The Education Budget in Suriname Child Friendly Budget Analysis by icecube

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									           The Education Budget in Suriname 2004-2007

                       Child Friendly Budget Analysis:
       A Tool to Measure Results for Children and Enhance Transparency




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SUBMITTED TO: Rene van Dongen
Project Officer Child Protection, UNICEF Suriname

PREPARED BY: Rosa Klein
Master in Public Policy Candidate 2008
Kennedy School of Government, Harvard University
rosa_klein@ksg08.harvard.edu
Tel: 001-617-642-6697

September 2007
The budget is a social contract. It contains the vision that society
has of its future, including the effort and resources needed to
achieve that vision. Once the budget includes human rights, then
the rights become real because they are within reach of the
people.
-Jorge Enrique Vargas, presentation to the Eyes on the Budget meeting, New York,
January 2007




With cooperation from the Ministry of Finance, Ministry of Education, Ministry of Social
Affairs and Housing, Ministry of Health, Ministry of Planning and Development
Cooperation, Ministry of Regional Development & UNICEF

Supported by grants from:
Harvard University Center for International Development
Carr Center for Human Rights, Harvard University

Thanks to Mindy McGarrah Sharp, Sonu Chhina, Elizabeth Munz, Maureen Walsh and
special thanks to José, Manuel and Linda Klein.

Cover Photograph by Mindy McGarrah Sharp: Primary and Pre-primary School
Children from the village of Tapoeripa, Brokopondo district




Child Friendly Budget Analysis, Suriname                                              2
                                 Contents
    Chapter 1 Executive Summary 4

    Chapter 2 Introduction 10

    Chapter 3 Overview of the Budget Process in Suriname 16
                Budget Preparation Calendar 17
                Budget Structure 18

    Chapter 4 Budget Trends in Education 2004-2007 19
                Education Spending as a Percentage of Total Government Spending 19
                Nominal Growth Rate 20
                Real Growth Rate 20
                Total Education Expenditure as a Percentage of GDP 21
                Comparison of Budgeted Spending to Realized Spending 22
                Per Capita Spending 24
                Growth in Per Capita Spending 24
                Percent Share of Education Budget Spent on Salaries 25
                Regarding School Fees 27

    Chapter 5 Instrument to Conduct a Child Friendly Budget Analysis 29
                 Documents Needed 30
                 Contact Persons for Budget Information 32
                 Budget Analysis Calculations 33

    Chapter 6 Recommendations 40
                General 40
                Ministry of Finance 41
                Ministry of Education 42
                UNICEF 44

    Appendices:          A. References 45
                         B. Interview Calendar 49
                         C. Steering Committee Contact Information 53
                         D. Financial Accountability: Key Questions 57
                         E. Surinamese School levels and Age Groups 58
                         F. Map of the Districts of Suriname, Population by District 59
                         G. Sample documents necessary for budget analysis 60
                            2007 Education Budget 61
                            2005 CBB Audited Report on Education Budget 63
                            2007 ABS Consumer Price Index and Inflation Data 69
                         H. Generally Accepted Accounting Principles 70
                         I. Interview notes: Meetings with Counterparts from the Ministries of
                            Education and Finance 71
                         J. Koppeling Naar Kostensoort en Beleidsmaatregel, Dec 2006 86
                         K. Brutosalarissen Bijzonder Lager Onderwijs 89




Child Friendly Budget Analysis, Suriname                                                         3
Chapter 1. Executive Summary

Through a series of interviews with public servants from the Ministries of Finance and
Education and research into budget documents, I have compiled a Child Friendly Budget
Analysis of Suriname’s Education budget. The document serves two basic functions:
first, it is an in-depth look at spending in public education; second, it is a model that may
be applied to analyze other aspects of the government budget for social expenditures. I
have described the budget trends for the years 2004-2007, and noted significant gaps in
information that arise out of the official public financial documents. I have given
recommendations for further inquiry, and additions to the available information that will
help both government leaders to plan and citizens to assess spending in education.

Overall, the government of Suriname allocates extensive resources to education -
approximately 15% of the entire budget for the years I examined. However, because of
the structure that exists for financial oversight and the gaps in public financial reporting,
it is difficult to determine to what extent spending on education fulfils the goals of the
people and government of Suriname. The budget documents produced by the Treasury
Department (Thesaurie Inspectie) and the Central Budget Auditors (Centrale Begrotings
Boekhouding) are not an accurate reflection of the revenues and expenditures on
education for the years in which they are produced, and diverge from Generally Accepted
Accounting Principles (GAAP-please see appendix L for a description of GAAP.) Key
gaps that came to my attention are:

    • Missing information on revenues (school enrollment fees) and expenses
      (liabilities incurred but funds not released in the fiscal year) in the public budget
      and end of the year audited statements that render these documents an inaccurate
      account of spending on education.
    • Insufficient reporting on expenditures of subsidies to private schools.
    • Circumvention both of programs funded by borrowing and donor-funded projects
      of the regular financial control process.
    • Unclear categorization of expenditures for administration and programs,
      especially salaries.

These gaps create an environment in which it is difficult for stakeholders to accurately
assess government spending on education and leave open the potential for fraud and
misallocation of funds. They also serve to obscure expenditures in a way that hinders the
use of the budget and audited realizations reports as tools for planning purposes. Some of
these gaps in information arise out of the inability of the leaders of the Ministry of
Education to release detailed information about spending by school level and district.
Unfortunately, until there is more transparency regarding the finances of this ministry it
will be difficult to use the budget as a tool for challenging the inequalities that exist in
access to and quality of education in Suriname.




Child Friendly Budget Analysis, Suriname                                                    4
Although the financial data available lacks accuracy, I have compiled broad analyses that
will be useful in gauging the overall picture of spending in education for the years 2004-
2007. I recommend a thorough investigation into actual spending for these years, but
these figures present a basic picture of how education fits into Surinamese public finance.
All figures are in Surinamese Dollars (SRD) the exchange rate for which is between 2.75
and 2.77 US Dollars in 2007.
Table 1. Spending on Education as a Percent of GDP: 2004-2006
Surinamese Dollars (SRD)        2004                  2005                  2006
GDP at Market Prices1           3,677,465,000         4,402,389,000         5,802,000,000
                                (3.6 Billion)         (4.4 Billion)         (5.8 Billion)
Education Spending              202,021,3002          191,092,7003          265,000,610 4
Education Spending as a         5.4%                  4.3%                  4.5%
Percent of GDP

Education spending as a percent of GDP 2004-20065 was lower than in 1990, when 6%
of the GDP was spent on education and in 2000, when 5.5 % was spent on education.6

Table 2.Education as Percent share of total budget
(SRD)            2004              2005                              2006                   2007
 Proposed total 1,438,900,000      1,535,740,000 (1.5                1,837,322,600          2,162,899,000
government       (1.4 Billion)     Billion)                          (1.8 Billion)          (2.16 Billion)
spending7
Proposed         239,006,000       238,222,000                       291,625,200            345,188,000
education        (239 Million)     (238 Million)                     (291.6 million         (345 Million)
         8
spending         Proposed:16.6% Proposed:15.5%                       Proposed:15.8%
Realized         1,171,127,805     1,432,540,686                     1,531,348,777          Proposed
government        (1.1 Billion)    (1.4 Billion)                     (1.5 Billion)          Percent Share
spending                                                                                    2007: 15.9%
Realized         202,021,300       191,092,700                       265,000,6109
education        (202 Million)     (191 Million)                     (265 Million)
spending         Actual:17.3%      Actual:13.3%                      Actual:14.4%
Nominal growth

1
  Algemeen Bureau voor de Statistiek, Statistical Yearbook (Paramaribo: ABS, 2004 & 2005). GDP
reported by the Economist for these years is considerably higher (4,081,000,000 SRD for 2004, and
4,856,000,000 SRD for 2005).
2
  Centrale Begrotingsboekhouding, Rapportages tot en met het 4e kwartaal Ministerie: Onderwijs
(Paramaribo: Ministry of Finance, 2004).
3
  Centrale Begrotingsboekhouding, Rapportages tot en met het 4e kwartaal Ministerie: Onderwijs
(Paramaribo: Ministry of Finance, 2005).
4
  Thesaurie Inspectie, Koppeling Naar kostensoort en Beleidsmaatregel
5
  GDP figures for 2007 not yet available at the time of this analysis.
6
  Government of Suriname, Millennium Development Goals 2005 Baseline Report (UNDP: 2005).
7
  Ministry of Finance, Financiele Nota (Paramaribo: Economic Affairs Office, 2004-2007).
8
  Ministry of Finance, Begroting (Paramaribo: Thesaurie Inspectie office: 2004-2007).
9
  Thesaurie Inspectie, Koppeling Naar kostensoort en Beleidsmaatregel


Child Friendly Budget Analysis, Suriname                                                             5
Average nominal growth in the budgeted expenditures for education between 2004 and
2007 was 20.8 percent, but as you can see below, it varied widely, with a decrease in
2005 and large increases in 2006 and 2007.

Spending on Education 2004-2005: decreased 11 Million/5.5%
2005-2006: increased 73.9 Million/38.1%
2006-2007: proposed increase of 80 Million/30%

Real growth
Real growth between 2004 and 2005 was a decrease of 13%
Real growth between 2005 and 2006 was an increase of 24%


Table 3. Per   Capita spending on education
                2004          2005          2006                             2007
Total           109,975       115,117       114,422                          117,124
Students
Total      202,021,30010 191,092,00011 265,000,61012 345,188,000
Spending                               SRD           SRD13
Per Capita 1,837 SRD     1,659 SRD     2,315 SRD     2,947 SRD
Spending*
* this does not take into account students of the teacher training colleges or tertiary education programs,
though the Ministry of Education does partially subsidize those programs


Growth in Per capita Spending:
Between 2004 and 2005: nominal decrease of 9%
Between 2005 and 2006: nominal increase of 39%

Between 2004 and 2005 real (inflation adjusted14) decrease of 17%
Between 2005 and 2006 real (inflation adjusted) increase of 25%




10
   Ibid.
11
   Centrale Begrotingsboekhouding, Rapportages tot en met het 4e kwartaal Ministerie: Onderwijs 2004-
2006.- actual spending was probably higher.
12
  Thesaurie Inspectie, Koppeling Naar kostensoort en Beleidsmaatregel.
13
   Ministry of Finance, Begroting. This is the passed Budget for 2007, actual spending has not yet been
reported, as the year has not finished.
14
   Consumer Price Indices are as follows (2000=1SRD) 2004:162, 2005:177.4, 2006:197.4 Algemeen
Bureau voor de Statistiek. Consumentenprijsindexcijfers en Inflatie Over mei 2007. 19 June 2007.
http://www.statistics-suriname.org/ publicaties/cpi/cpi-feb06.pdf (19 Sep 2007).


Child Friendly Budget Analysis, Suriname                                                                      6
Estimated percentage of the budget allocated to salaries:15

I estimate that around 75-90 percent of the education budget goes toward salaries. This is
the sum of the line item “personeelskosten” and 90% of the subsidies paid to private
schools. I also estimate that 75% of the current employees of the Ministry of Education
are working as teachers, as outlined in the 2004 Statistical Yearbook.16

Table 4. EstimatedPercentage of Education Budget Spent on Salaries
                                                           2005 2006                          2007
Estimated percentage of education budget spent on salaries 88% 74%                            78%




Comparison of Budgeted Expenditures to Realized Expenditures17

Estimating variance using official public financial documents (the budget and audited end
of the year statement, examples of which are shown in appendix G) to compare the
planned budget expenditures to realized expenditures leads one to the conclusion that
only 80-85% of the planned budget is spent each year. This is likely not the case. Because
projects funded by donors and loans are included in the budget but not audited by the
CBB (the Centrals Begrotings Boekhouding- Central Auditors Office), the 15-20% of
funds that appear to go unspent every year is an overstatement. In the table below, for
example, year 2006 is a comparison of the budget to an internal treasury document
(shown in appendix J) and not to the CBB audited statement. The funds that had been
released by the treasury to the Ministry of Education under spending in 2006, that had
been requested in fiscal year 2006 but released between December and March 2007 are
accounted for in this document. The loan and donor funded projects are not included in
the internal document because financial control rests outside of the standard Ministry of
Finance parameters.

Assuming that funds budgeted for these projects were all used as planned, realized
expenditures would be close to 100% of budgeted expenditures. Unfortunately, as
oversight of these funds is not reported to the Treasury department or CBB, there is
currently no way to confirm actual spending by looking at public financial documents.




15
   This figure includes the total expenditures listed under code 10 “personeelskosten” as well as 90% of the
total expenditures listed under Bijzonder Lager Onderwijs, Anton de Kom University, Stichting
Polytechnic College, and Christelijk Pedagogisch Inst.
16
   Algemeen Bureau voor de Statistiek, Statistical Yearbook 2004.
17
   Ministry of Finance, Begroting 2004, 2005, 2006 & 2007. & Centrale Begrotingsboekhouding,
Rapportages tot en met het 4e kwartaal Ministerie: Onderwijs 2004, 2005, 2006 & 2007


Child Friendly Budget Analysis, Suriname                                                                   7
Table 5. Comparison      of Budgeted Expenditures to Realized Expenditures
(SRD)                 2004            2005             2006            2007 1st
                                                                       quarter
Budgeted              239,006,000     238,222,000      291,625,200     345,188,000
Expenditures          (239 Million)   (238 Million)    (291 Million)   (345 Million
                                                                   18
Realized              202,021,300     191,092,700      265,000,610     41,386,900
Expenditures          (202 Million)   (191 Million)    (265 Million)   (41 Million)
(per CBB)
Percentage of         85%                    80%                    90.8%         11.9%19
Passed Budget
Reported as
Spent


School enrollment fees and the education budget: According to UNICEF staff
members, families living in the interior say that school enrollment fees prohibit them
from sending their children (especially girls) to primary school. As the Convention on the
Rights of the Child, binds signatories, of which Suriname is one, to eliminate primary
school enrollment and activities fees, it will be necessary to examine the impact of these
lost revenues. Fortunately, to replace expenditures garnered enrollment fees, as well as
the extra “parent contributions” required by private Roman Catholic and Moravian
RK/EBG schools in the interior, just 1.2 million Surinamese Dollars would be necessary.
To put this figure into perspective, this is equal to less than 1% of the education budget
for 2007. Moreover, in 2006, a full 3 million Surinamese Dollars allocated to Bijzonder
Lager Onderwijs remained unspent. Of course, with greater enrollment due to extended
compulsory education as well as increased enrollment of children living in the interior,
expenditures are likely to increase greatly, and the impact of the loss of fees is not
entirely predictable.

Recommendations20 :

     •   Eliminate primary school enrollment fees to comply with article 28 of the
         Convention on the Rights of the Child

     •   Re-code the budget to disaggregate data by district & school level, making it
         easier to determine program-based expenditures.

     •   Disseminate public financial information online


18
   Thesaurie Inspectie, Koppeling Naar kostensoort en Beleidsmaatregel.
19
   I would expect spending to be closer to 25% at the end of the first quarter.
20
   Please see full details of recommendations below in chapter 6.


Child Friendly Budget Analysis, Suriname                                                    8
    •   Include complete revenues in the budget (school fees)

    •   Reform the yearly budget audit to include all expenditures incurred during the
        fiscal year

    •   Assemble a budget team comprised of representatives from the government and
        civil society to identify gaps and solutions in the budget format and process, from
        a child rights perspective

    •   Demand financial accountability from programs receiving public subsidies

    •   Include donor-funded and loan funded projects in the regular financial oversight
        process




Child Friendly Budget Analysis, Suriname                                                   9
Chapter 2. Introduction

Background
With a population of just under half a million people,21 37% of the inhabitants of
Suriname are younger than 18. While most of the population lives in the developed
coastal areas, with access to electricity, clean drinking water, sanitation and social
services, almost 17% of the total population lives in the remote interior districts of
Marowijne, Para, Brokopondo and Sipaliwini, where they face serious barriers to, among
other things, educational access and quality.

The interior districts are especially remarkable for their low rates of success in passing
the secondary school enrollment test (GLO Toets) of primary school completion, and of
high rates of repetition of first grade. While 58.9 percent of children in Paramaribo
passed the GLO Toets in 2006, in the interior districts of Brokopondo and Sipaliwini the
rates of success are just 25 and 26 percent.22 Similarly, rates of repetition of first grade in
the capital in 2006 were 24 percent, and in the interior districts they were between 45 and
50 percent23. These lags stem from factors such as the language barrier, long distances
from villages to schools and the direct (enrollment fees) and indirect (school uniforms,
books and writing materials) costs for school attendance.24 Other factors that may play a
part are the schism between the timing of the school year and the planting season, and the
paucity of secondary schools available in the interior.

School attendance is currently compulsory for only 6 years (ages 7-1225) and,
countrywide, the rates of success on the secondary school (GLO Toets) exams have been
disappointingly low. Year-to-year on average only around 50% of students pass these
exams and obtain a primary school diploma.26

These conditions, in conjunction with the recent fraud scandals involving the ministries
of Finance and Education (which at last count admit to public servants defrauding the
public of over 5 million Surinamese dollars27), signal that this may be a unique moment
wherein the political will exists to exercise tighter financial controls and to initiate
changes that will make the budget more child friendly.



21
   2005 population was 492,829,000. Algemeen Bureau voor de Statistiek, Results of the 7th Census
(Paramaribo: ABS, 2004).
22
   International Development Bank/ Ministerie van Volksontwikkeling, Basic Education Improvement Plan
(BIEP) Eindrapport (Paramaribo: 2006).
23
   Ibid.
24
   Ibid.
25
   As part of the sector plan for education, compulsory education will extend to 11 years (ages 4-14). The
pilot project is slated to begin in the school year 2008/2009.
26
   Ministry of Education and Community Development, Suriname Education Plan (Paramaribo: 2004). In
2007 according to preliminary results reported by the Examen Bureau, the number students passing the test
remained 50%.
27
   De Ware Tijd. Ivan Cairo, Fraudeurs Financiën willen zaak in doofpot Schade al SRD 5,5 miljoen. 15
August 2007 http://www.dwtonline.com/website/nieuws.asp?menuid=37&id=32894 (24 September, 2007).
Analysis
More than just a means of controlling revenues and spending, national budgets can be
used as tools for building peace and ensuring human rights. As part of its enthusiastic
commitment to achieving the Millennium Development Goals, Suriname has committed
to increase enrollment in primary school from the current level of 85% to 100% by
2015.28 Efforts to monitor the budget process and social spending will be a major factor
in meeting the MDGs, not just as they pertain to education but also as they pertain to
development in general.

