Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698930614555.pdf (Trinidad and Tobago)
EXPORT - IMPORT BANK OF TRINIDAD AND TOBAGO LIMITED ADMINISTRATIVE REPORT 2O14 Revised: April 2016 TABLE OF CONTENTS Contents 4 Company Summary........................................................... …………....... Mission Statement………………………………………….………................... 4 Business Description……………………………………………….……………….. 4 Strategic Plan …………………………………………………….………............... 5 Outlook 2014……………….…………………………………….…………………….. 6 Major Initiatives (Key Success Factors) 2014 ….......………………...... 7 Organizational Structure…………………………….…………………………………….. 10 Corporate Structure………………………………………………………………….. 10 Board Committees…………………………………………………..................... 10 Role of Committees…………………………………………………................... 11 Delegated Levels of Authority…………………………………….…………….. 12 Credit Policy……………………………………………………….…………………………….. 13 Audit Committees or Internal Audit Procedures………….…………………….. 14 Human Resources…………………………………………….……………..................... 14 Procurement of Resources……………………….……………………….................. 17 Tendering Procedures………………………………………………................. 17 Procurement Procedures………………………………………………………….. 18 Reporting Functions……………………………………………….………………………….
21 Departmental Reports…………………………………….………………………… 21 Reports to External Parties……………….……………………………………….

22 23 Financial Operations……………………………………….………………………………… Appendix Budget Formulation…………………………….………………………………….

23 23 Management Accounts………………………….……………………………….

23 Variance Analysis……………………………….………………………………….. 23 Investment + Debt Policy……………………….……………………………….
Figure 1.0 Statement of Financial Position……….……………..……… 26 Figure 1.1 Statement of Comprehensive Income…….……….…..... 27 Figure 1.2 Statement of Change in Shareholders Equity……....….
28 Figure 1.3 Statement of Cash Flows...…………………………...………… 29 Figure 1.4 Notes to Financial Statement………………………………….. 30 Figure 1.5 Disbursement, Insurance and Export 2014 Data….….. 59 Figure 1.6 Disbursements per Sector and Product 2014………….. 60 Revised: April 2016 2 Figure 1.7 Companies Accessing Eximbank Facilities 2014…..…… 61 Figure 1.8 Provisions for 2014………………………………………………….. 62 Figure 1.9 Organizational Structure…………………………….…............ 63 Revised: April 2016 3 EXPORT- IMPORT BANK OF TRINIDAD AND TOBAGO (EXIMBANK) LIMITED ADMINISTRATIVE REPORT - 2014 1.
COMPANY SUMMARY Eximbank was created to satisfy the export needs of a rapidly expanding economy; the mandate of Eximbank is to conduct “the business of a Confirming House, Acceptance House, Finance Company and Financial Services” in order to meet the export needs of the domestic economy and to expand the trade of the small and medium size enterprises in the non-hydrocarbon sector” as stated by the Minister of Finance, the Honorable Winston Dookeran on November 11th, 2011.
Corporate Mission: “To be the premier financial situation facilitating the expansion of regional enterprises, by providing the highest quality products and services at attractive prices, thereby enabling them to take advantage of global opportunities.” Business Description: In 1973, the predecessor organization of EXIMBANK, the Trinidad and Tobago Export Credit Insurance Company Limited (EXICO) was established to provide export credit insurance facilities to local exporters against risk involved in exporting goods on credit terms.
The Bank currently offers an expanded portfolio of products and services which includes: 1.

Export Credit Insurance 2.

Short Term Financing (up to 180 repayment terms):  Trade Discount Financing  Raw Material Financing 3.

Medium Term Loans/Guarantees (1-5 yr repayment terms) 4.

Long term Loans/Guarantees (6-10 yr repayment terms) The operations of Eximbank (and formerly EXCICO) have been principally self-funded based on profitable trading operations over the years.
In addition the bank has benefited from lines of credit provided by local financial institutions.

Institutional support has been provided by Government of the Republic of Trinidad and Tobago through a guarantee for TT$44,680,000 under the Guarantee of Loans (Companies) Act (Chapter 71:82) in respect of settlement of all claims due and payable by Eximbank.

In 2008/2009, the Bank received a capital infusion of $100 Million from the GORTT.
In November 2011, the GORTT approved additional equity input of $62.7 Million and $50 Million in low cost borrowing to enhance the ability of the Bank to provide increased funding to export manufacturers.

The Bank has already drawn down all of the $62.7 Million and would consider the $50 Million in borrowings by late 2013.

Revised: April 2016 4 STRATEGIC PLAN: The Board of Directors and Management collaborated to develop the Business Plan for 2014.
A copy of the approved plan has been submitted to the Ministry of Trade and Industry.

The Government decided to embark upon a new strategy for the development of its non-oil export sector in the form of the Trinidad and Tobago National Export Initiative as such an initiative is designed to significantly contribute to the diversification of the Trinidad and Tobago economy.
Eximbank has identified the following sectors in line with what the government has targeted along with dominant sectors, in which we have projected funding needs.
o Creative Industries which include Film, Music and Entertainment o Maritime Industries o Tourism o Printing and Packaging o Food and Beverage o Financial Services o Downstream Energy and Energy Services Eximbank’s strategic plan therefore continues to foster sustainable growth of the economy by the development and expansion of these aforementioned sectors through the country’s National Export Initiative.
Our country has trading agreements with Caricom, Costa Rica, Dominican Republic, Colombia, Venezuela and Cuba.

Most of our exports to these countries mainly consisted of energy products.

However, our potential exports markets will be Caricom, USA, Canada, Latin America and Europe.
The Trinidad and Tobago National Export Initiative will focus on the following key areas to increase exports in the non- energy sectors:- Improving export logistics   Building export capacity among local firms  Export promotion to new and existing markets  Building a Trinidad and Tobago brand  Signing new trade agreements e.g.

