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Press Release

Public Auditor Hainrick Invited to Attend the Annual Joint Finance & Budget Officers Conference held in Kosrae State, August 14-19, 2006

The Finance and Budget officials of the Governments of the Federated States of Micronesia met in Tofol, Kosrae on August 14-19, 2006 to discuss a wide range of critical issues facing the Nation. At the invitation of the Secretary, Department of Finance & Administration, Mr. Haser Hainrick, National Public Auditor and Mr. Eric E. Elias, Auditor III attended the meeting on behalf of the FSM Office of the National Public Auditor. In addition to the Amended Compact implementation issues, the weeklong Conference also addressed the FY05 Compact sector grants carryover funds, the Infrastructure Maintenance Fund (IMF) account, investment of the funds contributed into the Trust Fund, clear procedures regarding the resolution of audit questioned costs by the Questioned Costs and Resolution Committee (QCRC), assistance to the States and their Component Units in order to produce their financial statements in a timely manner, working relationship between Finance Offices and other Department Heads, Major Program Managers, and Heads of all Component Units, endorsement of the Public Sector Capacity Building Roadmap, and its inclusion in the FSM Capacity Building Transition Plan to be submitted to JEMCO, reinstatement of inflation adjustment on the Supplemental Education Grant (SEG) and extension of its lapse date, the development of a multiyear Supplemental Education Grant Plan, and last but not least, Office of Compact Management (OCM) to conduct a second round of consultation with each of the five FSM governments regarding the Annual performance Plan. The Conference was successful with numerous positive outcomes. Total of fourteen Resolutions were adopted regarding a number of critical issues that were deliberated upon during the Conference relating to finance, budget, the Amended Compact implementation compliance in general, and audit related issues. In the audit area, Working Group Number 3, which was chaired by Public Auditor Hainrick, discussed at a greater length and adopted five Resolutions which, if implemented, will enhance the single audit process and the resolution of audit findings and questioned costs. These five Resolutions are summarized below:

1. Resolution No. 1 - Requesting the FSM National Government to appropriate funds to cover the five FSM Governments contribution to the annual single audit costs commencing with the FY-06 single audit. 2. Resolution No. 5 – Congratulating Pohnpei State Government for being the first FSM Government to receive an unqualified audit opinion for its FY-05 single audit. 3. Resolution No. 6 – Requesting the FSM National Government to provide to the States clear procedures regarding the resolution of audit questioned costs by the Questioned Costs and Resolutions Committee (QCRC). 4. Resolution No. 7 – Requesting the FSM National Government to provide necessary assistance to the States and their Component Units in order to produce their financial statements in a timely manner. 5. Resolution No. 8 – Requesting all Department Heads, Major Program Managers, and Heads of all Component Units to work closely with their respective Finance Department to improve annual audits for the FSM National and State Governments.

The National Public Auditor expresses his appreciation to the Conference coordinators for the opportunity given to participate in this year’s annual Conference and looks forward to attending future meetings of the FSM Finance and Budget Officers. Additionally, the National Public Auditor wishes to thank the Finance & Budget officers from all the FSM National and State Governments as well as the Heads of the Component Units for their excellent contributions which made it possible for the FSM to complete its single audits for fiscal year 2005 within the timeframe as required by the Amended Compact.

 


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