Head 65: Ministry of Foreign and CARICOM Affairs

Transcription

1 Head 65: Ministry of Foreign and CARICOM Affairs A summary of the Ministry s Expenditure, Divisions and Projects Financial Scrutiny Unit, Parliament of the Republic of Trinidad and Tobago

2 Table of Contents Table of Contents... 1 About this Guide... 2 Head 65: Ministry of Foreign and CARICOM Affairs... 3 Overview... 3 Where the Ministry spends its money Estimates of Expenditure... 5 Summary of Recurrent Expenditure for the period Staff and Pay The Ministry s total allocation as a percentage of the National Budget for the period 2013 to Analysis of Summary of Expenditure Summary of Development Programme Expenditure for the period The Auditor General Report Finding for the Fiscal Year Head 65: Ministry of Foreign and CARICOM Affairs Status of New Projects for the Financial Year Status of New Projects for the Financial Year General Useful Information

3 About this Guide This guide provides a summary of expenditure for the Ministry of Foreign and CARICOM Affairs for the period It provides the Members of Parliament and stakeholders with an overview of the Ministry s responsibilities. The primary purpose of this guide is to consolidate the information contained within the various Budget Documents pertaining to the Ministry of Foreign and CARICOM Affairs and provide readers with an analysis of same. This guide is based primarily on: the Draft Estimates of Recurrent Expenditure; the Estimates of Development Programme; the Public Sector Investment Programme; and the Auditor General s Report on the Public Accounts of the Republic of Trinidad and Tobago for the fiscal year

4 Head 65: Ministry of Foreign and CARICOM Affairs Overview 1 The Ministry of Foreign and CARICOM Affairs strives to be a service-driven, results-oriented organisation, which, through effective engagement at home and representation abroad, will act as a central channel by which the national interests and national development of Trinidad and Tobago are achieved. The Ministry prioritizes the following missions, namely: The Economic Mission which focuses on energy, trade, investment, tourism, science and technology, culture and agriculture; The Security Mission which focuses on ensuring national and human security; The Consular Mission which emphasises services to nationals at home and to the diaspora; The Political Mission which utilizes public and international diplomacy to ensure respect and leadership; and The Mission related to international law. As the external arm of the Government, it directs the country s foreign relations with other states and international entities mainly through diplomatic initiatives and representation. The foreign policy of Trinidad and Tobago is pursued through the activities of the Ministry s Headquarters, its eighteen (18) Missions and its Honorary Consuls. The Ministry aims to expand and intensify the country s 1 Ministry of Foreign and CARICOM Affairs, website; Accessed on September 28, 2018: 3

5 relations through bilateral and multilateral initiatives by seeking environments that are conducive to trade, tourism and investment for Trinidad and Tobago. The Ministry provides a myriad of services, which include protocol and consular activities, to its diverse clientele. Clients include the Offices of the President and Prime Minister of Trinidad and Tobago; Government Ministries and other Government Agencies; Foreign Governments; Diplomatic Missions accredited to and resident in Trinidad and Tobago; Members of the Local Diplomatic Corps; International Organisations; the Private Sector; Civil Society and Nationals and Non-nationals of Trinidad and Tobago, both at home and abroad. Minister: Senator the Honourable Dennis Moses Accounting Officer: Ms. Reita Toussaint Deputy Permanent Secretary (Ag.): Mr. Tedwin Herbert 4

6 Where the Ministry spends its money Estimates of Expenditure The budget allocation of $265,300,000 2 for the Ministry of Foreign and CARICOM Affairs is comprised of: The Draft Estimates of Recurrent Expenditure in the sum of $260,000,000; The Draft Estimates of Development Programme in the sum of $5,300,000: - Consolidated Fund in the sum of $3,300,000; and - Infrastructure Development Fund 3 in the sum of $2,000,000. The Estimates of Recurrent Expenditure include: 01 Personnel Expenditure $93,148,000; 02 Goods and Services $105,913,055; 03 Minor Equipment Purchases $258,500; and 04 Current Transfers and Subsidies $60,680,445. Percentage Allocation of the Ministry of Foreign and CARICOM Affairs is as follows: Total allocation as a percentage of National Budget = 0.47%; Recurrent Expenditure as a percentage of the total Recurrent Expenditure budget is 0.49%; Consolidated Fund as a percentage of the total Consolidated Fund allocation is 0.13%; and Infrastructure Development Fund as a percentage of the total Infrastructure Development Fund is 0.07%. 2 Ministry of Finance website Draft Estimates of Recurrent Expenditure for the financial year 2019 accessed on October 02, 2018: 3 Head 18 Ministry of Finance, Sub-Head 04 Current Transfers and Subsidies, Sub-Item 11- Infrastructure Development Fund (IDF) (Infrastructure Development Fund allocation is part of the Ministry of Finance allocation for the financial year. Therefore, the total recurrent expenditure for the Ministry of Foreign and CARICOM Affairs does not include IDF funding. 5