Latin America  Establishment of Trade Facilitation Offices in priority markets.
 Export credit, Financing Facilities and Assistance  Widening pool of exporters and increasing public awareness re: Export benefits and services The Eximbank will therefore be the financing arm of the Trinidad and Tobago National Export Initiative as the Government of Trinidad and Tobago seeks to double its non-oil exports in five (5) years.
Revised: April 2016 5 Outlook 2014 The activities of an Export-Import Bank are subject to considerations involving economic and political risks which are substantially and significantly different from those faced by commercial banks and insurance companies.

In fact, unforeseen circumstances in external markets could have an adverse effect on Eximbank’s returns and this is more so if the bank is dependent on the performance of the major economies with which the country does business.
This notwithstanding, it is the responsibility of Eximbank to manage such risks through a well-balanced book of business.

In addition, commercial banks and other financial institutions continue to present challenges to Eximbank since they offer similar trade financing facilities.
It is not Eximbank’s intention to compete with these local private sector institutions but rather to complement their offerings with special financial packages to local exporters to benefit the country’s export trade activities in new markets.
Therefore the primary focus of Eximbank is not only to complement the private sector’s sphere of export trade activities but also with its own initiatives to aggressively grow our export manufacturers to ensure that Trinidad and Tobago develops a healthy balance of payments and continue to enjoy positive trade surpluses while at the same time enhancing the profitability of the bank as a growing financial force in the trade finance sector.
In this way the Bank will inform, build and motivate an export driven culture which will empower indigenous export entrepreneurship.

This export growth as identified by the Government of Trinidad and Tobago is to double the non-oil exports in five (5) years.

III.

Major Initiatives (Key Success Factors) 2014 The following key success factors have been identified as being essential for the realization of the Bank’s mission and for the successful implementation of the Business Plan:- a.

Funding: 1.
Funding: 1.

The capital infusion by Government of between $60 to $80 million per annum over the next four years to aggressively expand the export sector.

2.

Adequate funding at reasonable interest rates (Libor based) is essential for the successful operations of the Bank.

Currently the Bank is funded by BLADEX, Scotiabank, Royal Bank and the Unit Trust Corporation.

b.
b.

Aggressive Marketing: A massive marketing effort has been adopted to capture existing and would be exporters so that a proper platform is set to accommodate the identified sectors and products where demand is present in targeted markets.

Revised: April 2016 6 Such a marketing effort will hinge on the bank’s relationships with such organizations like Export TT, TTMA, the Chamber of Commerce, Amcham, BDC, TTABA, The Free Zone Company and The Trinidad and Tobago Coalition of Service Industries.
c. Impeccable Customer Service: The Bank continues to provide impeccable service to its customers to solidify its reputation and build its brand as the premier trade financing institution in the country.

Essentially the Eximbank will become the financing arm of the Government of Trinidad and Tobago in the development of an aggressive export sector.
d. Human Resources: The recruitment and retention of staff is the key to long term success of the Bank as we have been experiencing challenging times with the regular departure of staff over the last eight (8) years.

The compensation landscape must be addressed urgently to resolve this fundamental weakness of the Bank.
e. Marketing Approach: Eximbank’s strategy for 2014 reaffirms its mission to support small and medium size enterprises (SMEs) in expanding their business operations and penetrating foreign markets specifically Latin America, the Caribbean, North America, Europe and beyond.

In this context, the Bank has embarked on new and aggressive initiatives which are focused on fulfilling this mission and solidifying our position in the export sector.
Strategic Marketing Approach- Focusing on a Proactive Web Strategy As part of the Bank’s marketing programme aimed at increasing awareness and driving loan inquiries, an integrated advertising campaign was launched in August, 2013.
The primary objectives of this campaign are:  To create and sustain a positive brand image for the Bank  To position the Bank as the leader in providing financial support and services for exporters and importers  To promote the Bank’s products and services in a focused and easily understandable manner  To encourage exporters of all sizes to approach the Bank for their export/import financing needs During the campaign’s first phase, the advertising strategy has been to:  Firstly create a brand promise/statement which cements our commitment to our clientele and which acts as a key brand differentiator for us.
The brand statement being employed is: Exim Bank – empowering exporters for the future Revised: April 2016 7  Create a distinctive brand look, feel and tone of voice for Exim Bank, the brand.

This has been done by doing the following: modernising the Bank’s logo; developing a distinctive, yet Caribbean brand look for all our messaging so that there is a clear visual identity for the Bank; and making our messages simple, concise and focused.
 Communicate with our desired audiences through those media which they consume most frequently and align ourselves with media sponsorship segments aimed at business people.

In the first phase of our advertising campaign, we are maintaining a media presence via radio, television, newspaper, trade publications, online/internet and through sponsoring the “Business Watch” segment during the 7pm news on CNC3.
As we continued our marketing of the Bank into the second phase in 2014, in addition to maintaining a sustained advertising presence, and a greater media presence in 2014, the Bank widened its marketing efforts to include:  Media interface (appearances on morning talk shows and/or business-focused talk shows to continue to promote the Bank and its services)  Direct Mail  Town-Hall meetings with groups involved in the import/export sector  Evolving our website to act as a key marketing tool by expanding the information offering on our website.
 Establishing a social media presence for the Bank for this is where the majority of influencers, potential clients and opinion leaders spend their time.

This can include:  Facebook presence; You Tube, Linked-In pages; Internet search word advertising; online promotion of the Bank and its product offerings through online forums, publication and discussions etc.
WEBSITE STRATEGY As the Exim Bank of Trinidad and Tobago continued to embark on an aggressive marketing programme as part of the Government of Trinidad and Tobago’s mandate to increase export-led growth, the enhancement of the Bank’s website and its offerings was critical to assisting the Bank in achieving its goals.

