .................................................................. 34 2.1.1 Applications Department ......................................................................................... 34 2.1.2 Compliance Department .......................................................................................... 38 2.2 Economic Development Bank (EDB) ........................................................................................ 42 2.2.1 Incubator Program ................................................................................................... 48 2.3 Enterprise Zone Commission ................................................................................................... 51 2.4 Economic Development Park Corporation .............................................................................. 55 III. Financial Information 3.1 Revenues .................................................................................................................................. 57 3.2 Expenditure Comparisons for FY15, FY16 Projected and FY17 Budgeted .............................. 59 3.3 Professional Services Break-down in Detail ............................................................................. 60 3.4 Personnel Service Cost Breakdown by Department and Classification ................................... 61 3.5 Budget Summary ...................................................................................................................... 62 IV. Other Supplemental Information A. Vehicle Listing for USVIEDA ....................................................................................................... 63 B. Listing of Real Property being rented or leased by the USVIEDA ............................................. 63 V. Appendix Glossary of Selected Terms ............................................................................................................ 64 July 11, 2016 The Honorable Clifford F. Graham Chairman, Committee on Finance 31st Legislature of the U.S. Virgin Islands Capital Building, P.O. Box 1690 St. Thomas, U.S. Virgin Islands 00804 Re: U.S. Virgin Islands Economic Development Authority’s FY 2017 Budget Submission Dear Senator Graham: I am pleased to submit the U.S. Virgin Islands Economic Development Authority’s (“USVIEDA” or “Authority”) Fiscal Year 2017 (“FY 2017”) budget request for consideration by the 31st Legislature’s Committee on Finance. The USVIEDA’s FY 2017 General Fund request is $4,998,515, which is an increase of $198,515 or 4% over the FY 2016 appropriation level. The Authority’s plan for FY2017 represents a rapid transformation in our approach to accomplishing the organization’s objectives. It compels us to think differently, and to challenge ourselves in providing higher levels of service that were not thought possible before. It also compels us to expend the Authority’s limited resources in areas that yield the greatest returns. We cannot continue to do business the same way and expect different results. It is with this level of exuberance and confidence that we present this budget. It reflects the belief that FY2017 will serve as the catalyst to spur an economic revolution. This means inducing changes in many aspects of our society and transcending the artificial boundaries of narrowly defined economic dimensions. These include recognizing the role of culture and entertainment, understanding the importance of delivering superior services, and being actively engaged in entrepreneurial activities for new and emerging businesses to name a few. The challenges that confront us today are no different from those of yesterday; the difference in our approach is that we have embarked on a path of scrutinizing every mechanism that has the potential to increase the living standards of our residents. This budget represents a new frontier, which will enable us to confront the future with renewed enthusiasm. We look forward to dialogue with you and the rest of your colleagues during the budget hearing process. Respectfully, Wayne Biggs, Jr. Acting Chief Executive Officer U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 U.S. VIRGIN ISLANDS ECONOMIC DEVELOPMENT AUTHORITY FISCAL YEAR BEGINNING OCTOBER 1, 2016 Principal Officials Governing Board Board Member Position José A. Penn Chairman Philip Payne Vice Chairman Avery Lewis Secretary Haldane Davies, PhD. Member Juan Figueroa, Sr. Member Catherine Hendry, Esq. Member Simon B. Jones-Hendrickson, PhD. Member Senior Management Team Wayne L. Biggs, Jr., Acting Chief Executive Officer Tracy Lynch Bhola, Esq., General Counsel Ernest Halliday, CPA, CGMA, Director, Administration & Finance Margarita Benjamin, Director, Economic Development Commission, Applications Unit Claude S.M. Gerard, Director, Economic Development Commission, Compliance Unit Nadine Marchena Kean, Director, Enterprise Zone Commission Sharmane Brookes, Director, Economic Development Bank Mark Finch, Industrial Park Superintendent, Economic Development Park Corporation U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Mission Statement The U.S. Virgin Islands Economic Development Authority (USVIEDA) is a semi-autonomous governmental agency responsible for the promotion and enhancement of economic development in the United States Virgin Islands. The USVIEDA strives to foster positive public/private sector partnerships for the enhancement of economic growth and development. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Scope and Overview The U.S. Virgin Islands Economic Development Authority (“USVIEDA” or “Authority”) is a semi- autonomous governmental instrumentality responsible for the development, promotion and enhancement of the economy of the U.S. Virgin Islands. The USVIEDA is the umbrella organization which assumes, integrates, and unifies the functions of the following subsidiary entities: the Economic Development Bank (“EDB”), the Economic Development Commission (“EDC”), the Economic Development Park Corporation (“EDPC”), and the Enterprise Zone Commission (“EZC”). The USVIEDA operates under one Governing Board (“Board”) in order to achieve maximum efficiency of operation by avoiding duplication of services, positions, and responsibilities; to reduce expenses of personnel, physical plant and operations; and to develop comprehensive programs for the economic development of the U.S. Virgin Islands. The USVIEDA is a vehicle by which the U.S. Virgin Islands Government develops and nurtures the economic growth of the Territory. According to the legislation which governs the USVIEDA, the Authority shall be governed by a seven (7) member board. Of the seven (7) members, three (3) shall not be employees of the Government of the Virgin Islands or the Government of the United States and shall be appointed by the Governor, with the advice and consent of the Legislature, for a term of three (3) years. Of the three (3) non-governmental employees, one must be a resident of St. Thomas, one must be a resident of St. John, and one must be a resident of St. Croix. Three (3) members shall be cabinet- level appointees. One (1) member shall be appointed from either the Board or executive staff of the Employees Retirement System of the Government of the Virgin Islands, Virgin Islands Port Authority, or the University of the Virgin Islands. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 USVIEDA Organizational Chart U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Accounting System and Financial Reporting Roles and Responsibilities The USVIEDA is a component unit of the U.S. Virgin Islands Government and follows enterprise fund accounting and reporting. The financial statements are presented in a manner similar to that of a private business, using the economic resources measurement focus and the accrual basis of accounting. Management prepares a plethora of financial and statistical reports, including the Financial Statements with Supplementary Information (annual audit), and is responsible for the integrity and objectivity of management and financial reporting. Management prepares Reports in accordance with Generally Accepted Accounting Principles (“GAAP”) in the United States of America, applying certain estimates and judgments as required. The USVIEDA employs internal controls designed to provide reasonable assurance of integrity and reliability of financial reporting and to safeguard, verify, and maintain accountability of assets. Such controls derive from established written policies and procedures and are implemented by trained, skilled personnel. The USVIEDA’s employment policy prescribes that all employees maintain the highest ethical standards and conduct business practices in a manner above reproach. The USVIEDA engages the services of outside auditors to perform an annual independent audit of its financial statements. The objective of an audit is to express an opinion on the financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The USVIEDA’s Governing Board formulates the vision and fulfills its responsibility for oversight and administration of the Authority’s practices and governance through actions of the full Board as well as through its committees. The Board’s Finance Committee is responsible for reviewing the annual budgets, making recommendations, and advising the full Board on major financial issues and decisions. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 USVIEDA Direct and Indirect Cost Allocations The USVIEDA’s activities are classified into two broad categories – operational and administrative – and all expenses of the USVIEDA are attributed to both operational and administrative units, either as direct or indirect costs. An operational unit is a division with the responsibility of carrying out organizational mandates. The operational divisions include the Economic Development Bank (“EDB”), the Economic Development Commission (“EDC”), the Enterprise Zone Commission (“EZC”) and the Economic Development Park Corporation (“EDPC”). An administrative unit is a department that provides support to the operational units in fulfilling their mandates. The administrative departments include the USVIEDA Governing Board, Executive Office, Administration and Finance, Human Resources (“HR”), Legal, Marketing/Public Relations, and Economic Development Management (“EDM”). A direct cost is a cost that can be identified specifically with a unit and can be directly traced with relative ease and a high degree of accuracy. An indirect cost, on the other hand, is a cost that is incurred in common with other units and cannot be traced to any specific unit. Indirect costs, therefore, are distributed to both the operational and administrative units through an internal allocation process or indirect cost rate. All operating indirect costs are budgeted and expensed in the Economic Development Management department that is part of the administrative grouping. At the end of a period, the indirect costs accumulated in the EDM department are distributed to all operational and administrative units based on a pre-determined allocation rate. At the end of a fiscal period when all direct costs are posted and all indirect costs are allocated from the EDM department, each operational and administrative unit will be able to determine its total operating cost. The total direct and indirect costs for each administrative unit are considered indirect costs to the operational units and are allocated to the operational units using a pre-determined allocation method. By the end of this process, the total cost to operate each operational unit or division within the USVIEDA can be determined. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Goals, Objectives, Performance Measurement, and Performance Evaluation Goals, objectives, performance measurements, and performance evaluations establish the strategic framework for the USVIEDA’s operations. A goal is the end result to be accomplished and answers this question: “What is the purpose in the big picture?” For the USVIEDA, the purpose is the creation of good jobs to improve the standard of living for residents and the expansion of the tax base of the Government. Objectives are the action steps taken to carry out the big picture and serve as benchmarks to measure performance. Each objective has these four (4) fundamental characteristics.  Be measurable;  Identify a target of program activity;  Set a timeframe for completion; and  Provide an expected direction of change. Performance measurement is the ongoing monitoring and reporting on program accomplishments compared to the pre-established goals and objectives as outlined by each unit. We recognize that the development of performance measurements requires careful thought and planning and includes the following basic ingredients: objectivity, relevance, reliability, validity, and indicators of degrees of success. Performance Evaluations are critical, especially in periods of scarce resources, and provide a means of assessing how well a unit is performing. Evaluations answer key goal-related questions, such as: 1) Are stakeholders getting what they deserve? 2) Are taxpayers getting their money’s worth? 3) Are those we serve better off? 4) Can the service we provide be improved? The achievability of the USVIEDA’s goals and the fulfillment of objectives rest with supervisors and their subordinates, and the budget provides the financial resources to do so. The execution of performance measurement and evaluation functions in ensuring that scarce resources are used in the most efficient manner for the benefit of residents, is of utmost importance. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Annual Budget Calendar and Processes The budget formulation process is designed to allow the USVIEDA to fulfill its mission by aligning goals, priorities, and objectives with financial resources and then evaluate actual achievements relative to anticipated outcomes. December – January The budget formulation process begins with the development of revenue and expenditure projections for the upcoming fiscal year. These projections are presented to the USVIEDA Governing Board’s Finance Committee with a comparison and analysis of past trends (i.e. appropriations, allotments, and expenditure levels) in addition to other financial data to justify and support the budget recommendation. During this period, the USVIEDA’s Governing Board outlines the priorities, goals and objectives of the Authority for the upcoming fiscal year. This forms the basis for the development of the budget and determines the final budget amount to be submitted to the Office of Management & Budget for consideration and inclusion in the Government of the Virgin Island’s annual operating budget submission to the Legislature. February The USVIEDA’s budget staff establishes budget ceilings for each division and department within the USVIEDA consistent with the priorities, goals, and objectives as outlined by the USVIEDA Governing Board. This information is communicated to each division or department head through a budget call that provides instructions and guidance for preparing the budget. The budget staff conducts budget orientation sessions with lead members of each division and department in order to provide an overview of the budgeting process and to address budgetary concerns. March – April The budget staff holds individual budget review discussions with all division and department heads to discuss areas of concerns, goals, and new initiatives, or programs the departments desire to implement for the upcoming fiscal year. At this meeting, each division or department has the opportunity to justify its needs before the Chief Executive Officer and Assistant Chief Executive Officer/Chief Operating Officer. After discussions, revisions may be made and the budget schedules are updated accordingly. The proposed budget is presented to the USVIEDA Governing Board for consideration and final approval before submission to the Legislature’s Post-Audit Division. April – June Communication is maintained with the Post-Audit Division in its analysis of the budget while the USVIEDA’s budget staff researches and gathers data and conducts round-table sessions with the internal department and division heads before preparing the first draft of the Chief Executive Officer’s budget presentation to the Finance Committee of the Legislature. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Annual Budget Calendar and Processes continued July – August The Chief Executive Officer, accompanied by the Assistant Chief Executive Officer/Chief Operating Officer, and the Director of Administration and Finance, defends the USVIEDA budget recommendation before the Finance Committee of the Legislature. October Once the budget is passed by the Legislature and approved by the Governor, the USVIEDA is legally authorized to request quarterly allotments from the Department of Finance through the Office of Management and Budget. Twelve (12) Months Monitoring (October – September) Actual revenues and expenditures are monitored throughout the year and are compared and analyzed against the budget to ensure that resources are managed in accordance with the budget plan and are consistent with the goals and objectives of the organization. On a quarterly basis, financial reports and analyses are presented to the Finance Committee of the USVIEDA’s Governing Board detailing the sources and uses of funds compared to the budget and comparing actual revenues and expenses with the same period in the previous fiscal year. When necessary, and on an ongoing basis, the budget staff offers recommendations for policy review to senior staff and management to improve overall financial integrity and efficiency. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Jan/Feb EDA Governing Board outlines performance goals and objectives for upcoming fiscal year Budget team develops budget recommendatio n for upcoming fiscal year March Budget call issued to division and department heads Budget request submitted to the Office of Management and Budget Communication is maintained with the Office of Management and Budget to confirm final budget recommendation for the USVIEDA April Internal budget reviews and discussions with executive team, division/ department heads, and budget staff Presentation of detailed proposed Budget to the USVIEDA Governing Board's Finance Committee USVIEDA Governing Board approves Budget May/June Budget submitted to the Post Audit Division of the Legislature July/August Legislative Budget hearing September Budget is passed by the Legislature and Governor may choose to approve, allow to become law without his signature or veto the budget passed by the Legislature. Annual Budget Calendar and Processes, continued Budget Calendar Overview U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 1.0 USVIEDA Administrative Departments The administrative departments within the USVIEDA provide support to the operational divisions in ensuring that the USVIEDA meets its statutory and legal mandates and requirements. 1.1 USVIEDA’s GOVERNING BOARD Functional Statement The powers of the USVIEDA rest in the hands of a governing board, which sets the vision and acts on behalf of the organization. The Board is responsible for establishing all operating policies, hiring a Chief Executive Officer (“CEO”), approving all major contracts, overseeing overall policy decisions, providing oversight, and most importantly ensuring that the organization complies with all applicable laws. Operational Goal(s) Collaborates with management in exploring opportunities for the USVIEDA by playing a vital role in assisting management in its understanding, potential implications and adaptation to a changing global environment. Fiscal Year 2016 Objectives  Participate in marketing events and activities;  Develop policies for the implementation of various strategic financing tools (i.e. U.S. Government’s Employment Based (“EB-5”) program, New Market Tax Credit program, Tax Increment Financing Expansion, Hotel Development Act);  Review and approve annual operating budget;  Review and evaluate quarterly financial performances; and  Conduct performance review of Chief Executive Officer and Board Assessment. FY 2016 Accomplishments as of April 30, 2016  Adopted resolutions to amend the USVIEDA’s Bylaws, created the Enterprise Zone Community Redevelopment & Revitalization Fund, and approved the Enterprise Zone Commission Town and Neighborhood Plans;  Participated in the “V.I. Advocacy Day on the Hill” with the VI Delegate to Congress;  Discussed the energy-efficiency and micro-grid infrastructure at the William D. Roebuck Industrial Park with the VI Delegate to Congress and other Washington stakeholders;  Attended International Economic Development Council Seminars and Leadership Summits;  Appointed members of the Board to the USVIEDA Finance and the Enterprise Zone Committees; and  Approved twenty-five (25) EDC applicants, eight (8) EDB commercial loans, and four (4) EZC tax credit applications. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Fiscal Year 2017 Objectives  Attract businesses and industries that are complimentary and supportive of those within the Territory;  Gain additional employment opportunities, attract capital investment, create wealth, and diversify the economic base;  Promote an economic climate that increases the quality and quantity of job opportunities and the overall economic well-being of the Territory and residents; and  Support local business activities by promoting the revitalization and development of the downtown economy and encouraging development in existing commercial, manufacturing, and industrial areas. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Unclassified 52,729 31,131 25,869 57,000 57,000 Fica 3,564 1,930 1,604 3,534 3,534 Medicare 834 451 375 827 827 Group Insurance 46 15 - 15 - Retirement 9,637 6,382 5,303 11,685 11,685 Total Personnel Expense 66,809 39,909 33,152 73,061 73,046 Operating Expenses Bank Charges 271 - - - - Catering Services - 252 300 552 2,200 Supplies 789 831 150 981 500 Dues & Subscriptions 990 350 825 1,175 1,155 Employee Relations 90 235 200 435 200 Parking 20 10 10 20 - Professional Development 12,215 16,180 10,000 26,180 42,000 Software Agreement 3,252 - 3,252 3,252 Board Attendance Fee 4,650 4,787 5,000 9,787 10,800 Travel 666 4,273 3,500 7,773 8,000 Communication 3,306 1,250 1,250 2,500 5,000 Total Operating Expense 22,997 31,419 21,235 52,654 73,107 Total Department Expense (Direct Cost Only) 89,806 71,329 54,387 125,715 146,153 VI Economic Development Authority Year End Financial Summary FY 15 Actual, FY 16 Projected, and FY 17 Budget Board of Directors $89,806 $125,715 $146,153 FY15 Actual FY 16 Projection FY 17 Budget EDA Governing Board Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 1.2 Executive Office Functional Statement The Chief Executive Officer (“CEO”) and the Assistant Chief Executive Officer (“ACEO”)/Chief Operating Officer (“COO”) provide overall leadership and direction in the planning, development, and administration of policies governing the operation of the USVIEDA. This office ensures that responsibilities established by statute and policy directives are executed at the highest level. Operational Goal(s) Direct and monitor the activities of the USVIEDA in a manner that ensures assets of the organization are safeguarded and optimized, and maintain a positive work climate that is conducive to attracting, retaining, and motivating a diverse group of top quality performers. Fiscal Year 2016 Objectives  Initiate and strengthen existing partnership collaborations;  Update the rules and regulations for the Sustainable Tourism Through Arts-Based Revenue Streams Act (“STARS Act”), Economic Development Bank (“EDB”), Economic Development Commission (“EDC”), Enterprise Zone Commission (“EZC”), Hotel Development Act, and Youth Recreational Incentive Act;  Develop legislative proposals in support of economic development; and  Continue to support economic diversification initiatives in the Broadband, Maritime & Marine, and Arts-Based industries. Fiscal Year 2016 Accomplishments as of April 30, 2016  Resumed the USVIEDA’s Task Force meetings addressing issues or concerns of stakeholder government agencies relative to the administration and improvement of the VI Economic Development Commission Program;  Conducted an informational session with members of the 31st Legislature of the Virgin Islands to increase their understanding of the functions of the USVIEDA;  Participated in the “Virgin Islands Advocacy Day on the Hill” in Washington, DC discussing critical government programs and benefits that directly impact the Territory;  Discussed the Department of Energy micro-grid and energy-efficient infrastructure with the VI Delegate to Congress and the US Department of Interior to gain support for the project;  Drafted rules and regulations for the STARS Act;  Partnered with the Department of Tourism to promote the STARS Program at the South by Southwest Music, Film, and Interactive Festival; and  Submitted proposed EDC and EZC amendments to Act No. 7651 to the Office of the Governor. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Fiscal Year 2017 Objectives  Launch a local public relations and marketing campaign informing the community about the programs and services offered by the USVIEDA;  Continue to strengthen existing partnership collaborations with government agencies and private sector stakeholders;  Revise and/or finalize rules and regulations for the Economic Development Bank, Enterprise Zone Commission, the Hotel Development Act, and the Youth Recreational Incentive Act;  Support economic development and diversification initiatives in the Broadband, Maritime & Marine, and Arts-Based industries; and  Conduct an economic impact analysis study of the EDC Beneficiary Program on the Territory. Key Performance Indicators (KPI) Actual FY 15 Target FY 16 Actual FY 16 (as of 4/30/16) Planned FY 17 No. of existing partnership collaborations 2 15 12 15 No. of economic development initiatives 3 7 6 7 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Classified 66,149 67,723 56,277 124,000 37,000 Salaries - Unclassified 349,977 156,397 108,603 265,000 335,000 Fica 29,998 14,105 10,223 24,328 23,064 Medicare 7,015 3,250 2,391 5,640 5,394 Group Insurance 15,579 8,978 8,978 17,956 26,718 Retirement 61,311 27,926 27,926 55,851 57,810 Total Personnel Expense 530,030 278,378 214,397 492,776 484,986 Operating Expenses Bank Charges 50 75 - 75 50 Supplies 1,124 23 350 373 500 Catering Services - 120 - 120 - Dues & Subscriptions 6,920 7,355 7,355 7,475 Employee Relations 772 - 200 200 375 Postage & Delivery 39 47 150 197 150 Parking 60 10 - 10 Printing & Publication 190 500 500 250 Professional Development 13,250 5,397 3,500 8,897 11,000 Professional Services 252 - - Travel 21,634 7,313 5,000 12,313 10,000 Communication 5,785 1,622 2,200 3,822 5,000 Total Operating Expense 50,075 14,608 19,255 33,863 34,800 Total Department Expense (Direct Cost Only) 580,104 292,986 233,652 526,638 519,786 VI Economic Development Authority Executive Office Year End Financial Summary FY 15 Actual, FY 16 Projected, and FY 17 Budget $580,104 $526,638 $519,786 FY15 Actual FY 16 Projection FY 17 Budget Executive Department Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 1.3 Administration and Finance Department Functional Statement The Administration and Finance Department provides financial planning, accounting, and reporting. It is responsible for establishing relationships with external auditors, financial institutions, the Post-Audit Division of the Legislature, and others within the financial community. It takes a leading role in developing proposals and policies on strategic issues that affect the long-term financial integrity and competitiveness of the USVIEDA. Establishment of financial and operational policies and procedures for organization-wide guidance and internal control falls within this unit. Operational Goal(s) Provide quality customer and stakeholder services while practicing responsible stewardship of resources and aspire to excellence in financial and administrative practices to reduce costs and improve overall efficiency. Fiscal Year 2016 Objectives  Update the accounting software to current version to improve operational efficiencies;  Complete the Fiscal Year 2015 Financial Audit by March 2016;  Work collaboratively with unit heads and the executive team in the computerization of operational and administrative processes;  Evaluate existing USVIEDA programs to offer recommendations for improved program delivery;  Reduce operating costs by 5 – 10% compared to previous year by developing strategies to improve operational efficiencies; and  Work closely with units receiving federal funds to ensure adherence to operational and reporting requirements. Fiscal Year 2016 Accomplishments as of April 30, 2016  Analyzing MAS 500 software update in determining cost-benefit relationship;  Fiscal Year 2015 audit in its final stage with the final report due by June 15, 2016;  Continued the collaboration to computerize operational and administrative processes;  Continued evaluation of programs’ deliverables; and  Prepared and submitted routine financial reports. Fiscal Year 2017 Objectives  Complete the Fiscal Year 2016 audit by March 30, 2017;  Provide staff training in the area of data analysis and reporting;  Present quarterly financial reports to the Finance Committee of the Board by the 15th of the month following the end of quarter; and  Ensure that non-financial information accompanying financial reports are submitted on time to local and federal agencies. