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GLOSSARY OF TERMS

Abuse of Authority: Intentional or improper use of Government resources. Examples include misuse of title, position, or authority or misuse of resources such as tools, vehicles, or copying machines, etc.

Audit: An independent objective analysis, review, or evaluation of financial, records, procedures, and activities to report conditions found, and recommend changes, or other actions for management and operating officials to consider. The term audit includes, in addition to the auditor's examinations of financial statements, work performed in reviewing compliance with applicable laws and regulations, economy and efficiency of operations, and effectiveness in achieving program results. All audit work is accomplished in accordance with audit standards set forth in "Standards for Audit in Governmental Organizations, Programs, Activities, and Functions," as forth in the Yellow Book.

Inquiry: An informal administrative investigation or gathering of information through interview or interrogation rather than by inspection or study of available evidence. An inquiry does not preclude the gathering of available documentary evidence.

Investigation: A systematic, minute, and thorough attempt to ascertain the facts about something Complex or hidden. It is often formal and official.

Preliminary Analysis: The activity necessary to determine if the allegation or information received Warrants further examination, or lacks the credibility to merit additional action. The preliminary inquiry effort may be limited to an interview of the source of the complaint, and/or a witness or reference provided in the allegation, or review of any readily available documentation or records relative to the complaint.

Fraud: Any intentional deception designed to deprive the FSM National Government unlawfully of something of value or to secure from the FSM National Government for an individual a benefit, privilege, allowance, or consideration to which he or she is not entitled. Such practices include, but are not limited to, the offer, payment, or acceptance of bribes or gratuities; making false statements; submitting false claims; using false weights or measures; evading or corrupting inspectors or other officials; deceit either by suppressing the truth or misrepresenting material fact; adulterating or substituting materials; falsifying records and books of accounts; arranging for secret profits, kickbacks, or commissions; and conspiring to use any of these devices. The term also includes conflict of interest cases, criminal irregularities, and the unauthorized disclosure of official information relating to procurement and disposal matters.

Independence: The state or quality of being free from subjection or from the influence, control, or guidance of individuals, things, or situations. As applied to examining officials and their respective organizations, there is a responsibility for maintaining neutrality and exercising objectivity so that opinions, judgments, conclusions, and recommendations on examined allegations are impartial and shall be viewed as impartial by disinterested third parties.

Mismanagement: A collective term covering acts of waste and abuse. Extravagant, careless, or needless expenditure of Government funds or the consumption or misuse of Government property or resources, resulting from deficient practices, systems, controls, or decisions. Abuse of authority or similar actions that do not involve criminal fraud.

Waste: The extravagant careless, or needless expenditure of Government funds, or the consumption of Government property that results from deficient practices, systems, controls, or decisions. The term also includes improper practices not involving prosecutable fraud.

Conflicts of interest:

Bribes and gratuities: Bribery is the giving, offering, promising, soliciting, demanding, receiving or accepting, directly or indirectly, with wrongful or dishonest intent, anything of value, to or by a public official, to influence an official act or public official to commit fraud or violate the law, or testimony as a public official, in return for being influenced, to perform such actions. Bribery is a violation of 11 FSMC 531.

Administratively, 11 FSMC 534 prohibits the acceptance of gifts from outside sources. An employee shall not, directly or indirectly, solicit or accept a gift:

11 FSMC 534. Gifts to public servants by persons subject to their jurisdiction.

  1. Regulatory and law enforcement officials. A public servant in any department or agency exercising regulatory functions, or conducting inspections or investigations, or carrying on civil or criminal litigation on behalf of the Government, or having custody of prisoners, commits an offense if he solicits, accepts, or agrees to accept any pecuniary benefit from a person known to be subject to such regulation, inspection, investigation, or custody, or against whom such litigation is known to be pending or contemplated.
  2. Officials concerned with Government contracts and pecuniary transactions. A public servant having any discretionary function to perform in connection with contracts, purchases, payments, claims, or other pecuniary transactions of the Government commits an offense if he solicits, accepts, or agrees to accept any pecuniary benefit from any person known to be interested in or likely to become interested in any such contract, purchase, payment, claim, or transaction.
  3. Judicial and administrative officials. A public servant having judicial or administrative authority and a public servant employed by or in a court or other tribunal having such authority, or participating in the enforcement of its decisions, commits an offense if he solicits, accepts, or agrees to accept any pecuniary benefit from a person known to be interested in or likely to become interested in any matter before such public servant or a tribunal with which he is associated.
  4. Congressional officials. A public servant who is a Member of the Congress of the Federated States of Micronesia, or who is employed by the Congress or by any committee or agency thereof, commits an offense if he solicits, accepts, or agrees to accept any pecuniary benefit from any person known to be interested in a bill, transaction, or proceeding, pending or contemplated, before the Congress or any committee or agency thereof.
  5. Exceptions. This Section shall not apply to: (a) fees prescribed by law to be received by a public servant or any other benefit for which the recipient gives legitimate consideration or to which he is otherwise legally entitled; or (b) gifts or other benefits conferred on account of custom, tradition, kinship, or other personal, professional, or business relationship independent of the official status of the receiver; or (c) trivial benefits incidental to personal, professional, or business contacts and involving no substantial risk of undermining official impartiality. (6) Offering benefits prohibited. A person commits an offense if he knowingly confers, or offers, or agrees to confer, any benefit prohibited in this Section.

Theft and abuse of Government property: Normally, reports of theft of Government property should be reported to the FSM National Police or the FSM Department of Justice. We will however, accept certain reports of Government property theft dependent on the circumstances surrounding your knowledge of the offense in question.



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