FEDERATED STATES OF MICRONESIA
CODE
OF THE FEDERATED
STATES OF
MICRONESIA
TITLE
55. GOVERNMENT
FINANCE & CONTRACTS
Chapter
3: Internal
Fiscal Procedures for Compact Implementation
Section 301. Purpose.
The purpose of this chapter is
to establish fiscal procedures for the Compact period
beginning in Fiscal Year 2004. The provisions set forth
hereinafter recognize the right of the State Governments
and the National Government of the Federated States of
Micronesia to authorize the use of Compact funds in
accordance with their own respective laws, plans,
policies and prerogatives consistent with the terms and
conditions set forth in the Compact and contained
herein. The President is hereby empowered to ensure
compliance with such terms and conditions, and to ensure
accountable financial management of all Compact funds.
Source:
Public Law 13-72
Section 302. Definitions.
For purposes of this chapter
only, the following terms shall have the following
meanings:
(1) “Accrued Expenditures”
means charges incurred by a Government during a given
period requiring the provision of funds for: (a) goods
and other tangible property received; (b) services
performed by employees, contractors, sub-grantees,
subcontractors, and other third party non-contractors;
and (c) other amounts becoming owed under programs for
which no current services or performance is required,
such as annuities, insurance claims, and other benefit
payments, all as evidenced by a pending disbursements
report.
(2) “Annual Report” means
the Annual Report of the President of the
Federated States of
Micronesia
to the Government of
the
United States
in compliance with
Section 214 of the Compact.
(3) “Compact” means the
Compact of Free Association, as amended, and its related
agreements entered into by the Government of the
Federated States of
Micronesia
and the Government of
the
United States
and enacted as United
States Public Law No. 108-188, unless otherwise
specified herein.
(4) “Compact Budget
Request” means the annual Compact funding request for
the upcoming Fiscal Year and estimated funding levels
for the two subsequent Fiscal Years.
(5) “Congress” means the
Congress of the
Federated States of Micronesia
, unless otherwise
specified herein.
(6) “Fiscal Procedures
Agreement” means the “Agreement Concerning
Procedures for the Implementation of United States
Economic Assistance Provided in the Compact of Free
Association, as amended, Between the Government of the
United States
and the Government of
the
Federated States of
Micronesia
” entered into in
connection with the Compact.
(7) “Fiscal Year” means
each one year period beginning October 1 and ending on
the next following September 30. Each Fiscal Year shall
be designated by the number of the calendar year in
which such Fiscal Year ends.
(8) “Government” means a
State Government or the National Government of the
Federated States of
Micronesia
, unless otherwise
specified.
(9) “Grant Award” means a
formal offer of funds by the Government of the
United States
to the Government of
the
Federated States of
Micronesia
pursuant to the terms
of the Compact for the purpose of funding programs and
activities within a specific Sector.
(10) “JEMCO” means the
Joint Economic Management Committee established pursuant
to the Compact and the Fiscal Procedures Agreement.
(11) “Obligation” shall
have the same meaning as defined in the respective
Financial Management Acts of the Governments.
(12) “Operational Grant”
means a grant associated with a Sector Grant program
that continues from a given period to a subsequent
period as defined in Article I, Section 1 of the Fiscal
Procedures Agreement.
(13) “Original Compact”
means the Compact of Free Association between the
Government of the
Federated States of
Micronesia
and the Government of
the
United States
in the form that was
effective as of
November 3, 1986
through September,
2003.
(14) “Plan for the Division
of Annual Economic Assistance” means the comprehensive
plan for the division of economic assistance for a
Fiscal Year, including Annual Grant budgets by Sector,
as described in Article V, Section 1(b) of the Fiscal
Procedures Agreement, and may include such additional
reports, narratives, _ summaries, documentation and
other information as the President deems appropriate.
(15) “Secretary” means the
Secretary of the Department of Finance and
Administration for the
Federated States of
Micronesia
, or his successor in
the executive structure of the National Government of
the
Federated States of
Micronesia
.
