Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698745181827.pdf (Micronesia, Federated States of)
STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 The Honorable Wesley Simina Speaker, Twentieth Congress Federated States of Micronesia Second Regular Session, 2017 Dear Mr. Speaker: Your Committee on External Affairs to which was jointly referred Presidential Communication No.
19-579 transmitting the National Government’s proposed fiscal year 2018 Budget, begs leave to report as follows: Presidential Communication No.

19-579 was transmitted to Congress with the National Government Fiscal Year 2018 Recommended Budget (“Budget Book”).
Pursuant to Rule 7, Section 5(b), of the Official Rules of Procedure of the Twentieth Congress of the Federated States of Micronesia, your Committee has limited its review to those portions of the proposed budget relating to matters under its jurisdiction.

These are: 1.

FSM Consulate Office, Hawaii 2.

FSM Consulate Office, Guam 3.

FSM Embassy, Tokyo, Japan 4.

UN Mission, New York 5.

FSM Embassy, Suva, Fiji 6.

FSM Embassy, Washington, D.C. 7.

FSM Embassy, Beijing, China 8.


Department of Foreign Affairs: a.

Office of the Secretary; b. Asia Pacific Africa & Multilateral Affairs; c. American and European Affairs.

SCRL 20-22/FY 2018 RECOMMENDED BUDGET/P.C.

19-579/EXAFF COMMITTEE STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 9.

Office of Veteran’s Affairs; 10.

Grants, subsidies and contributions: a.


The Forum Secretariat; b. Secretariat for the Pacific Community; c. United Nations Membership fees; d. United Nations Economic and Social Commission for Asia and Pacific (ESCAP); e. East-West Center; f. ACP Cotonou Membership; g. SPC Office Rental; h. SIS Program; i. Celebration of FSM and China bilateral relations; j. IOM Membership fees (2012 -2017); and k. Pacific Island Forum arrears.

11.

Capital and Human Resources Development a.


Acting Capacity role b. FSM Embassy in Suva, Fiji residences This report and all previous and subsequent reports by your Committee should be treated as policy for this Nation as defined by Congress.
It is your Committee’s intent that any commentary found in this report should be treated as policy for the guidance of the relevant departments, agencies and offices in the obligations and expenditures of their respective budgets and implementation of their programs.

Your Committee conducted a series of public hearings following the convening of the First Regular Session of the Twentieth Congress on May 11, 2017.
The mark-up meeting of the Committee was held on September 16, 2017, during the Second Regular Session of the Twentieth Congress.

The report and recommendations that follow are based upon the information contained in the Budget Book and the input provided by the Secretaries, Ambassadors, Consuls General, staff of the Division of Budget and staff of the various departments during those hearings.
DISCUSSION OF THE PROPOSED FY 2018 BUDGET The figures shown in the charts below for the Department of Foreign Affairs include the total amount appropriated in FY 2017; the FY 2018 amount requested, and the amount transmitted as -2- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 recommended for FY 2018.

The last column is the amount recommended by your Committee for FY 2018.

I.
I.

DEPARTMENT OF FOREIGN AFFAIRS – OVERALL FY 2017 Appropr.

FY 2018 Proposed $333,710 Personnel $1,488,332 $1,494,692 $332,752 Travel Contract.Serv.

$2,361,087 $2,531,652 $319,142 OCE $121,006 Fixed Assets Total $4,565,881 $4,799,244 No.

Employees 39 $313,202 $69,550 42 FY18 Recomm $332,752 Committee Recommends $1,494,692 $1,547,551 $330,508 $2,531,652 $2,461,652 $298,672 $121,006 $4,799,244 $4,759,389 $319,142 $121,006 42 42 I. FSM Embassy, Suva, Fiji FY 2017 Appro.
FY 2018 Proposed FY18 Recom Committee Recommends Personnel Travel Contract.

Serv.

OCE Fixed Assets Total No.

Employees 3 $130,182 $40,036 $99,650 $30,510 $17,500 $317,878 $98,452 $37,244 $99,650 $30,510 $54,500 320,356 $98,452 $37,244 $99,650 $30,510 $54,500 320,356 $130,182 $35,000 $109,650 $30,510 $54,500 $359,842 2 2 3 Personnel – An amount of $87,126 is reflected in the “Budget Book”, as the amount appropriated in FY17.

