Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698835430859.pdf (Micronesia, Federated States of)
STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 The Honorable Wesley W. Simina Speaker, Twenty-Second Congress Federated States of Micronesia Fifth Regular Session, 2022 Dear Mr. Speaker: Your Committee on Resources and Development, to which was jointly referred Presidential Communication No.
22-228 transmitting the National Government’s proposed FY2023 budget, begs leave to report as follows: Presidential Communication No.

22-228 transmits the National Government’s fiscal year 2023 Proposed Budget (Budget Book).

Pursuant to rule 7, section 2(b), of the Official Rules of Procedure of the Twenty-Second Congress of the Federated States of Micronesia, your Committee has confined its review to those items of the proposed budget relating to matters within its jurisdiction.
These are the budgets for: 1.

2.

3.

4.

5.
2.

3.

4.

5.

Department of Resources and Development; National Oceanic Resource Management Authority; FSM Banking Board; FSM Insurance Board; Grants, subsidies and contributions: a. Pacific Island Development Program (PIDP); b. Pacific Asian Travel Association (PATA); c. United Nations Development Program (UNDP); d. Food Agriculture Organization; e. Western Forestry Leadership Coalition (WFLC); f. SPC Matching Fund; SCRL 22-64/R&D FY-2023 BUDGET STANDING COMMITTEE REPORT NO.
22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 g. Micronesian Challenge; h. Micronesian Cruise Association; i.

South Pacific Tourism Organization; j.
International Renewable Energy Agency; k. Micronesia Trade Committee; l. Convention on Biological Diversity; m. International Food and Agriculture Development; n. United Nation Industrial Development Organization (UNIDO); o. Micronesian Island Forum Membership Fee; p. Micronesia Association for Sustainable Aquaculture; q. Micronesian Island Forum; r. Micronesian Challenges Endowment Fund; s. International Coconut Community (Annual Fees & Prior Years); t. WCPFC Membership Fee (NORMA); u.
Forum Fisheries Agency; and v. Palau Nauru Arrangement (PNA) membership fee.

6.

Capital and Human Resources Development: a.

State & National Leadership Conference (SNLC); b.

Domestic Tourism; c. R&D Conference; d. Foreign Investment Data Management System; e. Tourism conference; f. Tourism Budget & Planning with the states; g. Tourism Public Awareness; h. FSM Chamber of Commerce (COC); i. Commemoration of World Tuna Day –May 2022; j.
Electronic Monitoring Project -2023 T3 Challenge; k. Hosting of WCPFC Technical & Compliance Committee and Science Committee meetings; and l. Internship for students in the area of fisheries management.

This report and all previous and subsequent reports by this Committee should be treated as policy for this Nation as defined by the Congress.
It is your Committee’s intent that any comments found in this report should be treated as policy for the guidance of the relevant departments, agencies and offices -2- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 in the obligation and expenditures of their respective budgets and implementation of their programs.
Your Committee conducted a series of public hearings virtually on Wednesday, June 1, 2022, Tuesday, June 07, 2022 and Monday, June 13, 2022.

The report and recommendations that follow are based upon the information contained in the Budget Book and the input provided by the Secretary, Assistant Secretaries, Board of Directors for FSM Banking Commission and FSM Insurance Commission, Commissioners, and staff of the various departments, offices, agencies and entities during those hearings.

I.
I.

GENERAL DISCUSSION OF THE PROPOSED FY 2023 BUDGET Your Committee conducted its public hearing on the Department of Resources and Development FY23 proposed budget on Monday, June 13, 2022.

Following are the recommendations.

I(a).

Office of the Secretary FY 2022 Appro.

FY 2023 Proposed FY23 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 4 $110,634 $20,149 $500 $21,515 $5,280 $158,078 $118,067 $51,316 $73,500 $21,515 $0 $264,398 $112,520 $13,632 $73,500 $21,515 $0 $221,167 4 4 Committee Recommends $112,520 $13,632 $73,500 $21,515 $0 $221,167 4 Personnel – There are four positions under this Office, and the amount appropriated to fund the four positions in FY22 was $110,634.

For FY23, the requested amount is $118,067, a slight increase of $7,433.
The increase amount is to fund several salary increases for three positions, the Executive Secretary position, the Information Technology Specialist position and the Administrative Officer position.

At the hearing, your Committee learned that such requested increases were not recommended by the EBRC because of the salary freeze legislation.

There is a slight increase of $1,886, as compared to FY22 appropriation to the FY23 recommendation by EBRC, which is for fringe benefits.
Your Committee recommended $112,520.