7 Summary of Recurrent Expenditure for the period ,000,000 Ministry of Foreign and CARICOM Affairs 350,000, ,000, ,000, ,000, ,000, ,000,000 50,000, Actual 2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 Revised Estimates 2019 Estimates Personnel Expenditure 118,550, ,791, ,066,553 85,588,510 88,360,747 87,578,000 93,148,000 Goods and Services 173,724, ,401, ,123, ,488, ,075,493 93,964, ,913,055 Minor Equipment Purchases 4,282,327 3,319,335 2,250, , , , ,500 Current Transfer and Subsidies 61,522,017 74,861,705 75,839,295 55,154,550 52,677,245 57,580,000 60,680,445 Total 358,079, ,373, ,279, ,955, ,675, ,417, ,000,000 Personnel Expenditure Goods and Services Minor Equipment Purchases Current Transfer and Subsidies Total 6

8 2013 Actual 2014 Actual 17% 0% 5% 1% 49% 33% Personnel Expenditure Goods and Services Minor Equipment Purchases Current Transfer and Subsidies Acquisition of Physical Capital Assets 1% 20% 46% 28% Personnel Expenditure Goods and Services Minor Equipment Purchases Current Transfer and Subsidies Acquisition of Physical Capital Assets 7

9 2015 Actual 2016 Actual 1% 21% 46% 0% 32% Personnel Expenditure Goods and Services Minor Equipment Purchases Current Transfer and Subsidies Acquisition of Physical Capital Assets 0% 21% 47% 0% 32% Personnel Expenditure Goods and Services Minor Equipment Purchases Current Transfer and Subsidies Acquisition of Physical Capital Assets 8

10 2017 Actual 2018 Revised Estimates Current Transfer and Subsidies Minor 22% Equipment Purchases 0% Personnel Expenditure 34% Personnel Expenditure Goods and Services Minor Equipment Purchases Current Transfer and Subsidies 24% Minor Equipment Purchases 0% Personnel Expenditure 37% Personnel Expenditure Goods and Services Minor Equipment Purchases Goods and Services 44% Current Transfer and Subsidies Goods and Services 39% Current Transfer and Subsidies 9

11 2019 Estimates Current Transfer and Subsidies 23% Personnel Expenditure 36% Minor Equipment Purchases 0.1% Personnel Expenditure Goods and Services Minor Equipment Purchases Current Transfer and Subsidies Goods and Services 41% 10

12 Staff and Pay 4 The allocation of staff expenditure for the year 2018/2019 was $108,946,500, which represents an increase of approximately 8.4% from the last fiscal year 2017/2018. The diagram below provides a breakdown of all expenditure related to staff from ,000,000 Ministry of Foreign and CARICOM Affairs 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Personnel Expenditure Uniforms Travelling and Subsistence Contract Employment Training Short-Term Employment University Graduate Recruitment Programme Employees Assistance Programme 2017 Actual 88,360, ,616 1,759,908 8,702,268 92,216 1,375, , ,475, Revised Estimate 87,578, ,200 1,837,500 9,300,000 50, , ,000 99,173, Estimate 93,148, ,000 2,850,000 9,280, ,000 1,000,000 1,000,000 15, ,628, Actual 2018 Revised Estimate 2019 Estimate Total 4 Ministry of Finance website Draft Estimates of Recurrent Expenditure for the financial year 2019 accessed on October 02, 2018: 11

13 The Ministry s total allocation as a percentage of the National Budget for the period 2013 to 2019 Year 5[1] Total Allocation [2] National Budget [3] Percentage of National Budget 2013 $ 361,401,442 $59,174,226, % 2014 $ 393,978,742 $65,020,886, % 2015 $ 373,151,591 $61,966,922, % 2016 $ 266,147,076 $56,573,913, % 2017 $259,333,594 $54,883,153, % 2018 $240,434,480 $54,330,404, % 2019 $263,300,000 $55,582,977, % Total allocation for the Ministry as a percentage of the National Budget illustrated an increase in the allocation to the Ministry of Foreign and CARICOM Affairs by 0.3% between the period 2017/2018 and 2018/2019. [1] For the Fiscal Years , actual figures were used to calculate the total allocation. However, estimates were used to calculate the total allocation for the Fiscal Years 2017 and [2] Total Allocation for the Ministry of Foreign and CARICOM Affairs= Recurrent Expenditure + Consolidated Fund [3] The National Budget= Total Recurrent Expenditure + Consolidated Fund + Infrastructure Development Fund 12