The first step of re-designing the Bank’s website in keeping with its new brand identity was re-launched in January 2014.
The second phase of this exercise is evolving the Bank’s website into a more comprehensive portal where exporters and all associated businesses can acquire the information they need in real-time to better equip them with the information and tools they need to pursue export Revised: April 2016 8 opportunities, and by extension the financing for their export-driven business goals.
The website is being developed with the following features: - o Multi-lingual website (English and Spanish to start) o Importer/exporter directory o Exporter product database o Individual exporter web site o Keyword search promotion o Success stories o Shipping companies directory o Country profiles and analysis o Exchange rates and currency converter o Embassies directory o Search topics o Export opportunities o Apply for a loan online o News, events and conferences o Glossary of terms o Links to related sites o Question poll The website follows international best-practice for banks in the export-import sector.
It is designed to evolve the Exim Bank website into a comprehensive online portal for all information and financing requirements for businesses in the export sector, while providing added resources, information and value.

This has since evolved into the EXIMBANK’s web portal “made-in-tnt.com”.

Revised: April 2016 9 3.

ORGANIZATIONAL STRUCTURE Corporate Structure: The organizational structure consists of three functional streams being Credit Business Development, Finance and Human Resources.
The staff complement for 2014 was 34 persons.

The Board of Directors is the representative of the shareholder.

The Board’s main responsibility therefore lies in overseeing and monitoring the activities of the company to ensure optimal utilization of its resources and achievement of its corporate strategic objectives.

The company reports to the Line Ministry, Ministry of Trade and Industry and the Ministry of Finance (Corporation Sole).
The members of the Board of Directors as at December 31st, 2014 are: Chairman Mr. Ruthven Jaggassar Member Member Member Member Member Member Mr. Greig Laughlin Mr. Norris Herbert Mr. Stephen Mc McCarthy Ms. Bijili Lalla Mr. Anslem Richards Ms. Sharon Ramnarine BOARD COMMITTEES: Audit: Chairman Member Member Invitee Ministry of Finance (Representative) Credit: Chairman Member Member Revised: April 2016 Mr. Stephen McCarthy Mr. Norris Herbert Mr. Anslem Richards Mr. Ruthven Jaggassar (Chairman, EXIMBANK) Ms. Nisa Churaman Mr. Ruthven Jaggassar Mr. Stephen McCarthy Mr. Greig Laughlin 10 Human Resources: Chairman Member Member Ms. Bijili Lalla Mr. Norris Herbert Ms. Sharon Ramnarine The members of the Management Team: Chief Executive Officer Chief Operations Officer Chief Financial Officer Manager Human Resources Manager Credit and Business Development Mr. Shaun Waldron Manager Recoveries and Securities Internal Auditor Mr. Brian Awang Ms. Josephine Ible Mrs. Carol Austin Mrs. Marlene Mendez Mr. Lindsay Chevalier Mr. Yoganan Dipchan ROLE OF COMMITTEES 1.
Audit Committee EXIMBANK’s Audit Committee is an essential part of the Corporate Reporting supply chain.

The primary responsibility of the Committee is to oversee on behalf of the Board, the integrity of the financial reporting systems, controls and accounting procedures implemented by management in order to protect the interest of shareholders and other stakeholders.

The Committee’s key task is to ensure the integrity of the published financial information and the accompanying notes.
The Committee’s main areas of focus are:  The Financial Reporting Process and Systems with special attention to the appropriateness of accounting policies, disclosure requirements, fairness and balance reporting;  The External Audit- Appointment, remuneration and scope of works of the external auditors, review of audit findings and recommendations of performance of auditors;  Risk Management and Internal Control – Understanding of the key risk areas, effectiveness of controls and fraud risk;  Internal Audit Process – The quality of resources, the authorities in place, the scope of work of the internal audit and the effectiveness of controls.
Attention has to be given to the implementation of recommendations made to management by the internal auditor;  Regulatory Compliance and Ethical Matters – Effectiveness of the systems in place for ensuring compliance with laws and regulations and the Code of Conduct.

 Communicating and Reporting.

Revised: April 2016 11 2.


The Credit Committee The Credit Committee is responsible for reviewing credit policies and procedures and establishing review/approval standards and authorities consistent with credit policy guidelines established by the Board of Directors after their review of risk management policies, procedures and guidelines recommended by the Chief Executive Officer, Chief Operations Officer and the Chief Financial Officer.

3.
3.

The Human Resource Committee The Human Resource Committee is responsible for reviewing, monitoring and making recommendations to the Board on the Banks HR Policies pertaining to staffing, compensation, and benefits and relocated issues of strategic importance with respect to the Human Resource Management of the Bank.

DELEGATED LEVELS OF AUTHORITY: 1.


CHIEF EXECUTIVE OFFICER The Chief Executive Officer is authorized to incur expenditure on behalf of the company   In respect of specifically budgeted items up to the approved budget sum In respect of other items up to TT$100,000.00.

The Board of Directors will approve all other expenditure over $100,000.

2.
2.

LENDING POWERS The bank employs a multi-tier credit approving system where credits are approved by either a ‘Management Credit Committee’ or a ‘Board Credit Committee or the full Board.

MANAGEMENT CREDIT COMMITTEE The Management Credit Committee will comprise three persons two of which must be the Chief Executive Officer and Chief Operations Officer.

The quorum for the meeting is two of which the CEO must be one.
The Manager, Human Resources and Administration or the CFO will make up the third member.

The Manager, Credit and Business Development will not sit on this committee in order to prevent undue influence on the credit decision making process.

They will however be involved in presentations for credit approval actions.

BOARD CREDIT COMMITTEE The Board Credit Committee will be constituted by the Board of Directors and comprise three Directors and the CEO.
The COO may sit as an alternative to the CEO in his absence.

The Quorum Revised: April 2016 12 for the meeting shall comprise of at least two Directors and one of the aforementioned members of Management.