-3- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 Travel – The FY22 appropriation was $20,149.

This fiscal year, the proposed amount is $51,316, but EBRC recommended $13,632.

There is one domestic travel requested in the amount of $12,418 for the Secretary’s annual visit to the states.
Another $7,584 is requested to fund the Secretary to attend the Micronesian Presidential Summit in Palau.

Another $3,792 is requested to fund the Secretary’s attendance at the Micronesian Island Forum in Palau.

Another significant amount of $15,000 is for the Secretary to attend the Forum Trade Ministerial Meeting in Palau.

And another $12,000 is requested for the Secretary to attend the International Renewable Energy Agency (IRENA) in Abu Dhabi.

Your Committee recommends $13,632.


Contractual Services –The amount appropriated last year was $500.

The request for this fiscal year is $73,500.

An amount of $73,000 is requested to fund a Consultant, and $500 is for subscription.

The justification for the Consultant is to write grant proposals.

EBRC recommended the whole $73,500.


At the mark-up meeting of your Committee, the funding for the Consultant (Grant Writer) in the amount of $73,000 was discussed, and the Committee agreed on the importance of the Consultant.

Your Committee recommends $73,500.

Other Current Expenses – The FY22 appropriation was $21,515.

The same amount appropriated last year is requested for this year, which was recommended by EBRC.

Your Committee recommends $21,515.


Fixed Assets – For FY 2022, an amount of $5,280 was appropriated.

There is no requested amount for this fiscal year.

Your Committee recommends $ 0.

-4- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 II.

Tourism Unit FY 2022 Appro.

FY 2023 Proposed FY23 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 2 $50,964 $18,984 $3,500 $16,095 $0 $89,525 $73,833 $65,698 $3,500 $16,095 $47,000 $206,126 $73,792 $18,984 $3,500 $16,095 $2,000 $114,371 3 3 3 Committee Recommends $74,931 $18,984 $3,500 $16,095 $2,000 $115,510 Personnel – The appropriated amount in FY22 was $50,946 for two positions.

One of the positions is an Assistant Secretary with a corresponding salary of $22,377.

Another position is a Deputy Assistant Secretary with a corresponding salary of $18,092.
ing Officer with a corresponding salary of $18,997.

EBRC recommended the new position.

At the hearing, your Committee was informed that Mr. Bermance Aldis is now the Assistant Secretary.

Mr. Aldis used to be the Deputy Assistant Secretary, and since he is promoted to Assistant Secretary, the Deputy Assistant Secretary’s position is now vacant.
Your Committee was also informed by the Department’s Administrative Officer that the correct corresponding salary for the Assistant Secretary is $23,496, and not $22,377.

At the mark-up meeting of your Committee, the Committee discussed the needed correction in the Budget Book for the fiscal year 2023.

Your Committee had considered that the tourism sector is very important to the economy, and approved of the additional requests for the new position.
Your Committee also made a minor correction to the salary of the Assistant Secretary, which was supported by the Director of the Office of Personnel Mr. Samson Pretrick.

So if the Assistant Secretary’s accurate salary is $23,496, and the Deputy Assistant Secretary’s salary is $18,092 and the new position (Digital Marketing Officer) salary is $18,977, plus $9,223 for fringe benefits, $3,120 for COLA, and PSS salary increase of $2,023, the FY23 recommended -5- STANDING COMMITTEE REPORT NO.
22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 amount would be $74,931.

Your Committee recommends $74,931.

Travel – In fiscal year 2022, an amount of $18,984 was appropriated.

This year, and amount of $65,698 is requested, but EBRC recommended the FY22 appropriation, which was $18,984.
Of the $65,698 requested, $24,816 is for visit to the states, $16,066 is a general sum to pay regional meetings of the South Pacific Tourism Organization (SPTO), Pacific Asian Travel Association (PATA) and Micronesian Cruise Association (MSC), and another $24,816 for states’ visits.

At the hearing, your Committee learned that FSM usually participate in these regional meetings.
For instance, the FSM’s attendance at the Micronesian Cruise Association is important because that is where they lobby for Cruise Liners to come to the FSM.

Your Committee noted that if the division is ready to participate in these meetings, they can request for supplemental budget.

Your Committee recommends $18,984, as recommended by the EBRC.

Contractual Services – No change in this category.

The same amount appropriated last fiscal year is being requested.

Your Committee recommends $3,500.


Other Current Expenses - No change in this category.

The same amount appropriated last fiscal year is being requested.

