Financial Inspections

TICO operates a risk management programme which includes financial inspections of registrants carried out under the direction and control of the Registrar, Travel Industry Act, 2002. The objective of the programme is to identify as early as possible any registrants at risk and to work with these registrants to ensure compliance with the Act and Regulation. Through early identification of registrants at financial risk, TICO attempts to minimize potential claims against the Compensation Fund and disruption to consumer travel.

TICO has a team of financial inspectors who all have financial designations and who are designated under the Act as inspectors by the Registrar.

All registrants are required to file at least annually financial statements with TICO and these financial statements are reviewed by the inspectors to determine if the registrant is compliant with the working capital and trust accounting requirements. Other financial information such as sales, losses and equity are tracked to determine if there are potential financial problems.

TICO’s inspectors conduct site inspections based on the review of financial statements and other information that TICO may receive. Specifically the inspector will ensure that the registrant is maintaining proper trust accounting, working capital, bank accounts, invoicing and documentation. The inspector will examine the books and records, bank statements, cancelled cheques, invoices relevant to the purposes of the inspection.

TICO’s inspectors will generally make appointments with the registrant at a mutually convenient time. However this is a courtesy, as under section 17 of the Act notice is not required to be given and the inspector is entitled to free access to all records being inspected that are relevant to the inspection.

For more information about Financial and Compliance Inspections - click here

To assist in preparing for a Financial Inspection, refer to TICO's Inspection Visit - Knowledge Checklist  - click here

For useful information for Accountants - click here