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20200317, Fourteenth (14Th) Report of the Joint Select Committee On … th 14 Report on an An Inquiry into Financial Oversight and Financial Management Systems at Municipal Corporations Fifth Session (2019/2020 ), 11th Parliament 1 14th Report on Financial Management in Municipal Corporations Fourteenth Report Of the Joint Select Committee on Local Authorities, Service Commissions and Statutory Authorities (including the THA) on an An Inquiry into Financial Oversight and Financial Management Systems at Municipal Corporations Fifth Session (2019/2020), Eleventh Parliament HOR PAPER NO: SENATE PAPER NO: PARL NO: 14/3/48-15 Ordered To Be Printed 2 14th Report on Financial Management in Municipal Corporations Committee Membership Dr. Varma Deyalsingh1 Chairman Ms. Ramona Ramdial, MP Vice-Chairman Mr. Darryl Smith, MP Member Mrs. Jennifer Baptiste-Primus Member Mr. Nigel De Freitas Member Ms. Khadijah Ameen Member Dr. Lovell Francis, MP Member Mr. Esmond Forde, MP Member Secretariat Support Mr. Julien Ogilvie Secretary Ms. Khisha Peterkin Assistant Secretary Ms. Terriann Baker Graduate Research Assistant Ms. Janelle Mills Parliamentary Intern Publication An electronic copy of this report can be found on the Parliament website using the following link: Contacts All correspondence should be addressed to: The Secretary Joint Select Committee on Local Authorities, Service Commissions and Statutory Authorities (including the THA) Office of the Parliament Level 3, Tower D The Port of Spain International Waterfront Centre 1A Wrightson Road Port of Spain Republic of Trinidad and Tobago Tel: (868) 624-7275 Ext 2277; 2627 Fax: (868) 625-4672 Email: [email protected] Date Laid in HOR: 25/03/2020 Date Laid in Senate: 17/03/2020 1 Dr. Varma Deyalsingh replaced Mr. H.R. Ian Roach w.e.f. 19.10.2018 3 14th Report on Financial Management in Municipal Corporations ACRONYMS AND ABBREVIATIONS ABBREVIATION MEANING ABC Arima Borough Corporation CBC Chaguanas Borough Corporation CTB Central Tenders Board CTTRC Couva /Tabaquite/Talparo Regional Corporation DMRC Diego Martin Regional Ccorporation FO Financial Officer MCs Municipal Corporations MOF Ministry of Finance MoRDLG Ministry of Rural Development and Local Government MRRC Mayaro/Rio Claro Regional Corporation OPR Office of the Procurement Regulation PDRC Penal/Debe Regional Corporation PFBC Point Fortin Borough Corporation PSRCC Port of Spain City Corporation PTRC Princes Town Regional Corporation SFCC San Fernando City Corporation SGRC Sangre Grande Regional Corporation SLRC San Juan/Laventille Regional Corporation SRC Siparia Regional Corporation TPRC Tunapuna/Piarco Regional Corporation 4 14th Report on Financial Management in Municipal Corporations LIST OF TABLES TABLE 1: THE STAFF COMPLEMENT OF THE INTERNAL AUDIT UNITS .................................................... 31 TABLE 2: INSTANCES OF FRAUD AT THE CORPORATIONS ....................................................................... 37 TABLE 3: STORAGE ARRANGEMENTS........................................................................................................ 42 LIST OF APPENDICES Appendix I…………………………………………………………………………………............56 Appendix II…………………………………………………………………………………...........61 Appendix III…………………………………………………………………………………..........63 Appendix IV…………………………………………………………………………………..........65 Appendix V…………………………………………………………………………………...........70 Appendix VI…………………………………………………………………………………..........95 Appendix VII..………………………………………………………………………………..........131 5 14th Report on Financial Management in Municipal Corporations TABLE OF CONTENTS ACRONYMS AND ABBREVIATIONS................................................................................................... 4 EXECUTIVE SUMMARY .......................................................................................................................... 9 SUMMARY OF RECOMMENDATIONS ............................................................................................. 11 The Ministry of Rural Development and Local Government ................................................... 15 Internal Audit Unit of the MORDLG ................................................................................................. 17 Summary of Evidence Together with Findings and Recommendations ......................................... 21 Objective 1: To Examine the role of the line Ministry and Executive Management of Municipal Corporations in promoting and facilitating accountability and transparency in the operations of Municipal Corporations ................................................................................................................ 21 Role of the Line Ministry and Executive Management of the Corporation .................................... 21 The Role of the MORDLG ............................................................................................................ 21 Reallocation of Funds by the Minister ....................................................................................... 22 The role of the Ministry in overseeing Contractors ................................................................. 22 The role of the MoRDLG in addressing improprieties within Municipal Corporations . 24 The role of the Municipal/City Council ...................................................................................... 24 The Creation of Financial Regulations ....................................................................................... 26 The role of CEOs at Municipal Corporations ............................................................................ 26 The High turnover of CEOs.......................................................................................................... 27 Recommendations ......................................................................................................................... 29 Objective 2: To Assess the Internal Control Systems within Municipal Corporations .................. 30 Financial controls and audits .......................................................................................................... 30 Human Resource Challenges .......................................................................................................... 32 Training for Financial Officers/Comptrollers ............................................................................ 33 Preparedness for the new Public Procurement Regime .......................................................... 34 Preparation of Annual Financial Statements .................................................................................. 35 Litigation Claims ............................................................................................................................. 35 6 14th Report on Financial Management in Municipal Corporations Fraud Policy .................................................................................................................................... 36 Instances of Fraud .......................................................................................................................... 37 Tenders Committee ....................................................................................................................... 39 Payments to Contractors ............................................................................................................... 40 Methods of Receiving Routine Payments ....................................................................................... 41 Storage of Files ................................................................................................................................ 42 Recommendations ......................................................................................................................... 46 Objective 3: To examine the proposed local government reform initiatives associated with the management of finances with Municipal Corporations. ............................................................... 48 Legislative Review ........................................................................................................................ 48 Proposed Financial Revisions from the Miscellaneous Provision (Local Government Reform) Bill, 2019 .................................................................................................................................................. 49 Recommendations .......................................................................................................................... 51 Appendices ....................................................................................................................................... 53 Appendix 1 ..................................................................................................................................... 54 List of Officials ................................................................................................................................. 55 Appendix 2 ..................................................................................................................................... 58 The Project Evaluation Process ............................................................................................................ 59 Appendix 3 ..................................................................................................................................... 60 Recommendations Proffered by the Finance Committee of the Corporations ...................................... 61 Appendix 4 ....................................................................................................................................
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