Your Committee recommends $ 16,095.

Fixed Assets – In FY 2022, there was no appropriation.

For this fiscal year, the Division is requesting $47,000 to purchase a pickup truck, and $2,000 for desktop.

EBRC recommends only the $2,000, but not the $47,000.

Your Committee recommends $2,000, as recommended by the EBRC.

-6- STANDING COMMITTEE REPORT NO.


22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 III.

Marine Resources Unit FY 2022 Appro.

FY 2023 Proposed FY23 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 3 $70,693 $19,380 $5,000 $19,176 $0 $114,249 $70,694 $60,243 $20,000 $19,176 $0 $170,113 $70,693 $19,380 $5,000 $19,176 $0 $114,249 3 3 3 Committee Recommends $70,693 $19,380 $5,000 $19,176 $0 $114,249 Personnel – The amount appropriated in fiscal year 2022 was $70,693 for three positions.

For this year, the recommended amount is the same as fiscal year 2022 to fund three positions.
At the hearing, your Committee was informed that the Assistant Secretary’s accurate salary is $23,496 instead of $22,377.

The Deputy Assistant Secretary’s salary is $18,092 and the Fisheries Management Conservation Officer’s salary is $15,492.

So the total sum for three positions, plus fringe benefits of $8,814, $3,120 for COLA and $2,798 for salary increase is $71,812.
Since the EBRC did not recommend the minor adjustment under this division, Your Committee recommends $70,693, with the understanding that should there be a shortfall, the Department can request for supplemental funding.

Travel – In FY22, the appropriated amount was $19,380.

The proposed request by this Division is $60,243.

One domestic travel for the Assistant Secretary to visit the states is $18,817, but EBRC recommended $18,612.
Another domestic travel for the Deputy Assistant Secretary to visit the states is 18,817, but EBRC recommended $18,612, and one domestic travel for the Fisheries Management Conservation Officer to visit the states in the amount of $18,817, but EBRC recommended $18,612.

There is an amount of $3,792 for a regional meeting (MASA) in Palau.

So the total requested is by the division is $60,243.

The recommended amount by EBRC is $19,380.

Your Committee recommends $19,380, as recommended by the EBRC.
-7- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 Contractual Services – For FY22, an amount of $5,000 was appropriated.

For this fiscal year, the division is requesting $20,000 to fund a PAN Coordinator, but EBRC recommended only $5,000.

In FY22, the $5,000 requested was for contractual service for an intern.

Your Committee recommends $5,000.


Other Current Expenses – An amount of $19,176 was appropriated for this fiscal year 2022.

This year, the same amount is being requested.

Your Committee recommends $19,176.

Fixed Assets – No funding appropriated for this fiscal year.

For FY23, there is no request.

Your Committee recommends $ 0.

IV.

Agriculture Unit FY 2022 Appro.

FY 2023 Proposed FY23 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 23 $343,793 $22,235 $0 $71,947 $0 $437,975 $363,607 $53,329 $0 $73,947 $0 $490,883 $343,793 $22,235 $0 $71,947 $0 $437,975 23 23 23 Committee Recommends $343,793 $22,235 $0 $71,947 $0 $437,975 Personnel – The amount appropriated for fiscal year 2022 was $343,793 for twenty three (23) employees.

The division is proposing to increase the salaries of several employees, and requested $363,607.
At the hearing, your Committee was informed that the salary freeze legislation is still in effect so EBRC did not recommend any salary increase.

Your Committee recommends $343,793, as recommended by EBRC.

Travel – The amount appropriated in fiscal year 2022 was $22,235.

The requested amount by this Division is $53,329, but EBRC recommended $22,235.

Your Committee recommends $22,235.

Contractual Services – No change in this category.

Your Committee recommends $0.


Other Current Expenses – The amount appropriated in fiscal year 2022 was $71,947.

For fiscal year 2023, there is a -8- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 request of $73,947, an increase of $2,000, as compared to the FY22 appropriation.

The $2,000 increase is for Printing and Reproduction.

EBRC recommended the same amount appropriated in FY22.
Your Committee recommends $71,947.

Fixed Assets – In FY22, no appropriated amount.

For fiscal year 2023, no request.

Your Committee recommends $0.

V. Division of Trade and Investment FY 2022 Appro.

FY 2023 Proposed FY23 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 4 $85,340 $22,437 $64,000 $27,754 $2,000 $201,531 $85,340 $61,392 $59,000 $27,754 $2,000 $235,486 $85,341 $22,437 $64,000 $27,754 $2,000 $201,531 4 4 Committee Recommends $85,341 $22,437 $64,000 $27,754 $2,000 $201,531 4 Personnel – For FY22, $85,340 was appropriated.