In Standing Committee Report No.


19-147, your Committee had recommended $130,182 for three positions (Ambassador, DCM and First Secretary).

At the hearing, your Committee was informed that the funds ($31,195 for the new proposed First Secretary position) is still available because the First Secretary position has not been filled.

The amount requested for FY18 is $98,452 for two positions only, and was transmitted as recommended.

The base salary plus FSP for the Ambassador is $46,875.
The base salary plus FSP for the DCM is $40,251.

There is an amount of -3- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 $11,326 for fringe benefits.

The First Secretary position is not budgeted.

So the total proposed is $98,452 for two positions.

Your Committee raised some concerns regarding the decision to hold off on the First Secretary position.
The Secretary of the Department of Foreign Affairs, Mr. Lorin Robert, explained that the decision to hold off on the recruitment of the First Secretary is made by the President.

On September 16, 2017, during the mark-up meeting, your Committee decided to reinstate the funding for the First Secretary position.

Your Committee recommends $130,182.

Travel - The Embassy’s FY 2017 appropriated amount for travel was $40,036.
The FY 2018 request is $37,244, a decrease of $2,792, as compared to the FY 2017 appropriation.

Of the $37,244 requested, $9,200 is for travel within Fiji, $4,662 is to attend the annual Pacific Island Forum, $9,036 is for cross accreditation to PNG, $11,300 is to attend the annual congressional budget hearing, and $3,046 is to attend pacific Island Development Forum in the Solomon Islands.

The decrease is based on the travel cost between Fiji and Samoa for the PIF.
After the mark-up meeting, your Committee has considered the funds requested for travel is too much.

So your Committee recommends $35,000.

Contractual Services - The Embassy’s contractual services appropriation of FY17 was $99,650.

For FY 2018, there is a request of $99,650 and transmitted as recommended.

This is the same amount, as compared to the FY 2017 appropriation.

The amount of $99,650 is broken down as follows: $ 3,450 1.

City rate $ 2,000 2.

Education allowance $18,200 3.


Local staff benefits $ 9,000 4.

Maintenance contract 5.

Medical insurance $ 5,000 6.

Property, Security insurance/maint.

$15,500 $13,000 7.

Rep. Fund/COAP $32,500 8.

Special Services contracts -4- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 9.
Subscriptions Total -------------------------------- $99,650 $ 1,000 Your Committee was informed that the MiCare Program is not recognized in Fiji, but the deductions for the MiCare Program continues.

Regarding the $5,000 for health insurance, your Committee was informed that the Embassy has a difficult time using the amount since it is not adequate to meet the needs of each of the staff dependents.

At the mark-up meeting, your Committee recommended an increase of $10,000 to the medical insurance.
Your Committee recommends $109,650.

Other Current Expenses – The amount appropriated this fiscal year 2017 was $33,900.

For FY 2018, the Embassy requested an amount of $30,510 which was transmitted as recommended.

The differences in the Embassy’s requests and transmitted as recommended are as follows: Requested 9,000 1.

Communication 360 2.

Library Materials 7,200 3.

POL 720 4.

Postage/Postal fee 1,800 5.

Printing/Reproduction 1,530 6.

Promotion/Reproduction 3,600 7.

Supplies & Materials 8.


Utilities 6,300 Total --------------------------- 30,510 Recomm 9,000 360 7,200 720 1,800 1,530 3,600 6,300 30,510 Your Committee recommends $30,510.

Fixed Assets - For FY 2017, an amount of $17,500 was appropriated.

This year, an amount of $54,500 is requested: $6,900 for fixtures, $2,500 for a laptop, $2,000 for a microwave oven, $2,200 for a water dispenser and $40,900 for vehicles.

Your Committee recommends $54,500.

-5- STANDING COMMITTEE REPORT NO.


20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 II.

FSM Consulate Office, Guam FY 2017 Appro.