(16) “Sector” means one of
the six grant sectors described in Section 211(a) of the
Compact and Article II, Section 1, of the Fiscal
Procedures Agreement, as such sectors may be adjusted
during the term of the Compact.
(17) “Sector Grant” means
the funds that are to be provided pursuant to a given
Sector.
(18) “State” means any of
the states of the
Federated States of Micronesia
."
Source:
Public Law 13-72
Section 303. Division of Compact Funds among National and State
Governments.
(1) The Compact Budget Requests
for Fiscal Years 2005 and 2006 of the National
Government and of each State Government under section
305 of this chapter shall be based upon a division of
Compact funds in the following proportions:
Chuuk
38.57%
Kosrae
11.06
Pohnpei
25.69
Yap
16.03
National
Government
8.65
(2) For Fiscal Year 2007 and
thereafter, the chief executives of the National
Government and each of the State Governments shall have
the authority to enter, from time to time, into one or
more agreements setting forth the proportionate amounts
of Compact funds that shall be the basis of each
Government's Compact Budget Request under sections 305
and 306 of this chapter, provided that the National
Government's proportionate amount of Compact funds for
each Fiscal Year shall be ten percent (10%) of the
estimated level of Compact funding for that year. An
agreement regarding the division of Compact funds, other
than the National Government's ten percent (10%) share,
may be limited to a specified period of time and shall
only be effective when signed by the chief executive of
each and every Government.
Source:
Public Law 13-93
Section 304. Compact Planning Estimates.
No later than November 15 of
the Fiscal Year preceding a given Fiscal Year, the
President shall transmit the following Compact planning
estimates to each State Government:
(1) Estimated levels of Compact
funding available to each respective State for the
upcoming Fiscal Year. Such estimates shall:
(a)
be in accordance with the division of Compact funds
established pursuant to section 303 of this chapter that
is effective for the relevant Fiscal Year;
(b)
reflect the Compact fund decrement; and
(c)
reflect the amount of Sector funds that were unobligated
by each respective Government in the previous Fiscal
Year, which amount shall be added to the estimated level
of funding available to that Government for the same
Sector for the upcoming Fiscal Year.
(2)
Estimated levels of Compact funding available for the
two Fiscal Years subsequent to the upcoming Fiscal Year.
Source:
Public Law 13-72
Section 305. Compact Budget Requests.
No later than May 15 of the
year preceding a given Fiscal Year, each State
Government shall submit to the President a Compact
Budget Request for the upcoming Fiscal Year. The Compact
Budget Request shall not exceed the estimated levels of
Compact funding provided to the respective Government
pursuant to section 304 of this chapter."
Section 306. Plan For the Division of Annual Economic Assistance.
(1) The President shall
consolidate the Compact Budget Requests of all of the
States and the National Government Compact Budget
Request, conforming with the requirements of section 103
of this title, into the Plan for the Division of Annual
Economic Assistance. The National Government compact
Budget Request included in the Plan for the Division of
Annual Economic Assistance shall constitute, for Fiscal
Year 2007 and each fiscal year thereafter, ten percent
(10%) of the estimated level of Compact funding for that
year. No modification to a State's Compact Budget
Request shall be made in the consolidation process
without the prior consent of the relevant State
Government, except to the extent that such Compact
Budget Request exceeds the estimated levels of Compact
funding provided to that State Government pursuant to
section 304 of this chapter.
(2) No later than July 3 of the
year preceding a given Fiscal Year, the President shall
submit the Plan for the Division of Annual Economic
Assistance to the Government of the
United States
and shall transmit a
copy to Congress and to each State Government
Source:
Public Law 13-93
Section 307. Grant Allocations – Approval, Notification, Rejection.
(1) Upon receipt of notice of
approval by JEMCO of Sector Grant allocations, the
President shall transmit such notice to Congress and to
each State Government.
(2) Any State may elect not to
accept receipt of all or any part of its share of an
approved Sector Grant allocation for the upcoming Fiscal
Year. Written notice of such election, detailing those
portions not accepted by amount and by Sector, shall be
provided to the President and to Congress not later than
September 20 of the current Fiscal Year, or within 20
days of receiving notice of the Sector Grant award,
whichever is later. Congress may, by resolution,
determine that the National Government will not accept
receipt of all or any part of its share of an approved
Sector Grant allocation for the upcoming Fiscal Year.