The recommended amount for this fiscal year is $85,340 for four employees.
At the hearing, the Committee was informed of several adjustments in salary for the Assistant Secretary position and the Secretary II position.
Following is the breakdown of the recommended amount, which is $85,340: $23,496 is apportioned for the Assistant Secretary position, $18,092 for a Program Manager position, in which there are two Program Managers under this Division, $9,102 is apportioned for a Secretary II position, $10,588 is apportioned for benefits, $4,160 is apportioned for COLA, and $3,756 for the new salary increase for the four employees.

The new total sum should be $87,286.


Your Committee recommends $85,341, as recommended by EBRC.

Travel – An amount of $22,437 was appropriated in FY 2022.

This year, the Division is requesting $61,392, but EBRC recommended $22,437.

At the hearing, the witnesses testified how important the participation of the FSM is at the Forum Trade Ministerial Meeting (FTMM), and this meeting is usually held in Fiji.
This is where the discussion of the Pacific Agreement on Closer Economic Relations (PACER) and the Pacific Island Countries Trade Agreement (PICTA) agreements are being considered.

Your -9- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 Committee noted the importance of these trade meetings; however, the department can request for supplemental funding once the travel restriction is lifted.
Your Committee recommends $22,437.

Contractual Services - In FY 2022, an amount of $64,000 was appropriated.

For fiscal year 2023, the Division requested $59,000 for a Trade Advisor and $9,000 for the Secure Transaction website.

The $5,000 appropriated in this fiscal year for internship was not requested.

EBCR recommended the requested amount of $64,000, and this amount covers the funding for the Trade Advisor, the Secure Transaction website, and the internship.

Your Committee recommends $64,000.


Other Current Expenses - An amount of $27,754 was appropriated under this category in FY 2022.

For fiscal year 2023, the Division requested the same amount and was recommended.

Your Committee recommends $27,754, Fixed Assets – The FY22 appropriation was $2,000 for a laptop.

For fiscal year 2023, an amount of $2,000 is requested and recommended for office equipment.

Your Committee recommends $2,000.

VI.

Division of Energy FY 2022 Appro.


FY 2023 Proposed FY23 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.

Employees 1 $28,229 $7,742 $200 $7,415 $2,000 $45,586 $73,833 $69,123 $200 $7,415 $0 $150,571 $71,947 $7,742 $200 $7,415 $0 $87,304 3 3 2 Committee Recommends $47,226 $7,742 $200 $7,415 $0 $62,583 Personnel – This division is staffed by one person, which is the Assistant Secretary.
As noted in the FY22, the $28,229 appropriated is to cover the salary of the Assistant Secretary along with the fringe benefits, salary increase and COLA.

The position is currently filled by Mr. Faustino Yarofaisug.

According to the witnesses, the salary of the Assistant Secretary is at $23,496 and not $22,377.

-10- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.


22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 There are two new positions requested, one position is a Project Manager for Water with a corresponding salary of $18,997 and a Project Manager for Renewable Energy with a corresponding salary of $18,997.

EBRC recommended the two new positions.


With the adjusted salary of the Assistant Secretary in the amount of $23,496, the two new positions ($18,997x2=$37,994), the salary increase of $1,287, the fringe benefits of $9,249 and $1,040 for COLA, the sum total under this category is $73,066.

At the mark-up meeting of your Committee, your Committee decided to fund only one position for now, and the Committee decided to honor the Program Manager for Water position.
Your Committee recommends $47,226, Travel – In FY 2022, an amount of $7,742 was appropriated.

The amount requested for fiscal year 2023 is $69,123, but EBRC recommended $7,742.

At the hearing, the witnesses justified that since the mandates of the Division is to coordinate with the states on various water project and renewable energy projects or programs, they need the requested domestic travel funds.
Your Committee decided to maintain the FY22 appropriation for travel with the understanding that if there is urgent travel needs, the division can request supplemental funding for travel.

Your Committee recommends $7,742.

Contractual Services – No change in this category.

The amount requested for subscription is $200.

Your Committee recommends $200.

Comment [U1]: Other Current Expenses – An amount of $7,415 was appropriated last year.

This year’s request is $7,415 for supplies.


Your Committee recommends $7,415.

Fixed Assets – In FY 2022, the Division requested $2,000 to purchase a lap top, which was approved.