FY 2018 Proposed FY18 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 4 $124,363 $13,200 $114,750 $29,430 $2,050 $283,893 $13,200 $96,860 $49,900 $5,000 $141,083 $141,083 $13,200 $96,860 $49,900 $5,000 $306,043 $306,043 5 5 Committee Recommends $124,363 $13,200 $96,860 $29,430 $5,000 $268,853 4 Personnel - The amount appropriated in FY17 was $124,465.

The requested amount for FY 2018 is $141,083, which was transmitted as recommended.
The salary for the Consul General is $41,861, the Foreign Services Officer I (Johnny Silbanuz) is $21,327, another Foreign Service Officer I (W- III Williander) is $21,327, the Administrative Assistant (Linda Timothy) is $21,327.

A new position (Secretary 1) with a salary of $19,010 is requested and approved by the Budget Review Committee.

An amount of $16,231 is allocated for fringe benefits.

The total is $141,083.


At the mark up meeting, your Committee did not recommend the new position on the basis that the current employees at the Consulate Office are capable to assist with the consular services there.

Your Committee recommends $124,363.

Travel - The amount of $13,200 appropriated in FY 2017 is being requested for FY 2018.

Your Committee recommends $13,200.


Contractual Services - At the hearing, your Committee was informed that the funding for office space rental and the parking areas are no longer needed.

The significant increases are from the short-term contracts for two temporary staff, insurance for residence, and vehicle based upon the estimated cost after the office was completed.

Following is the breakdown of the funding: -6- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.


19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 1.

Equipment rental 2.

Janitorial services 3.

Office equipment/repair 4.

Rep-fund/COAP 5.

Short-term contracts 6.

Staff housing 7.

Subscription 8.


Insurance (residence & vehicle) Requested 2,000 2,800 10,000 15,000 17,760 36,000 300 Recom 2,000 2,800 10,000 15,000 17,760 36,000 300 13,000 13,000 Total --------------------- 96,860 96,860 As compared to the FY 2017 appropriation of $114,750 and the requested amount for FY 2018 of $96,860, there is a decrease of $17,890.

Your Committee recommends $96,860.

Other Current Expenses - An amount of $29,430 was appropriated in FY 2017.
The FY18 request is $49,900, and is transmitted as recommended.

At the hearing, the Consul General explained that the increase is for utilities from $8,100 to $24,000.

At the mark-up meeting, your Committee learned that the FSM Petroleum Corporation plans to use one of the nearby buildings at the Consulate Office.

If this is the case, then the FSM Petroleum Corporation can shoulder the cost for the utilities.
However, if the Office really needs the funding, it can request supplemental funding in the future.

With this understanding, your Committee recommends the FY17 appropriated amount of $29,430.

Fixed Assets – In FY 2017, an amount of $2,050 was appropriated.

For FY 2018, the Office requested $5,000 for office furniture and fixtures.

The $5,000 was transmitted as recommended.

Your Committee recommends $5,000.

-7- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.


19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 III.

FSM Consulate, Hawaii FY18 Recom FY 2018 Proposed FY 2017 Appro.

$103,112 $127,211 $127,211 Personnel Travel $12,732 $12,732 Contract.Serv.

$187,300 $212,982 $212,982 $31,950 $31,950 OCE Fixed Assets $10,000 $0 Total $345,094 $384,875 $384,875 No.
Employees 3 $31,950 $0 $12,732 4 4 Committee Recommends $127,211 $12,732 $212,982 $31,950 $0 $384,875 4 Personnel - The amount appropriated in FY17 was $103,112 because the Committee defunded the salary for one of the Foreign Service Officers.

The request for FY 2018 is $127,211, and EBRC recommended it.

The recommended amount is for four employees.

The salary for the Consul General (Kahndi Eliesear) is $41,861.

The salary for the Financial Specialist (Angie Saimon) is $24,694.
The salary for one Foreign Service Officer I (Henry Shrew) is $24,694.

The salary for the other Foreign Service Officer I (Wainer Louis) is $21,239.

There is $14,635 set aside for fringe benefits for four employees.

The total is $127,211.


At the hearing, the Committee inquired with the witnesses which source of funding was used to fund one of the Foreign Service Officers because it is the understanding of the Committee that in the current FY 2017, the Committee defunded funding for that Foreign Service Officer.

Witnesses generally indicated that the Department tapped some funding from vacant positions in the Department.