Any election by a State or by the National Government
not to accept receipt of approved Sector Grant funds may
be explicitly stated to be subject to further events.
(3) The election by any State
or by the National Government not to accept receipt of
its respective share of an approved Sector Grant
allocation for the upcoming Fiscal Year shall not be a
basis for rejection by the Federated States of
Micronesia of the Sector Grant allocation unless such
rejection is approved by resolution of Congress. In the
event that Congress does approve such a rejection, the
President shall immediately transmit written
notification of the rejection of the Sector Grant
allocation to the Government of the
United States
.
(4) Except with respect to
Compact funds not accepted by a Government pursuant to
subsection (2) of this section or disputed pursuant to
section 308 of this chapter, each recipient Government
agrees to abide by all terms and conditions enumerated
in each Sector Grant Award, the provisions of this
chapter and the terms of the Compact, including the
Fiscal Procedures Agreement.
Source:
Public Law 13-72
Section 308. Appeal of Special Conditions.
(1) If, at any time, JEMCO or
the Government of the United States imposes, or notifies
the Federated States of Micronesia of its intent to
impose, any special conditions or restrictions on any
Compact Grant Awards, the President shall immediately
notify any and all affected State Governments thereof
and provide such Government(s) with copies of all
relevant documentation, including the explanation that
is received from the United States or JEMCO of the
conditions and restrictions and the reasons therefor.
(2) Any affected Government
may, subject to the terms of this subsection, dispute
the decision to impose special conditions or
restrictions by submitting a written appeal for
reconsideration within twenty (20) days of the Federated
States of Micronesia's receipt of the Grant Award to
which such conditions or restrictions were attached or
the date notification of the intent to impose special
conditions was received by the Federated States of
Micronesia from the Government of the United States, in
accordance with the terms of the Fiscal Procedures
Agreement. Any and all such appeals shall be addressed
to the Government of the
United States
and routed through the
Office of the President. The President shall submit any
such appeal(s) to the Government of the
United States
within ten (10) days of
his receipt thereof unless the President determines that
the submitting of the appeal is not in the best
interests of the nation.
Source:
Public Law 13-85
Section 309. Grant Acceptance.
The President shall sign and
return to the Government of the United States each Grant
Award, unless rejected pursuant to section 307(3)
hereof, and shall transmit a copy thereof to Congress
and each State Government.
Source:
Public Law 13-85
Section 310. Review of Spending Authority Legislation.
(1) Prior to disbursement of
Compact funds, the Secretary and each State Government
shall submit to the President a copy of the effective
legislation detailing by Sector the allocation and
spending authority for Compact funds.
(2) If the President determines
that the proposed spending authority contained in
legislation submitted by a Government differs from its
proportional share of a Sector Grant Award, the
President shall promptly notify the Government of the
relevant State.
Source:
Public Law 13-72
Section 311. Compact Financial Assistance Fund.
(1) There is hereby created a
“Compact Financial Assistance Fund” to be
administered by and under the authority of the
Secretary.
(2) The Compact Financial
Assistance Fund shall be established at a bank or
commercial financial institution organized in accordance
with the laws of the United States or a state of the
United States; or, subject to the approval of the
Government of the United States, a bank or commercial
financial institution organized in accordance with the
laws of the Federated States of Micronesia, in either
case for the purpose of receiving payments of Grant
funds pursuant to the Compact.
(3) The purpose of the Compact
Financial Assistance Fund is to account for Compact
funds received from the Government of the United States
by the Government of the Federated States of Micronesia
on behalf of itself and each of the State Governments
from the time of receipt of such Compact funding and
until such funding is disbursed to the respective
Government to which such funding accrues.
(4) The accounting records and
accounts maintained for the Compact Financial Assistance
Fund shall be in sufficient detail to provide a full and
complete accounting of Compact funds received by the
Federated States of Micronesia
.