Your Committee recommends $0, -11- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 VI.

Division of Statistics FY 2022 Appro.

FY 2023 Proposed FY23 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 19 $304,207 $11,725 $47,000 $56,097 $0 $419,029 $322,146 $25,076 $57,639 $69,851 $0 $474,712 $320,277 $11,725 $47,000 $56,097 $0 $435,099 20 20 20 Committee Recommends $320,277 $11,725 $57,639 $56,097 $0 $445,738 Personnel – The FY22 appropriation was $304,207 for nineteen positions.

For fiscal year 2023, the proposed amount is $322,146, but EBRC recommended $320,207.
This division is requesting for a new position (Statistic Technician II) with a corresponding salary of $13,974.

This new position is needed so the consolidation of data on environment and natural resources can be taken, which is required under the Sustainable Development Goals (SDG).

EBRC recommended the new position.

At the hearing, your Committee was informed that some funding for certain positions need to be adjusted, which was supported by Mr. Samson Pretrick.
Nevertheless, the amount proposed by the division in the amount of $322,146 is suffice.

Your Committee approved the new position, and recommends $320,277.

Travel – The FY2022 appropriated amount was $11,725.

For FY 2023, there is a request of $25,076, but EBRC recommended $11,725, which is the amount appropriated in fiscal year 2022.

The division is requesting two domestic travels ($12,538x2=$25,076).

No justification by EBRC on the reduced amount of $11,725.

Your Committee recommends $11,725.


Contractual Services – There is a $10,639 that is used to fund a Statistic Specialist, and this Statistic Specialist is on a contractual basis.

That is the basis of the proposed amount of $57,639.

According to the Assistant Secretary, the division really needs this person.

If the proposed amount of $57,639 is not recommended, then the Statistic Assistant who is helping the Statistic Office in Kosrae will not be funded.

-12- STANDING COMMITTEE REPORT NO.


22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 At the hearing, your Committee was informed that there were several requests in the previous fiscal years to fund this position under Personnel, but there was no approval for it.

So the division decided to use contractual funding to source this position.

Your Committee recommends $57,639.


Other Current Expenses – An amount of $56,097 was appropriated in fiscal year 2022.

The requested amount for fiscal year 2023 is $69,851, an increase of $1,000, as compared to the fiscal year 2022 appropriation.

The increase is to fund a software that the division can use to electronically input data and also for more supplies.

Your Committee recommends $56,097.

Fixed Assets – No amount requested, same as last fiscal year.

Your Committee recommends $0.

VII.


NATIONAL OCEANIC RESOURCE MANAGEMENT AUTHORITY (NORMA) Your Committee conducted the NORMA’s FY23 budget hearing on Tuesday, June 7, 2022.

Witnesses at the hearing included: Mrs. Liman Helgenberger, Acting Executive Director, Mr. Sohs John, Chief Budget Officer, and Director of Personnel, Mr. Samson Pretrick and some staff of NORMA.
The figures shown in the chart below for NORMA include the total amount appropriated in FY 2022; the FY 2023 amount requested by NORMA, and the amount transmitted as recommended, as listed in the “FY 2023 Recommended” column in the “Budget Book”.

The last column is the amount recommended by your Committee for FY 2023.

Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.

Employees FY23 Recom FY 2022 Appro.


FY 2023 Proposed Committee Recommends $820,685 $111,363 $200,741 $86,370 $30,000 $1,219,159 $1,441,758 $1,219,159 $1,249,159 30 $820,685 $111,363 $200,741 $86,370 $0 $873,384 $111,363 $294,641 $102,370 $60,000 $820,685 $111,363 $200,741 $86,370 $0 30 30 30 Personnel – For FY 2022, the appropriated amount was $820,685.

For this fiscal year 2023, the Authority is requesting $873,384, a significant increase of $52,699 as -13- STANDING COMMITTEE REPORT NO.
22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 compared to the fiscal year 2022 appropriation.

During the hearing, your Committee was informed that the Authority wishes to increase the salary of certain individuals.

However, most of the positions that the Authority is proposing to adjust are under the Public Service System, and such proposed increase in salaries cannot be honored due to the salary freeze legislation.
That is the basis of EBRC not honoring such increases.

The Committee was informed that the only option to honor the wishes of the Authority, which is to increase their salaries, is to exempt their positions, and the intent of C.B.

No.

22-78 is a classic example.

The correct corresponding salary for the Assistant Economist should be adjusted from $23,496 to $45,000.