At a later hearing, the salary increase for Angie Saimon was discussed.
A staff of the Department explained Angie Saimon somehow was never compensated on the first COLA that was implemented.

The Department has already fixed her COLA that she missed starting from 2008 to 2015.

According to Division of Personnel, she will be getting the COLA retroactive to the date she did not receive.

-8- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.


19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 Given that a staff at the Consulate Office is now a productive employee and is under the Public Service System, the Committee decided to honor the transmitted amount.

Your Committee recommends $127,211.

Travel - An amount of $12,732 was appropriated in fiscal year 2017.

For FY 2018, the same amount is requested and recommended.

Your Committee recommends $12,732.


Contractual Services- The amount appropriated in FY 2017 was $187,300.

The request for FY 2018 is 212,982, and EBRC recommended it.

This is an increase of $25,682.

Herein is a breakdown of what was requested and recommended: Requested 3,000 1.

CAM 15,600 2.

Contractual Services 3.

Equipment lease 3,000 4.

Insurance (Office/vehicle) 7,000 62,652 5.

Office/Parking rental 15,000 6.

Rep-fund/COAP 7.


Staff housing 106,730 Total ---------------------- 212,982 Recom 3,000 15,600 3,000 7,000 62,652 15,000 106,730 212,982 Your Committee recommends $212,982.

Other Current Expenses- An amount of $31,950 was appropriated in FY17.

For FY 2018, the same amount in FY2017 is requested and recommended.

Herein is a breakdown of what was requested and recommended: Requested 5,400 1.

Communications 1,350 2.

Miscellances 3.

POL 9,000 4.

Postage stamp/Fed.

Expr.


1,800 450 5.

Printing/Reproduction 6.

Repair/Maintenance equip 2,700 7.

Repair/maintenance auto’s 4,500 450 8.

Subscription & Dues 900 9.

Supplies & Materials 10.

Utilities (office/reside) 5,400 Total ----------------------- 31,950 Recom 5,400 1,350 9,000 1,800 450 2,700 4,500 450 900 5,400 31,950 -9- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.


19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 Your Committee recommends $31,950.

Fixed Assets-.

For FY 2017, $10,000 was appropriated for furniture & fixture and equipment/computers/printers.

This year, there is no funding requested.

Your Committee recommends 0.

IV.

FSM Embassy, Washington, DC FY 2017 Appro.


FY 2018 Proposed FY18 Recom Committee Recommends $60,000 $186,528 $206,900 $206,900 $206,900 Personnel Travel $63,158 Contract.Serv.

$277,100 $374,160 $374,160 $374,160 $42,750 OCE $42,750 Fixed Assets $15,000 $10,000 $586,128 $696,968 $696,968 $696,968 Total 5 No.

Employees 4 $42,750 $10,000 $42,750 $10,000 $63,158 $63,158 5 5 Personnel – An amount of $186,528 was appropriated in FY2017.

The requested amount for FY18 is $206,900, and was transmitted.
The Ambassador’s salary is 70,000.

The Deputy Chief of Mission (DCM) salary is 41,861.

The DCM position is still vacant; however, former DCM James Naich is still at the Embassy under a special contract.

The First Secretary (Dominic Maluchmai) is $28,709.

The Administrative Specialist (Raleigh Welly) is $23,518.

There is a new First Secretary position requested and the salary is $19,010; however, at the hearing your Committee was informed that it is not a First Secretary position, but a Receptionist.
The fringe benefit is $23,802.

So the total is $206,900.

Your Committee recommends $206,900.

Travel – An amount of $60,000 was appropriated in FY17.

The Department’s FY18 requested amount is $63,158, which was also recommended.

This is an increase of $3,158.

Your Committee recommends $63,158.

-10- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.


19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 Contractual Services – In FY 2017 an amount of $277,100 was appropriated.

The request for FY 2018 is 374,160, an increase of $97,060, as compared to FY17 appropriation.

The differences in the FY17 appropriation, the FY18 requested amount and the amount recommended is detailed herein: 1.

Contractual Services (Personnel) 2.

Maintenance (Equip/Rental) 3.

Health Insurance 4.


Messenger serv.,contr./subscrip.

5.