This budget analysis arose to respond to the repeatedly stated need for disaggregated data
on children in Suriname and the lack of budgetary resources dedicated to children,29
societal perceptions of over-employment of civil servants, inequitable distribution of
social spending prioritizing children in the coastal areas, and a concurrent increase in
attention to education in the interior districts by the ministry of Education. I was
supported in my planning and research by a team of professionals acting as UNICEF
program coordinators in the ministries of Health, Education, Planning and Development
Cooperation, Social Services and Regional Development.

 Since 1998 the Government of Suriname has been allocating 25% of the national budget
to the social sector, approximately two thirds of which were spent on salaries and
overhead costs, leaving only an estimated 30% of the available budget for the social
sectors to spend on programs.30 Thus, as reported by the Committee on the Rights of the
Child, “significant disparities exist in the quality and delivery of education between the
coastal areas and the interior and a large number of primary schools in the interior are
managed by teachers with limited training… the committee is concerned with the
significantly low primary school attendance rates of children living in the interior, almost
all belonging to indigenous and minority groups, and at the lack of early childhood
education.”31

Suriname is suited to budget reform work because of the high degree of support
expressed for increasing accountability and transparency from within the central
government. The child friendly budget initiative was readily adopted by the directors of
the ministries of Education and Finance, and during my research the civil servants with
whom I spoke were more than willing to share their documents, as well as their expertise.
A high degree of support from government ministries will be the biggest factor in further
budget analysis and government action on the recommendations that result from the
analysis.


28
   Government of Suriname, Millennium Development Goals 2005 Baseline Report.
29
   Committee on the Rights of the Child, Consideration of Reports Submitted by States Parties Under
Article 44 of the Convention. Second periodic reports of states parties due in 2000 (Geneva: August 2005,
January 2007).
30
   Ibid.
31
   Ibid.


Child Friendly Budget Analysis, Suriname                                                               11
I began with the years 2004-2007 because of the change in currency (Surinamese
Guilders to Surinamese dollars) and changes in budget structure after 2004.32 I have
given a broad overview of the trends in spending on education for these years, and have
spent the remainder of the paper outlining a tool to be used for further budget analysis.
This tool will be used for the education budget and the budgets in other social sectors.

Tool
The child friendly budget analysis tool presented in this paper is an effort to prompt
interest in making budget information available in forms that are publicly accessible and
readily understood by ordinary people in Suriname, so that citizens are able to impact the
budget process and demand accountability from their public servants. This type of
analysis has been initiated in many countries, primarily by civil society groups calling for
justice and equality in public finance. Such analyses have been done successfully in
South Africa33, Ecuador34, India35, Brazil36 and Ethiopia.37

I have first given an overview of the budget process in Suriname, then identified key
documents to use as sources of information about the budget and indicated where one
must go to obtain these documents. Finally, I present a series of analyses one can perform
to gauge the child-friendliness of the budget.

Increasing government spending on education by itself will not result in higher
enrollment or completion rates,38 and the same principle is true for the rest of the social
sector. Alongside child friendly budget monitoring there must also be significant
monitoring and evaluation of the quality of programs. Nevertheless, with ongoing
monitoring of the budget, and increased cooperation between the line ministries and the
Ministry of Finance to increase public financial reporting and accountability it should be
possible to “find” financial resources to dedicate to improving child welfare indicators.
Transparency
32
   In 2003, in order to make the budget more predictable, Suriname adopted a medium-term framework to
replace the former annual framework. Per Vincent Jubithana, Ministry of Finance Treasury Inspector,
interview with author, Paramaribo, 6 June 2007.
33
   “The Institute for Democracy in South Africa (IDASA) Children’s Budget Unit,” IDASA- IDASA
Home. 19 Sep 2007 <http://www.idasa.org.za> (19 Sep 2007).
34
   Rachel Bonham Carter, "UNICEF - Policy advocacy and partnerships for children's rights - UNICEF
encourages national budget-makers to focus on human rights," UNICEF - UNICEF Home, 1 Feb 2007.
<http://www.unicef.org/policyanalysis/index_38202.html> (11 Sep 2007).
35
   “Child Budget Work in India: HAQ’s Experience HAQ Center for Child Rights. 11 Sep 2007
<http://www.haqcrc.org> (11 Sep 2007).
36
  "International Budget Project," A Guide to Budget Work for NGOs, December 2001
< http://www.internationalbudget.org/resources/guide/guide1.pdf> (11 Sep 20007).
37
  See Tilahun Teshome’s May 2006 Child friendly budget report, written for Save the Children Sweden:
"Child Rights Information Network," CRIN - Child Rights Information Network - Home. 11 Sep 2007.
<http://www.crin.org/hrbap> (11 Sep 2007).
38
   Edward Anderson and Sarah Hague, “The Impact of Investing In Children: Assessing the Cross-country
Econometric Evidence,” working paper 280, Overseas Development Institute and Save the Children UK,
London, 2007, 22.


Child Friendly Budget Analysis, Suriname                                                           12
Public access to budget information is a key factor in civil engagement to monitor
spending. For this reason, the first and most important step in the process of creating
more open budgets is to make online information available to the public. Though all of
the documents required to do a basic budget analysis are public information, and should
be presented if requested, there is little precedent for such requests in Suriname.

Fortunately, there is an ongoing project through the Ministry of Finance’s IT Centrum to
automate the budget process and make it accessible online. I would encourage advocates
for children’s rights and open budgets to lobby for the automation process to include
public access to key financial documents. With its wide experience in publishing national
data for public consumption, ABS (Algemeen Bureau voor de Statistiek), the National
Statistics Office would be an ideal partner in this endeavor. Suriname does have the
capacity to produce the information needed for this type of analysis, (in most cases it is
already being produced) as well as the capacity to disclose it to the public. All that is
needed to make this a reality is an individual or group willing to spearhead the project to
bring the information into the sunshine.


Challenges
For successful use of this tool, steadfast support and participation from the Ministry of
Finance is essential. Another essential component is a commitment from a team of people
who are willing to go through the lengthy procedure of facilitating the re-coding of the
budget to disaggregate data, presenting it in a search-able format, and making it easily
accessible to stakeholders within the government and from civil society.

The greatest challenge I see to more activities-based budgeting moving forward is the
reluctance of leaders within the Ministry of Education to disaggregate data on spending
by age group, district, employee category, etc. The Director of the Ministry of
Education, Adiel Kallan, was very open about his reluctance to disaggregate the data on
spending within his ministry by district because, as he explained, “then they [the districts]
will demand it.” The lack of transparency in the public financial documents outlining
allocation of funds then, is at least in part by design. The broad and aggregated line items
in the budget are seen by management in the Ministry of Education as a required defense
against the delays faced between the request of funds from the Ministry of Finance and
time of receipt of funds requested. In order to ensure that sufficient funds are available to
complete planned projects, Mr. Kallan explained to me, he prefers to keep detailed
accounts of spending to a minimum. This trade-off between flexibility and transparency
is a difficult obstacle to overcome.

Additionally, the private religious schools which are currently heavily subsidized by the
Ministry of Education (in principle, the Ministry pays for all but the costs associated with
upkeep of the school buildings, furniture and some books) do not furnish financial
statements to the Ministry of Education. In the case of the Catholic schools, there has
been a lapse in the creation of audited reports since 2003. Similarly, the Moravian (EBG)


Child Friendly Budget Analysis, Suriname                                                  13
school organization has not produced financial statements since 1999. However, there is
no formal process in place to use the documents for auditing purposes even if they were
to be created.


Incentives

In addition to reducing inequality, investing in education (i.e. increasing school
enrollment and primary school completion) has been shown to produce the ripple effect
of positive impact on economic growth.39

As elimination of school enrollment fees has repeatedly been shown to boost school
attendance,40 I have focused part of my analysis on the role of fees in the budget of the
Ministry of Education. With more precise planning it appears that elimination of school
fees would have very little impact on the budget. In fact, Mr. Kallan proposed the
elimination of primary school enrollment and activities fees beginning in the school year
2008/2009, and estimated that to replace the revenues from these fees he would need to
add only 3 million SRD to the budget, which is less than 1% of the entire education
budget for 2007, and roughly equal to the unspent funds allocated to subsidize the private
religious schools (Bijzonder Lager Onderwijs) in 2006.

Incentives to conduct child friendly budget analysis in the social sectors:

     •   Possibility of finding funds within the existing budget to free up to spend on
         children, without having to secure new funds.

     •   Exposure of gaps in data on spending that hinder both the collection of data on
         children and efficient and effective allocation of funds and lead to overall better
         data management.

     •   Provide background for discussion in parliament, when budgets are being passed.

     •   Strengthen the ability of the public to advocate for children’s rights. For instance,
         when per-capita spending on education in each district is presented, constituents
         from those districts can advocate for their children’s schools more effectively.

     •   Give incentives for investment in Suriname. If the government can show that they
         prioritize spending on children, they can propose matching funds from donors as
         well as show the international business community that in addition to its rich


39
 Ibid.
40
 Glewwe, Paul and Michael Kremer, “Schools, Teachers, and Education Outcomes in Developing
Countries,” BREAD Policy Paper No. 009. 2005, 26.


Child Friendly Budget Analysis, Suriname                                                       14
        natural resources, Suriname possesses the resource of an educated and capable
        citizenry.

    • More transparency in the budget process will give an opportunity to civil society
        groups to become active in advocating for children’s rights, will strengthen the
        democratic process, and will build grassroots support for children’s development.

Use of this report
I sincerely hope that this report will stimulate discussion in the government and
multilateral institutions as well as clarify the budget process for citizen groups who wish
to examine the budget for themselves. Furthermore, I hope that this paper will be used as
an advocacy tool for more equitable and efficient distribution of public funds. Having
met with scores of civil servants in my research, and found them to be approachable,
committed to working for the public good, and supportive of justice, transparency and
equality in public spending, I am confident that further analysis of the budget will yield
concrete results.




Child Friendly Budget Analysis, Suriname                                                 15
Chapter 3. Overview of the Budget Process in Suriname

•   The fiscal year runs January through December

•   In May of the year before the budget will take effect (i.e. in May 2007 for the 2008
    budget), a committee of 4 people per line ministry department in the Ministry of
    Finance goes through the previous year’s approved budget and realized spending (the
    audit document “Begrotingsrekening” from the Centrale Begrotingsboekhouding/
    CCB (Central Budget Accounting Office). An example of this document from 2005 is
    included in Appendix G.

•   This committee calculates a ceiling number for the following year’s budget.

•   The Director of the Ministry of Finance gives approval and distributes the
    recommendation through the Ministry of Finance.

•   In May, the line ministries (Vakministeries), in this case the Ministry of Education
    and Community Development-MINOV), receive the budget ceiling and submit to the
    Ministry of Finance their requested budget, which usually exceeds the ceiling.

•   In May and June the requested budget and the supporting documentation go to the
    Thesaurie Inspectie (the Treasury Department of the Ministry of Finance) who
    combine the information and release a document to be circulated and discussed
    amongst the line ministries and the Ministry of Finance.

•   In July and August the line ministry and the Ministry of Finance try to reach
    agreement about the budget

•   If they cannot reach agreement, the President’s office settles the dispute

•   The Treasury Department compiles the budget document, with all the agreed-upon
    line items and distributes to the Council of Ministers (Raad van Ministers)

•   In August, the Council of Ministers makes comments and suggestions, and the
    Treasury Department makes corrections and prints out a final copy

•   The Minister of Finance submits the draft budget to the President and Parliament on
    the first working day in October. Parliament reviews and begins to debate the budget.

•   January 1st the new budget takes effect. An example of the budget document from
    2007 is included in Appendix G.

•   At the end of January the following year, the CBB creates an audited realization
    report on actual spending of the budget for each ministry for the previous year.


Child Friendly Budget Analysis, Suriname                                               16
3.1 Budget Preparation Calendar
                                                                          41
Table 6. De Begrotingsvoorbereiding (Budget Preparation Calendar, Phase 1)




                                                                           Vakministerie/L




                                                                                                                            Internal Affairs)
                                                                                                                            President/BIZA
Datum/periode




                                                          Ministerie van




                                                                                                           state advisory
                                                                                                           Assemblée &
                                                                                                           De Nationale


                                                                                                           Parliament &
                                                                                                           Staatsraad /
Time Frame




                                 Actie/Action




                                                                           ine Ministry




                                                                                                                            (Ministry of
                                                          Financiën/
                                                          Ministry of




                                                                                              Council of
                     Stap/Step




                                                                                              Raad van
                                                                                              Ministers/

                                                                                              Ministers
                                                          Finance




                                                                                                           Council
maart/april            1         Begrotingaanschrijvi     X
                                 ng naar
                                 vakministeries/
                                 Budget notification to
                                 the line ministries
mei                    2         Indiening Concept                         X
                                 Ontwerpbegrotingen
                                 bij de Thesaurie
                                 Inspectie/Presentatio
                                 n of draft budget to
                                 the treasury
                                 department
mei-juni               3         Ambtelijk overleg        Thesaurie/       BFZ/ Bureau
                                 met vakministeries/      Treasury         Financiele
                                 Official consultation                     Zaken (financial
                                 with the line                             affairs
                                 ministries                                departments of
                                                                           the ministries)
juli-                  4         Bilateraal politiek      X                X
augustus                         overleg met
                                 vakministeries/Bilate
                                 ral Political
                                 consultation with the
                                 line ministries
augustus-              5         Definitieve                                                  X
 st
1 week                           vaststelling
september                        ontwerpbegroting/Fin
                                 al determination of
                                 the draft budget
   nd
2 week                 6         Advies door de                                                            X
september                        Staatsraad/Input
                                 from the State
                                 Advisory Council
                st
Uiterlijk 1            7         Indiening van de                                                                           X
werkdag                          ontwerpbegroting
van                              aan de Nationale
oktober                          Assemblée/Presenta
(beginning                       tion of the draft
the first                        budget to parliament
workday
in October




41
  For a detailed description of the budget process in Dutch, see Toegang Tot De Surinaamse
Overheidsbegroting (Ministerie van Financiën, Maart, 2006) 56-84. Available in Suriname at VACO
bookstore.



Child Friendly Budget Analysis, Suriname                                                                                    17
                   en Goedkeuring begroting door de Nationale Assemblée
Table 7. Vaststelling
(Calendar of the Budget Approval Process, Phase 2)
Datum/Time     Actie/Action             Ministerie    Vakministerie/Line   President   De           BIZA
frame                                   van           Ministry                         Nationale    (Ministry
                                        Financiën/                                     Assemblée    of
                                        Ministry of                                    /            Internal
                                        Finance                                        Parliament   Affairs)
oktober/       Parlementaire            X             X                    X           X            X
november/      begrotingsdebatten en
december       goedkeuring/
               Parliament budgetary
               debates and approval
Uiterlijk 1    Bekrachtiging            X                                  X                        X
Januari/from   begrotingswetten
January 1st    door President en
               afkondiging in het
               Staatsblad door
               ministerie van
               Binnenlandse Zaken/
               Ratification of the
               budget into law and
               publication in the
               Government Gazette
               by the Ministry of
               Internal Affairs
1 januari      Inwerkingtreding van     X             X                                             X
               de nieuwe begroting.
               Kredietopeningen
               (start ven de fase van
               begrotingsuitvoering)/
               New budget takes
               effect, opening of
               credit accounts.
               (beginning of the
               budget execution
               phase )




3.2 Budget Structure
The budget document itself is a simple line item budget separated into three sections; 1.
Apparaatskosten (administrative costs) 2. Beleidsprogrammas (policy programs) and 3.
Middelenbegroting (revenues). Each line is coded and corresponds with a line in the CBB
end of the year audit document, which shows variance at the end of the year (what
percentage of the planned budget was spent in each category.) Apaaratskosten is divided
into 3 categories of expenses; Personnel costs, Materials costs and Acquisitions costs.
Beleidsprogrammas includes codes for Buildings and Renovations, each private school
receiving subsidies, and various projects funded through borrowing and donor funds.
Middelenbegroting includes all expected revenues from fees, donors and loans. Please
look in Appendix G to see the 2007 Education budget and 2005 Audited report on
spending.


Child Friendly Budget Analysis, Suriname                                                                18
Chapter 4. Budget Trends 2004-2007:
Please refer to Appendix G for an example of the budget documents and the
audited statements used to conduct this analysis.

4.1 Spending on Education as a percentage of the total national Budget42

From 2004-2006, spending on education averaged around 15% of the total budgeted
expenditures in Suriname.

Table 8. Education   as Percent share of Total Budget
(SRD)           2004              2005                2006                                2007
 Proposed       1,438,900,000     1,535,740,000       1,837,322,600                       2,162,899,000
total           (1.4 Billion)     (1.5 Billion)       (1.8 Billion)                       (2.16 Billion)
government
spending43
Proposed   239,006,000                 238,222,000              291,625,200               345,188,000
education  (239 Million)               (238 Million)            (291.6 million)           (345 Million)
spending44
           Proposed:16.6%              Proposed:15.5%           Proposed:15.8%
Realized   1,171,127,805               1,432,540,686            1,531,348,777             Proposed Percent
government (1.1 Billion)               (1.4 Billion)            (1.5 Billion)             Share 2007:
spending                                                                                  15.9%
Realized   202,021,300                 191,092,700              265,000,61045
spending   (202 Million)               (191 Million)            (265 Million)
on
education  Actual:17.3%                Actual:13.3%             Actual:14.4%




42
   To put Suriname’s spending into context, in the region, Trinidad spent 12.5% in 2007 according to Prime
Minister Patrick Manning’s 2006-2007 Budget Speech to the House of Representatives: " 2006 - 2007
Budget speech at Trinidad and Tobago News Blog," TRINIDAD AND TOBAGO NEWS: Trinidad and
Tobago News, Views, Cultural Events and Newspapers. 6 Oct 2006.
http://www.trinidadandtobagonews.com/blog/?p=90 (accessed 19 Sep 2007). Guyana spent 15.8% in 2003,
according to UNESCO figures: “United Nations Educational, Scientific and Cultural Organization,"
UNESCO, 19 Sep 2007. <http://www.portal.unesco.org/ed (19 Sep 2007).
43
   Ministry of Finance, Financiele Nota.
44
   Ministry of Finance, Begroting 2004-2007.
45
   Thesaurie Inspectie, Koppeling Naar kostensoort en Beleidsmaatregel.