LENDING POWERS All credit facilitates up to TT$2.5M fully secured would be approved by the Management Credit Committee.

The limit for unsecured credit for Management Credit Committee approval is $TT1.0M.
A summary of all loans approved by the Management Credit Committee is to be included in the relative presentation to the Board.

All secured facilities of more than TT$ 2.5M but less than TT$ 6.5M and all unsecured facilities of more than $TT1.0M but less that TT$2.0M will be approved by the Board Credit Committee.

All secured facilities more than TT$ 6.5M and all unsecured facilities of more than TT$ 2.0M will be approved by the Full Board.

However, the latter is to be discouraged.

3.


SIGNING AUTHORITIES “A” signatories are authorized to sign any amount; TT$200,001 or US$31,500 and over – Two (2) ‘A’ Signatories – two Officers of the Bank or One Director and One Officer TT$20,001 – TT$200,000 (Or US$3,150 – US$31,500) – One (1) ‘A’ and one (1)’B’ TT$20,001 or US$3,150 and below – Two ‘B’ signatories, of which one must be Mgr.

Credit and Business Development.


ORGANIZATIONAL CHART (SEE APPENDIX) 4. CREDIT POLICY Our Approved Credit Policy defines the parameters within which the Bank provides insurance protection enhancements and extends profitable credit to our clients.

It has been prepared with the broad objective of meeting the following goals: -  Compliance, at all times, with the laws and regulations of the Republic of Trinidad and Tobago and the Central Bank.
 Building a diversified and good quality portfolio;  Optimizing risk return portfolio with adequate exit options Revised: April 2016 13  Building and maintain relationships with our clients by servicing their needs promptly, effectively and efficiently; and  Ensuring that there is transparency of all charges and fees in dealing with customers 5.
AUDIT COMMITTEES OR INTERNAL AUDIT PROCEDURES: The Internal Auditor reports administratively to the Chief Executive Officer and functionally to the Audit Committee of the Board of Directors.

The mission of Internal Audit is to ensure that the Bank’s operations are conducted according to the highest standards by providing an independent, objective assurance function and by advising on best practice.
Through a systematic and disciplined approach, Internal Audit helps the Bank accomplish its objectives by evaluating and improving the effectiveness of risk management, control and governance processes.

These internal audit functions are as follows:- 1) The development and execution of an audit plan to address a variety of risks.

The audit plan results from a risk assessment which enables the function to identify the events that might affect the bank from achieving its objectives.
This risk assessment is done through dialogue with stakeholders (Audit committee and Management), understanding of the business and its objectives, understanding of the inherent risks facing the bank and the result of findings from previous evaluation procedures.

The audit plan is executed during the financial year through a systematic evaluation of controls, systems and established policies and procedures.

The objective is to provide reasonable assurance that they are functioning as intended.
2) Internal Audit reports risk management issues and internal control deficiencies to the Audit Committee and Management on a quarterly basis.

The audit reports also include recommendations for improving the organization’s operations.

3) Internal audit undertakes assignments as determined by Senior Management and the Board of Directors.

For example: - the Internal Auditor assists in the development of the annual business plan and budgets.

6.
6.

HUMAN RESOURCES: The strategic aspiration of the Human Resource department for 2014 was to create an atmosphere that fosters staff development and excellence in performance.

A review of the previous year indicated some improvement in the areas of recruitment and selection and staff motivation.

This resulted from our retention efforts through motivational strategies and initiatives.
Revised: April 2016 14 We continued to improve and upgrade with regard to OSHA compliance by the refurbishment of the office building and creating a more comfortable and safe working environment for our staff.

This project will continue on a phased basis until completion.

The issue of staff turnover still remains a challenge to Eximbank due to the unattractive compensation packages offered by the Chief Personnel Officer.
However, we remain confident that the efforts of our Executive Management and Board of Directors in approaching this issue with the relevant Ministers will be fruitful.

We continue to maintain a cordial relationship with the recognized Union as our work environment is one that values cooperation and collaboration over conflict.

We make every effort to maintain open lines of communication for the dissemination of information and early discovery and resolution of problems and issues.
Training and development remains paramount to Eximbank as we implement initiatives towards organizational effectiveness and enrichment.

Human Resources is conferred with the responsibility of ensuring that all members of staff perform to their best ability.

The Strategic Human Resource Planning for Eximbank 2014 considered the following areas: - 1) Organizational and Staff Development-: The Bank continued to invest in our staff development to increase job satisfaction and morale.
The following were undertaken: -  Leadership development training for our Managers and Assistant Managers to strengthen their leadership capability throughout the Bank, with the aim of promoting higher levels of performance.

 Continued building of the technical skills and competencies of the Credit and Business Development staff to improve efficiency.

Programmes were offered in the areas of Customer Service, Marketing and Presentation Skills to enhance delivery of service.
 General staff were trained in These training will include Time Management, Supervisory, Conflict Management, Anti Money Laundering and Terrorist Financing, Anti-Fraud Management, Human Resources, Finance, etc.

to equip them with the skills needed to achieve their targeted role within the Bank.

 Managers also engaged in Coaching and Mentoring of staff.

2) Employee Engagement-: Employee engagement and loyalty are vital to the Bank’s success.
Employees are the biggest investment and should therefore bring the greatest reward.

As part of the continued retention and motivation drive, we exposed employees to programmes that will foster a more positive work environment that will bring Revised: April 2016 15 about a feeling of ownership and commitment to the Bank.

This will also facilitate a workplace culture and climate that is respectful, inclusive and collaborative.
3) Job Description-: New Job Description were implemented resulting from a recent Job Evaluation Exercise.

This will assist the Bank to better understand the experience and skill base required to enhance its success.