Property security/insurance 6.

Rep-Fund/COAP 7.


Staff housing FY17 Request Recom 48,000 89,960 89,960 10,000 10,000 10,000 50,000 75,000 75,000 2,000 2,000 2,000 10,000 10,000 10,000 21,000 21,000 21,000 135,900 166,200 166,200 Total - 276,900 374,160 374,160 The significant increase is for a First Secretary of Economic Affairs in the amount of $41,960, but the Ambassador clarified at the hearing that the actual request for the First Secretary is $28,000 and not $41,960.
There is $25,000 increase on the Health Insurance, and an increase of $30,300 in the staff housing.

The increase in staff housing is for the Receptionist position under contractual services if the position is approved.

At the mark-up meeting, your Committee agreed to the EBRC’s recommendation, and recommends $374,160.

Other Current Expenses - An amount of $42,750 was appropriated in fiscal year 2017.

The same amount is requested for FY 2018 and was transmitted.

Your Committee recommends $42,750.


Fixed Assets - There was $15,000 appropriated in FY 2017.

For FY 2018, the requested amount is $10,000, which was transmitted as recommended.

The $10,000 is for office equipment.

Your Committee recommends $10,000.

-11- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 V. UN Mission, New York FY 2017 Appro.
FY 2018 Proposed FY18 Recom Committee Recommends Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.

Employees 2 $33,978 $38,285 $33,978 $126,403 $126,403 $126,403 $126,403 $33,978 $586,080 $537,870 $537,870 $537,870 $35,000 $0 $801,504 $733,251 $733,251 $733,251 2 $35,000 $0 $50,100 $0 $35,000 $0 2 2 Personnel – The FY 2017 appropriation was $126,403.

For FY18, the same amount is requested and recommended.

The salary for the Ambassador (Jane Chigiyal) is $70,000.
The salary for the Deputy Permanent Representative (DPR) (Jeem Lippwe) is $41,861.

There is a $14,542 requested for fringe benefits.

The total sum for two employees and fringe benefits is $126,403.

Your Committee recommends $126,403.

Travel – An amount of $38,285 was appropriated in FY 2017.

For FY 2018, an amount of $33,978 is requested and recommended, a decrease of $4,307.

Your Committee recommends $33,978.

Contractual Services - In FY 2017, an amount of $586,080 was appropriated.
For this FY 2018 request, the UN Mission is requesting $537,870 and was transmitted as recommended.
These are the specific line items appropriated in FY17 and requested and recommended for FY18: FY17 • $0 • 8,091 • $50,000 75,000 FY18 requests 8,000 9,000 - CAM - for car/office insurance; - for healthcare insurance coverage for FSM diplomats and their eligible dependents; • $173,353 177,696 - for office lease; • $5,434 $0 • $93,227 87,301 - for office equipment; - for professional services; -12- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.


19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 800 - purchase stamp • $0 • $30,000 25,000 - for representative fund/COAP; • $0 • $146,595 150,633 - for staff housing; and • $0 - stamp machine.

- Richo copier; 3,730 710 Total: 506,700 537,870 At the hearing, Maddam Ambassador explained that there is a $25,000 increase in the Medical Insurance.

She explained that the plan is not to enroll in the Obamacare.

Currently, they are under Obamacare.


The plan now is to merge both the UN Mission and the FSM Embassy in Washington,D.C.

With this plan, they will secure private insurance.

Under contractual services for FY18 request, there is an increase of $31,170, as compared to FY17 appropriation.

Your Committee recommends $537,870.


Other Current Expenses – In FY17 appropriation, your Committee recommended an amount of $44,100, but the Committee on Ways and Means in its consolidated report added $6,000 under this category for banking fees.

So the total amount appropriated was $50,100.

For FY18, an amount of 35,000 is requested and recommended.

Your Committee recommends $35,000.

Fixed Assets - There was no amount requested for FY 2017.

Also no amount requested for FY 2018.


Your Committee recommends $0.

-13- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 VI.

FSM Embassy, Tokyo, Japan FY 2017 Appro.

FY 2018 Proposed FY18 Recom Committee Recommends $15,776 $261,484 $261,483 $261,483 $261,483 Personnel Travel $15,776 Contract.Serv.