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Key Performance Indicators (KPI) Actual FY15 Target FY16 Actual FY 16 (as of 4/30/16) Planned FY 17 Completion date of financial audit 5/2015 3/2016 5/2016 3/2016 No. of Board Finance Committee meetings held 2 2 0 4 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Classified 209,171 120,463 102,836 223,299 246,899 Salaries - Unclassified 99,027 49,154 40,846 90,000 90,000 Fica 17,859 10,516 8,908 19,425 20,888 Medicare 4,176 2,459 2,083 4,543 4,885 Group Insurance 44,466 20,933 19,075 40,009 57,536 Retirement 54,793 25,922 19,588 45,510 63,140 Total Personnel Expense 429,492 229,448 193,337 422,785 483,348 Operating Expenses Supplies 358 850 300 1,150 500 Dues & Subscriptions 985 119 200 319 300 Employee Relations 143 246 200 446 250 Postage & Delivery 820 263 100 363 250 Professional Development 1,353 4,272 - 4,272 3,000 Software Agreement 7,128 8,357 9,632 17,989 10,810 Professional Services 5,025 1,434 800 2,234 3,500 Travel 1,564 1,342 750 2,092 750 Communication 4,814 600 600 1,200 1,000 Total Operating Expense 22,190 17,483 12,582 30,065 20,360 Total Department Expense (Direct Cost Only) 451,682 246,932 205,919 452,851 503,708 FY 15 Actual, FY 16 Projected, and FY 17 Budget VI Economic Development Authority Administration & Finance Department Year End Financial Summary $451,682 $452,851 $503,708 FY15 Actual FY 16 Projection FY 17 Budget Administration & Finance Department Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 1.4 Human Resources (HR) Department Functional Statement The Human Resources (“HR”) Department is responsible for talent management and workforce development, which includes staff recruitment, position classification, benefits counseling, and employee and labor relations. Operational Goal(s) Provide an organizational framework to strategically develop and retain a workforce capable of promoting the economic development initiatives of the USVIEDA. Fiscal Year 2016 Objectives  Cultivate a high performance organizational culture that enhances productivity and efficiency;  Provide professional development in team building, progressive discipline, and leadership development; and  Implement a wellness program that encourages employees to focus on key health behaviors such as increasing physical activity, improving eating habits, and reducing stress. Fiscal Year 2016 Accomplishments as of April 30, 2016  Filled two (2) vacant and two (2) temporary positions;  Offered mandatory monthly staff training through an online Learning Management System;  Collaborated with the University of the Virgin Islands to provide accounting and financial management training for selected employees;  Provided webinar trainings for employees of Human Resources and Legal Department through Lorman Education Services;  Organized the employee appreciation and service award ceremony that included employee team building exercises;  Worked with CIGNA in coordinating the annual biometric screenings for employees;  Worked with Thrive Chiropractics in coordinating a wellness presentation “How to Stay Young” for employees; and  Created three (3) new policies: Recording Workplace Conversations Without Consent, Email Usage, and Excess Annual Leave and Disposition. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Fiscal Year 2017 Objectives  Increase employee performance and productivity by providing professional development opportunities;  Develop the organizational culture by creating focus groups to identify issues and recommend solutions;  Coordinate mandatory trainings for employees to include Sexual Harassment Awareness, Proper Use of Fire Extinguishers, Hazardous Communication, Conflict Resolution Management, and Progressive Discipline;  Provide professional development to improve leadership and team building skills on a quarterly basis; and  Continue the USVIEDA Wellness Program to improve employee health and wellness. Key Performance Indicators (KPI) Actual FY 15 Target FY16 Actual FY 16 (as of 4/30/16) Planned FY 17 Percentage of employee annual evaluations completed 64% 100% TBD 100% No. of professional development trainings offered to increase employees’ performance and productivity 7 13 5 13 No. of trainings offered to improve employees leadership and team building skills 2 6 2 8 No. of employee relations initiatives undertaken 7 6 3 8 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Classified 60,652 32,999 27,421 60,420 60,420 Salaries - Unclassified 55,124 39,596 32,904 72,500 72,500 Fica 6,780 4,501 3,740 8,241 8,241 Medicare 1,586 1,053 875 1,927 1,927 Group Insurance 9,532 5,954 6,829 12,783 11,799 Retirement 19,909 14,202 11,509 25,711 25,711 Total Personnel Expense 153,582 98,304 83,278 181,582 180,598 Operating Expenses Advertising & Promotion 3,115 1,298 2,702 4,000 4,000 Supplies 1,985 102 250 352 500 Catering 3,285 513 500 1,013 - Dues & Subscriptions 11,048 - 780 780 780 Employee Relations 24,130 11,266 2,500 13,766 15,000 Parking 10 10 30 40 50 Professional Development 4,377 465 750 1,215 7,375 Travel 2,737 728 750 1,478 2,500 Communication 325 287 300 587 500 Total Operating Expense 51,011 14,668 8,562 23,230 30,705 Total Department Expense (Direct Cost Only) 204,594 112,972 91,840 204,812 211,303 VI Economic Development Authority Human Resources Department Year End Financial Summary FY 15 Actual, FY 16 Projected, and FY 17 Budget $204,594 $204,812 $211,303 FY 15 Actual FY 16 Projection FY 17 Budget Human Resources Department Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 1.5 Legal Department Functional Statement The Legal Department provides a broad range of legal services for the USVIEDA that includes, providing legal analysis, preparing and reviewing legal documents, and conducting background investigations on prospective employees and EDC applicants. In addition, it provides legal and policy guidance to the USVIEDA’s Governing Board, drafts legislation, and develops rules and regulations as a result of legislative mandates. Operational Goal(s) Ensure that the USVIEDA is in compliance with all applicable laws, institute measures to prevent litigation and loss of assets, and maintain the USVIEDA’s legal image in the public. Fiscal Year 2016 Objectives  Enhance the quality of investigative reports by using the National Crime Information Center (“NCIC”) database;  Explore expanded access to the Department of Licensing and Consumer Affairs’ database;  Update computer software to enhance the processing of legal documents;  Conduct ongoing assessments of internal procedures and implement measures to improve the security of sensitive information;  Implement or amend internal USVIEDA policies and procedures;  Review, draft or amend Board policies, motions and resolutions; and  Prepare contracts necessary to accomplish the mandates of the USVIEDA. Fiscal Year 2016 Accomplishments as of April 30, 2016  Continued the review, amendment and implementation of USVIEDA’s policies, procedures, and resolutions;  Improved the quality of background investigative reports to include, among other things, utilization of the Better Business Bureau database in the of review of applications for tax incentives, loans, and human resources;  Continued the drafting or review of EDC certificates, motions, resolutions, evaluation reports, and letters for legal sufficiency;  Drafted a Legal Department Internet Use Policy;  Drafted amendments to the USVIEDA’s Bylaws;  Drafted Rules and Regulations and application for the STARS Act;  Completed or amended eleven (11) background investigation reports for the Virgin Islands Economic Development Commission;  Completed eight (8) background investigation reports for the Economic Development Bank for the United States Virgin Islands;  Completed nine (9) background investigation reports for the Human Resources Department;  Prepared four (4) professional service contracts; and  Drafted six (6) lease agreements, which are in various stages of the negotiation process. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Fiscal Year 2017 Objectives  Continue to enhance the quality of investigative reports by pursuing legislation and collaborative agreements providing for government-to-government sharing of criminal justice information using the NCIC database, which operates under a shared management concept between the FBI and federal, state, and local users;  Continue efforts to secure expanded access to the Department of Licensing and Consumer Affairs’ database;  Coordinate professional training for Legal Department staff with the National Association of Professional Background Screeners or similar certifying entity;  Continue to explore software updates to enhance the processing of legal documents;  Continue to explore file management systems and record retention policies for the USVIEDA;  Continue drafting or amending internal USVIEDA policies and procedures;  Continue to draft or amend USVIEDA Governing Board’s policies, resolutions, motions and orders; and  Continue to prepare and review for legal sufficiency, agreements that are necessary to accomplish the mandates of the USVIEDA. Key Performance Indicators (KPI) Actual FY 15 Target FY16 Actual FY 16 (4/30/16) Planned FY 17 No. of policies drafted, reviewed, or amended 24 10 5 10 No. of collaborative agreements reviewed, drafted or amended 3 4 5 4 Percentage of background investigation reports for HR applicants 100% 100% 100% 100% Percentage of background investigations for new, modification or extension applications completed 100% 100% 100% 100% U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Classified 102,333 58,439 48,561 107,000 107,000 Salaries - Unclassified 117,403 60,077 49,923 110,000 110,000 Fica 12,395 7,348 6,106 13,454 13,454 Medicare 2,899 1,718 1,428 3,147 3,147 Group Insurance 22,330 13,473 13,245 26,718 26,718 Retirement 36,174 19,786 15,474 35,260 35,260 Total Personnel Expense 293,535 160,841 134,738 295,579 295,579 Operating Expenses Supplies 630 508 200 708 500 Dues & Subscriptions 804 13,308 6,692 20,000 20,000 Employee Relations - 225 225 225 Parking 10 - - - - Professional Development 7,620 5,420 3,500 8,920 4,500 Travel 3,572 780 1,500 2,280 2,500 Communication 610 204 296 500 500 Total Operating Expense 13,246 20,220 12,413 32,632 28,225 Total Department Expense (Direct Cost Only) 306,781 181,060 147,150 328,211 323,804 VI Economic Development Authority Legal Department Year End Financial Summary FY 15 Actual, FY 16 Projected, and FY 17 Budget $306,781 $328,211 $323,804 FY15 Actual FY 16 Projection FY 17 Budget Legal Department Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 1.6 Marketing / Public Relations Department Functional Statement The key responsibility is to promote the U.S. Virgin Islands as the best place for businesses to invest, to create opportunities for residents, and to grow the tax base of the Government. Operational Goal(s) Utilize various marketing tools to expand or increase the number of local businesses and to attract new companies to the Territory. Fiscal Year 2016 Objectives  Increase media coverage for the Economic Development Commission program through a national public relations campaign;  Recruit EDC Ambassadors to help market the U.S. Virgin Islands and its tax-incentive program; and  Build partnerships with other government and semi-autonomous agencies that broaden USVIEDA’s outreach and build awareness of the U.S. Virgin Islands’ competitive tax-incentive program. Fiscal Year 2016 Accomplishments as of April 30, 2016  Promoted the U.S. Virgin Islands in eight (8) marketing missions;  Updated existing USVIEDA’s web site with a hard launch expected by June 2016 ;  Developed new advertising and promotional materials for key international events and media; and  Continued to develop the EDC Ambassador Network Program as a source for new investment opportunities. Fiscal Year 2017 Objectives  Increase EDC applications by 10% through our marketing initiatives;  Increase strategic advertising in key local sites and targeted media; and  Continue building partnerships to form marketing alliances that broaden USVIEDA’s outreach and build awareness of the USVIEDA’s programs and offerings. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Key Performance Indicators (KPI) Actual FY 15 Target FY 16 Actual FY 16 (as 4/30/16) Planned FY 17 No. of targeted marketing events held and/or attended 4 10 8 12 No. of site visits made by potential EDC beneficiaries 5 15 7 20 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Classified 60,373 25,314 21,036 46,350 46,350 Salaries - Unclassified 31,512 - - - 80,000 Fica 4,263 1,570 1,304 2,874 7,834 Medicare 997 367 305 672 1,832 Group Insurance 8,008 2,977 2,923 5,900 11,799 Retirement 13,257 5,189 4,312 9,502 22,827 Total Personnel Expense 118,410 35,417 29,880 65,297 170,642 Operating Expenses Advertising & Promotion 170,239 135,365 89,237 224,602 165,000 Bank Charges 75 - 150 150 150 Supplies 3,594 - 500 500 500 Employee Relations 248 - 250 250 200 Postage & Delivery 2 - 350 350 1,500 Printing & Publication 5,534 2,025 3,000 5,025 5,000 Professional Development 1,012 - - - 3,000 Professional Services 211,767 86,171 100,000 186,171 207,023 Travel 11,377 1,697 1,500 3,197 2,500 Total Operating Expense 403,849 225,258 194,987 420,244 384,873 Total Department Expense (Direct Cost Only) 522,258 260,675 224,867 485,542 555,514 FY 15 Actual, FY 16 Projected, and FY 17 Budget VI Economic Development Authority Marketing Department Year End Financial Summary $522,258 $485,542 $555,514 FY 15 Actual FY 16 Projection FY 17 Budget Marketing Department Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 1.7 Economic Development Management (EDM) Functional Statement This unit acts as the “catch-all” for all operating revenues and indirect costs for the USVIEDA. The activities associated with custodial and messenger services are also part of this unit’s costs. The management of this unit falls within the Administration and Finance Department and is identified as a separate unit to aid in financial reporting and analysis. Operational Goal(s) Identify and properly record items of operating revenues and costs to assist management in making financial decisions and to reduce office/vehicle maintenance issues to a minimum level. Fiscal Year 2016 Objectives  Continue to properly classify items of operating revenues and costs as a basis to providing better analysis and recommendations. Fiscal Year 2016 Accomplishments as of April 30, 2016  Budget & Financial Analyst and Accounts Payable Accountant continue to work together to ensure that revenues and expenses are correctly classified and recorded; and  Ensured that direct and indirect costs were correctly charged to the Incubator grant and USVIEDA was properly reimbursed for expenses incurred on behalf of the program. Fiscal Year 2017 Objectives  Reduce indirect costs by at least 10% of amount budgeted;  Improve relations with service vendors to help ensure prompt service response; and  Develop and implement procedures to reduce the number of issues relative to office and vehicle up- keep and maintenance. Key Performance Indicators (KPI) Actual FY 15 Target FY 16 Actual FY 16 (as of 4/30/16) Planned FY 17 Percentage decrease in indirect cost compared to budgeted total - - - 10% Percentage reduction in calls relating to office/vehicle issues - - - 25% U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Classified 44,912 30,684 25,497 56,181 56,181 Fica 2,284 1,814 1,581 3,395 3,483 Medicare 528 445 370 815 815 Group Insurance 11,597 8,225 12,593 20,818 20,818 Retirement 7,242 6,290 5,227 11,517 11,517 Total Personnel Expense 66,562 47,458 45,268 92,726 92,814 Operating Expenses Advertising & Promotion 9,075 10,394 5,316 15,710 5,500 Auto Expense 28,255 5,639 7,500 13,139 12,500 Bank Charges 2,630 1,695 3,000 4,695 5,500 Employee Incentive Program - - 25,000 25,000 25,000 Supplies 60,123 16,126 17,000 33,126 36,300 Unemployment Insurance 28,979 12,530 15,000 27,530 30,000 Interest and Penalty 1,824 - - - Labor 11,761 2,125 8,500 10,625 12,000 Catering Services 19,232 6,749 7,500 14,249 15,000 Custodial Services 17,583 9,584 10,500 20,084 18,000 Incubator Program Expense 4,317 - - - - Donations & Contributions 33,625 21,350 17,000 38,350 20,000 Drinking Water 1,694 864 864 1,728 2,000 Dues & Subscription 23,482 1,350 2,500 3,850 8,000 Employee Relations 39,687 10,553 3,000 13,553 10,000 Repairs 83,156 35,262 30,000 65,262 64,000 Postage & Delivery 10,078 6,896 5,000 11,896 7,600 Parking 20 59 60 119 200 Printing & Publication 1,798 5,699 7,000 12,699 9,700 Professional Development 1,013 10,287 4,500 14,787 - Garbage Removal 3,739 225 225 450 500 Miscellaneous (1,318) 93 500 593 - Software Agreement 5,117 - - - - Meeting Space Rental 675 - - - 1,600 Insurance 42,433 4,258 46,000 50,258 46,000 Professional Services 308,222 135,999 191,158 327,157 292,100 Business Relations 3,505 - - - Travel 24,186 828 23,000 23,828 25,000 Communication 64,028 26,269 27,000 53,269 52,500 Electrical 106,466 36,990 47,000 83,990 85,000 Water 1,854 568 600 1,168 1,576 Rent 235,980 137,550 105,891 243,441 244,124 Capital Outlay 47,783 97,575 5,000 102,575 25,000 Total Operating Expense 1,221,003 597,516 615,614 1,213,130 1,054,700 Total Department Expense (Direct Cost Only) 1,287,565 644,974 660,882 1,305,856 1,147,514 VI Economic Development Authority Economic Development Management Year End Financial Summary FY 15 Actual, FY 16 Projected, and FY 17 Budget U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 $1,287,565 $1,305,856 $1,147,514 FY 15 Actual FY 16 Projection FY 17 Budget Economic Development Management Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 2.0 USVIEDA Operational Divisions 2.1 V.I. Economic Development Commission Division Functional Statement The Economic Development Commission (“EDC”) Division is comprised of the Applications Unit, which is the first point of contact for a business seeking economic development benefits, and the Compliance Unit, which monitors beneficiaries in ensuring that they are in compliance with the terms and conditions of their Certificates (Agreements) and other requirements of the law. 2.1.1 Applications Unit Operational Goal(s) Review and analyze EDC applications in order to assist the USVIEDA’s Governing Board in deliberations during public hearings in consideration of applicants’ requests to receive EDC benefits. Fiscal Year 2016 Objectives  Create an EDC online public access portal to provide information on job/internship opportunities, EDC Beneficiary Certificates, Eligible Supplier Beneficiary products and services;  Establish an EDC e-Hotline that provides an interactive link between the EDC, its stakeholders and the general public;  Process a minimum of twenty-five (25) new applications for EDC benefits with anticipated job opportunities for 250 full-time employees;  Host semi-annual town hall meetings to educate the public on the benefits of the EDC program to the Territory;  Conduct semi-annual educational outreach seminars to inform high school students on career opportunities within the EDC Program; and  Develop and implement an electronic application/compliance case management system. Fiscal Year 2016 Accomplishments as of April 30, 2016  Reviewed and analyzed twelve (13) applications, including four (4) new, one (1) transfer, five (5) extensions, and three (3) modifications;  Made presentations on the Application Process at the USVIEDA’s Informational Session for the 31st Legislature of the Virgin Islands;  Conducted educational outreach seminars for students at the high schools on career opportunities within the EDC Program; and  Began Instituting a Client Survey form as part of the EDC inquiry and application process. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Fiscal Year 2017 Objectives  Process an application for EDC benefits within forty-five (45) working days of receipt;  Review EDC applications within ten (10) working days for completeness and notify applicant within fifteen (15) working days of application status;  Submit notice to EDC applicants within ten (10) working days of Board decision meetings;  Complete EDC Application Client Survey form as part of the EDC inquiry and application process; and  Participate in community outreach programs such as: EDC 45th Anniversary Event, EDC Career Fair, other Target Markets, and Consultants Seminar. Key Performance Indicators (KPI) Actual FY 15 Target FY 16 Actual FY 2016 (as of 4/30/16) Planned FY 2017 Avg. time to complete analysis of an EDC application for Public Hearing 88 days 75 days 27 days 45 days Avg. time to complete analysis of an EDC application for EDC Decision Meetings 47 days 45 days 29 days 30 days Avg. time to process an Eligible VI Supplier application 38 days 30 days 20 days 30 days No. of community outreach program completed 0 4 7 8 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Classified 109,131 60,758 66,000 126,758 162,057 Salaries - Unclassified 68,486 43,692 36,308 80,000 80,000 Fica 7,282 6,476 6,343 12,819 15,008 Medicare 2,645 1,515 1,483 2,998 3,510 Group Insurance 29,200 15,744 24,333 40,077 40,077 Retirement 35,581 17,549 17,549 46,547 Total Personnel Expense 252,325 145,734 134,467 280,201 347,198 Operating Expenses Advertising & Promotion 12,686 5,113 7,500 12,613 12,500 Supplies 2,249 501 350 851 500 Catering - 856 800 1,656 1,500 Professional Development - - 200 200 6,000 Dues & Subscription 165 165 - 165 175 Parking 10 20 - 20 - Postage & Delivery 250 250 250 Printing & Publication 1,250 1,250 1,250 Meeting Space Rental 1,300 600 1,900 1,300 Professional Services 13,903 5,160 5,000 10,160 10,000 Travel 2,434 1,875 1,200 3,075 4,800 Communication 412 215 215 430 500 Total Operating Expense 31,860 15,205 17,365 32,570 38,775 Total Department Expense (Direct Cost Only) 284,185 160,939 151,832 312,771 385,973 VI Economic Development Authority EDC Applications Unit Year End Financial Summary FY 15 Actual, FY 16 Projected, and FY 17 Budget $284,185 $312,771 $385,973 FY 15 Actual FY 16 Projection FY 17 Budget EDC Applications Department Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 91 63 FY15 FY16 Number of Potential Job Opportunities (based on EDC Applications) $5.5M $3M FY15 