RDC is not funded by the State to meet operational expenses but has to earn income through a Project Management Fee of 7.5% of the actual cost of the project/programme of work and a 2% design fee for small infrastructure and building projects where the project is designed by RDC. RDC’s programme of work is funded by the Infrastructure Development Fund, which is allocated annually in the National Budget.
As RDC is not the recipient of a subvention from the State to meet operational expenses, a budget is prepared for approval by the Board after the approved development programme (allocation in the national budget) is revealed to the Company. The main aim of the budget is to determine the projected operational expenses for the coming fiscal year and adjust it to meet the income expected from the approved development programme.
4.2 Actual Expenditure versus Budget
The budget for operational expenses in 2012/2014 was taken as the actual expenditure for 2011/2012 based on the same level of staffing as obtained in 2011/2012, that is, $6,250,000.
The actual operational expenditure for 2012/2014 was $6,464,872 which was $214,872 greater than projected.
The Company recorded an unaudited deficit of $1,596,318 after taxes
b) Capital Expenditure
The approved allocation in the annual budget for RDC for 2013/2014 for development projects was $50,000,000. Actual expenditure for 2012/2013 on previous year’s projects and current year projects was $62,466,280.
4.3 Debt policy
The Company is not authorized to enter into any short term and long term debt without the approval of the Ministry of Finance.
b) The Company has no short term or long term debt.
4.4 Investment policy
a) The Company is not authorized to enter into any short term and long term investment plan without the approval of the Ministry of Finance.
b) The Company has no short term or long investment plan.
Levels of Authority
The Board approved the following limits for award of contracts and expenditure:
|AUTHORIZED AGENT||OPERATIONAL EXPENDITURE||CAPITAL EXPENDITURE|
|Manager||UP TO $10,000.00||NIL|
|Chief Executive Officer||UP TO $100,000.00||NIL|
|Tenders Committee||ABOVE $100,000.00 TO $1,000,000.00||ABOVE $100,000.00 TO $1,000,000.00|
|Board of Directors||ABOVE $1,000,000.00||ABOVE $1,000,000.00|
Neither the Management nor the Board has the authority to determine the projects and programme of works to be implemented. These are determined by the Minister of Works and Infrastructure in collaboration with other Ministers, Members of Parliaments and the Regional Corporations.