Source:
Public Law 13-72
Section 312. Operational Reserve Fund.
(1) There is hereby created an
“Operational Reserve Fund” to be administered by and
under the authority of the Secretary.
(2) The Operational Reserve
Fund shall be an interest bearing account established
at a bank or commercial financial institution organized
in accordance with the laws of the United States or a
state of the United States; or, subject to the approval
of the Government of the United States, a bank or
commercial financial institution organized in accordance
with the laws of the Federated States of Micronesia, in
either case for the purpose of receiving payments of
Grant funds pursuant to Article IV, Section 5(b)(2) of
the Fiscal Procedures Agreement.
(3) Funds on deposit in the
Operational Reserve Fund may be used to cover
unanticipated delays of payments from the Government of
the
United States
of funds in respect of
Grant Awards, provided that the Government of the
United States
has approved any such
use of funds.
(4) In the event of an
unanticipated delay of payments, the Secretary shall
promptly notify the President and the Government of each
affected State.
(5) If requested by the
Government of a State affected by an unanticipated delay
of payments, the President shall make reasonable efforts
to obtain approval from the Government of the
United States
for the use of
Operational Reserve Funds.
(6) Any unobligated funds
remaining in the Operational Reserve Fund as of the date
of the final payment in respect of Operational Grants
during any Fiscal Year shall be disbursed pursuant to
section 317(5) of this chapter.
(7) The Secretary shall pay all
interest and other earnings on the Operational Reserve
Account to the Government of the United States pursuant
to Article IV, Section 5(b)(2) of the Fiscal Procedures
Agreement.
(8) If the President and the
Government of every State agree that the Operational
Reserve Account is no longer necessary, the President
shall use reasonable efforts to obtain the consent of
the Government of the
United States
to discontinue its use.
Source:
Public Law 13-72
Section 313. Infrastructure Maintenance Fund.
(1) There is hereby created an
“Infrastructure Maintenance Fund” to be administered
by and under the authority of the Secretary.
(2) The Infrastructure
Maintenance Fund shall be comprised of five
interest-bearing accounts, one for each Government,
established at a bank or commercial financial
institution organized in accordance with the laws of the
United States or a State of the United States; or,
subject to the approval of the Government of the United
States, a bank or commercial financial institution
organized in accordance with the laws of the Federated
States of Micronesia, in either case for the purpose of
receiving infrastructure maintenance contributions from
the Government of the United States and the Government
of the Federated States of Micronesia pursuant to
Article VII, Section 7 of the Fiscal Procedures
Agreement.
(3) Not later than February 15
of each Fiscal Year, each Government shall contribute
from non-Compact sources not less than five percent of
its proportional share of annual public infrastructure
grants for that Fiscal Year to the Infrastructure
Maintenance Fund, provided that a Government may delay
such contribution, or any portion thereof, until August
1 of that Fiscal Year by written notification thereof to
the President.
(4) The Secretary shall deposit
the contributions of each Government into that
Government's account in the Infrastructure Maintenance
Fund.
(5) The President shall certify
to the Government of the
United States
, pursuant to Article
VII, Section 7(b) of the Fiscal Procedures Agreement,
the consolidated total amount of contributions to the
Infrastructure Maintenance Fund for each Fiscal Year:
(a)
Not later than March 1 with respect to contributions
received on or before February 15; and
(b)
Not later than August 15 with respect to contributions
received after February 15.
(6) The Secretary shall deposit
matching contributions received from the Government of
the United States into each Government's account in the
Infrastructure Maintenance Fund proportionally based
upon the amount contributed by each Government in that
Fiscal Year.
(7) Not later than ninety (90)
days after the end of each Fiscal year, the President
shall transmit an annual financial report for the
previous Fiscal Year, pursuant to Article VII, Section
7(b) of the Fiscal Procedures Agreement, showing all
deposits into the Infrastructure Maintenance Fund by the
Government of the United States and the Government of
the Federated States of Micronesia, the amount of income
generated by the fund and the fund balance.