4) Health and Safety-: Refresher training programmes and continued sensitizing of the staff re: Occupational Health and Safety were undertaken to improve staff awareness and to maintain a safe environment by reducing risks of injury or illness to employees.
5) Employee Support Services: - The Bank recognizes the value of employee support services and how it benefits its employees.

The Employee Assistance Programme is a benefit designed to provide a confidential service to employees whose problems are affecting their ability to function effectively on the job, at home or even in the community.

This service has been made available to all employees of the Bank and their eligible dependents from January 2008, through Elders and Associates Limited.
The Human Resources department partnered with the North West Regional Health Authority (NWRHA) for the purpose of organizing a Health Fair for employees.

This was a very successful event.

5) Staff Welfare and Motivation-: Recognition of employees’ efforts not only drives loyalty but may also generate a positive impact on the financial development of the Bank.

With this in mind, the approach in recognizing employees for good performance was maintained.
Activities such as Staff Retreats, Christmas Party and other Social Events continued.

The Human Resources department continued to work with Eximbank’s Staff Club Executive to organize activities that will promote camaraderie and staff motivation.

6.)

Recruitment Selection -: The recruitment and selection strategy in place is based on considering an individual’s qualifications, but also specifically selecting individuals based on their ability to learn and their potential to grow with the organization.
7.)

Career Path: An employee’s career path is reviewed annually at the time of Bank’s performance assessment.

Both the employee and the immediate manager engage in discussions regarding the employee’s progression within the Bank.

Areas such as job rotation and job enrichment are discussed with consideration to specific time Revised: April 2016 16 frames.
The Bank endeavours to foster an environment that makes employees feel they belong and are a part of an organization that is in alignment with their own values and career goals.

8.)

Performance Assessments: Performance Assessments are conducted annually for all staff.

The purpose of the assessment is to review the employees’ performance based on performance goals/objectives and competencies, identify training and development needs and determine growth potential.
The assessment also provides feedback to the employees on accomplishments, weakness and failures.

This review is based on previously established individual performance objectives consistent with the Bank’s overall goals and objectives.

9).

Promotion Selection Procedures: The advancement of an employee within the Bank is based on existing vacancies.

The selection is usually based on factors such as performance, employee’s fitness for the new role, seniority and manpower planning.
The general procedures include the posting of internal advertisements of the vacant positions outlining the criteria and followed by interviews of eligible applicants.

Conclusion:- The Human Resources department is determined to provide a quality integrated service by creating a safe, healthy and supportive environment where its own staff is valued, respected and able to realize their full potential.
The department will continue to engage in regular analysis and planning to ensure its services address the long term needs of Eximbank.

7.

PROCUREMENT OF RESOURCES: Tendering Procedures The Bank’s Tenders Policy outlines our procedures for the procurement of goods and services.

The Chairman of the Bank is the designated Chairperson of the Board Tenders Committee which also comprises the four members of the Board who are the members of the Credit and Finance Committee.
This Committee evaluates tenders in respect of amounts in excess of TT$100,000.00.

The Management Committee which comprises the Chief Executive Officer, Chief Operations Officer and the Chief Financial Officer, evaluates tenders in respect of amounts below TT$100,000.00.
Revised: April 2016 17 The following is Eximbank’s procurement policy based on the nature of the goods and services procured:- Fixed Assets 1) Proposals for purchase of assets are submitted to Management who will validate the need for the asset.

2) The assets will be sourced from three suppliers who will each provide a quotation from which Management will decide and approve via signature the option to be chosen.
3) A purchase order document is prepared and approved by Management, then forwarded to the selected supplier.

4) Items received are matched with the purchase order and invoice/ goods received document before it is signed as received.

5) The invoice is submitted to management for approval and then forwarded to the Finance department for processing.

Professional Services 1) Within approved budget guidelines, specific managers are authorized to employ external professional services on behalf of the bank.
The delegated responsibility is as follow : Professional Service Accounting / Information Technology Authorized Manager Chief Financial Officer Legal Manager Recoveries and Securities Manager Credit and Business Development Advertising and Promotion Manager Credit and Business Development Chief Financial Officer Human Resource Manager Human Resource Other Chief Financial Officer Manager Human Resource 2) Before submitting to the Finance Department for processing, invoices should contain the following :-  Signature of the authorized Manager which forms a confirmation that the services being charged to the bank were received.
 A short notation on the invoice which states the business purpose of the service.

 The authorization by the Chief operations Officer which represents a review of the invoice and the instruction to the Finance Department to proceed with payment.

Given the small size of the bank, the Chief Operations Officer (COO) may have an indirect involvement in the procurement process.

However, the COO is mainly independent of the Revised: April 2016 18 process.
The COO is never directly involved in the process by actively seeking, selecting, communicating and negotiating with a supplier for a service that was requested.

3) Payments will only be made on an original invoice in order to prevent duplicate payments.

If for some reason, a copy must be submitted, the officer must verify with the finance department that an original has not already been submitted.
The top of the copy invoice should then be marked ‘pay on copy.’ 4) In all instances, the bank will invite three (3) competitive bids for a purchase of TT$ 25,000 or more and this process will require approval by the Chief Executive Officer.

The competitive bid would be waived only where the service is available from only one supplier or where an appropriate circumstance exist which justifies the solicitation of the service from one supplier.
This waiver must be approved by the Chief Executive Officer and the Chief Operations Officer.

Contracts A one off or constant supply of goods and services may be engaged on a contract basis by the bank.

Goods and services such as building maintenance and construction, IT services, water refills and rentals are engaged on a contract basis.
Such an arrangement will follow these procedures:- 1) The initial selection and renewal of a supplier will follow a competitive bidding process that will be determined by management depending on the service being sourced.

2) The competitive bid will be waived where the service is available from only one supplier or where an appropriate circumstance exist which justifies the solicitation of the service from one supplier.
This waiver must be documented and approved by the Chief Executive Officer and the Chief Operations Officer.

