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Acting President Transmits Note of Final Determination to Chuuk

PALIKIR, Pohnpei (FSM Information Service): February 18, 1997 - A Notice of Final Determination disallowing $165,751 question costs cited under the JTPA program for the State of Chuuk for the fiscal year 1994 was transmitted January 30, by Acting President Jacob Nena for the Governor of Chuuk's information and perusal.

Nena stated that the notice in effect would require the reimbursement of the said amount to the U.S. Department of Labor (DOL) by the State of Chuuk. Nena has instructed the Director of the Office of Administrative Services to continue to look into the matter and make the best effort he can to resolve what can be resolved if any, he stated. It is however more likely that the notice as served may stand as is. "In any case," Nena said, "we should prepare and anticipate total liquidation of the amount upon demand." The ramification of the matter can be potentially undesirable to the FSM and all the states. Adding, "My information is that a verbal warning from the grantor agency had cautioned the FSM to comply or else the entire JTPA program for this country would be endangered."

"At this crucial juncture of our development," he stated, "let us work together to not only resolve the matter but to ensure we exercise prudent compliance and management of the Federally funded programs as stipulated by the federal guidelines."

Nena asked the Governor to please work closely with the Director of OAS on the matter and report at the earliest time possible.