FY16 Minimum Potential Investment of EDC Companies (based on Applications) U.S. Virgin Islands Economic Development Authority EDC Applications Unit Statistical Data (Based on new applications) $8.6M $3M FY15 FY16 Total Approximate Potential Wages of EDC Employees (based on Applications) 23 8 2 13 13 1 12 Applications Received Applications Approved Applications Tabled/Denied Applications Pending EDC Applications Statistics FY15 FY16 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 2.1.2 Compliance Unit Functional Statement The Compliance Unit helps to ensure the integrity of the Economic Development Program, assists beneficiaries in meeting the requirements of their agreements and report findings of non-compliance to the EDC Governing Board, which has the legal authority to assess fines and penalties. Operational Goal(s) Build and maintain good relations with beneficiaries to ensure the integrity of the EDC program. Fiscal Year 2016 Objectives  Conduct a consultants’ forum in May 2016 and beneficiary summits in August 2016;  Complete twenty (20) compliance reviews and eighty (80) outreach/beneficiary care visits;  Implement standard operating procedures for employees in the Compliance Unit to include quality assurance standards and code of ethics;  Develop and implement an electronic compliance case management system to work in conjunction with other units within the organization; and  Evaluate the Cost Benefit Analysis Model and enhance it to perform updated analyses. Fiscal Year 2016 Accomplishments as of April 30, 2016  Submitted first draft of Compliance Handbook to the Legal Department for review;  Updated Compliance Unit web page on USVIEDA’s website;  Developed an electronic database to replace current paper/file based system;  Developed a template of inactive beneficiaries to terminate their benefits; and  Participated in the Community Education Initiative for high school students relative to USVIEDA’s programs and services. Fiscal Year 2017 Objectives  Host EDC beneficiary summits in both districts in August 2017;  Partner with the Applications Unit in upgrading the Cost Benefit Analysis Model;  Implement the EDC Compliance Handbook for Beneficiaries; and  Terminate inactive EDC beneficiaries and charge-off receivables. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 KEY PERFORMANCE INDICATORS (KPI) Actual FY 15 Target FY16 Actual FY 2016 (as of 4/30/16) Planned FY 17 No. of compliance reviews completed 11 25 15 30 Percentage of non-compliance cases resolved 72% 80% 70% 85% Number of inactive cases closed 1 8 1 15 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Classified 265,828 157,077 147,239 304,316 334,478 Salaries - Unclassified 48,394 40,962 34,038 75,000 75,000 Fica 19,078 12,278 11,239 23,518 25,388 Medicare 4,462 2,872 2,629 5,500 5,937 Group Insurance 29,475 20,052 24,859 44,910 49,717 Retirement 54,135 40,473 40,395 80,868 81,893 Total Personnel Expense 421,372 273,714 260,398 534,112 572,414 Operating Expenses Advertising & Promotion 12,919 3,397 2,000 5,397 40,000 Supplies 2,092 1,200 350 1,550 1,000 Dues & Subscription 660 - 165 165 2,000 Employee Relations - - 600 600 600 Postage & Delivery - 50 - 50 300 Parking 30 - 30 - Printing & Publication 45 - 800 800 1,500 Professional Development 4,796 - - - 9,000 Miscellaneous 14 - - - Professional Services 25,854 3,790 3,500 7,290 20,000 Travel 4,148 3,376 1,500 4,876 5,000 Communication 161 215 215 430 500 Total Operating Expense 50,688 12,058 9,130 21,188 79,900 Total Department Expense (Direct Cost Only) 472,060 285,771 269,528 555,300 652,314 VI Economic Development Authority EDC Compliance Unit Year End Financial Summary FY 15 Actual, FY 16 Projected, and FY 17 Budget $472,060 $555,300 $652,314 FY15 Actual FY 16 Projection FY 17 Budget EDC Compliance Department Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Personnel Operating Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 33 11 8 0 5 10 15 20 25 30 35 FY14 FY15 FY16 (as of 4/30/16) Economic Development Commission No. of Compliance Reviews Compliance Reviews 10 3 5 0 2 4 6 8 10 12 FY14 FY15 FY16 (as of 4/30/16) Economic Development Commission No. of Compliance Orientations Orientations U.S. Virgin Islands Economic Development Authority EDC Compliance Department Statistical Data U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 2.2 Economic Development Bank (EDB) Functional Statement The Government Development Bank and the Small Business Development Agency were merged and renamed the Economic Development Bank (“EDB”) through Act No. 7632 passed by the Legislature in 2014. The EDB provides financial resources that include loan guarantees, medium and long-term credit, and equity infusions to minority, small and medium sized businesses located in the U.S. Virgin Islands to allow these businesses to maintain economic stability and grow into mainstream commercial banking customers. Operational Goal(s) Assist small and medium-sized businesses to access capital by providing financial resources and technical and managerial assistance, thereby facilitating employment opportunities and economic growth. Fiscal Year 2016 Objectives  Reduce the loan delinquency rate by 10% through aggressive collection efforts, including legal action, and the restructuring, modification, and reclassification of loan accounts;  Increase the loan capacity by approving twenty (20) in-house credit quality loans and $1.8M loan guarantees;  Provide professional development for staff in the areas of credit administration and collections;  Partner with local banks to promote the State Small Business Credit Initiative (“SSBCI”) Loan Program;  Collaborate with other related government agencies to promote loan programs and services; and  Implement Phase II of the Sun Power Energy Program grant. Fiscal Year 2016 Accomplishments as of April 30, 2016  Requested third tranche of $4.4M in SSBCI loan guarantee funds from the US Dept. of Treasury;  Launched the Loan Amnesty Program in an effort to collect on chronically delinquent loans;  Collected $74K on matured loans and received $8K from judgments in small claims courts;  Conducted outreach and relationship building activities with the Small Business Development Center (“SBDC”), Small Business Administration (“SBA”), and USVIEDA Staff;  Reinstated staff visits to St. John, servicing prospective and existing clients and bolstering door-to- door collection efforts; and  Provided educational sessions and workshops to the general public on EDB’s loan programs. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Fiscal Year 2017 Objectives  Reduce the loan delinquency rate to 50% of the loan portfolio through aggressive collection efforts including legal action, loan restructuring, modifications, and reclassifications;  Increase the loan portfolio by $1.8M in credit quality loans;  Provide professional development for staff in credit administration and collections;  Continue partnering with local banks to promote the SSBCI Loan Program;  Continue collaborating with other related government agencies to promote loan programs and services; and  Continue implementation of Phase II of the Sun Power Energy Program grant in conjunction with the VI Energy Office. Key Performance Indicators (KPI) Actual FY 15 Target FY 16 Actual FY 16 (as of 4/30/16) Planned FY 17 Percentage of delinquent loans 53% 56% 63% 50% Payment received on all loans $872K $875K $609K $900K Dollar value of SSBCI loan guarantees committed $4.8 $1.8M $3.1M $1.8M No. of new loan applications /guarantees processed 17 20 10 20 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 37 35 35 92 92 88 129 127 123 FY 14 FY 15 FY 16 (as of 4/30/16) EDB Loan Portfolio Current versus Delinquent Loans (#) FY 2014 - FY 2016 No. of Current Loans No. of Delinquent Loans U.S. Virgin Island Economic Development Authority Economic Development Bank (EDB) Statistical Data $1,676,523 $2,377,064 $1,731,086 $1,983,724 $2,666,484 $2,986,396 $3,660,247 $5,043,548 $4,717,482 FY14 FY15 FY16 (as 4/30/16) EDB Loan Portfolio Current versus Delinquent ($ Value of Loans) FY 2014 - FY 2016 $ Value of Current Loan Portfolio $ Value of Delinquent Loans U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 U.S. Virgin Island Economic Development Authority Economic Development Bank (EDB) Statistical Data 81% 77% 77% 76% 55% 53% 63% FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 (4/30/16) Total EDB Portfolio Delinquency Rate (%) FY 2010- FY 2016 $1,076,756 $738,540 $535,627 753 loans 737 loans 718 loans FY14 FY15 FY16 (as 4/30/16) EDB Sun Power Loan Portfolio Dollar Value and Number of Loans FY 2014 - FY 2016 $ Value of Current Loan Portfolio No. of Loans U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 U.S. Virgin Island Economic Development Authority Economic Development Bank (EDB) Statistical Data $3,137,325 $7,222,492 $10,464,492 24 loans 31 loans 36 loans FY14 FY15 FY16 (as 4/30/16) EDB State Small Business Credit Initiative Dollar Value and Number of Loans FY 2014 - FY 2016 $ Value of Current Loan Portfolio No. of Loans U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Classified 244,489 141,319 85,143 226,462 277,555 Salaries - Unclassified 139,894 82,906 45,094 128,000 128,000 Fica 22,852 13,902 8,075 21,977 25,144 Medicare 5,344 3,251 1,888 5,140 5,881 Group Insurance 45,969 26,805 19,620 46,425 59,335 Retirement 69,369 37,451 37,451 74,902 80,064 Total Personnel Expense 527,918 305,634 197,271 502,905 575,979 Operating Expenses Advertising & Promotion 8,309 1,232 500 1,732 5,800 Supplies 2,711 366 250 616 1,500 Labor 24,402 - - - - Catering - 144 150 294 1,000 Credit Report 1,683 840 843 1,683 1,683 Dues & Subscriptions 300 300 - 300 300 Employee Relations 281 - 200 200 675 Courier Service 8,400 5,030 3,370 8,400 8,400 Postage & Delivery 449 206 75 281 600 Parking 40 - 20 20 100 Professional Development 1,513 14,116 - 14,116 9,000 Miscellaneous 828 - - - Software Agreement 11,300 11,300 11,300 11,300 Insurance 9,699 - 9,699 9,699 9,699 Professional Services 89,492 25,977 65,000 90,977 96,000 Travel 9,728 1,461 750 2,211 4,500 Communication 815 577 500 1,077 1,000 Total Operating Expense 169,950 50,249 92,657 142,906 151,557 Total Department Expense (Direct Cost Only) 697,868 355,883 289,928 645,811 727,536 Economic Development Bank Year End Financial Summary FY 15 Actual, FY 16 Projected, and FY 17 Budget VI Economic Development