Child Friendly Budget Analysis, Suriname                                                               19
4.2 Nominal Growth Rate:

Average nominal growth in the budgeted expenditures for education between 2004 and
2007 was 20.8 percent, but as you can see below, it varied widely, with a decrease in
2005 and large increases in 2006 and 2007.

Spending on Education 2004-2005: decreased 11 Million/5.5%

2005-2006: increased 73.9 Million/38.1%

2006-2007: proposed increase of 80 Million/30%

       Spending on Education 2004-2007
Table 9.
(SRD)                    2004          2005                             2006                  2007
                      46            47
Spending on Education    202,021,300   191,092,70048                    265,000,61049         345,188,000

*A note on salaries: The budgeted expenditures for salaries of Ministry employees
increased from actual spending in 2006: 145,294,000 to proposed 191,819,000 – a 32%
nominal increase, despite the fact that the same number of employees is projected. This
was explained by Mr. Kallan the Director of the Ministry of Education to be due to
compensation for inflation and compensation for the increased price of fuel, due to the
end of fuel subsidization by the government of Suriname

4.3 Real Growth Rate (taking inflation into account)50

Real Growth between 2004 and 2005 was a decrease of 13%
Real Growth between 2005 and 2006 was an increase of 24%




46
   Spending for years 2004, 2005 and 2006 is actual, and 2007 is proposed spending per the approved
budget.
47
   Thesaurie Inspectie, Koppeling Naar kostensoort en Beleidsmaatregel.
48
   Centrale Begrotingsboekhouding, Rapportages tot en met het 4e kwartaal Ministerie: Onderwijs 2004-
2006.
49
   Thesaurie Inspectie, Koppeling Naar Kostensoort en Beleidsmaatregel.
50
  Consumer Price Indices are as follows: (2000=1SRD) 2004:162, 2005:177.4, 2006:197.4. Algemeen
Bureau voor de Statistiek, Consumentenprijsindexcijfers en Inflatie Over mei 2007.
4.4 Total education expenditure as a percentage of GDP

Spending on education as a percentage of GDP in the Caribbean averages 4.9%.51 In
Jamaica in 2006, education spending was estimated to be between 6.1 and 6.4 % of
GDP.52 In Guyana in 2006 education spending was 8.5% of the GDP. Worldwide, the
figure varies greatly, with Denmark claiming the highest spending in the OECD
countries, at 8.1% and the Netherlands 2006 spending coming in at 5.7% of GDP.53

In Suriname, Spending on Education as a percent of GDP has averaged 4.7% in the last
three years, slightly lower than reported proportional spending on education in the last
two decades.

1990: 6% GDP was spent on Education54
2000: 5.5% GDP was spent on Education

Table 10.Spending on Education as a Percent of GDP: 2004-2006
(SRD)            2004            2005             2006
GDP at Market 3,677,465,000      4,402,389,000    5,802,000,000
Prices55         (3.6 Billion)   (4.4 Billion)    (5.8 Billion)

Education           202,021,30056          191,092,70057      265,000,610 58
Spending:
Spending on         5.4%                   4.3%               4.5%
Education as a
Percent of
GDP:



51
   World Bank, Latin America and Caribbean- A Time to Choose: Caribbean Development in the 21st
Century, April 26, 2005.
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/0,,contentMDK:20468612~page
PK:146736~piPK:146830~theSitePK:258554,00.html. (accessed September 19, 2007).
52
   UNESCO Institute for Statistics, Education Counts: Benchmarking Progress in 19 WEI Countries, 2006.
www.uis.unesco.org/template/publications/ wei2006/UIS_factsheet_2006_03_WEI_EN.pdf (accessed
September 19, 2006).
53
   Statistics Netherlands, Less Spent Per Student on Higher Education, 31 October 2006,
http://www.cbs.nl/en-GB/menu/themas/overheid-politiek/publicaties/artikelen/archief/2006/2006-2051-
wm.htm (accessed 19 September 2007).
54
   Government of Suriname, Millennium Development Goals 2005 Baseline Report.
55
  Algemeen Bureau voor de Statistiek, Statistical Yearbook 2005.
56
   Centrale Begrotingsboekhouding, Rapportages tot en met het 4e kwartaal Ministerie: Onderwijs 2004-
2006.
57
   Ibid.
58
  Thesaurie Inspectie, Koppeling Naar kostensoort en Beleidsmaatregel.


Child Friendly Budget Analysis, Suriname                                                           21
4.5 Comparison of Budgeted to Realized Expenditures59

      Budgeted Expenditures vs. Realized Expenditures
Table 11.
(SRD)         2004            2005            2006                                 2007 1st
                                                                                   quarter
Budgeted            239,006,000            238,222,000        291,625,200          345,188,000
Expenditures        (239 Million)          (238 Million)      (291 Million)        (345 Million)

Realized            202,021,300            191,092,700        265,000,61060        41,386,900
Expenditures        (202 Million)          (191 Million)      (265 Million)        (41 Million)
(per CBB)
Percentage of       85%                    80%                90.8%                11.9%61
Passed Budget
Reported as
Spent


Comparing the 2006 CBB end of the year audited report on realized expenditures from
the document “Koppeling naar kostensoort en beleidsmaatregel December 2006,”
(appendix J) which outlines funds released by the Treasury to Ministry of Education,
provided by the Treasury Inspection department, including expenditures incurred in
December, but not yet paid, we can see that although the CBB report shows total
expenditures to be 227,983,100 SRD, in fact, total expenditures for the period were
265,000,610 SRD.

Therefore, though the CBB Audit shows that there was a full 1.5 million SRD unspent
under Code 100 (Niewbouw, rehabilitatie en renovatie van scholen / new buildings and
renovations), in fact, 1.3 million of that had been spent by the end of December and was
not reported to the CBB.

Similarly, although the CBB report shows that 9 million SRD was left unspent under
Code- 103 (Bijzonder Lager Onderwijs / private school subsidies) only 3 million of the
total budgeted amount was left unspent.

The donor and loan funded projects, however, are not made more clear through the
“koppeling” document (appendix J) from the treasury department, and spending still
appears as zero. This is a vast understatement of actual spending, which was more likely
close to 100% of budgeted expenditures. These projects were in progress, so funds were

59
   Ministry of Finance, Begroting 2004-2007 & Centrale Begrotingsboekhouding, Rapportages tot en met
het 4e kwartaal Ministerie: Onderwijs 2004-2006.
60
   Thesaurie Inspectie, Koppeling Naar kostensoort en Beleidsmaatregel.
61
   I would expect spending to be closer to 25% at the end of the first quarter.


Child Friendly Budget Analysis, Suriname                                                           22
spent, however since information on expenditures was not relayed to the Treasury or the
CBB, they do not appear in either the official audit or the internal treasury document.

The project Studielening voor Hoger Onderwijs (Educational loans for higher education)
(Code 114) shows no expenditures, and in this case no expenditures were made, so a full
910,000 SRD (910 thousand) was left unspent. This was the case in the year 2005 as
well, when 950,000 SRD remained unspent.

From the “Koppeling” document, it is evident that for some categories, much of the
expenditures were incurred in December. The majority of spending under Code 100, for
instance (Nieuwbouw, Rehabilisatie an Renovatie van Woningen/New buildings and
renovations), occurred in the month of December (1,276,173 SRD out of total
expenditures of 2,030,853 SRD) Further, the entire amount allocated to code 109 (Stg.
Dierentuin, Med. Zending and Parima / The zoo, medical mission and the public pool)
was paid out in December62.

This preponderance of fourth quarter spending brings up questions about the allocation of
these funds. I recommend that further inquiry be done into quarter by quarter spending to
see how the funds for those line items with higher expenditures in the fourth quarter are
being used and if the use of the funds was as planned.

I see a large gap in financial control here, in that the official public documents reflect
neither all that is known about spending on Education, nor any information whatsoever
about programs that are funded by international donor organizations. As donor funds
make up the bulk of expenditures on programs, this is an important area for accurate
information to be relayed to stakeholders.




62
     Thesaurie Inspectie, Koppeling Naar kostensoort en Beleidsmaatregel.


Child Friendly Budget Analysis, Suriname                                                     23
4.6 Per Capita spending on education

*Please note that these figures are not precise. I believe that the information on total
spending in the CBB Audited end of the reports understates spending, and therefore per
capita spending for the years 2004 and 2005 is likely higher than appears here. I would
encourage further research into per capita spending to obtain more precise figures

Table 12. Per Capita Spending on Education
                 2004             2005                           2006                2007
#Pre-primary     16,214           16,975                         15,512              17,158
         63
students
#Primary         62,086           65,766                         65,249              66,305
Students
#MULO            19,829           20,194                         20,654              +/- 20,65464
students
#LBGO            6,567            6,750                          7575                +/- 7575
students
# LTO, EBO,      5,279            5,432                          +/- 5,432           +/- 5,43265
ETS, NO &
VBO Students
Total Students 109,975            115,117                        114,422       117,124
Total Spending 202,021,30066      191,092,00067                  265,000,61068 345,188,00069
Per Capita       1,837 SRD        1,659 SRD                      2,315 SRD     2,947 SRD
Spending*
* This does not take into account students of the teacher training colleges or tertiary education programs,
though the Ministry of Education does partially subsidize those programs


4.7 Growth in Per capita Spending:

Between 2004 and 2005: nominal decrease of 9%.
Between 2005 and 2006: nominal increase of 39%.
Between 2004 and 2005 real (inflation adjusted70) decrease of 17%.

63
   Algemeen Bureau voor de Statistiek, Statistical Yearbook 2004 & 2005. 2007 enrollment numbers from
Mr. Cruden, Primary School Inspector, interview with author, Paramaribo, August 14, 2007.
64
   Algemeen Bureau voor de Statistiek, Statistical Yearbook 2005.
65
   For 2006 and 2007 I have used the 2005 figures, as the more current data is not available.
66
   Algemeen Bureau voor de Statistiek, Statistical Yearbook 2005.
67
   Centrale Begrotingsboekhouding, Rapportages tot en met het 4e kwartaal Ministerie: Onderwijs 2004-
2006. Actual spending was probably higher.
68
   Thesaurie Inspectie, Koppeling Naar kostensoort en Beleidsmaatregel.
69
   Passed Budget for 2007, actual spending has not yet been reported, as the year has not finished.


Child Friendly Budget Analysis, Suriname                                                                      24
Between 2005 and 2006 real (inflation adjusted) increase of 25%.

These figures, as they are based on pupils who are enrolled in school for the given year,
do not take into account the number of out of school youth in the country.

In order to address inequalities in quality of and access to education in the interior, per
capita expenditures by district, as well as the amount spent per capita on programming
and administration are necessary. Unfortunately, there is insufficient dis-aggregation of
expenditures on education to be able to calculate these.

The centralized nature of the administration of schools hinders per capita analysis. With
the progression of de-centralization of government administration, there exists an
excellent opportunity to put the systems in place to track spending in this manner, if
leaders in the Ministry of Education are willing to reveal more details about spending on
education. If the will exists within the leadership of the Ministry of Education to tackle
this problem, dis-aggregation of the current budget line items will be a big step toward
achieving budget transparency.



4.8 Percent Share of the Education Budget Spent on Salaries and Some
Notes on Programs/Overhead Costs

Table 13.Percent of the budget allocated under the line item “Personeelskosten”
                                                                       2005 2006 2007
Percent of the budget allocated under the line item “Personeelskosten” 73% 55% 55%


Table 14. Estimated actual percentage of the budget allocated to Salaries71:
                                                                      2005 2006 2007
Estimated percentage of education budget spent on salaries            88%      74%     78%
The majority of the budget (I estimate between 75 and 90% for the years 2004-2007) is
spent on salaries of teachers and administrators, with no indication within the budget
documents themselves of the proportion of teachers to administrators. From the 2004
Statistical yearbook figures, however, we can estimate that around 25% of the employees
of the Ministry of Education are working in administration.72

70
 Consumer Price Indices are as follows (2000=1SRD) 2004:162, 2005:177.4, 2006:197.4 Algemeen
Bureau voor de Statistiek, Consumentenprijsindexcijfers en Inflatie Over mei 2007
71
   This figure includes the total expenditures listed under code 10 “personeelskosten” as well as 90% of the
total expenditures listed under Bijzonder Lager Onderwijs, Anton de Kom University, Stichting
Polytechnic College, and Christelijk Pedagogisch Inst.
72
   Total # Teachers 2004= 10,447 Total # others 2004: 3,413. Algemeen Bureau voor de Statistiek,
Statistical Yearbook 2005.


Child Friendly Budget Analysis, Suriname                                                                 25
Code 10: Personnel Costs (Personeelskosten) includes salaries of both teachers and
administrators who work directly under the Ministry of Education for the public school
system. Looking at the payments made from the treasury department toward salaries of
teachers at the private religious schools, it appears that around 90% of code 103 went to
salaries in 2006. (See document in appendix K,“Brutosalarissen Bijzonder Lager
Onderwijs volgens Cebuma”.) Spending of 90% of the subsidy on salaries would mean
that instead of the 144,294,100 SRD (144 million) reported as “Personnel costs” in 2006,
spending on salaries was closer to 186,836,020 SRD (186.8 million).

Employment of civil servants in the education sector is a large piece of the government
budget. Out of a total of 37,036 civil servants from all of the Ministries in 2004,73 37.4%
of them were employed under the Ministry of Education.

Though since 2006 the budget format separates expenses into two categories,
Administrative costs (Apparaatskosten) and Policy Programs (Beleidsprogrammas), in
fact there are expenditures both for programs and administrative expenses mixed into
each, and because the line items are very broad, with little explanation of the breakdown
of expenses within each category, it is difficult to determine the proportion of spending
on administration versus programs.

For instance, the line items Bijzonder Lager Onderwijs, Bijzonder Nijverheids Onderwijs
and Christelijks Pedagodische Inst. include expenditures on salaries, materials and
acquisitions, but there is no breakdown available that shows the expenses on teacher
salaries (program costs) and administrator salaries (administrative costs). Upon inquiry
into the role of subsidies from the Ministry of Education I found that religious schools do
not provide financial statements to the Ministry of Finance showing how subsidies are
spent, and in fact have not produced an audited accounting of their revenues and
expenditures in many years (since 2003 for the RK (Roman Catholic Schools) and since
1999 for the EBG (Moravian Protestant Schools).

Nearly all of the line items for programs are funded through international donors, and are
not overseen by the Ministry of Finance, so the precise spending on programs cannot be
detected in the budget or audit statements.




73
     Algemeen Bureau voor de Statistiek, Statistical Yearbook 2005, 47, table 8.1.


Child Friendly Budget Analysis, Suriname                                                 26
4.9 Regarding School Fees:

There has been debate worldwide about school fees and their influence on school
enrollment and educational achievement. Countries such as Uganda, Tanzania, and
Kenya drastically increased school enrollment when they eliminated school fees, with
Uganda nearly doubling enrollment in primary school74. Article 28 of the Convention on
the Rights of the Child binds signatories, of which Suriname is one, to provide primary
education free of charge, as well as free of additional costs in order to guarantee the right
to education.75 Furthermore, in interviews with UNICEF Suriname staff members,
families from interior districts have indicated that school fees are a key factor in keeping
their children (especially girls) out of primary school. Therefore, finding a way to
eliminate the fees currently paid for enrollment, transportation, and book rental would be
highly beneficial to children. If the Millennium Development Goal of increasing primary
school completion from 85% to 100% is to be reached by 2015, the children in the
interior of the country, who face the biggest barrier to education, must be especially
targeted. Because 70 percent of the schools in the interior are affiliated with religious
organizations, and therefore require higher school fees, a great task for further budget
analysis will be to construct a plan to eliminate the primary school fees charged to
children in the interior who do not have a choice (because of the paucity of schools in
their area) between public and private schools.

The public primary school fees for 2007 are 10 SRD, which students pay directly to the
school, in the form of deposits into the school’s bank account. Though the Ministry of
Education does not maintain financial oversight for these funds, we can estimate how
much revenue was received by schools by multiplying the number of primary school
students country wide by the 10 SRD fee:

Table 15.Revenue from primary school enrollment fees
Total # GLO students 200776       66,305
Total # Kleuter Students 2007     17,158
Total GLO+KL                      83,463    X 10 SRD                            =     834,630 SRD




74
   Glewwe, “Schools, Teachers, and Education Outcomes in Developing Countries,” 26
75
   Committee on the Rights of the Child, Consideration of Reports Submitted by States Parties, 63.
76
   Enrolment figures are from Mr. Cruden, Primary School Inspection Department, Bureau Lager
Onderwijs, interview with author, Paramaribo 14 August 2007.


Child Friendly Budget Analysis, Suriname                                                             27
In the Roman Catholic (RK) Schools, the 10 SRD fee is accompanied by a requested 95
SRD “Parental Contribution.” Approximately 28% of the total 13,225 primary and pre-
primary students in the interior attend Catholic school, approximately 35% attend public
school, and 30% attend Protestant Moravian (EBG) schools. The remaining 7% attend
various other specialty religious schools. For students living in the interior and attending
Catholic schools, the total fees that must be eliminated to achieve free universal primary
education are as follows:


Table 16.Revenues from interior RK parental contribution fees
Total # Interior GLO+KL             2791     X 95 SRD         =                       265,145 SRD


The Moravian (EBG) schools require an additional parental contribution of 40 SRD per
child for enrollment in school. Despite numerous attempts to meet with a representative
from EBG to obtain information to conduct my budget analysis, I was never able to
obtain precise enrollment figures or budgetary data from them. Therefore to estimate the
revenues from school enrollment fees in EBG schools I have multiplied the 40 SRD Fee
per child by the estimated 3,967 children (30% of all interior students) attending those
schools. The revenues from fees then that would need to be found elsewhere total
158,700 SRD.

