FSM Department of Finance & Administration Delivers Training, Information-Sharing with Yap State

PALIKIR, Pohnpei—From February 25th to 28th, 2020, the Honorable Eugene Amor, Secretary of the Department of Finance & Administration (DOFA), visited the FSM State of Yap with a view to echo the sentiments of increased transparency and cooperation between the National Government and State Governments as endorsed by His Excellency David W. Panuelo, President of the FSM. Secretary Amor and DOFA staff held meetings with the Honorable Jesse J. Salalu, Lieutenant Governor of the FSM State of Yap, as well as Members of the Yap State Legislature, to provide detailed summaries on the FSM Trust Fund, and the Nation’s project portfolios with the World Bank and Asian Development Bank, with a particular emphasis on how these funds would impact the citizens and State of Yap. Secretary Amor also met with the Honorable Isaac V. Figir and the Honorable Joseph J. Urusemal, the two Senators of the 21st FSM Congress representing the FSM State of Yap, to discuss tax changes and other projects relevant to Yap State.
Secretary Amor was accompanied by Mr. Salvador Jacob, Assistant Secretary for Customs & Tax Administration, who worked with the Yap State DOFA Field Office to deliver and present the Yap Field Office’s 2020 work plan, compliance plan, and the new Tax Debt & Return Collection Procedures.
Secretary Amor was further accompanied by Ms. Senny Philip, Assistant Secretary for Investment & International Finance, who provided updates on the World Bank and Asian Development Bank portfolios, as well as the FSM Trust Fund.
One of the major outcomes from the visit included training lead by Mr. Sohs John, Assistant Secretary for the Division of Budget, to those responsible for Public Projects on the proper use of Project Control Documents (PCDs). All FSM Public Projects must utilize PCDs to ensure transparent, responsible, and accountable use of public funds.
Another major outcome from the visit was the presentation on the latest Audit Report issued by the Office of the National Public Auditor on Yap State’s Public Projects from fiscal years 2016 to 2018 (i.e. October 1st 2016 to October 1st 2018).
The report highlighted that $5,750,000 (5.75 million dollars) had been appropriated during that period, but only 51% had been allotted and the spending rate was less than 15%. The audit report further highlighted other key findings, e.g. that spending was not in line with FSM laws and regulations; that spending was not in line with the intended purpose of the project(s); that scholarships were being awarded outside of established guidelines; and a lack of procedures for reviewing and selecting Public Projects.
As a result of the audit, Secretary Amor proposed the following:
1. An ongoing training cycle for PCD usage and Finance Management Regulations to improve compliance;
2. Timely completion of Public Project PCDs to ensure 100% allotment of appropriations;
3. Streamlining Public Project processes to minimize non-compliance;
4. Full reconciliation of past Public Projects to determine what funds can be released and reprogrammed to meet the current priorities for the FSM State of Yap.
“I am completely supportive of Secretary Amor’s proposals,” President Panuelo said in a statement. “I have every confidence that the public servants in our Nation are dedicated to fully utilizing their available resources in an appropriate and sustainable manner—but this can only be achieved if everyone knows what the rules are. Too often citizens and development partner stakeholders alike take the view that there is malintent on the use of public funding, but I reject that claim in favor of the view that our States simply need more support from Palikir.”
Secretary Amor and DOFA staff intend to schedule visits to the FSM States of Chuuk and Kosrae in the coming days so that Chuuk and Kosrae can receive similar information-sharing workshops and trainings.
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