Authority $697,868 $645,811 $727,536 FY 15 Actual FY 16 Projection FY 17 Budget Economic Development Bank Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 2.2.1 Incubator Program Functional Statement The Incubator Program sets out to provide a facility where entrepreneurs can receive assistance and services they need to create sustainable businesses within the Territory. The program also promotes resource collaborations between our local government and other community-based organizations. Operational Goal(s) To engage, support, and assist entrepreneurs to build sustainable businesses throughout the territory. Fiscal Year 2016 Objectives  Increase the number of entrepreneurs in emerging and developing business sectors;  Provide business support and technical assistance to young entrepreneurs and growing businesses with the start-up or expansion of their business;  Assist startups in finding possible sources of financing;  Maintain a working database of available community organizations that provide support services for entrepreneurs;  Close out the UAVIEDA’s Disaster Small-Midsize Enterprises Incubation Program grant; and  Identify expat entrepreneurs to invest and mentor local entrepreneurs. Fiscal Year 2016 Accomplishments as of April 30, 2016  Closed-out the USVIEDA’s Disaster Small-Midsize Enterprises Incubation Program;  Expended entire $1.2M USVIEDA’s Disaster Small-Midsize Enterprises Incubation Program grant;  Provided consultations to entrepreneurs on developing their business and/or expansion ideas;  Three (3) Incubator Program participants received nominations for the St. Croix Chamber of Commerce Annual Award Gala, with two (2) participants winning in their respective area; and  Participated in the Community Education Initiative for high school students relative to USVIEDA’s programs and services. Fiscal Year 2017 Objectives  Host the Young CEO Camp;  Work collaboratively with the Small Business Development Center to present entrepreneurial workshops and seminars;  Create an Angel Investor Network as a means of providing investment capital for startups and established business seeking to expand; and  Manage the USVIEDA’s $2M Disaster Loan Fund. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 KEY PERFORMANCE INDICATORS (KPI) Actual FY 15 Target FY16 Actual FY 2016 (as of 4/30/16) Planned FY 17 No. of entrepreneurs assisted 40 25 11 30 No. of businesses in developing industries - 2 1 5 No. of jobs created or retained 44 6 0 10 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Classified 10,394 16,872 16,077 32,949 38,000 Salaries - Unclassified 11,930 26,640 25,385 52,025 60,000 Fica 1,183 2,698 2,571 5,268 6,076 Medicare 279 631 601 1,232 1,421 Group Insurance 2,611 7,021 11,799 18,821 23,598 Retirement 3,640 8,920 8,500 17,420 20,090 Total Personnel Expense 30,036 62,782 64,932 127,714 149,185 Operating Expenses Advertising & Promotion 1,390 - 650 650 3,500 Supplies 476 - 200 200 1,500 Repairs 353 - - - - Professional Development 139 - - - 3,000 Incbuator Grant Match 47,669 - - - - Meeting Space Rental - 800 800 1,500 Professional Services 54,905 2,007 1,000 3,007 7,000 Travel 365 1,000 1,365 500 Communication 1,042 - 500 500 3,250 Utilities 521 - 250 250 4,750 Total Operating Expense 106,495 2,372 4,400 6,772 25,000 Total Department Expense (Direct Cost Only) 136,531 65,154 69,332 134,486 174,185 Incubator Program Year End Financial Summary VI Economic Development Authority FY 15 Actual, FY 16 Projected, and FY 17 Budget $136,531 $134,486 $174,185 FY 15 Actual FY 16 Projection FY 17 Budget Incubator Program Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 2.3 Enterprise Zone Commission Functional Statement The Enterprise Zone Commission (“EZC”) was created by the Legislature of the U.S. States Virgin Islands with the passage of Act No. 6294 and amended by Act No. 7589, which mandates the revitalization of designated blighted and severely distressed areas in the U.S. Virgin Islands that were once socially and economically vibrant communities. The EZC provides tax incentives and economic development benefits that relax or eliminate fiscal and regulatory constraints that hinder economic growth and encourages collaboration between public, private, and non-profit entities on the revitalization of affected communities. Operational Goal(s) Promote growth through revitalization activities and public/private partnerships to revitalize and sustain community self-sufficiency and involvement. Fiscal Year 2016 Objectives  Continue to utilize all existing funds and seek additional funds to implement programs of the EZC Strategic Plan and Zone Community Plans;  Increase efficiency in services offered to our clients through streamlining document processes and staff training; and  Evaluate and improve the effectiveness of existing programming. Fiscal Year 2016 Accomplishments as of April 30, 2016  Provided leadership guidance in the approval of the Christiansted, Frederiksted, Garden Street, and Upstreet Town Plans;  Activated the Community Town Plan Exemption Program;  Approved four (4) applications representing $1.275M in potential investments;  Awarded a $20K historic preservation grant for rehabilitation work in the Enterprise Zones;  Conducted stakeholders meetings and beneficiary conferences to strengthen partnerships with the non-profit community, private sector, and government in meeting program mandates; and  Offered improved service to clients by streamlining the documentation processes. Fiscal Year 2017 Objectives  Host an International Business Expo;  Complete the goals of the EZC 5-Year Strategic Plan; and  Implement core provisions of the EZC Section of the Community and Town Plans to include marketing, application analysis, and program compliance. U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 KEY PERFORMANCE INDICATORS (KPI) Actual FY 15 Target FY16 Actual FY 2016 (as of 4/30/16) Planned FY 17 No. of collaborative partners 24 30 25 27 No. of properties surveyed 950 975 - 800 No. of applications for rehabilitation/board up received 3 5 4 8 U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 U.S. Virgin Island Economic Development Authority Enterprise Zone Commission (EZC) Statistical Data $1,985,000 $210,000 $1,275,000 FY 2014 FY 2015 FY 2016 (4/30/16) Dollar Value of Beneficiaries Committed Investments U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY15-Actual FY16-Actual FY16-Projected Total Proj. Exp. FY17-Budget Personnel Expenses 10/1/14-9/30/15 10/1/15-4/30/16 5/1-9/30/16 10/1/15-9/30/16 10/1/16-9/30/17 Salaries - Classified 132,059 56,646 36,448 93,093 142,649 Salaries - Unclassified 91,816 49,154 40,846 90,000 90,000 Fica 12,937 6,560 4,792 11,352 14,424 Medicare 3,026 1,534 1,121 2,655 3,373 Group Insurance 19,566 8,526 7,782 16,309 29,626 Retirement 39,643 16,470 14,515 30,986 42,568 Total Personnel Expense 299,047 138,890 105,504 244,394 322,641 Operating Expenses Advertising & Promotion 11,087 1,044 1,500 2,544 7,000 Supplies 1,110 158 200 358 1,000 Labor - 1,240 3,000 4,240 - Catering Services 7,003 2,290 2,500 4,790 3,000 Employee Relations - - - 500 Parking 20 2 10 12 - Printing & Publication - 280 600 880 1,500 Professional Development 220 - - 4,500 Miscellaneous 369 35 - 35 25,000 Meeting Space Rental 675 - - 2,100 Professional Services 26,049 5,330 3,500 8,830 10,000 Travel 4,513 4,467 1,500 5,967 3,000 Communication 411 215 215 430 500 Total Operating Expense 51,456 15,061 13,025 28,086 58,100 Total Department Expense (Direct Cost Only) 350,502 153,951 118,529 272,480 380,741 VI Economic Development Authority Enterprise Zone Commission Year End Financial Summary FY 15 Actual, FY 16 Projected, and FY 17 Budget $350,502 $272,480 $380,741 FY 15 Actual FY 16 Projection FY 17 Budget Enterprise Zone Commission Year End Financial Summary FY 15 Actual, FY 16 Projection, FY 17 Budget Operating Personnel Total U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 2.4 Economic Development Park Corporation Functional Statement The Economic Development Park Corporation (“EDPC”) is chartered as a public corporation to acquire and operate industrial parks in the U.S. Virgin Islands and to complement activities of the Economic Development Commission (“EDC”). The EDPC is self-supported by revenues generated from its tenants. The EDPC has two locations, one on St. Croix known as William D. Roebuck Industrial Park and the other on St. Thomas located in Estate Contant. Operational Goal(s) Support economic development by offering available space for commercial use to both EDC and non- EDC prospective tenants; and to promote good relations with tenants. Fiscal Year 2016 Objectives  Increase tenant occupancy by at least thirty percent (30%);  Develop long and short term preventative maintenance programs;  Improve tenant relationships to encourage retention and expansion of their services; and  Reduce outstanding receivables by at least sixty percent (60%). Fiscal Year 2016 Accomplishments as of April 30, 2016  Repaired the cistern and high roof in building one (1) at the William D. Roebuck Industrial Park;  Installed electronic swing gates at the entrance of the William D. Roebuck Industrial Park;  Developed and implemented a preventative maintenance schedule;  Renewed a lease agreement with one (1) new tenant;  Completed a lease agreement with one (1) new tenant; and  Negotiating lease agreements with two (2) prospective tenants. Fiscal Year 2017 Objectives  Develop and implement a 5-year capital project budget;  Complete a micro grid investment audit of the William D. Roebuck Industrial Park;  Lease 75% of rentable space; and  Work with tenants in fostering good relations. Key Performance Indicators (KPI) Actual FY 15 Target FY 16 Actual FY 16 (as of 4/30/16) Planned FY 17 No. of capital projects completed 1 5 3 6 Percentage of rentable space occupied 51% 75% 53% 75% U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 89,400 54% 84,926 51% 89,726 53% 78,760 46% 83,234 49% 78,434 47% 168,160 168,160 168,160 FY 2014 FY 2015 FY 2016 (as of 4/30/16) Economic Development Park Corporation Occupany / Vacancy Rate (Square Footage) St. Thomas & St. Croix Square Footage Vacant Square Footage Occupied U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 3.0 Financial Information 3.1 Revenues The USVIEDA’s revenue is derived from two (2) primary sources: government allotments and internally