Table 17.Estimated Revenues from interior EBG parental contribution fees
Total # Interior GLO + KL            3,967 X 40 SRD          = 158,680 SRD


Total funds needed to replace enrollment fee revenues from public primary schools
and from private primary schools located in the interior:

1,258,455 (1.2 million) SRD.

To put this figure into perspective, this is equal to less than 1% of the education budget
for 2007. A full 3 million SRD allocated to Bijzonder Lager Onderwijs in 2006 remained
unspent.

Of course, since the enrollment fees paid to schools are currently collected and used
under sole discretion of the principals of each school, if the fees were to be eliminated,
care must be taken not to deprive the schools of needed operating funds.77




77
  Mr. Karijomenggolo, head of Financial Affairs for Primary Education reports that these fees are used in
part to pay for student insurance coverage. (Mr. Karijomenggolo, interview with author, Paramaribo, 24
August 2007.)


Child Friendly Budget Analysis, Suriname                                                                28
Chapter 5. Instrument for Conducting a Child Friendly Budget
Analysis in Suriname

This tool is meant to be used by people with no specialized training to conduct a simple
budget analysis using publicly available documents.

5.1 Budget Analysis Calculations78

These simple calculations can be used to determine spending patterns over a number of
years and examine how resources are distributed within a national budget. Applying this
series of analyses to the budget of a ministry tasked with social spending should give one
an idea of whether or not the budget is achieving the goals of the people.

     •   Calculate Percent Share: Percentages can be used to measure how much a
         government prioritizes a certain item in the budget. (ex. Spending as a percentage
         of GDP or of the national budget)

     •   Calculate nominal growth rates: this describes the progress of an expenditure,
         how much the size of an allocation changes from one year to the next.

     •   Converting an allocation from nominal to real terms: this is a way to reflect the
         purchasing power of money at a particular time.

     •   Calculate the real growth in the budget- this gives you an idea of the progress in
         real terms.

     •   Calculate the average yearly real growth in the budget. This will show how the
         sector in question has been prioritized over the years.

     •   Calculate the per capita budget: this is a way to break down the budget into
         individuals, by taking the budget figure and dividing by the population number



78
  “7 tools to use to analyze if a budget is child friendly,” IDASA - Institute for Democracy in South
Africa., 19 Sep 2007, www.idasa.org.za (19 Sep 2007).


Child Friendly Budget Analysis, Suriname                                                                29
       •   Compare budgets to expenditure- if a department did not spend its budget, it
           might be wasting it or spending it inefficiently or if they spend more than the
           money allocates, it might mean that they spent funds on purposes for which they
           were not allocated.




5.2 Documents needed to conduct a child friendly Budget Analysis79 :

These are the key documents you will use to conduct your analysis. Contact persons are
listed in the next section. Before beginning the task of budget analysis, assemble the
following:

Budget (Begroting) from each year that is being analyzed

        • This is the legal budget that passed through Parliament.

        • Ideally you will analyze five years, so that you can see trends in spending. In
           Suriname, the budget format changed in 2004, so it may be best to start with that
           year.

        • The document can be obtained from the Thesaurie Inspectie, at Miranda Straat
          #17. The telephone number is 477189. Ask for the person in charge of treasury
          inspection for the particular ministry you are researching.



Rapportages tot en met het 4e kwartaal (audited budget Statement)

        • This is the document that shows how much of the allocated budget was spent
          from the year, by category.

        • To make sure it is accurate, you may want to double check with treasury
          department and see if funds were allocated that did not appear in the audited
          statement.

        • The document can be obtained from the Centrale Begrotingsboekhouding (CBB)
          Kerkplein 1, Tweede Etage (next to Surpost, building is unmarked) The


79
     All documents listed are public information.


Child Friendly Budget Analysis, Suriname                                                  30
           telephone number is 425169. Ask for the Rapportage from the particular ministry
           you are researching.


Financiele Notas This document compiles the entire national budget each year

       •   The document can be obtained from the Economic Affairs Office of the Ministry
           of Finance: the office is located on the Onafhangkelijkheids Plein, next to the
           Congreshall on Lim a Postraat, The telephone number is 476748 (office)

       •   Get the total government spending for each year you are looking at. You don’t
           need the entire Nota, you can ask them to print out only spending data.

Consumentenprijsindexcijfers (Consumer Price Index)

       •   You will need this to calculate real growth figures

       •   The document is called: “Consumentenprijsindexcijfers en Inflatie” and it is
           available on the ABS website www.statistics-suriname.org. However, to obtain
           the most recent data you might have to go to the office and pay for it.

       •   Algemeen Bureau voor de Stastiek (ABS)
           Klipstenen Straat 5
           Contact Mw. S.J, Valdink (Hoofd CPI) 597-470231


GDP for the years you are looking at.

       •   ABS publishes the yearly GDP in Table 1 of the Statistical Yearbook80
           Algemeen Bureau voor de Stastiek (ABS)
           Klipstenen Straat 5
           (www.statistics-suriname.org)




80
     The Economist also publishes GDP figures, www.eiu.com


Child Friendly Budget Analysis, Suriname                                                   31
5.3 Contact Persons for Budget Information at the Treasury Department
and the Line Ministries

Contact Persons at the Ministries for budget information:
Ministerie van Onderwijs en Volksontwikkeling               Mr. Kenneth Karijomeggolo.
(Ministry of Education and Community Development)           Assistant Permanent
                                                            Secretary, Min. of Education
                                                            Regarding financial and
                                                            Personal affairs.
                                                            Heerenstraat
                                                            Telephone # 474433
                                                            kkari88@hotmail.com

Ministerie van Sociale Zaken en Volkshuisvesting            Ms. Karina Sarigoeno
(Ministry of Social Affairs and Housing)                    Head of Financial Affairs,
                                                            Ministry of Social Affairs &
                                                            Housing
                                                            Kromme Elleboogstraat #5
                                                            Telephone #473547
                                                            k.sarigoeno2003@yahoo.com

Ministerie van Volksgezondheid                              Mr. Moesjap
(Ministry of Health)                                        410441

                .

Contact Persons at Treasury Department for budget information:
Ministerie van Onderwijs en Volksontwikkeling            Mrs. Elaine Campagne
(Ministry of Education and Community Development)        Mirandastraat #17
                                                         Tel #477189
                                                         ec42@hotmail.com



Child Friendly Budget Analysis, Suriname                                              32
Ministerie van Volksgezondheid                             Vincent Jubithana
(Ministry of Health)                                       Mirandastraat #17
                                                           Tel #477189
                                                           jubvin@yahoo.com

Ministerie van Sociale Zaken en Volkshuisvesting           Mrs. Hardwarsingh
(Ministry of Social Affairs and Housing)                   Mirandastraat #17
                                                           Tel #477189




5.4 To calculate spending as a percentage of GDP:

    •   Use the document “Statistical Yearbook” from ABS, and find GDP in Table 1 of
        the first page.
    •   Use the document “Rapportages tot en met het 4e kwartaal” from the same year.


Divide the total spending from the category you are looking at by the GDP:

Total                       GDP 2005                       X     100         Percent of GDP
Spending on
                    ÷                      =                            =
Education
2005 (SRD)
191,092,700         ÷   4,402,389,000 =        .04340     x    100 =         4.3 %
                        (4.4 Billion)
(Spending on education in 2005 was equal to 4.3% of Suriname’s GDP)




    5.5 To calculate spending as a percentage of the total budget:

    •   Use the document “Financiele Nota” and find the total expenditures for the year
        you are analyzing.
    •   Use the document “Rapportages tot en met het 4e kwartaal” from the same year,
        and find total spending.




Child Friendly Budget Analysis, Suriname                                             33
Divide the total spending from the category you are looking at by the total spending
in the national budget
Total                   National                          X     100        Percent of GDP
Spending on
                       ÷Budget 2005
                                                 =                                  =
Education
2005 (SRD)
191,092,700       ÷     1,535,740,000 =         .124      x     100 =      12.4 %
                        (1.5 Billion)
(Spending on education in 2005 was equal to 12.4% of the national budget)




     5.6 To calculate nominal growth in spending:
     • Use the document ” Rapportages tot en met het 4e kwartaal” Find the section
        with “Totale Uitgaven”, and note the figure under “Verevend”.


1. Find total spending for the years you are looking at in the “Rapportages”
(Surinamese       2007              200681           2005             2004
Dollars)
Spending on       345,188,000       265,000,610      191,092,70083    202,021,30084
Education82



2. Subtract spending in the current year from spending in the previous year:
Spending           Spending 2004                  Difference between
2005
                   -                                   =
                                                  2004 and 2005
191,092,700     - 202,021,300                =    10,928,600
(Between 2004 and 2005 spending decreased by 10.9 million SRD)



Spending           Spending 2005                  Difference between
2006
                   -                                   =
                                                  2005 and 2006
265,000,610    - 191,092,700                =     73,907,910
 (Between 2005 and 2006, spending increased by 73.2 million SRD)
81
   Thesaurie Inspectie, Koppeling Naar kostensoort en Beleidsmaatregel.
82
   Spending for years 2004, 2005 and 2006 is actual, and 2007 is proposed spending per the approved
budget.
83
   Centrale Begrotingsboekhouding, Rapportages tot en met het 4e kwartaal Ministerie: Onderwijs 2004-
2006.
84
   Ibid.


Child Friendly Budget Analysis, Suriname                                                            34
3. Calculate growth as a percentage:

Take the difference between the two years and divide it by the first year:
Difference         Spending 2004                        X    100         Percent
between
                  ÷                        =                       =     Change
2004 and
2005
10,928,600     ÷ 202,021,300              =     .054 x       100 =       5.4%
(Between 2004 and 2005, there was a nominal decrease in educational spending of 5.4%)
Difference         Spending 2005                        X    100         Percent
between
                  ÷                        =                       =     Change
2005 and
2006
73,907,910     ÷ 191,092,700              =     .386 x       100 =       38.6%
(Between 2005 and 2006, there was a nominal increase in educational spending of
38.6%)




Child Friendly Budget Analysis, Suriname                                          35
5.7 To calculate real growth in spending (adjusted for inflation):

        •   Use the document “Consumentenprijsindexcijfers en Inflatie” from ABS
        •   Use the document “Rapportages tot en met het 4e kwartaal” from CBB

   1. Divide the actual spending, by a “deflator”. In this case, we are using the
      consumer price index as the deflator. Make a grid as follows and divide total
      spending by the deflator:
Year    Spending on                 Deflator                    Deflated Spending
        education
                                      ÷
                                    (Consumer Price
                                                            =
                                    Index)
2004    202,021,300            ÷ 162                     =      1,247,045
2005    191,092,700            ÷ 177.4                   =      1,077,185
2006    265,000,610            ÷ 197.4                   =      1,342,454

        •   The figure for deflated spending only means spending for that year in 2000
            prices, do not think too much about it, you only care about the change from
            year to year.

   2. Take the deflated spending and figure out the percent change from year to
       year. To do this, follow the same steps as above for nominal change: subtract
       the deflated spending for the current year from the deflated spending for the
       previous year:
Deflated            Deflated spending 2005         Difference between
Spending
                  -                             =  2004 and 2005
2004
1,247,045       - 1,077,185                  =     169,860


   3.Divide the difference between the two years by the first year to find your
    percent growth (or shrinkage, in this case):
Difference          Deflated spending                  X      100        Percent
between
                  ÷ 2004
                                              =                       =  Change
2004 and
2005
169,860        ÷ 1,247,045                 =     .136 x       100 =      13.6


We can see by using the deflator, that although nominal spending between 2004 and
2005 decreased only by 5.4%, in real terms, the decrease was 13.6%.




Child Friendly Budget Analysis, Suriname                                                  36
5.8 To make a comparison between Proposed Spending and Realized
Spending:

        •   Use the document “Begroting” from the Treasury Department.
        •   Use the document “Rapportages tot en met het 4e kwartaal” from CBB

        1. Add the figures for spending on Administration “apparaatskosten” and
           Programs “Beleidsprogramma’s” to come up with the total proposed
           spending for the year: (these are 2007 figures)

Apparaatskosten        +     Beleidsprogramma’s   =       Totaal
                                                          Uitgaven
235,356,000            +     109,832,000          =       345,188,000

        2. Compare this to the “Totale Uitgaven” from the CBB statement.

        •   if the totale uitgaven from the CBB statement is not close to 100%, check with
            the Treasury Department and see if all of the expenditures for the year were
            not included in the end of the year audit (Rapportage)



5.9 To calculate what percent of the budget is made up of a particular line
item (salary costs, for instance):

        •   Use the document “Begroting” from the Treasury Department. (if you want to
            see proposed percentage)
        OR
        • Use the document “Rapportages tot en met het 4e kwartaal” from CBB (if you
           want to see realized percentage)

    1. Divide the total expenditures for that line item by the total expenditures for
       the whole budget.
Total spent on             Total Education                      X    100      Percent
Personeelskosten
                       ÷   spending 2005
                                                  =                        =  Change
2005
140,077,400          ÷ 191,091,800                =    .733 x        100 =    73.3
(73.3 percent of the total education budget in 2005 went to personnel costs)




Child Friendly Budget Analysis, Suriname                                               37
5.10 To calculate per capita spending:

        •    Use the document “Rapportages tot en met het 4e kwartaal” from CBB
        •    Find population figures for the people using the service (all students in
             primary and secondary school for instance) try looking in the statistical
            yearbook, or ask the department you are researching for population numbers

Divide the total spending by the number of people
Total spent on               Total number primary and               SRD
Education 2005
                            ÷secondary students 2005
                                                              =
191,092,000             ÷ 115,117                             =     1659.9
(1659.9 SRD was spent per student in 2005)




5.11 To calculate Nominal growth in per capita spending:

   1. Take the per capita figures you calculated above and subtract the second
      year from the first year.
Per Capita        Per capita Spending             Difference between
Spending
                  -
                  2005
                                               =  2004 and 2005
2004
1,837         - 1,659                       =     178



    2. Divide the difference between the two years by the first year to find your
     percent growth (or shrinkage, in this case)
Difference           Per capita spending                X      100         Percent
between
                  ÷  2004
                                             =                       =     Change
2004 and
2005
178             ÷ 1,837                     =    .096 x        100 =       9.6%
(Between the years 2004 and 2005 there was a 9.6 percent decrease in per capita
spending)




Child Friendly Budget Analysis, Suriname                                             38
5.12 To calculate Real growth in per capita spending (adjusted for
inflation):

    •   You are going to use a “deflator” as above when you calculated real growth in
        total expenditures. In this case, we are using the consumer price index as the
        deflator. (get the CPI from Algemeen Bureau voor de Statistiek) Make a grid as
        follows:

1. Divide per capita spending by the deflator.
Year      Per Capita                 Deflator                      Deflated Spending
          Spending
                                      ÷
                                     (Consumer Price
                                                             =
                                     Index)
2004      1,837                 ÷ 162                        =     11.33
2005      1,659                 ÷ 177.4                      =     9.35
2006      2,315                 ÷ 197.4                      =     11.72


        •   The figure for deflated spending only means spending for that year in 2000
            prices, do not think too hard about it, you only care about the change from
            year to year.


   2. Take the deflated spending and figure out the percent change from year to
       year. To do this, follow the same steps as above: Subtract the deflated
       spending from year 2005 from the deflated spending from year 2004.
Deflated           Deflated spending 2005          Difference between
Spending
                  -                             =  2004 and 2005
2004
11.33          - 9.35                        =     1.98


   3.Divide the difference between the two years by the first year to find your
     percent growth (or shrinkage, in this case)
Difference          Deflated spending                  X      100        Percent
between
                  ÷ 2004
                                              =                        = Change
2004 and
2005
1.98            ÷ 11.33                     =    .174 x       100 =      17.4

So, we can see by using the deflator, that although nominal per capita spending
between 2004 and 2005 decreased only by 9.6%, in real terms, the decrease was 17.4%.




Child Friendly Budget Analysis, Suriname                                                  39
Chapter 6. Recommendations

     6.1 GENERAL:
     Assemble a budget reform team to identify and fill in the gaps in the current
     budget process

     •   Representatives from the Ministries of Education, Planning and Development
         Cooperation, the Treasury Department, the CBB etc. can come up with a plan to
         disaggregate data and search out more data on spending.

     •   At least one member of the team should have a background in accounting.

     •   Members of civil society groups and child rights advocates can be included to
         provide perspective on issues particular to children.

     •   Timeline: Beginning of the budget cycle= January 1st 2008-December 2010

     •   Team should be identified before January 2008

     •   Parliament discusses the budget in October 2008.

     •   By the time the budget is up for discussion in parliament it should be very clear
         how the proposed budget will affect children in each of the districts and at all age
         levels.

     •   Goals: re-code the budget, make budget information publicly available

     •   Coordinate with ABS (Algemeen Bureau voor de Statistiek) and the Ministry of
         Finance’s IT Centrum to put budget information on the internet
            o Basic public financial documents, such as the Financiele Notas, the budget
                for each ministry and the CBB reports should be made publicly available
                online.

To acquaint themselves with Suriname’s budget, the team should administer the “Open
Budget Questionnaire” designed by International Budget Project to gather data when
beginning the process of tracking the budget process.
www.openbudgetindex.org/#CountrySummariesandQuestionnaires85



85
  International Budget Project –Open Budget Index, 19 Sep 2007. www.openbudgetindex.org (19 Sep
2007)


Child Friendly Budget Analysis, Suriname                                                          40
    •   The team can also make themselves familiar with the budget by discussing the
        CBB Rapportage from each quarter and asking:
           o What percent of the entire budget is spent? (should be around 25% per
               quarter)
           o Which line items show no expenditures or high expenditures? Why?
           o Is it possible to get a clear picture of spending for each activity, or are line
               items too aggregated to see what resources are invested in a particular
               program?

    • Consider inviting child friendly budget specialists Yoriko Yosukawa and Daniel
    Badillo to make a presentation to stakeholders and leaders within the Ministry of
    Finance86

    • Use the Child Friendly Budget Analysis Tool provided in this report to evaluate
    the budgets of Ministries tasked with social spending.