(8) Each Government shall
submit to the President an annual infrastructure
maintenance plan not later than May 15 detailing the
planned uses of funds available to that Government from
the Infrastructure Maintenance Fund.
(9) The President shall submit
to the Government of the
United States
an annual
infrastructure maintenance plan not later than July 3.
(10) Funds on deposit in the
Infrastructure Maintenance Fund shall be utilized by
each Government in accordance with its infrastructure
maintenance plan.
(11) The Secretary shall
disburse available funds from the Infrastructure
Maintenance Fund account of a requesting Government
after:
(a)
the requesting Government has submitted Accrued
Expenditure reports evidencing an authorized expenditure
or obligation of such funds; and
(b)
the Secretary has determined that the requesting
Government has complied with each relevant requirement
under this section.
Source:
Public Law 13-72
Section 314. Drawdown Procedures - Cash Disbursement to National and
State Treasuries.
(1) Pursuant to Article IV,
Section 5 of the Fiscal Procedures Agreement, the
Government of the Federated States of Micronesia will
receive an advance payment for Compact Sector
Operational Grants equivalent to twotwelfths (2/12) of
the annual total at the beginning of the Fiscal Year and
will receive advance payments equivalent to one-twelfth
(1/12) of the annual total at the beginning of each
subsequent month of the Fiscal Year, except November.
(2) Any State Government or the
Secretary may request an accelerated disbursement of
funds by submitting to the President an Annual Cash
Drawdown Schedule for Compact Operational Grants for the
upcoming Fiscal Year based upon appropriated budgets.
The request shall detail by month the Government's
anticipated cash disbursement requirements from Compact
Sector Operational Grants, and shall include supporting
documentation.
(3) The President shall use
reasonable efforts to obtain the approval of the
Government of the
United States
for any accelerated
disbursement of funds and shall promptly notify the
affected State Government or Secretary of a decision by
the Government of the
United States
.
(4) The Secretary shall request
cash disbursement for non-Operational Grants from the
Government of the
United States
on behalf of each
Government on the basis of accrued expenditures pursuant
to Article IV, section 5 of the Fiscal Procedures
Agreement.
(5) Upon receipt of Compact
funds, the Secretary shall determine whether the amount
and allocation of such funds is consistent with the
Sector Grant Awards. The Secretary shall immediately
notify the President and the Government of any affected
State of any discrepancy and determine the cause.
(6) If the Secretary determines
that Compact funds have been withheld or suspended
pursuant to Article IV, Section 5(c) of the Fiscal
Procedures Agreement, the Secretary shall immediately
notify the President and, if the withholding or
suspension affects a State, the Government of that
State. The Secretary shall withhold from disbursement to
the affected Government that portion of the Compact
funds not received as a result of such withholding or
suspension.
(7) Any Government whose
Compact funding is withheld or suspended pursuant to
Article IV, Section 5(c) of the Fiscal Procedures
Agreement may dispute such withholding or suspension
through the Office of the President and in the manner
set forth in the Fiscal Procedures Agreement.
(8) Unless otherwise provided
in this section, the Secretary shall disburse funds from
the Compact Financial Assistance Fund to the National
Treasury and each State Treasury not later than the
close of the business day following the day upon which
the Secretary receives notice of the receipt of such
funds. No Sector Grant funds that a Government has
elected not to accept under section 307(2) hereof shall
be disbursed unless the Government gives notice in
writing to the President and to Congress that it is
withdrawing its election under section 307(2) and
requests disbursement of such funds.
Source:
Public Law 13-72
Section 315. Reprogramming/Re-Allocation of Compact Funds.
(1) No Government shall
re-allocate Compact funds from one Sector to another
Sector during the course of the Fiscal Year.
(2) A Government shall
reprogram funds within an approved Sector Grant only
upon receipt of the prior written approval of the
President. Within twenty (20) days of the end of each
fiscal quarter, the President shall notify Congress of
any reprogramming that he has approved during that
quarter with respect to Sector Grant funds received or
to be received by the National Government.