14 Analysis of Summary of Expenditure Recurrent Expenditure refers to the payments for expenses which are incurred during the day-to-day operations of the Ministry for Personnel Expenditure, Goods and Services, Minor Equipment Purchases and Current Transfers and Subsidies. Recurrent Expenditure for Fiscal Year 2018/2019 is $260,000, Recurrent Expenditure for Fiscal Year 2017/2018 was $239,417, Comparing this figure with Fiscal Year 2018/2019, there is an increase of $20,582, or 8.6%. The largest portion of the recurrent allocation has consistently gone to Sub-Head 02 Goods and Services. This figure has been fluctuating over the period , accounting for approximately 44.7% of total funding for the Ministry for fiscal year 2018/2019 for the day to day operations of the Ministry. In 2019, Personnel Expenditure s estimate of $93,148, was 35.8% of the Ministry s total recurrent allocation. Minor Equipment Purchases received the lowest portion of the total recurrent allocation for the Ministry over the period 2013 to 2019 with an average of 0.5%. Current Transfers and Subsidies has consistently received the third largest portion of the allocation and has been increasing over the period There was an overall increase in the allocation of $8,003, or 15.2% over the aforementioned period. The total allocation has been fluctuating over the seven (7) year period with a high of $359,373, in the fiscal year 2014 to and a low of $ 239,417,850in fiscal year

15 Summary of Development Programme Expenditure for the period Development Programme is capital expenditure aimed at improving and enhancing development in different areas of Trinidad and Tobago which includes; human resources, economic and social development. The Public Sector Investment Programme (PSIP), which represents the capital expenditure component of the National Budget, is the instrument used by Government to effect its vision and policies. It is a budgeting and strategic planning tool made up of projects and programmes, designed to realise the goals set out in the Government s overarching policy. The PSIP budget document provides a detailed description of the programmes and projects and includes a review of the implementation of projects and programmes in the previous financial year and highlights the major projects and programmes to be implemented in the upcoming financial year. The Public Sector Investment Programme is intended to achieve: the country s social and economic development goals; and enhance the quality of life of all citizens. The allocation of $5,300,000 for development programmes and projects for fiscal year 2018/2019 are presented in two parts as follows: Funds appropriated by Parliament and disbursed directly from the Consolidated Fund which represents 62.26% of the total allocation for development programmes; and 6 Draft Estimates of Development Programme for the Financial Year 2019, Development-Programme-New-2019.pdf 14

16 Funds disbursed from the Infrastructure Development Fund represents 37.74% of the total allocation for development programmes. 15

17 Summary of Development Programme Expenditure for the Period ,000,000 20,000,000 15,000,000 10,000,000 5,000, Multi-Sectoral and Other Services - Consolidated Fund 005 Multi-Sectoral and Other Services - Infrastructure Development Fund 0 Actual Actual Actual Actual Actual Revised Estimates Estimates ,322,132 17,120,188 19,871,923 1,191,300 4,658,022 1,016,630 3,300,000 1,074, ,000,000 Total 4,396,945 17,120,188 19,871,923 1,191,300 4,658,022 1,016,630 5,300, Multi-Sectoral and Other Services - Consolidated Fund 005 Multi-Sectoral and Other Services - Infrastructure Development Fund Total 16

18 The Auditor General Report Finding for the Fiscal Year 2017 Head 65: Ministry of Foreign and CARICOM Affairs Ref: Auditor General s Report pgs Non-Payment of Travelling Allowance Travelling Allowances were not paid to officers as required by Regulation 18 of the Civil Service (External Affairs) Regulations, 1977 which states: An officer posted at a Mission shall be paid a travelling allowance at the approved rate. This was reportedly because the appropriate amount was never decided. This matter which is outstanding since 1977 was also reported at paragraph of the Report of the Auditor General on the 2013 Public Accounts. Vote Book The Vote Book was not properly maintained in that releases were not recorded in Part A and the balance of provision was not calculated in Part B as required by Financial Regulation 68. Maintenance of Accounting Records 7 Report of the Auditor General on the Public Accounts of the Republic of Trinidad and Tobago for the Financial Year ended September 30,