Board approval is required depending on the size of the contract.

3) Contracts should be signed with proper authority.

The Chief Executive Officer and the Chief Operations Officer will approve contracts up to TT$ 100,000.

Board approval will be required if the costs of the services acquired for the contract duration is greater than this amount.
4) Contracts must cover the entire life and duration of a project or service to be provided to the bank.
5) The Chief Operations Officer will administer contracts by ensuring and performing the following:-  The original and signed contracts are properly filed and retained  A supplementary copy will be sent to and retained by the Internal Auditor  The contract is monitored in terms of responsibility, cost and performance  Resolution of issues with the supplier  Authorization of invoice payments upon satisfactory receipt of goods and services The Chief Financial Officer will administer IT related contracts for goods and services.
6) Payments will only be made on an original invoice in order to prevent duplicate payments.

If a copy must be submitted, the officer must verify with the finance department that an original has not already been submitted.

The top of the copy invoice should then be marked ‘pay on copy.’ Revised: April 2016 19 Stationery: 1) A requisition for the purchase of stationery is approved by a department head before it is sent to the delegated personnel to be ordered.

2) Quotations are sourced from 3 suppliers.


The prices quoted are compared and the supplier with the lowest price for each item is selected.

Alternatively, the bank has a listing of the items that are regularly ordered on an annual basis.

This list is sent to a number of suppliers at the start of the year.

This comparative price listing is used in making the purchase order.
3) A Purchase Order must be prepared by the delegated personnel, reviewed by a supervisor and approved by the Chief Operations Officer before purchasing the item.

The approved Purchase Order should be sent by fax to the Supplier and a copy retained for file.

4) The Receptionist is responsible for receiving all stationery items upon delivery.
5) The Receptionist would match the items delivered with the items listed on the Invoice and note on the Invoice any discrepancies in the presence of the personnel who placed the order.

For example, any excess, short, damaged or returned items.

The Receptionist would sign the Invoice and hand over the items to the personnel who placed the order.

6) The Receptionist must report any suspected or alleged irregularity during the process.
Other Purchases: Other purchases made by the bank are in the form of  Staff welfare which comprises of the various goods, services and amenities procured by the bank for the employees e.g.

training, uniform, food, events, consumables etc.


 Repairs and maintenance on buildings, equipment and motor vehicles  Sundry goods and services 1) Within approved budget guidelines the Chief Financial Officer and the Manager of Human Resources have the authority to procure directly or provide directive in the purchase of these goods and services.

The Chief Operations Officer can provide directive but cannot directly procure goods and services.
2) Three staff members have the delegated authority to procure goods and services based on a directive from the named managers.

These are the :-  Executive Secretary  Secretarial Assistant  Office Assistant 3) The bank will physically receive goods ordered or a service will be provided.

In contrast to this process, the Office Assistant will physically purchase the goods from a vendor and will be reimbursed via the petty cash process or cheque.
The staff receiving the goods or services should do the following :-  When goods are received, verify that the item received represents what was ordered and compare the merchandise to the vendor generated document eg.

Invoice.

The merchandise and documentation should match in terms of the item that was ordered and the shipment is in the correct quantity and price.

The invoice should then be signed as evidence that this verification was performed.
Revised: April 2016 20  When a service is provided, a confirmation should be done that services performed were received.

The invoice should then be signed as evidence that this verification was performed.

4) The Chief Operations Officer will sign the invoice to confirm that the purchase was reviewed and the Finance Department is authorized to proceed with payment.

5) Payments will only be made on an original invoice in order to prevent duplicate payments.
If for some reason, a copy must be submitted, the officer must verify with the finance department that an original has not already been submitted.

The top of the copy invoice should then be marked ‘pay on copy.’ 6) In all instances, the bank will invite three (3) competitive bids for a purchase of TT$ 25,000 or more and this process will require approval by the Chief Executive Officer.
The competitive bid would be waived only where the service is available from only one supplier or where an appropriate circumstance exist which justifies the solicitation of the service from one supplier.

This waiver must be approved by the Chief Executive Officer and the Chief Operations Officer.

8.

REPORTING FUNCTIONS: 1.
Departmental Reports: The following reports are prepared for use by Management, Board Committees and Board of Directors: - PREPARED BY: Treasury FREQUENCY Daily USED BY: Management Credit Weekly Management Credit Credit Credit Weekly Weekly Weekly Management Management Management Managers Monthly Management REPORT NAME Treasury Cash Flow Statement Visitation Schedule Report Outstanding Principal and Interest Report Treasury Management Schedule Proposed work Schedule Monthly Deliverables Report Internal Auditors Report Risk Update Report Internal Auditor Bi monthly Credit Bi monthly Marketing Report Credit Bi monthly Financial Statements Finance Monthly Revised: April 2016 Finance and Audit Committee Management/Credit Committee Management Management/Board of Directors 21 Monthly Treasury Summary Report Human Resource Report Credits approved by Management, Board CEO’s Report Compliance Reporting: register of Enquiries Credit Monthly Human Resources Bi monthly CEO Bi monthly Management/Board of Directors Management/Board of Directors Board of Directors CEO Compliance Officer Bi monthly Bi monthly Board of Directors Board of Directors 2.
Reports to External Parties, (e.g.)
Ministries, Central Bank of T&T) The following standard reports are prepared for submission to external parties: - REPORT NAME Strategic Plan Annual Budget Annual Financial Statements Board Minutes Cash Statements of Operations Administrative Report Quarterly Return on Status of Litigation Proceedings against Company Quarterly Reports Status of Loan and Overdraft Portfolio Key Personnel of Company Operations Fit and Proper Reporting Annual Returns Quarterly Returns Reinsurance Arrangements Agents and Salesmen Compliance Testing/Procedures/Systems Quarterly Terrorist Report Revised: April 2016 SUBMISSION DATE: 3 months prior to start of Financial Year 2 months prior to commencement of Financial Year 3 months after end of Financial Year 1 week following confirmation Within 3 weeks after month end 3 months after the end of the Financial Year Quarterly RECEIVING AGENCY Investments Division and Line Ministry Investments Division and Line Ministry Investments Division and Line Ministry Investments Division and Line Ministry Investments Division Line Ministry Line Ministry End of First month after Quarter End of First month after Quarter Investments Division Investments Division January 31st of each year Central Bank of TT Central Bank of TT March 31st of each year (or within 14 days of appointment) June 30th each year 10 working days after end of quarter 1 month within expiry of arrangement January 15 of each year Central Bank of TT End of Financial year (by March 31) Central Bank of TT Central Bank of TT Central Bank of TT Central Bank of TT At the end of each quarter Financial Unit Intelligence 22 9.
FINANCIAL OPERATIONS: The Finance Function is geared towards providing the Bank’s internal and external customers and stakeholders with timely and accurate reporting (As outlined in Note 8 Reporting Functions).