(3) The President shall not
unreasonably withhold approval of requests for
reprogramming of up to fifteen percent (15%) of a
Government's proportional share of a total Sector budget
or its proportional share of $1,000,000, whichever is
less, within an approved Sector Grant during the Fiscal
Year; provided that such reprogramming requests do not
include and would not require any of the following:
(a)
any revision of the scope or performance objectives of a
Sector Grant or infrastructure project;
(b)
an extension of the period of funding availability;
(c)
changes in key persons specifically named in a Sector
Grant award;
(d)
the contracting out or otherwise obtaining the services
of a third party to perform nonconstruction related
activities (except general support services) that are
central to the purposes of the Sector Grant; or
(e)
any revision that would result in the need for
additional funding over and above the original award.
(4) For proposed changes in
Sector Grant budgets and projects that would include or
require any of the revisions described or exceed the
financial limits provided in subsection (3) of this
section, the President shall use his best efforts to
obtain the prior approval of the Government of the
United States
.
Source:
Public Law 13-72
Section 316. Internal Reporting Requirements.
(1) For each fiscal quarter,
not later than twenty (20) days after the end of such
fiscal quarter, each State Government and the Secretary
shall submit to the President the following reports:
(a)
for all Governmental fund types:
(i)
a statement of revenues and expenditures;
(ii)
a comparison of budget and actual expenditures by
function;
(b)
with respect to Operational Grants, a budget execution
report for each function, including major offices, cost
centers, budget activities and performance reports; and
(c)
with respect to all Sector Grants, including the
matching share of the Infrastructure Maintenance Fund
provided by the Government of the United States:
(i)
a Standard Form SF 269, or reasonable facsimile thereof
approved by the Government of the
United States
; and
(ii)
a Federal Cash Transactions Report, or a Standard Form
SF 272, or reasonable facsimile thereof approved by the
Government of the
United States
.
(2) The Members of JEMCO
appointed by the
Federated States of Micronesia
shall at least twice
annually submit written reports to the President,
Congress and the States including the following
information:
(a)
a summary of actions taken by JEMCO since the date of
the last report to Congress;
(b)
a description of any significant unresolved issues
before JEMCO or relating to the Compact; and
(c)
the schedule for future JEMCO meetings.
Such reports shall be submitted
to Congress no later than April 1 and September 15 of
each year, and at such other times as there may be
significant developments relating to the interpretation
or implementation of the Compact.
(3) At least twice annually the
members appointed by the Federated States of Micronesia
to the Joint Trust Fund Committee, formed pursuant to
the Agreement between the Government of the United
States of America and the Government of the Federated
States of Micronesia Implementing Section 215 and
Section 216 of the Compact, As Amended, Regarding A
Trust Fund, shall submit reports to the President,
Congress and the States including the following
information:
(a)
the current balance of the funds in the Compact Trust
Fund and a comparison with the balances as of
(i)
the same date of the previous year and
(ii)
the date of the last previous report to Congress;
(b)
an analysis of the performance of investments made with
funds in the Compact Trust Fund, including a comparison
with generally-accepted measures of investment
performance for the same period; and
(c)
a description of significant investment strategy
decisions relating to funds in the Compact Trust Fund.
Such reports shall be submitted
to Congress no later than April 1 and September 15 of
each year, and at such other times as there may be
significant developments relating to the Compact Trust
Fund.
Source:
Public Law 13-72
Section 317. Compact Quarterly Financial Reporting Requirements.
For each fiscal quarter, not
later than thirty (30) days after the end of such fiscal
quarter, the President shall submit to the Government of
the
United States
a consolidated report
reflecting information provided in each of the reports
provided pursuant Section 316(1) of this chapter.
Source:
Public Law 13-72
Section 318. Internal Annual Final Cash Transactions Report.
Not later than eighty (80) days
after the end of each Fiscal Year, each State Government
and the Secretary shall submit to the President a final
cash transactions report for each Sector Grant. For
Operational Grants, the reports shall include the amount
of unobligated Operational Grant funding that will carry
over to subsequent Fiscal Years.
Source:
Public Law 13-72
Section 319. Compact Annual Final Cash Transactions Report.