$582,802 $576,802 $576,802 $576,802 $59,740 OCE Fixed Assets $0 $919,802 $913,801 $913,801 $913,801 Total 3 No.
Employees 3 $59,740 $0 $59,740 $0 $59,740 $0 $15,776 $15,776 3 3 Personnel - The amount appropriated in FY 2017 was $261,484 and this amount is for three employees, the Ambassador, the DCM and a new First Secretary.

For FY 2018, the request is $261,483.

The salary for the Ambassador (John Fritz) is $94,999.

The salary for the DCDM (Roger Mori) is $81,575.

The proposed salary for a new First Secretary is $54,827.

An amount of $30,082 is set aside for fringe benefits.
The total sum for three employees plus fringe benefits is $261,483.

At the mark-up meeting, your Committee wanted to know whether the First Secretary position has been filled.

It is the understanding that the President has not submitted a nominee for the position.

Your Committee still wants to fund the First Secretary position.

Your Committee recommends $261,483.

Travel - The appropriated amount for travel in FY 17 was $15,776.

The same amount is requested for FY 2018.


Your Committee recommends $15,776.

Contractual Services- In FY 2017, an amount of $582,802 was appropriated.

For FY 2018, the requested amount is $576,802, which was also transmitted as recommended.

This is a decrease of $6,000, as compared to FY 2017 appropriation.

-14- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.


19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 Herein is a comparison of the $582,802 appropriated in FY 2017 and the $576,802 FY 2018 recommended amount: • Consultant services • Education Allowance • Maintenance contract • Office lease/staff housing • Property/Offc.
Equipment/ • Rep. Fund/COAP • Special Services contract FY17 appr $37,000 $25,000 $9,654 $339,600 $8,800 $25,000 $137,748 582,802 FY18 EBRC 31,000 25,000 9,654 339,600 8,800 25,000 137,748 576,802 Your Committee recommends $576,802.

Other Current Expenses - An amount of $59,740 was appropriated in FY 2017.

The same amount is requested and recommended for FY2018.

Your Committee recommends $59,740.

Fixed Assets- There was no funding appropriated under this category in FY 2017.
No amount is requested for this fiscal year.

Your Committee recommends $0.

VII.

FSM Embassy, Beijing, China FY 2017 Appro.

FY 2018 Proposed FY18 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 3 $164,252 $22,300 $433,405 $21,292 $0 $641,249 2 $25,283 $126,403 $126,403 $25,283 $473,328 $473,328 $21,292 $1,506 $647,812 $647,812 2 $21,292 $1,506 Committee Recommends $164,252 $25,283 $473,328 $21,292 $1,506 $685,661 3 Personnel - An amount of $164,252 was appropriated in FY 2017 for three employees, the Ambassador, DCM and a First Secretary.

The request for FY18 is $126,403 and BRC recommended it.
This amount is for two employees, the -15- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 Ambassador and the DCM.

The salary for the Ambassador (Carl Apis) is $70,000.

The salary for the DCM (Vince Sivas) is $41,861.

There is no funding for a First Secretary position.

There is $14,542 set aside for fringe benefits.

So the total for two employees and fringe benefits is $126,403, a decrease of $37,849.
At the mark-up meeting, your Committee recommended funding for the First Secretary position and wanted to retain the FY17 appropriation for Personnel.

Your Committee recommends $164,252.

Travel - The amount appropriated in FY 2017 was $22,300.

The FY 2018 request for travel is $25,283, and was transmitted as recommended.

There is an increase of $2,903 in travel, as compared to the FY 2017 appropriation.

Your Committee recommends $25,283.


Contractual Services - In FY 2017, an amount of $433,405 was appropriated.

The request for FY 2018 is $473,328, and was transmitted as recommended.

There is an increase of $39,923, as compared to the FY17 appropriation.

At the hearing, Ambassador Carl Apis explained that there is increase of funding for the local staff insurance because the Diplomatic Service Bureau in China requires every embassy situated there to hire local staff.
So the increase of $12,832 is for this purpose.

Your Committee recommends $473,328.

Other Current Expenses - An amount of $21,292 was appropriated in FY 2017.