9.1 Budget Formulation The strategic planning document informs the annual budget preparation.
The budget is done using a Zero-based approach which requires that every department’s function is reviewed comprehensively and all expenditures be approved and justified in complete detail by each division manager starting from the zero-base.

As such three (3) months prior to year-end each department head formulates a department budget based on short term objectives which have been pre-determined at the strategic planning sessions.
This is forwarded to the CFO by the 15th of September for compilation into a comprehensive budget document.

The budget is then:  Reviewed by the CEO of EXIMBANK  Reviewed by the Management Team  Reviewed and discussed by the Audit Committee  Forwarded to the Board of Directors for clarifications, amendments, revisions and approval.

 Forwarded to the respective government ministries for final review and approval.

9.2 Management Accounts On a monthly basis the management accounts are prepared.
This is completed by the 10th working day of each month and this information is critical to provide the Board of Directors with timely information for control and decision making to allow for achievement of EXIMBANK’s goals and objectives.

9.3 Variance Analysis Included in the management report is a comprehensive report of Monthly (Month Actual) as well as Year to Date (YTD) Actual versus Budgeted figures by income and expenditure class and the resultant positive or negative variances.
This gives the reader a clear view as to the company’s ability to achieve its targeted performance as the year progresses.

9.4 Investment & Debt Policy The bank invests in financial instruments and maintains a balance between investments whilst maintaining sufficient liquidity to service the loan portfolio.

The bank’s investment and debt policy is so formulated to mitigate against the major financial risk factors namely credit risk, market risk, liquidity risk and operational risks.
We would therefore examine the company’s investment and debt policies by a review of these risk areas.

Revised: April 2016 23 9.9.1 Credit Risk Credit Risk arises in lending and investing activities and it relates to the possibility that a counter party may fail to fulfill an obligation and thereby cause a financial loss to the company.

The principal business of the bank is loans and advances and as such significant assets are responsible for a large percent of the revenue generated.
Exposure to credit risk is managed through credit policies, procedures and audit functions together with approved limits and also by obtaining collateral and corporate and personal guarantees.

9.9.1.1 Credit Risk Management The Board of Directors maintains general oversight ensuring the strategic direction and credit philosophy is maintained and vests responsibility in the sub committees for the day to day decisions.
The credit department is responsible for the management and administration of the credit portfolio whilst the Treasury Department overseers the Investment and Borrowing Portfolios.

These two (2) departments ensure that current legislation, best practice and the credit and borrowing policies of the company are maintained.

9.9.1.2 Credit Risk Measurement a.


Single and Group Borrower Limits The company on a regular basis rates the credit facilities and concentrates attention on the loan portfolio as the need arises.

A risk limit control policy is in effect in relation to one borrower or groups of borrowers so that no single borrower default will have a material impact on the company.

This is implemented and monitored by the Credit Department.

b.
b.

Collateral The principal collateral types for loans and advances are personal guarantees, letters of assignments of receivables, mortgage bills of sale and where possible mortgages and debentures and promissory notes.

9.9.1.3 Provisioning Policies Loan loss provisions are set aside to cover potential losses in respect of loans that are not performing satisfactorily.
These provisions are reviewed annually or as the circumstance require and recommendations are made and submitted to the Board for approval.

Non- performing loans recommended for write offs are also reviewed annually and action taken in accordance with set guidelines.

Revised: April 2016 24 9.9.2 Interest Rate Risk Interest rate risk arises due to fluctuations in market interest rates and this in turn will affect the value of financial instruments as well as future cash flows.
The company aims to manage this risk by reducing the sensitivity of its earnings and overall portfolio value to fluctuations in the interest rate.

This objective is achieved by periodically reviewing the price of loan products, diversifying portfolios and by making timely adjustments to the overall term to maturity based on the relevant economic and financial market conditions.
9.9.3 Currency Risk Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.

The company is exposed to the effects of changes in exchange rates on its financial position and cash flows.

The company’s policy is to match the loans granted in foreign currencies with funding in the same currency.

The principal currencies of the company are TT and US dollars.
9.9.4 Liquidity Risk Liquidity risk is the risk that the company does not have sufficient financial resources to meet its obligations and commitments as they fall due.

The company’s liquidity management system is so designed to ensure that the demands of customers for additional borrowings can be met, that the short term investments can be easily liquidated to meet day to day needs, and that there is a right mix of short term and long term debt portfolio.
The company’s Treasury Department manages the liquidity management process.

