The Department of Finance and Administration (DoFA) was established in 1979, following the ratification of the Federated States of Micronesia Constitution, as part of the first national government institutions. Its creation was guided by the Financial Management Act of 1979, which laid the foundation for transparent and accountable use of public resources.
Over the past four decades, DoFA has evolved in response to FSM’s economic and governance priorities. From its early focus on fiscal administration and budget control, the Department has grown into a modern public finance institution managing the nation’s revenues, expenditures, and development financing.
Through reforms supported by the World Bank, Asian Development Bank (ADB), and other development partners, DoFA has strengthened its Public Financial Management (PFM) systems, improved tax and customs administration, and introduced digital financial management platforms. Recent initiatives such as the Revenue Management System (RMS) and the upcoming Financial Management Information System (FMIS) mark a major step toward greater efficiency, transparency, and service delivery.
Today, the Department continues to serve as the government’s central agency for fiscal policy, treasury operations, and development finance — supporting sustainable growth and the financial well-being of citizens across all four states: Chuuk, Kosrae, Pohnpei, and Yap.