The request for FY 2018 is the same amount and was transmitted as recommended.

Your Committee recommends $21,292.

Fixed Assets – There was no funding under this category in the FY 2017 budget.

For FY18, an amount of $1,506 is requested and recommended.

An amount of $1,000 is for office equipment and $506 is for office furniture and fixture.
Your Committee recommends $1,506.

-16- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 VIII(a).

OFFICE OF THE SECRETARY FY 2017 Appro.

FY 2018 Proposed FY18 Recom Committee Recommends $89,156 Personnel Travel $89,156 Contract.Serv.

$30,000 $110,000 $110,000 $30,000 OCE Fixed Assets $0 Total No.
Employees 5 $107,943 $122,890 $122,890 $122,890 $89,156 $30,000 $30,000 $0 $256,529 $352,046 $352,046 $272,046 5 $29,430 $0 $30,000 $0 $89,156 5 5 Personnel – The amount appropriated in FY17 was $107,943.

The amount requested for FY18 is $122,890 and was transmitted as recommended.

This is an increase of $14,947.

At the hearing, the salary of the Secretary (Lorin Robert) was discussed in length.
During the hearing, your Committee was informed that an amount of $40,000 was in his contract and that is the amount being honored.

The salary for the Deputy Secretary (Samson Pretrick) is $25,000.

The salary for the Information Specialist (Simson Nanpei) is $16,304.

The salary for Executive Secretary (Juleen Sale) is 9,044.

The salary for the Administrative Officer II (Donna Amaraich) is $14,723.

A sum of $13,659 is set aside for fringe benefits and $4,160 for those eligible for COLA.
The total for five employees plus fringe benefits and COLA is $122,890.

At the mark-up hearing, your Committee decided to honor the increase in salary for the Secretary.

Your Committee recommends $122,890.

Travel - The Office’s FY 2017 budget for travel was $89,156.

The FY18 proposed budget is $89,156, which was recommended.

Your Committee recommends $89,156.

-17- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.


19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 Contractual Services - An amount of $30,000 was appropriated in FY 2017.

For this FY 2018, the Office requested $110,000.

Of the $110,000, $80,000 is requested for Jim Stovall’s contract.

At the mark-up meeting, your Committee decided not to honor the funding for Jim Stovall’s contract.

In the future, Congress can appropriate funding for it like the previous fiscal year.
Your Committee recommends $30,000.

Other Current Expenses - An amount of $29,430 was appropriated in FY 2017.

For FY18, $30,000 is being requested and recommended.

Your Committee recommends $30,000.

Fixed Assets - In FY 2017, no amount appropriated.

For FY18 there is no request.

Your Committee recommends $0.

VIII(b).

ASIA PACIFIC AFRICA & MULTILATERAL AFFAIRS Personnel - The FY 2017 appropriation was $112,787 for six employees.

For FY18, the same amount is being requested and BRC recommended it.
The Deputy Assistant Secretary for Multi-Lateral Affairs is vacant.

Your Committee recommends $112,787.

VIII(c).

AMERICAN & EUROPEAN AFFAIRS Personnel - An amount of $92,038 was appropriated in FY 2017.

For FY18, the Office requested $91,840, which was transmitted as recommended.

This amount is to fund five employees.

Your Committee recommends $92,038.

IX.

Office of Veteran’s Affairs The Office of Veteran’s Affairs is a newly established office pursuant to Public Law No.

19-63.
19-63.

The budget for the Office is under the purview of your Committee on External Affairs.

At the hearing on September 16, 2017, your Committee was informed that the President had appointed Chief of Staff, Leo Falcam, Jr. to be the Acting Director of the Office of -18- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 Veteran’s Affairs.

Mr. Falcam explained that the Executive Order No.


1, as amended January 31, 2017, was further amended to provide for the Office of the Veterans Affairs with its duties and responsibilities.

The Acting Director mentioned that so far only $17,000 of the FY17 appropriation was expended to equip the Office for its basic needs.

At the moment, there is not staff, but the Office utilized the staff from the Department of Foreign Affairs, as well as the Office of the President.

FY18 Recom FY 2017 Appro.


$79,240 Personnel Travel $42,225 Contract.Serv.

