FSM National Public Auditor

OFFICE OF THE FSM NATIONAL PUBLIC AUDITOR

PRESS RELEASE #2010-06

FSM MEETS THE JUNE 30th SINGLE AUDIT DEADLINE AGAIN

Palikir, Pohnpei - The Office of the National Public Auditor announces the FSM met the June 30 th Single Audit deadline again for the fiscal year 2009. The FSM single audit reports were uploaded to the US Audit Clearinghouse prior to the deadline, of June 30 th Midnight ET (Eastern Time) or Washington D.C. time. Compliance with the U.S. Single Audit Act is a requirement of the Compact of Free Association (Compact). The Compact requires the annual audits as a condition for receiving funds under US Federal grant programs. The audit fees are funded by both the FSM and the US.

Pursuant to the authorizations under Title 55 Chapter 5 of the FSM Code, The FSM Public Auditor contracted two CPA audit firms (Deloitte & Touche, and Fortenberry and Ballard LLC) to perform the fiscal year 2009 Single Audits for the FSM.

The fiscal year 2009 Financial Statements received the best marks from the CPA audit firms since inception of the audit in 1987. The results of 2009 demonstrate the FSM's commitment to continual improvement in achieving full accountability to its supporting contributors and full transparency as a government.

Government Entities

Auditor's Opinion:*

Financial Statement

Auditor's Opinion:* Compliance

FSM National

Unqualified

Qualified

Kosrae State

Unqualified

Unqualified

Pohnpei State

Unqualified

Unqualified

Chuuk State

Qualified

Qualified

Yap State

Unqualified

Qualified

Note:

*An unqualified audit opinion is best, commonly referred to as a “clean opinion.”

*A qualified audit opinion means corrective action is needed in one or more areas.

The FSM Office of the National Public Auditor (ONPA) wishes to extend its congratulations to the 5 Primary Governments and all the component units of the FSM for striving to continually improve on the quality of accounting within the FSM. The ONPA commends the accounting departments, auditors, other FSM and State Officials involved with the audits for making it possible to meet the audit deadline again in 2009. The FY 2009 audit reports may be viewed on the internet at: www.fsmopa.fm by selecting the “Audits” page.

OFFICE OF THE NATIONAL PUBLIC AUDITOR P.O. BOX PS-05 PALIKIR, POHNPEI FM 96942 TEL. 691-320-2862/2863 FAX/691-320-5482 www.fsmopa.fm Hotline: 691-320-6768