The Treasury Division is a core operation for the Department of Finance & Administration. It was established pursuant of Section 206 of the Financial Management Act 1979. Section 207 sets out the key responsibilities of the Treasurer which is specified as the Secretary of Finance who then delegates these tasks to the Treasury Division staff.
The Treasury Division is legally responsible for the administration, collection and safekeeping of all moneys due and paid. In addition, Treasury is legally responsible for the disbursement & appropriation of funds.
Core activities of the Division is to:
- process payments in line with the Appropriation Act and supplementary amendments passed by Congress (including recurrent expenditure, capital expenditure, travel, payroll, etc);
- collect and receipt funds due to the FSM Government;
- manage and invest cash and cash equivalents as appropriate;
- manage the public finances of FSM Government foreign offices;
- manage the public finances of FSM Government located in the States;
- track and safeguard all assets of the FSM Government;
- ensure internal controls operating over Treasury operations; and
- provide financial information to the Public Auditor for annual inspection.
All public financial management activities for the FSM Government is centralized and processed out of the Treasury Division. However, management of individual budgets remains the responsibility of Allottees who have been assigned to each Appropriation. Section 228 of the Financial Management Act 1979 (FMA 1979), makes provision to allow the Secretary of Finance to issue and promulgate rules and regulations implementing the provisions of the FMA 1979. Such Regulations must be approved by the President of the Federated States of Micronesia.