This is supported by the witnesses.

With this adjustment the difference is $21,504.


At the mark-up meeting of your Committee, the Committee agreed with the recommendations by the EBRC.

Your Committee recommends $820,685 with the understanding that the Authority works with the Office of Personnel to iron out the adjustment in salaries, and to request supplemental funding if the Authority needs more funding under Personnel.

Travel – In FY 2022, the amount appropriated was $111,363.
The amount requested for FY23 is $111,363, and EBRC recommended same amount.

Your Committee recommends $111,363.

Contractual Services – In FY 2022, an amount of $200,741 was appropriated.

For the FY23 request, an amount of $294,641 was requested, but EBRC recommended $200,741.

Justifications on the slight increase are based on increase in housing, meeting allowance and a new employee incentive.

At the mark-up meeting of your Committee, the issue on meeting allowance was discussed.
The Committee is very concerned on how the Authority is giving out meeting allowance to Board members, and wanted to ascertain if -14- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 increasing the meeting allowance is justified.

Accordingly, meeting allowance or honorarium is allowed, and the maximum is $200.
Pursuant to the Financial Management Regulation (FMR) part 5.6.5(h)(i), non- government employees who are appointed to serve on various boards based on ‘advice and consent of Congress’ are entitled to a meeting allowance/honorarium of $200 per meeting day.

The honorarium is payable only on the days the elected person is present in the meeting venue.

Your Committee recommends $200,741 as recommended by EBRC with the understanding that the Authority can still use its funding for now.
Other Current Expenses – The amount appropriated in FY 2022 was $86,370.

The request for FY 2023 is $102,370, but EBRC recommended $86,370.

The justification on the increase of $16,000 is as follows: $10,000 increase in supplies and materials, $3,500 for donations and contributions, and $2,500 for a wellness program.

Your Committee recommends $86,370, as recommended by EBRC.

Fixed Assets – No appropriation in fiscal year 2022.
The Authority is requesting $60,000 ($50,000 to purchase a vehicle and $10,000 for furniture).

EBRC did not recommend the $60,000.

At the mark up meeting of your Committee, the Committee decided to give half of the funding requested with the understanding that the Authority can supplement what the Committee recommended with their operation funding.

Your Committee recommends $30,000.

VIII.


FSM BANKING BOARD The figures shown in the chart below for the FSM Banking Board include the total amount appropriated in FY 2022; the amount requested by the FSM Banking Board for FY 2023, and the amount transmitted as recommended for FY 2023.

The last column is the amount recommended by your Committee for FY 2023.

-15- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.


22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 FY 2022 Appro.

FY 2023 Proposed FY23 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 4 $115,263 $22,876 $41,128 $25,110 $4,500 $208,877 $116,303 $22,876 $43,095 $27,110 $4,500 $213,884 $116,303 $22,876 $41,128 $25,110 $0 $205,417 4 4 4 Committee Recommends $116,303 $22,876 $41,128 $25,110 $0 $205,417 Your Committee held a public hearing with the FSM Banking Board on Wednesday, June 1, 2022.
Witnesses included: The Banking Commissioner Mr. Jesse Giltamag, Mr. Pilika Palik, Banking Examiner, Samson Pretrick from the Office of Personnel and Mr. Sos John from the Division of Budget.

Personnel – The amount appropriated in FY 2022 was $115,263.

For the FY23 request, the Banking Board requested $116,303, an increase of $1,040, as compared to FY22 appropriation.

The Committee inquired on the discrepancy in salaries of the Insurance Commissioner to the Banking Commissioner’s salary.
According to the Office of Personnel, the salary of the Banking Commissioner in the Personnel system is $48,678, and not $40,520.

The Committee was informed that the FSM Banking Board decides the salary for the Banking Commissioner.

Your Committee noted that the correct salary for the Banking Commissioner is $48,678.

So if the Insurance Commissioner’s salary is at $50,000 annually, the difference in pay of the Banking Commissioner is $1,322.
So to ensure that the two Commissioners’ salaries are equal, the decision rests with the Banking Board who decided on the Banking Commissioner’s service contract.

Your Committee recommends $116,303.

Travel – The FY22 appropriation was $22,876.

The requested amount this year is the same, which was recommended by EBRC.

At the hearing, the Banking Commissioner explained that there are essential international travels that the staff need to participate.
However, due to this travel restriction, their only hope is that they can attend once the travel restriction is -16- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 lifted.

The Banking Commissioner justified that they have to do their visits to each state.

Your Committee recommends $22,876.