9.5 International Financial Reporting Standard The Eximbank of T&T Limited is in full compliance with the International Financial reporting Standard in preparation of its financial statements.
STATEMENT OF FINANCIAL POSITION (SEE APPENDIX) STATEMENT OF COMPREHENSIVE INCOME (SEE APPENDIX) STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (SEE APPENDIX) Revised: April 2016 25 Figure 1.0 Revised: April 2016 26 Figure 1.1 Revised: April 2016 27 Figure 1.2 Revised: April 2016 28 Figure 1.3 Revised: April 2016 29 Figure 1.4 Revised: April 2016 30 Figure 1.4 Revised: April 2016 31 Figure 1.4 Revised: April 2016 32 Figure 1.4 Revised: April 2016 33 Figure 1.4 Revised: April 2016 34 Figure 1.4 Revised: April 2016 35 Figure 1.4 Revised: April 2016 36 Figure 1.4 Revised: April 2016 37 Figure 1.4 Revised: April 2016 38 Figure 1.4 Revised: April 2016 39 Figure 1.4 Revised: April 2016 40 Figure 1.4 Revised: April 2016 41 Figure 1.4 Revised: April 2016 42 Figure 1.4 Revised: April 2016 43 Figure 1.4 Revised: April 2016 44 Figure 1.4 Revised: April 2016 45 Figure 1.4 Revised: April 2016 46 Figure 1.4 Revised: April 2016 47 Figure 1.4 Revised: April 2016 48 Figure 1.4 Revised: April 2016 49 Figure 1.4 Revised: April 2016 50 Figure 1.4 Revised: April 2016 51 Figure 1.4 Revised: April 2016 52 Figure 1.4 Revised: April 2016 53 Figure 1.4 Revised: April 2016 54 Figure 1.4 Revised: April 2016 55 Figure 1.4 Revised: April 2016 56 Figure 1.4 Revised: April 2016 57 Figure 1.4 Revised: April 2016 58 5 .
1 e r u g i F 59 Revised: April 2016 PRE SHIPMENT FINANCINGDEMAND LOANPOST SHIPMENT FINANCINGLOCAL DISCOUNTINGTOTAL DISBURSEMENTSEXPORT CREDIT INSURANCE60,598,374.16USD 9,386,160.95USD 6,503,166.42USD 4,309,296.58USD 80,796,998.10USD 15,263,598.89USD PRE SHIPMENT FINANCINGDEMAND LOANPOST SHIPMENT FINANCINGLOCAL DISCOUNTINGTOTAL DISBURSEMENTSEXPORT CREDIT INSURANCE387,829,594.62TTD 60,071,430.08TTD 41,620,265.06TTD 27,579,498.11TTD 517,100,787.87TTD 97,687,032.90TTD PRE SHIPMENT FINANCINGDEMAND LOANPOST SHIPMENT FINANCINGLOCAL DISCOUNTINGEXPORT CREDIT INSURANCETOTAL EXPORT IMPACT FOR 2014349,046,635.16TTD -TTD 41,620,265.06TTD -TTD 97,687,032.90TTD 488,353,933.11TTD DISBURSEMENT,INSURANCE AND EXPORT 2014 DATANOTES: For the Pre Shipment Facility 45% of raw materials are re-exported with a sales factor of 2 generated.2014 ACTUAL DISBURSEMENTS AND INSURED USD2014 ACTUAL DISBURSEMENTS AND INSURED TTD EQUIVALENT2014 EXPORT IMPACT FROM DISBURSEMENTS AND INSURED 6 .
1 e r u g i F Revised: April 2016 60 PRE SHIPMENT FINANCINGDEMAND LOANPOST SHIPMENT FINANCINGLOCAL DISCOUNTING387,829,594.62$ 60,071,430.08$ 41,620,265.06$ 27,579,498.11$ Building & Construction030,035,715.04$ 00Chemicals & Household Products77,565,918.92$ 6,007,143.01$ 10,405,066.26$ 13,789,749.05$ Clothing & Accessories0-$ 0Cosmetics & Toiletries -$ -$ -$ Food & Beverage19,391,479.73$ 12,014,286.02$ -$ 13,789,749.05$ Fuel and Oils-$ -$ -$ Furniture and Home Appliances-$ -$ -$ Hardware & Lumber-$ -$ -$ Medical and Pharmaceuticals-$ -$ -$ Engineering-$ -$ -$ Wholesale Distributors-$ -$ -$ Media Products and Services-$ -$ -$ Plastics15,513,183.78$ 6,007,143.01$ -$ -$ Paper & Pulp275,359,012.18$ 31,215,198.79$ -$ Stationery and Office Materials-$ -$ -$ Electrical Supplies-$ -$ -$ Services-$ 6,007,143.01$ -$ -$ Disbursements per sector and product -2014 1.
Total Number of Companies accessing Eximbank Facilities as at December 2014: SECTOR Small Medium Large Number of Clients Building & Construction Chemicals & Household Products Clothing & Accessories Cosmetics & Toiletries Food & Beverage Fuel and Oils Furniture and Home Appliances Hardware & Lumber Medical and Pharmaceuticals Engineering Wholesale Distributors Media Products and Services Plastics Paper & Pulp Stationery and Office Materials Electrical Supplies Services GRAND TOTAL 20 64 Figure 1.7 28 112 Revised: April 2016 61 Provisions for 2014 by Sectors SECTOR PROVISION Building & Construction $1,180,000.00 Chemicals & Household Products $1,150,000.00 Clothing & Accessories $5,595,260.00 Cosmetics & Toiletries Food & Beverages Fuel & Oils $32,000.00 $1,948,440.00 $113,500.00 Furniture & Home Appliances Nil Hardware & Lumber $2,565,300.00 Medical & Pharmaceuticals Nil Engineering Wholesale Distributions Media Products & Services Plastics Paper & Pulp $1,237,900.00 $605,100.00 $252,500.00 Nil Nil Stationery & Office Materials $997,500.00 Electrical Supplies Nil Services TOTALS $1,037,900.00 $16,715,400.00 Figure 1.8 Revised: April 2016 62 9 .
1 e r u g i F 63 Revised: April 2016