19 Evidence of hand over of Inventory and Liquor Stores, Passports, Receipt Books, Vehicle Log Books and Payment Voucher forms was not seen on the relevant Registers. The signature and position of the authorizing officer were not inserted in the Vehicle Log Book as evidence of authorization of trips made. Inventory Inventory listings for the Chancery and the Official Residence were not properly maintained in that pertinent details such as serial number, date of purchase, cost, payment voucher number and authority for purchases were omitted in most instances. PERMANENT REPRESENTATIVE TO THE UNITED NATIONS (PRUN), GENEVA Non-Payment of Travelling Allowance Non-Payment of Travelling Allowance Travelling Allowances were not paid to officers as required by Regulation 18 of the Civil Service (External Affairs) Regulations, 1977 which states: An officer posted at a Mission shall be paid a travelling allowance at the approved rate. This was reportedly because the appropriate amount was never decided. This matter which is outstanding since 1977 was also reported at paragraph of the Report of the Auditor General on the 2013 Public Accounts. Refurbishment of Residence in Geneva On 8th September, 2011, Cabinet approved the refurbishment of the Official Residence at an estimated cost of TT$13.7 million. The approved refurbishment included structural works, upgrade of electrical and plumbing systems and new designs for the building. On 21st May, 2015, Cabinet approved a revised cost of TT$27.31 million for the refurbishment. The justifications for the increase included interest and late payment charges due to significant shortfalls in annual allocations, delays due to climatic conditions, exchange rate fluctuations and the need for the upgrade despite the seemingly high cost. Actual cost to 18th December, 2015 was TT$24,909, The 18

20 project was still in progress during the audit visit in August There was no Tenders Committee for selection of a contractor for the refurbishment project. Instead, a contractor was selected from among three who submitted quotations. Cabinet approval for the refurbishment did not specifically cover installation of a double-furnished professional second kitchen (with two of each major appliances and fully stocked with utensils), a kitchen elevator, a smart toilet with washer and dryer and a bathtub with spa jets. The costs of these items were also not separately identifiable. The Ministry did not provide a policy which stipulates the standard requirements for an Official Residence. Maintenance of Accounting Records Evidence of hand over of Cheque Forms, Petty Cash, Inventory, Liquor, Passports, Receipt Books and Payment Voucher forms was not seen on the relevant Registers. The signature and position of the authorizing officer were not inserted in the Vehicle Log Book as evidence of authorization of trips made. Documents not Produced Bank statements for the period October 2014 to September 2016 were not provided for audit inspection at the time of the survey. Inventory Inventory listings for the Chancery and the Official Residence were not properly maintained in that pertinent details such as authority for purchase, date of purchase, payment voucher number, cost, serial number, and location were omitted. In addition, several items seen at the Official Residence were not recorded in the listing. Payments made on behalf of other Ministries and Departments 19

21 Approval from the Comptroller of Accounts for payments totalling TT$23, made on behalf of an officer from another Department with respect to medical expenses, was not available for audit. Additionally, the Mission did not receive the necessary special remittance required to facilitate the payments. EMBASSY HAVANA, CUBA Petty Cash Imprest A Petty Cash Book was not maintained to record receipts and payments for the month of August The correctness of the balance could not be verified as the necessary reconciliation of the cash counted with a petty cash balance and supporting documents could not be done. The failure to maintain records of receipts and payments in a manner to be readily verifiable by audit officers is in contravention of Financial Regulation 106 (2). Cheques prepared to replenish petty cash were made payable to a locally recruited staff member instead of the Imprest Custodian. This contravened Financial Regulation 71. There was inadequate segregation of duties in managing the petty cash system. The Financial Attaché as the custodian, is responsible for the custody and maintenance of the petty cash records, as well as the preparation of the monthly financial reports. Evidence was not seen of regular oversight of the petty cash system administered by the custodian to compensate for the segregation of duties control weakness. Main Cash Book It was noted that there was no financial manual at the Mission to guide officers in carrying out their duties. 20

22 The Electronic Cash Books were not kept up-to-date with daily posting of transactions in the month audited. It was explained that due to limited staffing at the Mission, the posting of transactions to the electronic cash books was done in a batch at the end of each month. The failure to enter receipts and payments without delay in the Electronic Cash Books is: (i) a breach of Financial Regulation 50; (ii) an indication that the internal control is not sufficiently robust and the oversight of the system is ineffective, and (iii) an audit scope limitation which restricted this Department from completing all aspects of its planned audit in this area. Passports and Visas Documented procedures to guide officers processing Emergency Travel Documents, Visas and in the use of the diplomatic bag were not produced for audit. The absence of documented procedures in these sensitive areas is an administrative weakness. It was seen that the Mission did not always submit a Return of Visa Report to the Immigration Department on a monthly basis as required. The Return of Visa Report for the month of October 2016 was submitted by correspondence dated 8th August, A similar finding of late submission of Return of Visa Report was made in the last audit visit in It was noted that the Mission did not maintain any records for the processing of Emergency Travel Documents. Diplomatic Bag One of the key controls in using the diplomatic bag is the system of receiving the duplicate schedule as acknowledgment of receipt of the bag and its contents. It was observed that on four occasions duplicate schedules were not received by the Mission. 21