6.2 MINISTRY OF FINANCE:

Use the financial controls that already exist

    •   Treasury department (Thesaurie) and Central Budget Auditors (CBB) are not fully
        performing their tasks to monitor spending and support accountability due to:

             o    The ways data are presented
                     In the education budget Beleidsprogrammas currently contains line
                       items that mingle program expenses and administrative expenses
                     Similarly, Personeelskosten currently mingles Administrative costs
                       (Onderwijs administrators) and programmatic costs (Teachers)

             o Data which are not presented
                   Projects funded through borrowing (IDB Basic Education
                     Improvement Plan)
                   Projects funded by donors (UNESCO, UNICEF, Belgium, etc)
                   Subsidies to non-public educational institutions


Or contact Pamela Gomez of the Open Budget Initiative: International Budget Project, Center on Budget
and Policy Priorities, 820 First Street, NE, Suite 510, Washington, DC 20002 Tel: 202-408-1080.
Gomez@centeronbudget.org
86
   Yoriko Yosukawa- UNICEF Officer in New York (212-326-7088) Child Friendly Budget Specialist.
Daniel Badillo- UNICEF consultant and former Minister of Finance and Economy in Ecuador:
bd@uio.satnet.net, dabadillo@hotmail.com, tel: 593-992-02000 or 593-222-24550. Mr. Badillo performed
a re-structuring and automation of the National and regional budgets, making them searchable and track-
able by region, category (program/administrative expense), project, institution, etc.


Child Friendly Budget Analysis, Suriname                                                             41
Conduct the budget audit on an accrual basis
   • The yearly CBB audit should take into account expenses when they are incurred,
     not when the cash has left the bank account
   • Please see appendix H for Generally Accepted Accounting Principles

6.3 MINISTRY OF EDUCATION:

Eliminate primary school enrollment fees to comply with the Convention on the
Rights of the Child

       •   As part of the Sectorfonds project to strengthen primary education, schools will
           receive lump sum stipends of US $20,000 each87

       •   Put the necessary systems in place to make each school accountable to the
           Ministry for spending these funds.

       •   Extend the same system of accountability to the funds that will replace enrollment
           fee revenues.


Make the Yearly Budget and CBB Rapportage useful as planning tools
  • Report all expenditures to the Treasury and CBB
         o Donor-funded programs
         o Loan-funded programs
         o Planned spending that has been incurred during the fiscal year


Track spending by district and program
   • Take advantage of the decentralization process to put systems in place to track per
      capita spending in each district.

       •   At the beginning of the next budget cycle, January 2008, an administrative team
           from the Ministry of Education familiar with finance should be assigned to
           itemize the budget so as to make it easier to disaggregate and code.

Specific codes that should be included in a re-designed budget:

           In each District
                  Revenues:          School fees received at Kleuter level
                                     School fees received at GLO level
                                     School fees received at MULO level
                                     School fees received at LBGO level
                                     School fees received from the technical schools
87
     As explained by Mr. Kallan, interview with author, Paramaribo, 20 August 2007.


Child Friendly Budget Analysis, Suriname                                                      42
                Expenditures: Salaries for Teachers at Kleuter level
                              Salaries for Administrators at Kleuter level
                              Salaries for Teachers at GLO level
                              Salaries for Administrators at GLO level
                              Salaries for Teachers at MULO level
                              Salaries for Administrators at MULO level
                              Salaries for Teachers at LBGO level
                              Salaries for Administrators at LBGO level
                              Salaries for Teachers at technical schools
                              Salaries for Administrators at technical schools

                                 Materials Expenditures at Kleuter level
                                 Materials Expenditures at GLO level
                                 Materials Expenditures at MULO level
                                 Materials Expenditures at LBGO level
                                 Materials Expenditures at technical schools
                                 Nieuwbouw/rehabilitatie at Kleuter level
                                 Nieuwbouw/rehabilitatie at GLO level
                                 Nieuwbouw/rehabilitatie at MULO level
                                 Nieuwbouw/rehabilitatie at LBGO level
                                 Nieuwbouw/rehabilitatie at technical schools
                                 Aanschaffingen at Kleuter level
                                 Aanschaffingen at GLO level
                                 Aanschaffingen at MULO level
                                 Aanschaffingen at LBGO level
                                 Aanschaffingen at technical schools

Demand and facilitate accountability from programs that receive subsidies from the
Ministry of Education

    •   Since the majority of their expenses are paid by the public funds, subsidized
        organizations must be held accountable to the public

    •   All of the schools receiving subsidies from the Ministry of Education should
        provide yearly financial statements to the Financial Affairs departments of the
        Ministry

    •   Documents should report on the categorical breakdown of subsidies spent: teacher
        (program) salaries, Administrative (overhead) salaries, Materials (Administrative
        and Programmatic)

    •   Require RKBO to produce audited financial statements. (None since 2003)




Child Friendly Budget Analysis, Suriname                                                  43
      •    Require EBG to produce audited financial statements. (None since 1999)

      •    Require individual schools to report on spending of enrollment fee revenues

      •    Timeline: In March of the following year, organizations should present the
           Ministry of Finance (Treasury/CBB) and the Ministry of Education with audited
           financial statements of the year’s spending,

      •    This information can then be included in the process to assemble the next year’s
           budget.

Last but not least:
Code 80.50.09 (opbrengst boekenhuur) is the revenue that comes from books that have
been lost and must be replaced. The budget for 2007 (pg 33) states that it is the 1.5 SRD
that the MULO/LBGO/VOS students pay to rent their books.88

Code 80.50.07 (Examen en inschrijfgelden)) is the revenues from fees paid by adult
learners (Bigisma Skoro) to the CBD. This should be clarified, since many people falsely
assume that it is the school enrollment fees paid by children to enroll in primary and
secondary school.


6.4 UNICEF:

      •    In order to make a stronger case for the elimination of school fees, UNICEF or
           another children’s advocacy organization should provide quantifiable evidence of
           the impact of fees on enrollment in the interior districts.

               o    For example, survey families of out of school youth in the interior and
                   record reasons they are not in school.



      •    Encourage the formation of a youth group to monitor the budget process- perhaps
           through the university’s Master in Policy and Development program.

               o Look at South Africa’s Institute for Democracy for models on encouraging
                 participatory budgets


      •    Support a yearly child friendly budget analysis by the budget team


88
     Ministry of Finance, Begroting 2007.


Child Friendly Budget Analysis, Suriname                                                      44
            o Disseminate in hard copy to government ministries and child rights
              advocates
            o Post the results on the internet

Appendix A.
Reference Materials & Resources
"2006 - 2007 Budget speech at Trinidad and Tobago News Blog." TRINIDAD AND
       TOBAGO NEWS: Trinidad and Tobago News, Views, Cultural Events and
       Newspapers. 6 Oct 2006. http://www.trinidadandtobagonews.com/blog/?p=90
       (19 Sep 2007).

Algemeen Bureau voor de Statistiek. Consumentenprijsindexcijfers en Inflatie Over mei
      2007. 19 June 2007.
      http://www.statistics-suriname.org/ publicaties/cpi/cpi-feb06.pdf (19 Sep 2007).

Algemeen Bureau voor de Statistiek. Statistical Yearbook 2000, Suriname in Cijfers no.
      195 – 2001/06. Paramaribo: ABS, November 2001.

Algemeen Bureau voor de Statistiek. Statistical Papers 3&4: Etniciteit in Surinaamse
      Volkstellingen vanaf 1950, Bergen en Dalen in de Surinaamse Economie: de
      Ontwikkeling van het Bruto Binnenlands Product 1956-2004,
      Brandstofprijsverhoging: Korte termijn effecten op de consumentenprijsindex,
      Enige effecten van de brandstofprijsverhoging op de economie: een macro-
      economische beschouwing. Paramaribo: ABS, October 2005.

Algemeen Bureau voor de Statistiek. Census Kantoor. Zevende Algemene Volks en
      Woningtelling in Suriname (2004 Census)Landelijke Resultaten, Volume II,
      Werkgelegenheids en onderwijskarakteristieken Suriname in Cijfers no. 216 –
      2005/05. Paramaribo: ABS, November 2005.

Algemeen Bureau voor de Statistiek. Statistical Yearbook 2004 Suriname in Cijfers no.
      217 – 2005/06. Paramaribo: ABS, November 2005.

Algemeen Bureau voor de Statistiek. Basis Indicatoren 2005-1 (Suriname Basic
      Indicators) Suriname in Cijfers no 214-2005/03. Paramaribo: ABS, October 2005.

Algemeen Bureau voor de Statistiek and Ministerie van Sociale Zaken. Multiple
      Indicator Cluster Surveys (MICS) 2006, Custom Tables and Additional Tables
      Paramaribo: ABS, May 2007.

Anderson, Edward and Sarah Hague. “The impact of investing in children: assessing the
      cross-country econometric evidence,” working paper 280, Overseas Development



Child Friendly Budget Analysis, Suriname                                                45
        Institute, London, June 2007.
        http://www.odi.org.uk/publications/working_papers/wp280.pdf (access date?)

Badillo, Daniel. Social Spending in Ecuador. New York: Eyes on the Budget Conference,
       Jan 2007. Power point.

Cairo, Ivan. De Ware Tijd. Fraudeurs Financiën willen zaak in doofpot Schade al SRD
        5,5 miljoen. 15 August 2007.
        http://www.dwtonline.com/website/nieuws.asp?menuid=37&id=32894 (24
        September, 2007).

Catalyst, Hakikazi, Repoa, and Tgnp. "International Budget Project." A Guide to Budget
       Work for NGOs. December 2001.
       http://www.internationalbudget.org/resources/guide/guide1.pdf.(11 Sep 2007).

Carter, Rachel Bonham. "UNICEF - Policy advocacy and partnerships for children's
        rights - UNICEF encourages national budget-makers to focus on human rights."
        UNICEF - UNICEF Home. 1 Feb 2007.
        http://www.unicef.org/policyanalysis/index_38202.html
        (11 Sep 2007).

Centrale Begrotingsboekhouding. Rapportages tot en met het 4e kwartaal Ministerie:
       Onderwijs en Volksontwikkeling. Paramaribo: Ministry of Finance, 2004.

Centrale Begrotingsboekhouding. Rapportages tot en met het 4e kwartaal Ministerie:
       Onderwijs en Volksontwikkeling. Paramaribo: Ministry of Finance, 2005.

Centrale Begrotingsboekhouding. Rapportages tot en met het 4e kwartaal Ministerie:
       Onderwijs en Volksontwikkeling. Paramaribo: Ministry of Finance, 2006.

Centre for Child Rights, a non-profit society founded in 1999. 11 Sep
       2007.<http://www.haqcrc.org>. Child Budget Work in India: HAQ’s Experience
       (11 Sep 2007)

"Child Rights Information Network." CRIN - Child Rights Information Network. 11 Sep
       2007. http://www.crin.org/hrbap (11 Sep 2007).

Committee on the Rights of the Child. Concluding Observations of the Committee on the
     Rights of the Child: Suriname Consideration of Reports Submitted by States
     Parties Under Article 44 of the Convention, January 2007,Geneva, 44th session,
     Jan 2007.

The Economist Intelligence Unit Country Report: Suriname: November 2004, July 2007
      Economist Intelligence Unit. (1999). The economist intelligence unit database
      access. EIU country data. London: Economist Intelligence Unit. www.EIU.com


Child Friendly Budget Analysis, Suriname                                               46
Glewwe, P., & M. Kremer. Schools, teachers, and education outcomes in developing
     countries [electronic resource]. Cambridge, Mass.: Center for International
     Development at Harvard University, 2005.
     www.cid.harvard.edu/bread/papers/policy/p009.pdf (19 Sep 2007)

Government of Suriname. Millenium Development Goals Baseline Report. Paramaribo:
      2005.

Graça, Machel. Child Friendly Budget: We Have The Knowledge, We Have The
       Resources And We Have The Capacity, And So It Is Totally Unacceptable That
       We Allow Millions of Children To Suffer So Cruelly. Produced jointly through the
       efforts of Save the Children UK, Ghana Country Programme, The Institute for
       Democracy in South Africa (IDASA) and the Centre for Budget Advocacy,
       ISODEC. UK: 2005.

Hanushek, E. A., & Program on Education Policy and Governance. Distributional
      outcomes of the organization of U.S. schools [electronic resource] : Peers, school
      quality, and achievement. Cambridge, 2004.
      www.ksg.harvard.edu/pepg/PDF/events/Munich/PEPG-04-19Hanushek.pdf (19
      Sep 2007)

IDASA - Institute for Democracy in South Africa." IDASA - Institute for Democracy in
     South Africa. 19 Sep 2007. http://www.idasa.org.za. (19 Sep 2007).

IMF -- International Monetary Fund. Suriname: Statistical Appendix. 10 Apr 2006.
       http://www.imf.org/external/pubs/cat/longres.cfm?sk=19124.0. (accessed 19 Sep
       2007).
       (contains information on Consumer Price Indices and Inflation Rates for the
       period 2003-2004, estimated by IMF staff, when ABS lost the data in a fire)

International Budget Project. Open Budget Initiative. 19 Sep 2007.
        www.openbudgetindex.org. (19 Sep 2007).

James, Vanus. Final Report on The Poverty Eradication Program Plan of Suriname
       Prepared for UNDP and the Government of Suriname. Paramaribo, June 2001

Kremer, Michael "Randomized Evaluations of Educational Programs in Developing
      Countries: Some Lessons," American Economic Review 93(2), May 2003, pp.
      102-106. www.economics.harvard.edu/faculty/kremer/papers.html (19 Sep 2007).

McCarthy, Jack. “Financial Accountability: Key Questions.” Class notes from




Child Friendly Budget Analysis, Suriname                                             47
        STM 601M Financial Management in Public and Nonprofit Organizations
        Harvard University Kennedy School of Government, Cambridge, MA. Spring
        2007.

Mcmahon, T. What is the Difference between Inflation and the Consumer Price Index?
     2007, http://www.inflationdata.com (Retrieved September 11, 2007).

Ministry of Education and Community Development Suriname Education Plan.
       Paramaribo: MINOV, September 2004

Ministry of Finance of Suriname. Toegang tot de Surinaamse Overheidsbegroting
       (Guide to the Surinamese National Budget) Actuele ontwikkelingen op het gebied
       van overheidsfinanciën. Paramaribo:Ministry of Finance, March 2006.

Ministry of Finance, Financiele Nota. Paramaribo: Economic Affairs Office, 2004-2007.

Ministry of Finance, Begroting. Paramaribo: Thesaurie Inspectie office: 2004-2007.

Ministerie van Onderwijs en Volksontwikkeling. Baseline Study Primary Education and
       Strengthening of MINOV Procedures and Systems Implementation. Basic
       Education Improvement Project Eindrapport. Paramaribo: MINOV, April 2006.

Nguyen Thi Van Anh et al. Child-Focused Budget Study: Assessing the Rights to
      Education of Children with Disabilities in Vietnam. Hanoi: 2000.

Pérez-Calle, Francisco & Juan Saavedra. Suriname Poverty and Social Safety Net
       Assessment. Suriname: January 2005.
       Per request from the Inter American Development Bank

United Nations. Office of the High Commissioner for Human Rights. The Core
       International Human Rights Treaties. New York: United Nations, 2006.

United Nations. Office of the High Commissioner for Human Rights. UN Convention on
       the Rights of the Child. Second periodic reports of States parties due in 2000:
       Suriname (CRC/C/SUR/2). Geneva: 22 August 2005.

United Nations. United Nations Children’s Fund. Medium-Term Strategic Plan 2006-
       2009 Investing in Children: the UNICEF contribution to poverty reduction and
       the Millennium Summit agenda, United Nations Economic and Social Council
       E/ICEF/2005/11. New York: UNICEF, July 2005.

United Nations. “United Nations Educational, Scientific and Cultural Organization ."
       UNESCO. 19 Sep 2007. http://www.portal.unesco.org/ed (19 Sep 2007).




Child Friendly Budget Analysis, Suriname                                               48
World Bank. "Latin America and Caribbean - A Time to Choose: Caribbean
      Development in the 21st Century". April 26, 2005.
      http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/0,,cont
      entMDK:20468612~pagePK:146736~piPK:146830~theSitePK:258554,00.html
      (accessed September 19, 2007).



Appendix B.
Interview Calendar
Tues June 5th

9:00 Program Coordinators from UNICEF:

12:00 Director of Ministry of Finance- Mrs. Wijnerman
Director of Treasury -Mrs. Halfhide, Director of Economic Affairs- Monica Tamarin,
UNICEF Officer for Child Protection- Rene van Dongen,
Granted permission to work on the child friendly budget analysis, pledged support from
the Ministry of Finance

Wed June 6th:
8:30Vincent Jubithana, Thesaurie Inspectie
Provided budgets for 2004-2007, Outlined the budget process

Karina Sarigoeno: Head of Financial Affairs for Ministry of Social Affairs and Housing
(Financiele Zaken van Ministerie van Sociale Zaken)
& Melissa Wongsodikromo: Ministry of Social Affairs & Housing
Feedback and planning of report

Monday June 11
Mr. A.K. Kallan, Dir. Ministry of Education
Minister of Education, Mr. Wolf
Rene van Dongen (UNICEF),
Johannes Weidening (UNICEF Representative),
Ruhi Ardjomandi UNICEF consultant for Education in the Interior
Presella Young A Fat (PLOS)
Rangini Nandellal (PLOS)
Bert Ersteling (Interior Education/Onderwijs Binnenland)
Presented the project and granted permission to work with Min. Education, Mr. Kallan
pledged full support of the project.

Tuesday June 12
Vincent Jubithana



Child Friendly Budget Analysis, Suriname                                               49
Robert Sohadie, Deputy Head of Office, Centrale Begrotings Boekhouding (Central
Budget Auditors)
Received the end of the year audited statements (Realizations) for 2004, 2005, 2006, first
quarter 2007. Vincent explained the decentralization process.

Karina Sarigoeno
Outlined plan for report, got feedback. Received thesis paper of Karina.

