EPIC endorses a distribution formula for compact funds
Palikir, POHNPEI(FSM Information Service): November 1, 2005 - The Economic Policy Implementation Council (EPIC) convened a special meeting in the State of Yap where the states finally agreed to a distribution formula for the Compact Funds.
The compact fund distribution formula was one of the four resolutions endorsed by the leadership during its two-day meeting held during the first week of October in Yap.
As endorsed by the EPIC, the distribution formula details the following distribution of funds among the five Governments:
a) Kosrae State: 10.90%
According to the Resolution, within two years of its date of endorsement, the National Government is to identify additional funding sources to assist the states where compact funding is insufficient to meet financial requirements of any of the states. The National Government is also tasked to further identify programs it will finance to assist the states.
These assistances, as noted, will come from any of the funding sources available to the national government.
The other resolutions are:
Resolution 2 [The FY'04 Capacity Building Sector Grant Carryover]
EPIC encourages the national government to provide for the subgranting of the Capacity Building Sector Grant carryover funds to the respective governments from which these funds were derived to the maximum extent possible.
Resolution 3 [The Project Management Unit]
The procurement and accounting procedures be uniform to ensure efficiency of project management, and that EPIC members further endorse the resolution adopted by the Infrastructure Development Sector Conference in Chuuk regarding procurement and accounting procedures.
The PMU either work with the existing state resources or establish offices in all the states to work with the respective state governments in implementing the projects approved under the infrastructure sector grant.
The PMU consultants, GMP Hawaii, convey to their principals the intent of this resolution.
Resolution 4 [The Allocation of $ 2.5 million for Textbooks]
The national government is directed, as per the terms of the grant award, to notify the US DOI of the inability of the sub-grantees to timely comply with the requirement of a budget line item modification to the state's submitted budgets.
The national government should justify to the DOI the release of the entire education sector grants.
The national government shall communicate to the United States through a formal request to release the entire education sector grants.
The EPIC membership is comprise of the Leadership of the five Governments: the President and the Governors of the four States along with the Speaker of the FSM Congress and the Presiding Officers of the each Legislature.
For further information on this release, please contact:
FSM Office of the President Public Information: Press, Radio, Video P.O Box 34 Palikir Station, Pohnpei, FM 96941 Tel.: (691) 320-2548/2092 Fax.: (691) 320-4356 e-mail: email@example.com http://www.fsmpio.fm/