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FSM National Treasury To Release $1.9M to FSM States For Prior Years CFSM and Federal Grant Reimbursements

Palikir, Pohnpei (FSM Information Services): July 30, 2009 - The FSM National Treasury recently released the final payment of prior years reimbursement of Federal grants to Kosrae State Government amounting to $150,463.71. Early this year, Chuuk and Pohnpei State Governments received their reimbursements amounting to $749,795.83 and $347,182.16 respectively. Reimbursements to Yap State Government amounting to $703,226.05 will be released as soon as Director Maria Laaw of Yap State Department of Administrative Services and Secretary Finley Perman sign the letter of agreement for final settlement of the reimbursement issue. The amount to be paid to all the State Governments for CFSM and Federal grants reimbursements this year totaled to $1,950,667.75.

The FSM Department of Finance and Administration, through Secretary Perman, initiated the reconciliation of prior years reimbursement of CFSM and Federal grants to the FSM States. Several meetings and communications were made to the FSM States during the initial process of the reconciliation. Secretary Perman and his staff visited and met personally with the States Directors of Finance and their staff to address the issue. The reconciliation started early last year and completed on March 31, 2009. Efforts have been made both by National and State Government staff to resolve the intergovernmental account which has been an issue for almost a decade. The outcome of the reconciliation of records resulted in the National Government owing the State Governments.

With the reconciliation of records and payments of reimbursement to the State Governments, the FSM National Government has finally removed its qualifications and cleared the audit findings in the CFSM and Federal Grants reimbursement in the latest FY08 Single Audit ending September 30, 2008.