generated revenues. Internally generated revenues include activation, application, and compliance fees received from EDC beneficiaries. These amounts are deposited into the EDC Industrial Promotion Fund. Annually, an amount is transferred from this fund to help support the EDC budget. Other internally generated revenues consist of non-restricted income that include income from interest bearing accounts and amounts collected in loan originating and loan application fees. REVENUES Actual Actual Projected Total Projected Budgeted FY15 10/1/15-4/30/16 5/1-9/30/16 FY16 FY17 Loan and Interest Bearing Accounts 15,605 $ - $ 15,000 $ 15,000 $ 15,000 $ Loan Origination / Application Fees 3,866 6,210 3,000 9,210 6,500 Transfer : EDC Industrial Promotion Fund 505,000 505,000 0 505,000 703,515 Other Revenue 38,676 16,263 5,000 21,263 5,000 EDA Operating Reserve 153,624 Total EDA Revenues 716,770 $ 527,473 $ 23,000 $ 550,473 $ 730,015 $ Plus: Government Allotment 4,667,520 $ 3,540,023 $ 1,259,977 $ 4,800,000 $ 4,998,515 $ Total Budgeted Revenue 5,384,290 $ 4,067,496 $ 1,282,977 $ 5,350,473 $ 5,728,530 $ Loan & Interest Bearing Accounts 5% Applications Fees (Lending Division) 1% EDC Industrial Promotion Fund 94% Fiscal Year 2017 Budgeted Revenues from Operating Activities U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 FY14 FY15 FY16 FY17 Request $4.72 $4.93 $4.8 $4.9 $4.48 95% $4.84 98% $4.8 100% Millions Appropriation and Allotment Comparisons Historical Data (FY 2010 - FY 2016) Appropriation Allotment U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 3.2 Expenditure Comparisons for FY15, FY16 Projected and FY17 Budgeted DEPARTMENT/AGENCY/OFFICE NAME: Actual Actual Expenditures Proj. Expenditures Total Proj. Expenditures PROJECTED Fiscal Period 2015 10/1/15-4/30/16 5/1-9/30/16 FY 2016 Budget 2017 PERSONNEL SERVICES CLASSIFIED EMPLOYEE SALARIES 1,305,492 768,293 632,535 1,400,828 1,508,589 UNCLASSIFIED EMPL. SALARIES 1,066,292 579,708 439,816 1,019,525 1,177,500 TEMP/PART TIME SALARIES OVERTIME SALARIES LUMP SUM PAYMENTS NIGHT DIFFERENTIAL COMP OTHER DIFFERENTIAL COMP FEES & COMPENSATION NOC HOLIDAY PAY ALL OTHER SUB-TOTAL 2,371,783 1,348,001 1,072,351 2,420,353 2,686,089 CAPITAL OUTLAYS MACHINIERY & EQUIPMENT 47,783 97,575 5,000 102,575 25,000 VEHICLES ALL OTHER SUB-TOTAL 47,783 97,575 5,000 102,575 25,000 FRINGE BENEFITS EMPLOYER CONTR. RETIREMENT 404,690 226,560 190,200 416,760 499,111 F.I.C.A. 140,476 83,697 66,486 150,183 166,538 MEDICARE 33,790 19,546 15,549 35,095 38,948 HEALTH INSURANCE PREMIUM 238,379 138,704 152,036 290,741 357,741 WORKERS COMP. PREMIUMS UNIFORM ALLOWANCE ALL OTHER SUB-TOTAL 817,335 468,507 424,271 892,778 1,062,338 - SUPPLIES - OFFICE SUPPLIES 77,240 20,665 20,100 40,765 44,800 OPERATING SUPPLIES SMALL TOOLS/MINOR EQUIPMENT ALL OTHER - SUB-TOTAL 77,240 20,665 20,100 40,765 44,800 - OTHER SERVICES & CHARGES - PROFESSIONAL SERVICES 735,469 265,867 369,958 635,825 645,623 COMMUNICATION 81,710 31,455 33,291 64,746 70,250 TRAVEL 86,558 28,503 41,950 70,453 69,050 TRANSPORTATION - NOT TRAVEL ADVERTISING AND PROMOTION 228,819 157,843 109,405 267,248 243,300 PRINTING AND BINDING 7,567 8,004 13,150 21,154 19,200 INSURANCE 52,133 4,258 55,699 59,957 55,699 REPAIRS AND MAINTENANCE 83,509 35,262 30,000 65,262 64,000 RENTAL- LAND/BUILDING 235,980 137,550 105,891 243,441 244,124 RENTAL - MACHINES/EQUIPMENT TRAINING 47,507 56,137 22,250 78,387 96,375 SECURITY ALL OTHER 402,056 135,440 166,681 302,121 311,355 SUB-TOTAL 1,961,308 860,320 948,274 1,808,594 1,818,976 - UTILITY SERVICES - ELECTRICITY 106,987 36,990 47,250 84,240 89,750 WATER 1,854 568 600 1,168 1,576 SUB-TOTAL 108,841 37,558 47,850 85,408 91,326 - TOTAL EXPENSES 5,384,290 2,832,626 2,517,847 5,350,473 5,728,530 Appropriation/Allotment 4,667,520 3,540,023 1,259,977 4,800,000 4,998,515 EDA Revenue 716,770 527,473 23,000 550,473 730,015 Total Projected (Actual) Revenues 5,384,290 4,067,496 1,282,977 5,350,473 5,728,530 LEGISLATURE OF THE VIRGIN ISLANDS POST AUDIT DIVISION EXPENDITURES BY PRIME ACCOUNTS U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 3.3 Professional Services Breakdown in Detail Professional Services FY 2015 Actual FY 2016 Projected FY 2017 Budgeted Audit Fees 42,000 $ 45,000 $ 45,000 $ Collection Agencies (Lending) 65,418 63,000 65,000 Consulting 107,961 67,530 50,000 IT Services 54,485 50,000 50,000 Legal Fees 117,144 90,708 100,000 Marketing 209,633 242,000 207,023 Stenographer 42,093 45,000 52,000 Website Maintenance 25,710 20,050 26,100 Other 16,120 12,537 50,500 Incubator Grant Match 54,905 - - Total 735,469 $ 635,825 $ 645,623 $ Audit Fees 7% Collection Agencies (Lending) 10% Marketing 37% IT Services 7% Consulting 8% Legal Fees 15% Stenographer 8% Other 8% Professional Services 2017 Budgeted Expenses U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 3.4 Personnel Service Cost Breakdown by Department and Classification Personnel cost is the single largest component of the Authority’s operating budget, representing approximately sixty-five percent (65%) of the total operating expenses in the FY2017 budget. Department Positions (#) Unclassified Amount Positions (#) Classified Amount Total Positions (#) Total Salary Amt EDA 9 744,500 12 553,850 21 1,298,350 EDC 2 155,000 10.5 496,535 12.5 651,535 EZC 1 90,000 3.5 142,649 4.5 232,649 EDB 3 188,000 8 315,555 11 503,555 Total 15 1,177,500 34 1,508,589 49 2,686,089 FY 2017 Personnel Cost by Department Budget Comparison of Personnel Service Cost (FY 2015 – FY 2017) $1,421,254 $1,418,321 $1,298,350 $524,948 $597,479 $651,535 $218,649 $216,649 $232,649 $426,653 $354,462 $503,555 $2,591,504 $2,586,911 $2,686,089 FY 2015 FY 2016 FY 2017 EDB EZC EDC EDA U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Economic Development Bank 12% Applications 7% Compliance 11% Enterprise Zone 6% Legal 6% Human Resources 4% Admin. & Finance 9% Executive Office 9% Board 2% Marketing 10% Incubator Program 3% EDM Cost 21% 2017 EDA Budgeted Expenses by Units 3.5 Budget Summary  FY 2017 budgeted revenue is $5,728,530. o Internally generated revenue is $730,015. o Recommended appropriation is $4,998,515.  FY 2017 budgeted expenses total $5,728,530. Division / Department Personnel Costs Operating Expense Total Economic Development Bank 575,979 $ 151,557 $ 727,536 $ EDC Applications Department 347,198 $ 38,775 $ 385,973 $ EDC Compliance Department 572,414 $ 79,900 $ 652,314 $ Enterprise Zone Commission 322,641 $ 58,100 $ 380,741 $ Legal Department 295,579 $ 28,225 $ 323,804 $ Human Resources 180,598 $ 30,705 $ 211,303 $ Administration & Finance 483,348 $ 20,360 $ 503,708 $ Executive Office 484,986 $ 34,800 $ 519,786 $ Board of Directors 73,046 $ 73,107 $ 146,153 $ Marketing Department 170,642 $ 384,873 $ 555,514 $ Incubator Program 149,185 $ 25,000 $ 174,185 $ EDM - Indirect Cost 92,814 $ 1,054,700 $ 1,147,514 $ Total Fiscal Year 2016 Budgeted Expense 3,748,428 $ 1,980,102 $ 5,728,530 $ U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 4. Other Supplemental Information A. Vehicle Listing for USVIEDA Presently, the USVIEDA has thirteen (13) vehicles. Ten (10) were purchased with USVIEDA funds and three (3) with Economic Development Park Corporation funds. Year Make Model Assigned Use Fund Source Island 2013 Chevrolet Traverse Executive - USVIEDA USVIEDA Fund St. Thomas/St. John District 2007 Toyota Rav4 Executive - USVIEDA USVIEDA Fund St. Thomas/St. John District 2007 Toyota Rav4 General USVIEDA Fund St. Thomas/St. John District 2002 Honda CRV-LX General USVIEDA Fund St. Thomas/St. John District 2015 Chevrolet Colorado General USVIEDA Fund St. Thomas/St. John District 2007 Toyota Rav4 General USVIEDA Fund St. Croix District 2005 Chevrolet Trail Blazer General EDPC Fund St. Croix District 2005 Honda CRV-LX General EDPC Fund St. Croix District 2007 Toyota Rav4 General USVIEDA Fund St. Croix District 2005 Chevrolet Colorado General USVIEDA Fund St. Croix District 2016 Chevrolet Traverse Executive - USVIEDA USVIEDA Fund St. Croix District 2015 Chevrolet Equinox Park Superintendent USVIEDA Fund St. Croix District 2016 Chevrolet Colorado General EDPC Fund St. Croix District B. Listing of Real Property being rented or leased by the USVIEDA Lessor Address Sq. Ft. Annual Rent Lease Terms Use B&W Realty Investments, Ltd. Nisky Shopping Center Second Floor, Suite 620 St. Thomas 6,800 $176,746 5 Years Office Space VI Economic Development Park Corp. 116 King Street Frederiksted, St. Croix 4,088 $49,464 Month to Month Office Space Crown Holdings 18B-2 Lindberg Bay St. Thomas 2,000 $17,914 5 Years Storage Space U.S. Virgin Islands Economic Development Authority – Fiscal Year 2017 Glossary of Selected Terms Budget: An estimate of income and expenditure in the planning, monitoring, and evaluation of financial activities. Capital Outlay: Expenditures made for the acquisition of assets that exceed $500 in cost and has a service life of more than a year. Direct Cost: A cost that can be identified or traced with relative ease and a high degree of accuracy to a particular Unit. Fringe Benefits: The Various types of non-wage compensations such as retirement contributions, F.I.C.A., health insurance, and uniform allowance provided to employees. Insurance: Cost to cover the risk of a contingency or uncertain loss and include personal injury, directors’ and officers’ liability and auto. Indirect Costs: A cost incurred in common with other Units that cannot be traced to any one particular Unit. Key Performance Indicator (KPI): A quantitative or qualitative factor that measures program results against planned outcomes. Personnel Service: The gross salary amounts paid to full-time, part-time, and temporary employees. Professional Development: Employer sponsored training to improve or enhance employees’ job-related skills. Costs include airfare, hotel accommodation, and registration fees. Rent: Compensation paid for the use of office or storage space. Repairs and Maintenance: Costs incurred to maintain or upkeep buildings and equipment in good working conditions. Office Supplies: All materials required by employees to perform their daily tasks. Examples include pens, paper and other stationery items. Travel: Costs of airfare, ferry service, per diem, ground transportation, and hotel accommodations for employees travel between islands. Utilities: This expense includes electricity, water, telephone, cell phones, and internet service costs.