Tuesday June 26, 2007
Jack McCarthy,
Professor of Financial Management in Public Sector Organizations at Harvard
University, Kennedy School of Government
Discussed education budgets, possible approaches to analysis

August 6, 2007
Algemeen Bureau voor de Statistiek (ABS)
Met with Mw. S.J, Valdink (Head of Consumer Price Index Information)
Discussed the missing CPI & inflation numbers from 2004
(there was a fire in the office and all the data was lost)

August 7th 2007
Presella Young a Fat
Met to discuss questions for the Ministries of Education and Finance. Looked over the
Education budgets and the Financiele Notas

August 8th 2008
Steering Committee progress report

August 14th
8:30: Ministry of Finance- Treasury Dept: Mrs. Campagne
Discussed inspection of the education budget, line items that were not spent

10:00 Ministry of Education:
Onder Direktorat Administratie Dienst
Under Director for Administration, Mr. Karijomeggolo,
Mr. Mans: Head of Financial Affairs
Mr. Dielingen- Budget Advisor
Discussed the Education budget, line items that were not spent, breakdown between
teacher and administrative salaries, requested breakdown of spending by district,
subsidies to religious schools, school enrollment fees.

14:00 Mr. Cruden, Lagere Onderwijs Inspectie Bureau
Received Primary school and Kleuter school enrollment data for the school year 2006/7




Child Friendly Budget Analysis, Suriname                                                50
August 15
9:00 Ministry of Finance, Economic Affairs
Monica Kramanitara-Tamrin & Tine Tjalim
Received government budgets (total national spending) from 2004-2007
Discussed the method by which school fees are received and transferred to the Min. of
Finance, spending of the budget by the Ministry of Education. Confirmed that the
Ministry of Finance does not receive yearly audits of spending from RK/EBG schools
Referred me to Centrale Betaal Dienst: Mrs. Ester Coats to discuss the payments of fees
(for transportation, book rental and transportation) to Subbetaalmeesters.

10:00 Ministry of Finance, Centrale Begrotings Boekhouding:
Robert Sohadi.
Discussed the discrepancy between planned revenues from fees and actual revenues from
fees in the end of the year reports. Confirmed that the figures for fees to betaalmeesters
for enrolment, transport and look low. Referred me to Ester Coats. He said that the
Centraal Betaal Dienst (who collects the school fees from parents) report to him how
much they receive and that is what he puts in his report (78,000 revenue from Fees in
2006 – if each student pays 35 SRD, that is extremely low)


August 16
1:30 Steering Committee progress report:
Presentation of preliminary findings on spending and school fees. Planning of the final
presentation of the analysis to the Ministries of Finance, Education, Social Affairs and
Planning and Development Cooperation.

Friday August 17
8:00 Mrs. Ester Coats and an ex-Subbetaalmeester at Centrale Betaal Dienst (Kerkplein)
Explained the revenues from fees that appear in the budget and in the begrotingsrekening
Please see appendix K for notes- these are not enrollment fees for primary and secondary
school. They are the fees received from BigismaSkoro, adult education.

11:00 Mr. Mans, Financiele Zaken Ministerie van Onderwijs
Explained the process by which the school enrolment fees are paid to schools. (see
appendix K) Fees are paid directly by parents into the schools’ bank accounts. The
schools administrate spending as needed, no oversight from the financial affairs dept of
the Ministry of Education. The Enrollment fees do not appear as revenues in the budget.

12:00 Mrs. Campagne, Thesaurie Inspectie
Received a spreadsheet with remittances to the Ministry of Education for 2006 that show
that remittances for the line items that appear as unspent in the CBB Audited report are
much lower than actually occurred. (see appendix for spreadsheet)

Monday August 20



Child Friendly Budget Analysis, Suriname                                                   51
12:00 Mr. Kallan, Director Ministry of Education
Questions about financial controls, school fees, spending
(see interview notes in appendix)

2:00 Mr. Ricardo Kenswil: Director RKBO
Questions about RK Budget, why spending is not reported to the Ministry of Educaiton,
what the subsidies cover (See interview notes in appendix)
3:00 Monica Tamrin, Head of Economic Affairs
Discussed Financial Controls for IDB loan/Donor funded projects (see notes in
appendix)

Friday, August 24
Presentation to Steering committee, Minister of Social Affairs & Housing, Mr.
Karijomenggolo, Mrs. Camapgne, UNICEF Officer Rene van Dongen and Claudine
Hammen,




Child Friendly Budget Analysis, Suriname                                            52
Appendix C.

Steering Committee/Resource persons Contact Information
Rene van Dongen: Project Officer Child Protection
UNICEF Suriname
Heerenstraat 17, Paramaribo
c/o UNDP
PO Box 3030
Paramaribo – SURINAME
Tel: 421 584
renesuriname@yahoo.com

Ruhi Ardjomandi
Unicef consultant for education in the interior
rardjomandi@gmail.com

Ministry of Education Counterpart:
Mr. K.Karijomeggolo
Assistant Permanent Secretary of Min. of Education
Regarding financial en Personal affairs
ODAD(Onder Directoraat Administratie Dienst)
Tel: 474433.
Heerenstraat- Across from UNICEF
kkari88@hotmail.com.

Fara Pahalwankhan: Program Coordinator for UNICEF at Ministry of Social Affairs
and Housing , Department of Research and Planning
farapahal@yahoo.com
Tel:472160 / 472617
 Job Title: Head Research & Planning

Judith Karijodrono: Policy Officer, Research & Planning Division
 Ministry of Social Affairs & Housing
 judkarijo@yahoo.com
Tel: 472617

Felicia Arnaez: Policy Officer, Program Coordinator for UNICEF
Ministry of Social Affairs and Housing
Felicia_arnaez@yahoo.com
Tel: 410539

Mrs. Halfhide: Head of Treasury Inspection
Thesaurie Inspectie


Child Friendly Budget Analysis, Suriname                                          53
Miranda Straat #17
Tel: 474184

Elaine Campagne: Ministry of Finance -Treasury Inspector for the Education Sector
Miranda Straat #17
Tel: 477189
email address ec42@hotmail.com

Vincent Jubitana: Treasury Inspector
Thesaurie Inspectie
Miranda Straat #17
Tel: 477189/ 8544067
jubvin@yahoo.com

Presella Young Afat, Program Coordinator Planning
Ministry of Planning and Development Cooperation (PLOS)
Tel: 471108 #265
pyoungafat@gmail.com

Karina Sarigoeno: Head of Financial Affairs (Financiale Zaken)
Department Ministry of Social Affairs and Housing
Kromme Elleboogstraat #5
Tel: 473547/08547983
k.sarigoeno2003@yahoo.com

Melissa Wongsodikromo: Policy Officer of Categorical Social Work
Ministry of Social Affairs and Housing
Tel: 410539
mwongso51@hotmail.com

Rangini Nandelall: Programme Coordinator Planning
Ministry of Planning and Development Cooperation (PLOS)
Gini_nandelall@yahoo.com
Tel: 471108/ ext. 237

Roline Bottse: Program Coordinator for Regional Development
Ministry of Regional Development (Districts offices)
dehochjes@yahoo.com

Radjesh Ramadhin: Program Coordinator
Ministry of Health
Tel: 410441/234
rjramadhin@yahoo.com




Child Friendly Budget Analysis, Suriname                                            54
Rinette Soentik Sapai: Programme Coordinator Ministry of Education and Community
Development
MINOV (Ministerie van Onderwijs en Volksontwikkeling)
Tel: 471642

Robert Sohadi: Deputy Head of Office
Centrale Begrotings Boekhouding (CBB), Ministerie van Financien:The CBB performs
the yearly audit of spending in each ministry.
Tel: 425169, 8669599, rsohadi@gmail.com, r_sohadie@yahoo.com

Monica Kramawitara-Tamrin: Head of Economic Affairs (Hoofd Economische
Ongelegenheiden)
Ministry of Finance
Office is next to the congreshall, facing the presidential palace
Tel: 476748 (office), 475614 (direct line)
(Economic Affairs has the compiled budgets of all the departments, and supervises the
Financiele Notas.)

Mr. Cruden, Head of Primary School Inspections
Lagere Onderwijs Inspectie Bureau
(Primary School Inspections Department)
Tel: 475861

Mr. Biervliet
Bureau Lagere Onderwijs (Primary School Administration)
421035

Mr. Soekhoe
Higher Education Inspection Bureau
Tel: 472740

Ester Coats: Director, Office of payment services (Hoofd van Centraal Betaal Dienst)
Kerkplein, next to SURPost
Tel: 473137, 475872
This office collects the transportation and lost book fees from the parents of school
children. The main branch is in Kerkplein in Paramaribo, and there are branches
throughout the districts.

Kenneth van der Wijne
EBG Financial Affairs
Tel: 520375/410375

Ricardo Kenswil, Director
Rooms Katholiek Bijzonder Onderwijs Suriname (Roman Catholic Schools)



Child Friendly Budget Analysis, Suriname                                                55
Henck Arronstraat (Gravenstraat) 68, next to ‘sLands Hospitaal
Tel: 472167
rhkenswil@hotmail.com

Prya Hirasingh
Ministry of Education, Head of planning department
ensurespriya@yahoo.com
Tel: 08801020/08662666

Yoriko Yosukawa, UNICEF Officer
New York Office
Tel: (212-326-7088)

Daniel Badillo, UNICEF Budget Consultant
Former Minister of Finance and Economy of Ecuador
bd@uio.satnet.net
dabadillo@hotmail.com
Tel: 593-992-02000 or 593-222-24550.




Child Friendly Budget Analysis, Suriname                         56
Appendix D.
Financial Accountability: Key questions89
1. Does the organization measure progress toward the achievement of its mission
appropriately?

2. Are stakeholders of the organization informed about its financial condition and
performance transparently and at appropriate intervals?

To answer these questions, one may want to consider:
Accounting
   • Reliability: Do the organization’s records accurately reflect the underlying
      economic activity?

     •   Relevance: Is the financial data prepared in a timely fashion using the same
         accounting choices over time?

     •   Internal Controls: Does the organization have adequate policies and procedures to
         safeguard its assets?

External Reporting
   • Compliance: Does the organization comply with applicable accounting standards
      when reporting to external audiences? Does it make timely disclosures that
      comply with the relevant laws, contracts and customs?

     •   Consistency: Are accounting principles being consistently applied?

     •   Transparency: Are the financial disclosures comprehensive and stated clearly
         enough to inform stakeholders about the organization’s financial stewardship?

Oversight
  • Does the governing body directly or indirectly monitor the financial stewardship
      of the organization?

     •   Auditing: Are the external and internal audit activities adequate for the governing
         body to rely on the information generated from the normal financial reporting
         processes?

     •   Enforcement: Do the external stakeholders have sufficient mechanisms to compel
         an organization to improve its financial stewardship?

89
  Jack McCarthy. “Financial Accountability: Key Questions,” Class notes from STM 601M Financial
Management in Public and Nonprofit Organizations Harvard University Kennedy School of Government,
Cambridge, MA. Spring 2007


Child Friendly Budget Analysis, Suriname                                                        57
                                                                                                                                                           Appendix E.
                                                                                                                              Surinamese School Levels and Age Groups
                                                                        Universiteit     Hogere      Institute voor
                                                                                        Beroeps-      de opleiding
                                                                                        Opleiding     van Leraren
                                                                                         (HBO)            (IOL)



                                                                                                                        Natuur-    Instituut voor    Peda-         Peda-
                                                                           Voor-
      18                                                                 bereidend                                    Technisch
                                                                                                                       Instituut
                                                                                                                                    Middlebare
                                                                                                                                    Economisch
                                                                                                                                                    gogische
                                                                                                                                                    Academie
                                                                                                                                                                  gogische
                                                                                                                                                                  Academie
                                                                          Weten-
                                                                                                                       (NATIN)           En
                                                                        schappelijk
                                                                         Onderwijs                                                 Administratief    Kleuter-     Gewoon
                                                                                                                                     Onderwijs      Onderwijs      Lager
                                                                          (VWO)
                                                                                                                                     (IMEAO)                      Onderwijs
                                                                                         Hoger
                                                                                       Algemeen
                                                                                       Vormend




                                                                                                                                                                               Voortgezet Speciaal Onderwijs
                                                                                       Onderwijs
                                                                                        (HAVO)
      16
                                                                        Meer           Lager          Lager           Lager
                                                                        Uitgebreid     Beroeps-       Technisch       Nijverheid
                                                                        Lager          gericht        Onderwijs       s-                                          Eenvoudige
                                                                        Onderwijs      Onderwijs      (LTO)           onderwijs                                   Technische
      14                                                                (MULO)         (LBGO)                         (LNO)
                                                                                                                                    Eenvoudig       Eenvoudig
                                                                                                                                                                    School
                                                                                                                                                                    (ETS)
                                                                                                                                    Technisch       Nijverheids
                                                                                                                                    Onderwijs       onderwijs
                                                                                                                                    (ETO)           (EBO)




                                                                                                                                                                               (VSO)
      12
                                                                               Gewoon Lager Onderwijs (primary school)
                                  Leerplicht (obligatory schooling)
Leerplicht/compulsory education




                                                                                              (GLO)

                                                                                                                                                                               Basis Speciaal Onderwijs (BSO)




                     7
                     6
                                                                                     Kleuteronderwijs (pre-primary school)
                                                                                                    (K.O.)
                                                                      Child Friendly Budget Analysis, Suriname                                                          58
                     4
Appendix F.

Map of the Districts of Suriname




                                  Popula tion by District
                                  1. Brokopondo 3%
                                  2. Commewijne 5%
                                  3. Coronie 1%
                                  4. Marowijne 3%
                                  5. Nickerie 7%
                                  6. Para 4%
                                  7. Paramaribo 50%
                                  8. Saramacca 3%
                                  9. Sipaliwini 7%
                                  10. Wanica 17%




Child Friendly Budget Analysis, Suriname                    59
Appendix G.

Sample Documents for Child Friendly Budget Analysis

    •   2007 Education Budget
    •   2005 CBB Audited Report on Education Budget
    •   2007 ABS Consumer Price Index and Inflation Data




Child Friendly Budget Analysis, Suriname                   60
         2007 Education budget

 WET VAN
 TOT VASTSTELLING VAN DE 13-E AFDELING VAN DE BEGROTING VAN
 UITGAVEN EN ONTVANGSTEN VOOR HET DIENSTJAAR 2007
 BETREFFENDE    HET    MINISTERIE    VAN    ONDERWIJS    EN
 VOLKSONTWIKKELING


                  DE PRESIDENT VAN DE REPUBLIEK SURINAME

 In overweging genomen hebbende, dat de Surinaamse begroting bij Wet dient te worden
 vastgesteld; heeft, de Staatsraad gehoord, na goedkeuring door de Nationale Assemblee,
 bekrachtigd de onderstaande Wet.


                                            Artikel 1

 De 13-E Afdeling van de begroting van uitgaven en ontvangsten voor het dienstjaar 2007
 betreffende het MINISTERIE VAN ONDERWIJS EN VOLKSONTWIKKELING wordt
 vastgesteld als volgt:


 Directoraat Onderwijs


 TITEL I: Apparaatskosten
                                                    Bedragen x SRD1.000
 Code     Kostensoort                                               Bedrag
  10      Personeelskosten                                            191.819
  20      Materiele kosten                                             42.000
  40      Aanschaffingen                                                1.537

          Totaal Apparaatskosten                                          235.356


 TITEL II: Beleidsprogramma’s
                                                    Bedragen x SRD1.000
Code      Beleidsmaatregel                                          Bedrag
100       Nieuwbouw, rehabilitatie en renovatie van scholen en
          woningen                                                          4.521
101       Ondersteuning voor verbetering van Basisonderwijs in
          Suriname (BEIP)                                                   7.146
102       Adek Universiteit van Suriname                                   23.000
103       Bijzonder Lager Onderwijs                                        59.905



 Child Friendly Budget Analysis, Suriname                                           61
   104       Bijzonder Nijverheidsonderwijs                                           357
   105       Scheepvaartschool                                                          1
   106       Buitengewoon onderwijs                                                     1
   107       Stichting Polytechnic College                                            556
   108       Christelijk Pedagogisch Instituut                                      2.292
   109       Stichting Dierentuin, Medischezending, Parima                            165
   110       Stichting Kennedyschool, Mythylschool                                      2
   111       Bijdrage aan huishoudens                                               1.181
   113       Project Nationaal Orgaan voor Accreditatie (NOVA)                        422
   114       Studielening voor Hoger onderwijs in Suriname                          1.365
   120       Bijscholing schoolleiders Basisonderwijs                                 103
   121       Uitvoering van het sectoraal meerjaren beleidsplan                     6.860
   122       (Early Childhood development) ECD- US$ ad. 304.000                       675
   123       Project LEARN                                                            553
   124       Verbetering KALBOBIS                                                     224
   129       Capaciteitsopbouw Sectorfonds                                            500
   130       Subsidie aan internaten                                                    3

                                               Totaal Beleidsprogramma’s        109.832


    TITEL III: Middelenbegroting
                                                              Bedragen x SRD1.000
   Code      Ontvangsten                                                        Bedrag
             Niet belastingmiddelen
80.50.06     Opbrengst schoolvervoer                                                   300
80.50.07     Examen-en inschrijfgelden                                                  85
80.50.09     Opbrengst boekenhuur                                                        8
                                               Totaal Niet belasting middelen          393
             Donormiddelen
90.00.20     UNICEF                                                                    675
90.00.08     Nederland                                                               7.669
90.00.04     België                                                                    777
                                                      Totaal Donormiddelen           9.121

             Leningen
90.00.05     IDB                                                                     6.565
                                                            Totaal Leningen          6.565

                                                            Totaal Middelen         16.079


    TITEL IV: Parastatalen
       − De Anton de Kom Universiteit van Suriname




    Child Friendly Budget Analysis, Suriname                                                 62
2005 CBB (Central Budget Auditors/Centrale Begrotings Boekhouding) Audited Realizations of the Education Budget



Ministerie/Directoraat :Onderwijs
Titel l:
Gewone
dienst
Bedragen * srd.1000                         l          ll            lll         lV           V            Vl              Vll       Vlll
                                                                                                                     Verevend
                                                                                                        Verevend         t.o.v.    Voldaan
                                                                                                          t.o.v.        totaal       t.o.v.
                                                                  Verschil               Verschuldigd   geraamd      verevend      verevend
Code      Kostensoort                   Geraamd     Verevend        (l-ll)     Voldaan       (ll-lV)       (ll/l)    (ll/SUMll)      (lV/ll)
                                                                           -
  10      Personeelskosten              125,914.5   140,077.4     14,162.9                                  111%           89%
  20      Materiele kosten               22,397.4    17,361.0      5,036.4                                   78%           11%
  30      Subsidies en Bijdrage               2.0       171.9       -169.9                                 8595%            0%
  40      Aanschaffingen                  1,038.9       505.7        533.2                                   49%            0%
              Totaal Gewone Dienst      149,352.8   158,116.0     -8,763.2                                  106%          100%