23 The diplomatic seal signifies the bag s status as a diplomatic bag and diplomatic immunity from search or seizure. It was noted that a record of the number of diplomatic seals received at the Mission was not maintained. There is the risk that the diplomatic seal could be used to send unauthorized packages to unauthorized third parties without detection. Accountable Advances Accountable Advances benefit was provided to a locally recruited staff member who was not entitled to receive the benefit. The granting of this benefit to the staff member is in contravention of the Ministry of Foreign Affairs Circular Memorandum No. 22 dated March 2, 2010 Guidelines for Identification of Items of Expenditure. Inventory - Furniture and Equipment - Chancery/Residences Details under the following headings in the Inventory Register were not recorded: Date of Purchase; Payment Voucher Number, and Authority and Remarks-Movement/Disposal/Board of Survey. At the 2013 Audit visit at the Mission, 14 paintings were seen on the existing Fixed Assets Register but not produced for physical verification. By memorandum dated 17th October, 2013, from the then Ambassador to the Permanent Secretary, Ministry of Foreign Affairs, it was stated that the paintings were on display at an Exhibition in Guantanamo, Cuba at the time of the visit by the auditors. During the audit visit in 2017, the 14 paintings were not recorded on the new Fixed Assets Register and only two of the 14 paintings were produced for audit verification. The Head of Chancery was unable to provide an explanation for the missing paintings. It was noted that no report of lost items was reported to the Ministry as at the date of the audit. 22

24 Stores - Other (Expendable Stores and Consumable Stores) Documented procedures to guide officers in managing the inventory at the Mission were not produced for audit. Audit was unable to verify with certainty whether all stores paid for, were received and consumed at the Mission because an Inventory Stores Register of other expendable and consumable stores, was not produced for audit. This contravened Financial Instruction 247 (2). Stores - Liquor The Alcohol Inventory Register was incomplete as the last entry in the register was in The records pertaining to the Liquor Stores balances did not agree with the physical count of alcohol stores in some instances. Motor Vehicles Proper records were not being maintained for motor vehicles as the motor vehicles were not initially recorded on the Motor Vehicles Register. The motor vehicle Log Books were not adequately maintained to account for the use of the vehicles and the cost of operation. Evidence was not seen of the review of the log books by the Head of Chancery. EMBASSY, WASHINGTON D.C. Inventory 23

25 The Inventory Listings presented for the Chancery and Residences did not include pertinent information such as the date of purchase, the cost of the item and the identification numbers assigned to those items in the majority of cases. This contravened Part 103 of the Stores Regulations. Accommodation The 11 properties owned by the Trinidad and Tobago Embassy were not properly maintained. The following conditions were noted at certain locations: carpet was aged and in poor condition; safety latches were not working; electrical outlets were loose; rotted panels on the roof, and evidence of water damage was seen in several areas. There were many unserviceable items at the Embassy that required disposal. 24

26 25

27 Status of New Projects for the Financial Year The following new projects that received funding in the 2016/2017 financial year 8 : Project -Item 2017 Estimate 2017 Actual 2018 Revised Estimate 2019 Estimate CF F-058 Establishment of a New Embassy and Trade Office in the United Arab Emirates CF F-060 Re-Establishment of a High Commission in Barbados $1,500, $1,500,000 $800,000 $30,658 $31,000 $1,000,000 8 Draft Estimates of Development Programme for the Financial Year 2019, Development-Programme-New-2019.pdf 26

28 Status of New Projects for the Financial Year The following new projects that received funding in the 2017/2018 financial year 9 : Project/Programme 2018 Estimate 2018 Revised Estimate 2019 Estimate A-019 Establishment of a National Diaspora Unit $300,000 $175,000-9 Draft Estimates of Development Programme for the Financial Year 2019, Development-Programme-New-2019.pdf 27

29 General Useful Information Ministry of Foreign Affairs, SINGAPORE: Department of Foreign Affairs and Trade, AUS: Foreign and Commonwealth Office, UK: Ministry of External Affairs, INDIA: Global Affairs Canada, CANADA: Ministry of Foreign Affairs, NIGERIA: U.S. Department of State, USA: Ministry of Foreign Affairs, BRAZIL: Ministerio de Relaciones Exteriores, PANAMA: Ministry of Foreign Affairs of the People s Republic of China, CHINA: 28