$50,000 OCE $18,000 Fixed Assets $25,000 Total No.

Employees 3 FY 2018 Proposed $79,240 $42,225 $50,000 $18,000 $50,000 Committee Recommends $79,240 $42,225 $50,000 $18,000 $50,000 $214,465 $239,465 $239,465 $239,465 3 $79,240 $42,225 $50,000 $18,000 $50,000 3 3 Personnel – In FY17 budget, your Committee appropriated funding for three positions, one Director and two additional staff.

The amount was $79,240.


For this FY2018, the same amount is requested.

Your Committee recommends $79,240.

Travel – In FY17 budget, an amount of $42,225 was appropriated.

In FY18, the same amount is requested.

Your Committee recommends $42,225.

Contractual Services – In the FY 2017 budget, an amount of $50,000 was appropriated.

The same amount is requested for FY 2018.

Your Committee recommends $50,000.

Other Current Expenses – In the FY 2017 budget, an amount of $18,000 was appropriated.
The same amount is requested for FY 2018.

Your Committee recommends $18,000.

Fixed Assets – In the FY 2017 budget, an amount of $25,000 was appropriated for a vehicle and office equipment.

In FY -19- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 2018, an amount of $50,000 is requested and recommended.

Your Committee recommends $50,000.


Grants, Subsidies and Contributions In addition to the operations budget, your Committee recommends the following Grants, Contributions and Subsidies for the Department.
Basically some of these requests are membership dues for international organizations: Organization The Forum Secretariat Secretariat for Pacific Community ESCAP UN Membership fee East-West Center ACP Cotonou Membership fees SPC Office Rental Diplomatic Relations between FSM and China (PRC) Hosting Pacific Island Forum SIS Program PIF arrears IOM Membership fees (2012-2017) Total FY17 Appropr.
FY18 Proposed $46,000 $46,000 FY18 EBRC 46,000 Committee Recommends $46,000 $56,000 $56,000 56,000 $56,000 $5,000 $5,000 $70,000 $50,000 $5,000 $25,000 $15,000 $5,000 5,000 50,000 5,000 15,000 45,000 $29,670 $29,670 $0 $0 $0 $5,000 $50,000 $5,000 $15,000 $29,670 $0 $0 $0 $0 $ $0 $10,000 $10,000 $0 $0 $0 $500 $500 $2,700 $10,000 $98,864 $500 $254,700 $217,170 $217,170 $316,034 -20- STANDING COMMITTEE REPORT NO.

20-18 RE: PRESIDENTIAL COMMUNICATION NO.


19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 Capital & Human Resources Development FY17 appr $0 $0 1.

Acting capacity role 2.

FSM Embassy in Suva, Fiji residence Total FY18 Proposed $36,000 FY18 Recom Committee $36,000 $36,000 $0 $0 $200,000 $236,000 The amount of $36,000 is to pay certain individuals that were on acting capacity role, as well as assignments undertaken by certain individuals that should have been compensated.
The $200,000 is to fund the renovation of the DCM residence in Suva, Fiji.

Your Committee on External Affairs has carefully reviewed the President’s Recommended FY 2018 Budget and all information provided by the Executive and the entities under your Committee’s jurisdiction.

The recommended sums set forth above reflect your Committee’s recommendations on the level of funding for the designated activity, program or project for FY 2018.

-21- STANDING COMMITTEE REPORT NO.


20-18 RE: PRESIDENTIAL COMMUNICATION NO.

19-579 SUBJECT: FY 2018 RECOMMENDED BUDGET/EXAFF SEPTEMBER 20, 2017 Subject to the conditions and limitations set forth herein and the availability of funds as determined by your Committee on Ways and Means, your Committee on External Affairs recommends approval of the amounts listed above.
Respectfully submitted, /s/ Paliknoa K. Welly Paliknoa K. Welly, chairman /s/ Dion G. Neth Dion G. Neth, vice chairman /s/ Tiwiter Aritos Tiwiter Aritos, member /s/ Isaac V. Figir Isaac V. Figir, member /s/ Victor V. Gouland Victor V. Gouland, member /s/ David W. Panuelo David W. Panuelo, member /s/ Robson U. Romolow Robson U. Romolow, member -22-