Titel ll: Buitengewone dienst
Bedragen * srd.1000                         l          ll            lll         lV           V            Vl           Vll          Vlll
                                                                                                                     Verevend
                                                                                                        Verevend         t.o.v.    Voldaan
                                                                                                          t.o.v.        totaal       t.o.v.
                                                                  Verschil               Verschuldigd   geraamd      verevend      verevend
Code      Beleidsmaatregel              Geraamd     Verevend        (l-ll)     Voldaan       (ll-lV)       (ll/l)    (ll/SUMll)      (lV/ll)
          Nieuwbouw,rehalbilitatie en
          renovatie van scholen en
  100     woningen                        2,050.0           0.0    2,050.0                                      0%            0%
          Ondersteuning
  101     Basisonderwijs                  6,892.0           0.0    6,892.0                                      0%            0%
           Adek universiteit van
  102      Suriname                        19,971.0      15,121.3      4,849.7                                        76%         46%
  103      Bijzonder lager Onderwijs       45,892.0      16,037.6     29,854.4                                        35%         49%
           Bijzonder Nijverheid
  104      Onderwijs                          313.9         120.5       193.4                                         38%          0%
  105      Scheepvaartschool                    0.5           0.0         0.5                                          0%          0%
  106      Buitengewoon Onderwijs               0.5           0.0         0.5                                          0%          0%
           Stichting Polytechnic
  107      College                            415.0         304.7       110.3                                         73%          1%
           Christelijk Pedagogisch
  108      Instituut                        1,653.8       1,094.6       559.2                                         66%          3%
           Stichting
           Dierentuin,Medische
  109      Zending                                2.0           0.0            2.0                                    0%           0%
           Stichting
  110      Kennedyschool,Mytylschool            1.3           0.0         1.3                                          0%          0%
  111      Bijdragen aan huishoudens        1,257.2         297.1       960.1                                         24%          1%
           Project nationaal orgaan
  113      voor accreditatie (Nova)           450.0             0.0     450.0                                         0%           0%
           Studielening voor hoger
  114      onderwijs in Suriname              950.0             0.0     950.0                                         0%           0%
           Totaal Buitengewone
           Dienst                          79,849.2      32,975.8     46,873.4                                        41%        100%


Titel lll: Ontwikkelingsdienst
Bedragen * srd.1000                           l            ll            lll           lV           V            Vl               Vll      Vlll
                                                                                                                            Verevend
                                                                                                              Verevend          t.o.v.   Voldaan
                                                                                                                t.o.v.         totaal      t.o.v.
                                                                      Verschil                 Verschuldigd   geraamd       verevend     verevend
Code       Beleidsmaatregel                Geraamd      Verevend        (l-ll)       Voldaan       (ll-lV)       (ll/l)     (ll/SUMll)     (lV/ll)
           Institutionele versterking
  115      van het onderwijs                  130.0             0.0     130.0




Child Friendly Budget Analysis, Suriname                                                       64
           Initiele versterking van
           kerntaken van het
           Ministerie van Onderwijs en
  116      Volksontwikkeling                 1,236.0         0.0    1,236.0
           Institutionele versterking
  117      Ontwikkelingsdienst               1,092.0         0.0    1,092.0
           Verbetering van het
           Onderwijs in het
           Binnenland door introductie
  118      van het "Nucleussysteem           2,586.0         0.0    2,586.0
           Surinaams Onderwijs
  119      Netwerk en ICT                    1,594.0         0.0    1,594.0
           Management Training
  120      Schoolleiders                      572.0          0.0     572.0
           Uivoering van het sectoraal
  121      meerjaren beleidsplan              181.0          0.0     181.0
           (Early Childhood
           Development) ECD-EURO
  122      304.000                           1,016.0         0.0    1,016.0
  123      Project Learn                       251.0         0.0      251.0
  124      Verbetering Kalbobis                287.0         0.0      287.0
  125      Upgraden van leerkrachten            42.0         0.0       42.0
  126      Educatieve Schoolradio               33.0         0.0       33.0
           Totaal
           Ontwikkelingsdienst               9,020.0         0.0    9,020.0
           Totale Uitgaven                 238,222.0   191,091.8   47,130.2   184,741.9        6,349.9   80%   100%   97%




Child Friendly Budget Analysis, Suriname                                                  65
Titel lV: Middelenbegroting
            Ontvangsten
Bedragen x srd.1000                            l              ll             lll                lV          V           Vl                Vll
                                                                                         Ontvangen   Ontvangen                      Afgestort
                                                                                         t.o.v       t.o.v totaal   Afgestort       t.o.v
                                                                         Verschil        geraamd     ontvangen      op              Ontvangen
Code       Niet Belastingmiddelen          Geraamd        Ontvangen      (l-ll)          (ll/l)      (ll/SUM ll)    rek.31.4101     (Vl/ll)
80.50.06   Opbrengst schoolvervoer            300.0              0.0          300.0
80.50.07   Examen-en inschrijfgelden           10.6              0.0            10.6
80.50.09   Opbrengst boekenhuur                41.4              0.0            41.4                                          3.6
80.60.06   Bestekkosten                         0.2              0.0             0.2                                          2.3
           Diverse niet-belasting
80.50.99   ontvangsten                             50.0            0.0        50.0                                            7.7
           Terugontvangen
80.50.99   voorschotten                             3.0            0.0             3.0                                        1.1
           Totaal
           Nietbelastingmiddelen              405.2                0.0       405.2                                           14.8

           Belastingmiddelen
           Donormiddelen
90.00.20   Unicef                            1,016.0               0.0    1,016.0
90.00.09   Unesco                               75.0               0.0       75.0
90.00.08   Nederland                         7,391.0               0.0    7,391.0
90.00.04   Belgie                              538.0               0.0      538.0
           Totaal Donormiddelen              9,020.0               0.0    9,020.0
           Totaal Middelenbegroting          9,425.2               0.0    9,425.2                                            14.8




Child Friendly Budget Analysis, Suriname                                                              66
 Samenvattend overzicht

 Directoraat Onderwijs

 Bedragen * srd 1000
 Omschrijving                                                       l              ll               lll             lV              V

                                                                                                                                Afstorting
                                                                                                                                op 31.4101
                                                                                              Ontvangen                            t.o.v.
                                                               Ontvangen        Geraamd      t.o.v.Raming       Afstorting      ontvangen
                                                                 2005             2005            (I/ll)        op 31.4101       2005(lV/l)
 Ontvangen conform begroting                                          0.0          9,425.2               0%            14.8
 Ontvangen door de subbetaalmeesters
 Opbrengsten schoolvervoer                                              220.4                                                           0%
 examen- en inschrijfgelden                                              89.1                                                           0%
 opbrengst boekenhuur                                                     3.0                                                           0%
 Diverse-algemeen                                                         1.6                                                           0%
 Totale ontvangsten                                                     314.0      9,425.2                3%             14.8           5%

 Omschrijving                                                       l              ll               lll             lV              V
                                                                                                                                Voldaan
                                                                                               Verevend                           t.o.v.
                                                                Verevend        Geraamd      t.o.v.Raming                       verevend
                                                                  2005            2005            (I/ll)         Voldaan        2005(lV/l)
 Vereveningen conform begroting                                  191,091.8       238,222.0               80%     184,741.9             97%
 Uitgaven buiten begrotingsverband                                     0.9                                             0.9
 Totale Uitgaven                                                 191,092.7      238,222.0                 80%    184,742.8              97%

 Tekort                                                         -190,778.7      -228,796.8
 Procentueel tekort ter dekking van de uitgaven                     -100%            -96%

 In de begroting was er ter dekking van de uitgaven een tekort van 96%.Na de uitvoering van de begroting bleek het tekort



Child Friendly Budget Analysis, Suriname                                                       67
 te zijn opgelopen tot 100%

 Behorende bij de Wet Tot vaststelling van de dertiende afdeling van het Slot der Rekening van de uitgaven en ontvangsten
 over het dienstjaar 2005 betreffende het Ministerie van Onderwijs en Volksontwikkeling




 Bijlage:
 Directoraat Onderwijs

 Ontvangen via subbetaalmeesters
 Omschrijving                      Bedrag             * srd 1000
 opbrengst schoolvervoer              220,400.8                220.4
 examen en inschrijfgelden             89,080.0                 89.1
 opbrengst verhuur schoolboeken         3,000.0                  3.0
 Diverse -algemeen                      1,559.6                  1.6
                            Totaal    314,040.4                314.0




Child Friendly Budget Analysis, Suriname                                                    68
Appendix H.
Generally Accepted Accounting Principles

Relevance: Timeliness, Predictive Ability, Feedback Quality

Reliability: Verifiability, Neutrality, Representational Faithfulness:
The document should reflect in good faith the reality of the entity’s financial status.

Consistency: the same accounting methods and procedures should be used from one
period to the next unless it has a sound reason to change methods

Prudence: A revenue should be recorded only when it is certain, and a provision should
be entered for an expense which is probable.

Consistency:
Conformity to enforced rules and laws

Periodicity: Each accounting entry should be allocated to a given period, and split
accordingly if it covers several periods.




Child Friendly Budget Analysis, Suriname                                                  70
Appendix I.
Interview Notes

Ministry of Education Counterpart, K. Karijomenggolo
8/14/07
Bureau ODAD, Ministerie van Onderwijs- Heerenstraat

Present: K. Karijomengolo- ODAD (Onder Directoraat Administratie Dienst)
Mr. Dielingen- Responsible for Begroting
Mr. Mans- Financiele Zaken for Onderwijs

Question: Can you give me data on spending in each district?
Answer: The budget is not disaggregated by districts- everything is centralized.

Question: Then how do the districts get funding?
Answer: The districts have to apply to the ODAD to receive funds.

Question: Who applies? The Regionale Ontwikelings (Regional Development)
Office?
Answer: In fact everything is centralized. The teachers are paid centrally, the building
upkeep/furniture is paid centrally (through the onderdirectoraat technische dienst.).

Question: What kinds of expenditures are made under Code 103: Bijzonder Lager
Onderwijs?
Answer: It includes salaries and everything else that is paid for by the subsidy to
Bijzonder Lagere Schools (this line item is under the heading “beleidsprogrammas”
(programs) and is separate from the section on Administrative costs “apaaraatskosten.”

Question: Where would I find information about test scores?
Answer: Get GLO Toets (test between primary school and secondary school))
information from: Examen Bureau on Jesserunstraat.

Question: Can I see an accounting of the spending by RK/EBG Schools?
Answer: They do not receive any accounting of spending by RK/EBG schools.

Question: What costs are covered in those schools by the Ministry of Education?
Answer: All RK/ EBG schools are responsible for is building maintenance. And
furniture, Onderwijs pays all the rest (including the night watchmen.)




Child Friendly Budget Analysis, Suriname                                                   71
Question: Why do the revenues from inschrijfgeld/transportation/boekhuur etc.
appear as zero every year (on the end of the year report), when they are budgeted to
be (2006 numbers: 300,000 SRD=transport, 10,600SRD= enrollment fees and
41,400SRD=book rental)
Answer: The Ministry of Education does not actually receive that money from the fees-
Parents pay it to the Centraal Betaal Dienst and it remains with the subbetaalmeesters,
and goes back to the Ministry of Finance.
    • The money from the student enrollment fees are actually paid by parents directly
       into the schools’ bank accounts, and the funds stay with each school. The school
       principal is responsible for it, along with another staff member (per Mr. Kallan)
       The fees that appear in the budget are only from adult education classes (Bigisma
       Skoro)

Question: Why does the Ministry of Education not spend its entire budget every
year? (it spent between 78-85% for the last 3 years)
Answer: The Ministry of Finance does not like to give all that the Ministry of Education
requests. And if you are under budget, you can still make payments from that year until
March of the next year- as long as the payment was already scheduled.

Question: Where does the unspent money from the education Budget go?
Answer: Back to the Ministry of Finance.

Question: Why is the enrolment fee charged by the religious schools (Roman
Catholic (RK)/Moravian(EBG) schools higher than the government schools, if the
Ministry of Education pays for everything except building maintenance? (105 SRD
per student for RK/45 per student for EBG vs. 35 for Government?)
Answer: The reason their enrollment fee (inschrijfgeld) is higher is because they say they
cannot run the school just on the subsidy received per student from the ministry of
Education. (building maintenance)??

Question: how can I get disaggregated data on spending in the districts?
Answer: The Ministry of Education does not frame the budget that way. Everything is
centralized. A new Project LEARN, from Belgium is beginning to give out student ID
numbers so that students can be tracked through all the programs and levels.

Question: Where can I find the enrollment numbers for 2007?
Answer: Prya Hirasingh, Onderwijs planning dept. will have information about # students
per district.

Mr. Cruden will have information about # kids per district (primary School)
Mr. Biervliet will have information about # teachers/kids in the districts (primary school)
Mr. Soekhoe will have information about number of kids in higher education
HAVO/VWO, etc.




Child Friendly Budget Analysis, Suriname                                                 72
Interview Notes from Ministry of Finance (Treasury) Counterpart,
Elaine Campagne
8/14/07: Thesaurie Inspectie

Question: Are the budgets and audited end of the year statements public
information? And if a normal person wanted to se them how would they go about
it?
Answer: Yes, they are public information, but no body ever asks for them outside of the
government, it is not tradition for regular citizens to get involved in the government
finances. If they want to see it all they would have to do is come and request it.

Question about school fees: why does the line item “ontvangen from
inschrijfgelden” show up as zero in the CBB end of the year reports?
Answer: because the enrolment fee money paid by students stays in the districts schools
to use for expenses (except for transport which they pay out at the central level)

Under the heading “Apparaatskosten”:
Personeelskosten does not include all of the expenses for salaries:

Under Beleids Programmas:
Buitegewoon Onderwijs includes salaries, so does Bijzonder lager onderwijs (RK,EBG,
Muslim schools)
Bijzonder Nijverheids Onderwijs
Polytechnic Instituut,
Christelijk Pedagogisch Instituut

Buitengewoon Onderwijs (special Education)- this line item does not get spent.

The salary costs from the ministry of Culture and the ministry of Sport and Youth Affairs
divide their line items by age level, place, etc, so it should be possible to do for
education, but they do not, they bundle everything.

The line item “Kennedy School”, under beleidsprogrammas is a special projects fund,
they don’t use it. The ministry of Education always says it is too small, and they can’t use
it because it is not enough money (in 2005 it was 1,300 SRD, and in 2006 it was 1,300. In
2007 it was 2,000)




Child Friendly Budget Analysis, Suriname                                                 73
Question: Why does spending for 101: the IDB loan funded project for improving
basic education (BEIP) appear as zero?
Answer: The financial oversight for this is done by the Economic Affairs division (Mrs.
Tamarin), not the treasury, so the treasury department does not get details about how the
loan funds are spent. They also do not go through the CBB audit.

Question: Why does so much of Code 111 (bijdrage aan huishoudens) go unspent?
(This is money that goes to needy students who move to the city to go to secondary
school and live in internats (boarding schools) as well as a subsidy paid to students
who go abroad to study. )
Answer: The treasury department does not receive a breakdown of the spending- i.e. how
much is spent where. (Although they request it.)

Question: Why hasn’t there been any spending under Code 114: Studielening voor
Hoger Onderwijs in Suriname (student loan fund for higher education)
Answer: This has been funded in the budget for the last few years and it has never been
spent, but the ministry of Education has still requested it for the next budget cycle, so it
must be a program that they haven’t started yet.

Question: Why does spending under Code 121: Uitvoering van het sectoraal
meerjaren beleidsplan (fulfillment of the multi-year sectoral project plan) appear as
zero?
Answer: This line item contains all of the planned spending for the entire sector plan, and
the treasury department does not get a breakdown of spending into different categories.

Question: why are the realized amounts (on the CBB end of the year statements) all
zero for the donor-funded projects?
Answer: the CBB does not receive reports on donor-funded projects (all of the financial
management is done within the ministry of Education) so they cannot report on the
realization of the budget for these areas. Only the Netherlands (sector funds) go through
the ministry of Finance, all of the other donor funded projects go straight to the ministry
of Education.

There is currently a project underway to make all of the public financial information from
the ministry of Finance available online.

Before 2004 the information was more disaggregated, so it was easier for the treasury
department to see how funds were spent and to control.




Child Friendly Budget Analysis, Suriname                                                   74
Interview Notes from Ministry of Finance, Centrale Betaal Dienst
Head: Mrs. Ester Coats.

8/17/07

Question: Please give me an overview of the process by which Centrale Betaal
Dienst receives funds that go to the Ministry of Education.
A. The Subbetaalmeesters collect fees for and distribute the transport cards to students
(price per card is 2.50 SRD).
 There is one office in Nickerie, one in Coronie, Saramacca, Para, Moengo, and
Commewijne, as well as two in the city- in Half Flora and Combe– there used to be an
office in Albina and one in Brokopondo, but those were both lost during the interior war.

Question: How are the school enrolment fees paid to Centrale Betaal Dienst?
A: The revenues that appear on the budget and Begrotingsrekening (end of the year audit)
(Opbrengst Schoolvervoer, code 80.50.06, Examen en inschrijfgelden, code 80.50.07,
and Opbrengst boekenhuur, code 80.50.09) do not include regular school enrollment fees
that parents pay to enroll children in school.

Code 80.50.07 Examen en Inschrijfgelden) is he revenue from statsexamen (secondary
school equivalency tests), and the enrolment fees to attend the adult learning programs
(night schools) that prepare adults to take the statsexamenss. (Bigisma Skoro)

Code 80.50.06 (Opbrengst Schoolvervoer) is the revenue from the transport cards that
students buy to take the bus or the school boat every year. The CBD picks up the cards
from the Ministry of Education, distributes them to students, and collects the fees.