Contractual Services – In FY 2022, an amount of $41,128 was appropriated.
For this fiscal year, an amount of $43,095, but EBRC recommended $41,128.

This is an increase of $1,967.

There are certain courses that the staff are required to take, which require payment of material and exam fees.

Your Committee recommends $41,128.

OCE – The amount appropriated in FY22 was $25,110.

The fiscal year 2023 requested amount is $27,110, a slight increase of $2,000.

EBRC recommended $25,110.

Your Committee recommends $25,110.


Fixed Assets – In FY 2022, an amount of $4,500 was appropriated.

For this fiscal year, an amount of $4,500 is requested for conference room chairs, but EBRC recommended $0.

Your Committee recommends $0.

IX.

FSM INSURANCE BOARD The figures shown in the chart below for the FSM Insurance Board include the total amount appropriated in FY 2022; the amount requested by the FSM Insurance Board for FY 2023, and the amount transmitted as recommended for FY 2023.
The last column is the amount recommended by your Committee for FY 2023.

Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.

Employees 6 FY 2022 Appro.


FY 2023 Proposed FY23 Recom $151,355 $21,308 $347,175 $32,004 $0 $551,842 $165,527 $78,610 $347,175 $32,004 $1,800 $625,116 $165,527 $21,308 $347,175 $32,004 $1,800 $567,814 Committee Recommends $165,527 $21,308 $347,175 $32,004 $1,800 $567,814 6 6 6 Your Committee held a public hearing on the FSM Insurance Board FY23 budget requests on Wednesday, June 1, 2022.
Witnesses present at the hearing included: the Insurance Commissioner Mr. Nakama Sana, Elice Ehmes Financial Analyst, Samson Pretrick -17- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 Office of Personnel, and Mr. Sos John from the Division of Budget including a few staff from the Insurance Commission.

Personnel – The amount appropriated in FY22 was $151,355.

For FY23, the request is $165,527.


There is an increase of $14,172 for the Commissioner’s salary based on the recommendation of the Board, which was recommended by EBRC.

Your Committee recommends $165,527.

Travel – An amount of $21,308 was appropriated in FY22.

For FY23, an amount of $78,610 is requested, but EBRC recommended $21,308.
At the hearing, the Insurance Commissioner testified that if there is a chance the border is open, they want to meet with Insurance Commissioner in Guam, and to attend the MRA captive with insurance seminar in Japan.

Other than that, the Insurance Commissioner still has to visit the states.

Your Committee recommends $21,308.

Contractual Services – In FY 2022 an amount of $347,175 was appropriated.

For FY 2023, the same amount is requested, which was recommended.

Your Committee recommends $347,175.


OCE – In FY 2022 an amount of $32,004 was appropriated.

This year there is a request of $32,004, which was recommended.

Your Committee recommends $32,004.

Fixed Assets – In FY22 budget, no amount was appropriated.

For FY23, an amount of $1,800 was proposed, and recommended by EBRC.

The $1,800 is to purchase a desktop computer.

Your Committee recommends $1,800.

VII.


GRANTS, SUBSIDIES & CONTRIBUTIONS Department of Resources and Development Grants, Contributions & Subsidies FY 2022 Appropriation FY 2023 Proposed FY23 Recommends Committee Recommends a. Pacific Island Development Program (PIDP) 15,000 15,000 15,000 15,000 -18- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.


22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 b. Pacific Asian Travel Association (PATA) c. United Nations Development Program (UNDP) d. Food and Agriculture Organization (FAO) e. Western Forestry Leadership Coalition f. Matching to SPC Projects g. Micronesian Challenge h. Micronesian Cruise Association i.

South Pacific Tourism Organization j. IRENA k. Micronesia Trade Com.
l. Convention on Biological Diversity (CBD) m. International Fund for Agriculture Development (IFAD) n. United Nations Industrial Development Organization (UNIDO) o. Micronesian Island Forum Membership Fee p. Micronesia Associ for Sustainable Agriculture q. Micronesian Island Forum q. Micronesian Challenge Endowment Fund r. International Coconut Community (Annual Fee/Prior Years) Total 6,000 6,000 6,000 6,000 $30,000 $30,0 $30,000 $30,000 00 $6,800 $6,80 $6,800 $6,800 0 $530 $530 $100,000 $530 $60,000 $60,0 $60,000 $60,000 00 $10,000 $10,0 $10,000 $10,000 00 $2,500 $2,50 $2,500 $2,500 0 $8,000 $8,00 $8,000 $8,000 $250 $30,000 $1,000 0 $250 $30,000 $1,000 $250 $30,000 $1,000 250 $30,000 $1,000 $500 $500 $500 $500 $1,000 $1,000 $1,000 $1,000 $15,000 $15,000 $0 $0 $50,000 $50,000 $50,000 $50,000 $15,000 $100,000 $0 $15,000 $100,00 0 $18,000 15,000 $100,000 $15,000 100,000 $18,708 $18,000 $336,580 $369,58 $454,758 $354,580 0 -19- STANDING COMMITTEE REPORT NO.
22-48 RE: PRESIDENTIAL COMMUNICATION NO.

22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 OTHER GRANTS, CONTRIBUTIONS & SUBSIDIES FY 2022 Appropriation FY 2023 Proposed FY23 Recommended Committee Recommends 1.

Forum Fisheries $63,000 $63,000 $63,000 $63,000 Agency 2.

NORMA – WCPFC $318,397 $318,397 $434,201 $434,201 Tuna Commission Fee 3.
PNA Membership $0 $10,000 $10,000 $10,000 Fee Total for NORMA GRANT TOTAL FOR GRANTS, SUBSIDIES & CONTRIBUTIONS $381,397 $717,977 $391,397 $507,201 $760,977 $961,959 $507,201 $861,781 The correct figure for FSM’s contribution to Western Forestry Leadership Coalition is $530.

Your Committee raised concerns on the Micronesian Challenge Endowment Fund, and wants to find out what the FSM is benefiting from its contribution of $100,000.
Furthermore, the Committee wants to know the balance of the Micronesian Challenge Endowment Fund.

Since information are not received in time, the Committee cannot be held hostage, and release this report.

On NORMA-WCPFC Tuna Commission Fee, the increase amount of $434,201 is based on past arrear payments.

-20- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.


22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 FY2022 Appropriation FY2023 Proposed FY23 Recommended Committee Recommends a. R&D State & National Leadership Conference b.

Domestic Tourism c. R&D conference d. Foreign Investment Data Management System e. Tourism Conference f. Tourism Budget and Planning with the states g. Tourism Public Awareness h. FSM Chamber of Commerce/National Government i.

Chamber of Commerce - Chuuk j.


Chamber of Commerce – Pohnpei k. Chamber of Commerce - Kosrae l. Chamber of Commerce - Yap m. Conservation Society of Pohnpei n. Conservation Society of Chuuk o.

Conservation Society of Yap p. Conservation Society of Kosrae $0 Total Other Capital and Human Resources Development a.

Fisheries Economist/ Consultant Total for R&D Dept.
NORMA a. NORMA –World Tuna Day $0 $75,000 $75,000 $75,000 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ $0 $73,000 $69,500 $250,000 $0 $0 $250,000 $0 $0 $80,000 $450,000 $75,000 $67,000 $0 $0 $0 $0 $0 $0 $0 $0 $ $0 $0 $0 $0 $0 $0 $0 $50,000 $0 $30,000 $30,000 $20,000 $20,000 $40,000 $40,000 $25,000 $25,000 $0 $ $0 $0 $0 $0 $0 $ $0 $0 $0 $30,000 $67,000 $889,500 $325,000 $635,000 $70,000 $80,000 $80,000 $70,000 -21- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.
22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 b. T3 Monitoring c. Hosting of WCPFC, TCC & SC Meetings d. Internship for Students in the area of fisheries Total Grant Total for CIP CONCLUSION $100,000 $10,000 $150,000 $10,000 $250,000 $10,000 $150,000 $10,000 $5,000 $5,000 $5,000 $5,000 $185,000 $252,000 $245,000 $1,134,500 $265,000 $590,000 $235,000 $870,000 Your Committee on Resources and Development has carefully reviewed the President’s recommended FY 2023 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 2023, subject to the recommendations of the Committee on Ways and Means.

-22- STANDING COMMITTEE REPORT NO.

22-48 RE: PRESIDENTIAL COMMUNICATION NO.


22-228 SUBJECT: FISCAL YEAR 2023 BUDGET/R&D SEPTEMBER 06, 2022 Respectfully submitted, /s/ Dion G. Neth Dion G. Neth, chairman /s/ Aren B. Palik Aren B. Palik, vice chairman Tiwiter Aritos, member Perpetua S., Konman /s/ Peter M. Christian Peter M. Christian, member /s/ Isaac V. Figir Isaac V. Figir, member /s/ Victor V. Gouland Victor V. Gouland, member -23-