Code 80.50.09 (Opbrengst Boekenhuur) is the revenue that comes from books that have
been lost and must be replaced.
       *this contradicts the information given in the budget explanation- pg 33 of the
       2007 budget that it is the 1.5 SRD that the MULO/LBGO/VOS students pay to
       rent their books.

In the interior, the fees are collected at the schools, by the teachers, who return to the city
every 3 months. They bring the cards out to the school and sell them, and three months
later they return to the city and deposit the funds into the Onderwijs account (this money
does not go through CBD). They also collect regular book rental fees this way as well as
the enrollment fees.

Parents in the coastal districts pay the school fees directly to the bank account held by
individual schools and the child brings a bank receipt to school to show that they have
paid. Regular primary and secondary enrolment fees do not come through the CBD
       *They also do not show up on the budget or auditors report



Child Friendly Budget Analysis, Suriname                                                     75
Notes from Meeting with Mr Mans, Financiele Zaken, Bureau
Onderwijs: Heerenstraat
(regarding school fees)
8/17/07

Q: How do the school fees paid by students (the 10srd at primary level, etc) go into
the financial system of the Ministry of Education?
A: Each individual school has it’s own bank account, and parents pay at the bank, then
the school can use those funds as needed.

Q: How much is received every year from those funds?
A: Nobody keeps track.

Q: Does the Ministry of Educaiton control those funds?
A: No. The schools do not provide an account of revenues and spending to the ministry.

Q: So the Ministry of Education dos not receive funds from students in the form of
fees for the Bijzonder Lagere Onderwijs (Religious schools)?
A: No

Q: What about fees from the interior schools (where there are no banks)?
A: No, the ministry does not collect funds from the schools in the interior.

Q: How much are the enrolment fees?
A: You have to ask Mr. Bierfliet (at Ministry of education on Heerenstraat)

(on Mr. Bierfliet’s door is a letter saying that the fees for 2007 are:
GLO: 10 SRD
VOJ: 25 SRD
MULO: 50 SRD)




Child Friendly Budget Analysis, Suriname                                             76
Notes from interview with Mrs. Campagne 8.17.07

Question: regarding the unspent funds in the line items outlined in the end of the
year audit from the CBB, why did these funds go unspent? Did the Ministry of
Education not request the funds? Or did the Treasury not release all of the funds
that were requested?
Answer: since the departments can spend within the previous year’s budget until March
of the following year, not all of the expenditures appear in the end of the year statement.
For instance, though the CBB audited statement for 2006 states that the funds spent under
code 100 (nieuwbouw, rehabilitatie en renovatie van scholen en woningen) amounted to
only 523,900 SRD (523 thousand) (out of an allocated 2,050,000 SRD) (2 Million), in
fact, according to the treasury department’s internal documents the total amount released
to cover costs accrued in 2006 was 2,012,373 SRD (2 Million). All of the accrued
expenditures had not been reported by the end of January 2006, so the CBB realization
report is inaccurate.

Question: Do the organizations that receive funds from the allocation Bijzonder
Onderwijs report on spending to the Treasury Department?
Answer: No. They don’t report the number of teachers, or the allocation of funds between
salaries and other administrative costs.


Question: Do you have an estimate for the percentage of those line items classified
under Beleidsprogrammas that include administrative costs that comprise salaries?
Answer: I can’t tell. I don’t get enough specific information from the Ministry of
Education to estimate that.

Question: Do you receive information from the Ministry of Education about the
revenues and expenditures from the bank accounts for the schools that hold the
enrollment fees paid by students?
Answer: No.

Question: In the budget, the code 80.50.09 is described as the 1.50 SRD paid by each
student to borrow their school books, but the Centrale Betall Dienst reports that
that code is comprised only of the lost book fees paid by students when they must
replace a book that they lost. Do you know any details about the book fees?
Answer: No.

Question: Please explain the breakdown of salary costs in the explanation section of
the budget. (pg 22 of the 2006 budget) For 2006, there are a reported 13,600
employees, 9849 of whom are covered under the section “Apaaratskosten”, and 3751
of whom are covered under “Beleidsprogrammas” So, the total spent on salaries is
more than the total given called “Totale personeelkosten van het direktoraat
Onderwijs” = 144,294,110 SRD?


Child Friendly Budget Analysis, Suriname                                                77
Answer: Yes, it is that amount plus the salaries that make up most of the other line items
under Beleidsprogrammas.

Question: Can you explain why there was such a large increase in funds allocated to
salaries between 2006 and 2007? (2006=144,294,110 and 2007=191,819,340 that’s a
33% nominal increase) The same number of employees (13,600) are reported for
each year.
Answer: the Ministry explained that they are trying to take on employees with better
educations, so they have to pay them higher salaries to compensate for their experience
and training, (137 people retired that year)

Question: the IDB loan funded project (code 101) comes up as having had zero
realization- is this a donor funded project that goes through the Ministry of
Education directly?
Answer: For that project, they don’t report to treasury or to CBB, you have to ask Monica
Tamrin at Economic affairs about it.




Child Friendly Budget Analysis, Suriname                                                78
Notes from Meeting with Mr. Kallan, Director, Ministry of Education

Ministry of Education Head Office 8/20/07
Question: Have you ever asked Bijzonder Onderwijs for reports on spending?
Answer: The different groups (RK/EBG, etc.) submit bills to MINOV and then they
transfer the money, there is no control on expenditures, but there are plans to establish an
internal control department to do that kind of thing.

Q: How do you use the budget to plan for the future- in the current format, it is very
difficult to tell how much of the line items were spent on which expenses: ie salaries
make up much of the “beleidsprogrammas” expenditures (under Bijzonder
Onderwijs, Bijzonder nijverheids Onderwijs, Christelijks Pedagogisch Inst), but
there is no breakdown of precisely how much is spent on salaries, materials, etc.
Answer: MINOV is not obligated to give the Bijzonder Onderwijs organizations money
for textbooks, furniture, etc, but they do give textbooks and some furniture (because of
difficult times in the eighties with the coup, the interior war, etc. a lot of schools were
destroyed). The Ministry of Education would like to be able to better control their
expenditures, and they are preparing measures to set minimum standards, so that if the
schools in question do not meet the standards, then they will not pay the subsidy
(currently 30 SRD per child) There are some controls to verify that the number of
students the schools report are enrolled are actually enrolled (Ministry of Education
Inspectors go to schools and count kids in the classroom).

Question: Is there any control or reporting of the enrollment fees paid by students?
(The budget is slightly misleading in this respect, as the fees/exams line item
reported is only for adult education.) The families pay the school enrollment fees to
the bank account of the school directly, and each school keeps that money to use as
it needs.
Answer: They get a few reports from schools to the audit control office. The school
principal is in charge of the funds for each school, and there is a team of at least 2 people
who must sign off on expenses. Mr. Kallan has fired a school principal for misuse of
funds. But they do not furnish this information to the Ministry of Finance and they do not
count these revenues in the yearly budget.

Question: What is the reasoning behind the big increase in personnel costs in 2007?
The same number of people are employed, but the salary costs rose by 33%
(nominal).
Answer: there was an adjustment for inflation as well as an adjustment for fuel costs,
which rose drastically. If they do not spend all of the allocated budget, it will just go back
to Ministry of Finance.




Child Friendly Budget Analysis, Suriname                                                   79
Question: What is the reasoning behind putting the overhead costs for the Bijzonder
Onderwijs in Beleidsprogrammas (no separation between actual program expenses
and overhead expenses)? It seems that nearly all of the true “projects” are funded
by donor funds.
Answer: it is just the way the Ministry of Finance likes to do it. It came out of the way
the old budget was set up- Gewone Dienst (regular services) Buitegewone Dienst (special
services), and Ontwikkelings Dienst (development services.). Ontwikkelings Dienst used
to be all of the donor funded projects, and the others were for regular public schools
(Gewone Dienst) and then the other schools (Buitegewone Dienst) the new way just
mixed Buitgewone Dienst and Ontwikkelings Dienst, and it is not very accurate to
describe them as program costs. But that is how Ministry of Finance likes to do it, and
they are very attached to their specific codes that they use, so we try to do it the way they
want.

Question: What is the reasoning behind not running the donor funded projects
through the regular financial controls (Thesaurie Inspectie (treasury), and Central
Begrotings Boekhouding (auditors.)?
Answer: The time it takes between when we request money for those projects and when
we receive the money from the Ministry of Finance is so long (2-3 months) that we have
to avoid putting it through the controls so that we can use it the way it was meant to be
spent. If we just put it in our own accounts, we can use it as needed, and we don’t have to
be slowed down by the Ministry of Finance. When the budget is signed into law, we
should be able to receive those funds immediately, without the long wait that we must
endure,

Question: What is the reasoning behind not running the IDB funded (loan) project –
the CODE 101: BEIP (primary school improvement) through the regular financial
controls?
Answer: We didn’t use to send the Ministry of Finance any reports on that project, but
now we do. We don’t send it to the treasury department though (this goes through
Monica Tamarin at Economic Affairs).
*See notes from Monica Tamarin- she does not actually do the financial control of that
project, though she sits in the workgroup.

Question: What happened with the student loan funds- 2006= 910,000 SRD never
spent, and 2005 = 950,000 SRD never spent (total 1.8 Million)?
Answer: we have started asking for some of those funds this year.

Question: why is so much of the budget left unspent each year? (15-20%)
Answer: Because of lack of capacity to execute programs. In the whole government the
amount is more like 30%. We are trying to train our staff to learn better management
skills and project coordinating skills, but right now we don’t have the capacity.




Child Friendly Budget Analysis, Suriname                                                  80
I also believe that there is a cash flow problem at the Ministry of Finance- we receive our
requested funds very late- sometimes too late to even use them for the projects that we
had planned.

Question: Are you working towards being able to tell how much is spent on
education at each level and in each district?
Answer: For the 2008 budget (which we are in the process of completing right now) we
are supposed to do that, because of the decentralization process. But I would prefer not
to, because then each district will have a claim on that money that is allocated to them,
and they will demand it from us. Talk to Mr. Chin, a consultant who is working with the
Ministry of Finance to make all of the budget information available online, and make it
searchable.

The sector plan: Budget code 121, is divided by age level, so it is less flexible, but more
accurate.
*but this information does not get described in either the budget or the audited report

I prefer that the line items stay bundled, so that we have more flexibility in how we can
spend them. Especially because it takes so long to receive funds from the Ministry of
Finance, we need to be able to have some flexibility.

(I commented that more flexibility might necessarily preclude transparency/financial
controls)
Kallan responded that the Ministry of Finance dictates how the budget is constructed, and
they have to follow it. The Ministry likes the way the budget is set up now. So they have
no choice.

Question: what do you think about the problem of “ghost” teachers (people
receiving salaries from the Ministry of Finance and not actually working)?
Answer: We pay some teachers to go work with NGOs, and then we find out that they are
also working (and getting salaries) as consultants. We would like to do an inspection and
see how often this is happening.

Question: Do you think it would be possible to eliminate the school fees for primary
education? (62,300 students times 10 srd= 623,000 SRD) Is there enough room in the
budget to get rid of these fees?
Answer: We are going to have a meeting with the boards of all of the religious schools to
discuss the fees, we would like to get rid of them too.

With the new introduction of 11 years of basic schooling we will get rid of the fees.

The actual fees that the children pay are much higher than that- including extras such as
field trips, and swimming trips, etc.




Child Friendly Budget Analysis, Suriname                                                    81
Mr. Kallan will make a line in the budget for 2009 to eliminate all of the pre-primary and
primary school fees (he thinks it will take around 3 Million SRD) The question is how to
ensure accountability for those funds.

The program to strengthen schools through the sector funds (BEIP) includes a plan to
distribute 20,000 us dollars to each school, so perhaps when a method of ensuring
accountability for those funds is designed, we can do the same with the money that will
have to be given to the schools to make up for the lost fees.




Child Friendly Budget Analysis, Suriname                                                  82
          8/20/07 Notes from meeting with Ricardo Kenswil, Direkteur, RKBO
          (Director Roman Catholic Private Schools)
          RKBO Head office: Henck Arronstraat #68

          Question: How many RK schools are there in Suriname?
          Answer: About 20,000 total students, 72 schools total, 19 schools in the interior.

          Question: Can I have a copy of the annual audited report for 2004-2007? (Mr.
          Kenswil already sent one for 2003)
          Answer: No, the last year for which an audit was completed was 2003. He has asked the
          accountant to prepare them for the last few years. But they are not available yet.

          Question: Can I have a map of all of the RK schools in the country?
          Answer: Doesn’t have a map, but he gave me a list. (details about interior schools are
          below)

          Roman Catholic Students in the Interior School year 2007
Village                        School Name             School Director     Tel#          #        # Pre
                                                                                         Primary school
Nieuw Lombé                    St. Gerardus-Majella    Hr. Turney          433590        128      40
Galibi                         St. Antonius            Mw. Johns           8804620       117      35
Santigron                      Dr. de Ruyter           Hr. Baisie          08732825      73       17
Wakibasoe II- Bronsweg         Pt. v/d Pluym           Hr. Fernandes       08804604      236      72
Nason                          Anton Donici            Hr. Benjamin                      84       7
Washabo                        St. Thomas More         Hr. Langaman        08782252      120      37
Jaw Jaw                        Pt. Voorbraak           Hr. Fonkel          8804621       117      40
Pamboko                        Dep. Pt. Voorbraak      Hr. Nanoe                         148      35
Semoisie                       Kap. Mango-Semoisie     Hr. Kwadjani        425783        223      130
Ligorio                        Kap. Mango Ligorio      Hr. Alinkie         8824972       119      0
Corneliskondre                 St. Hubertus            Hr. Sabajo          0352117       15       3
Kalabaskreek                   St. Nicolaas            Hr. Jubitana        865-8044      45       6
Donderskamp                    St. Gerardus            Hr. Brank                         71       17
Redie DOtie                    Johan Chelius           Hr. Artist          8804618       46       5
Powakka                        St. Wilhelmus           Hr. Fung A Loi      883-4978      125      40
Masiakriki                     Kankantrie              Hr Fonkie           487072        155      57
Pikin Slee                     JAM Willebrand          Hr. Eduards         8803410       266      77
Tamarin                        St. Angeline            Hr. Clydesdale      8891904       75       10
                                                                              Total:     2163 628

                                                       Total Primary & Preschool: 2791
                                                       School fees = 100 SRD
                                                       Revenues from interior fees= 279,100 SRD


          Child Friendly Budget Analysis, Suriname                                                 83
Question: What is the process for collecting school fees from RK students?
Answer: The students pay a regular enrollment fee, and then a parent’s donation to make
up the rest of the expenses that are not paid by the subsidy from the ministry of
education.

The breakdown is: 10 SRD enrollment, 90 SRD Parent’s donation.

Question: Do you think it would be possible to eliminate those fees?
Answer: It is good to make families pay something, otherwise they are not as invested in
the school. When they pay more they appreciate it more. They choose the RK schools
because they like the education better, so they will pay it.

Question: But what about in the interior, where they do not have a choice about
where to send the kids- if there is only one school in the area, then they have to pay a
fee even if they would prefer that their children go to public schools?
Answer: In the interior, the school principals can decide on a case by case basis if a
family should pay the donation. If the family has a lot of kids or is poor, they can lower
the fee. I would prefer not to eliminate the fees in the interior, rather the families that can
pay will pay and for the families that cannot, we set up a fund and then go on a case by
case basis to assist them.

Question: Is it fair to leave the decision about subsidizing needy families up to the
judgment of the school principal, based on what they know about the family by
observation in the village? (There is no way to tell what the resources of the families
are except by observation/reputation in the village, since there are no banks, and
people don’t pay taxes in the interior.)
Answer: Stands by his belief that families that make the contribution are more invested in
education.

Question: Do you give any financial statements to the Ministry of Education?
Answer: No, we make our budget request, and they pay for the salaries, and some books,
and sometimes furniture, but RK usually has to pay for everything else (building
maintenance, teacher training programs, most of the furniture etc.).

The payment of the subsidy (30 SRD per child) is not enough to pay for all of the needs
of the schools, so they ask for the extra payment from parents. And, the ministry of
education is about 3-5 years behind in paying their subsidies.

In order to eliminate the fees from interior schools, RK would need to receive at least 100
SRD per child in the interior schools. (This works out to 279,100 SRD for 2007.)
But if the fees from RK schools were eliminated in the interior, parents from schools in
the cities and districts would complain that they had to pay, and it wouldn’t be fair.



Child Friendly Budget Analysis, Suriname                                                    84
8/20/07 Notes from telephone conversation with Monica Tamrin,
Head of Financial Affairs department of the Ministry of Finance

Question: Why does the IDB Loan funded project (to improve basic education-
budget code 101) not go through the regular financial controls? (Treasury
Department monthly tracking and Centrale Begrotings Boekhouding auditing), Do
you act as the oversight from the Ministry of Finance?

Answer: No, I sit on a workgroup for the IDB project. The financial oversight is done by
Roy Mohan, his office is on the Ruidekruislaan. (tel: 532306)

The Ministry of Finance signs off on the loan when it is taken from the bank, but that is
as far as their financial oversight goes.

The administration of funds is done through the line ministry (the Ministry of Education)
and they are responsible for the financial oversight as well.

It is customary for projects to have a representative from the Ministry of Finance sit in
the work group so that we can follow the progress, but for donor projects, that is as much
control as we exert. We don’t audit the donor-funded projects.




Child Friendly Budget Analysis, Suriname                                                85
Appendix J.

Koppeling naar kostensoort en beleidsmaatregel, December 2006

(Total amounts released by Treasury to the Ministry of Education 2006)
                                       More than half of spending on code 100 took place in December.




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Child Friendly Budget Analysis, Suriname   89
Appendix K.

Brutosalarissen Bijzonder Lager Onderwijs

Salary costs paid out to private primary schools from the Ministry of Education.



*In July, civil servants receive a bonus.
The figures for March, June and October were lost




Child Friendly Budget Analysis, Suriname                                           90
Total for the 9 months with information: 37,759,799 SRD (37.7 Million)
= 4,195,533 SRD per month (4.2 Million)

Total for the entire year would be an estimated 50,343,398 SRD (37.7 + 3 x 4.2)

50.3 Million SRD is 91% of the entire budgeted amount for Bijzonder Lager Onderwijs.




Child Friendly Budget Analysis, Suriname                                           91

								
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