Not later than ninety (90) days
after the end of each Fiscal Year, the President shall
submit to the Government of the
United States
a final cash
transactions report for each Sector Grant. For
Operational Grants, the reports shall include the amount
of unobligated Operational Grant funding that will carry
over to subsequent Fiscal Years.
Source:
Public Law 13-72
Section 320. Annual Report of the President to the Government of the
United
States
.
Not later than the last day in
February of each year, the President shall submit the
Annual Report to the President of the United States in
accordance with Article V, Section 1(d), of the Fiscal
Procedures Agreement and Section 214 of the Compact, and
shall transmit copies of the Annual Report to the
Congress and the Government of each State.
Source:
Public Law 13-72
Section 321. Accounting and Record Keeping.
(1) All obligation and
expenditure of Compact Funds shall be in accordance with
the Compact and this chapter.
(2) The financial reporting
systems of each Government shall provide full disclosure
of the financial position and results of operations of
each accounting fund in accordance with a uniform and
standardized format. The financial information generated
from these systems shall include, but not be limit ed
to, all pertinent information needed to prepare
comprehensive annual financial reports as required by
the Fiscal Procedures Agreement and the Compact.
Source:
Public Law 13-72
Section 322. Financial Records - Access.
The Secretary shall have full
and complete access to all financial records for all
Compact funds of the State and National Governments of
the
Federated States of
Micronesia
.
Source:
Public Law 13-72
Section 323. Enforcement.
(1) Each State Government and
the Secretary shall immediately report to the President
any violation of this chapter.
(2) If the President of the
Federated States of Micronesia determines that any
Government is not in compliance with one or more
provisions of the Compact, this chapter, or rules and
regulations promulgated pursuant to this chapter, he
shall confer with the appropriate Government in an
effort to remedy the effects of such noncompliance and
to ensure future compliance with such provisions.
(3) Notwithstanding any
provision to the contrary in this chapter, the President
may withhold Compact financial assistance until such
time as the noncompliant Government has complied with
all of the provisions of the Compact, this chapter, and
any rules and regulations promulgated pursuant to this
chapter.
Source:
Public Law 13-72
Section 324. Implementation.
The President may establish
rules, regulations, and forms as necessary to comply
with the provisions of this chapter.
Source:
Public Law 13-72
Section 325. Delegation of Authority.
The President and each State
Government may designate officials of the National and
State Governments, respectively, to act on their behalf
with respect to the duties and responsibilities vested
in them by this chapter. Such designations shall be in
writing.
Source:
Public Law 13-72
Section 326. Transition – Original Compact.
(1) Until all funds received
under the OriginalvCompact categories have been
exhausted, each State Government shall, no later than
December 15 of each year, submit to the President a
report setting forth expenditures made and year-end fund
balances by Original Compact category_for the previous
Fiscal Year; provided however, that this subsection (1)
shall not apply to funds received pursuant to section
211 of the Original Compact.
(2) Available capital project
funds that were allotted to any of the State or the
National Governments pursuant to section 211 of the
Original Compact that subsequently lapse or are
de-appropriated pursuant to the laws of the respective
State or National Government shall revert to the current
account of the respective government following
submission of the relevant lapse provision or
de-appropriation legislation to the Secretary.
(3) Each State finance officer
shall promptly close out Original Compact capital
project accounts upon project completion. Unused
spending authority resulting from-Project close-out
shall revert to the current account of the respective
government.
(4) Nothing in this section
shall be deemed to change or modify the distribution of
capital account funds between a State and any of its
municipalities as it existed as of
September 30, 2003
.
Source:
Public Law 13-85
Title 55, Section 419.
Implementation of Infrastructure Development Plan.
(1) Notwithstanding any
provision of law to the contrary, the National
Government shall have jurisdiction, in coordination with
the respective state, over activities relating to any
public contract that is or may be awarded for a civil
works project to implement any part of the
Infrastructure Development Plan and that is supported by
funds provided through Section 211 of the Amended
Compact of Free Association, as that Plan may be amended
from time to time, including but not limited to all
contract management activities, all bidding and
pre-bidding procedures for such public contracts, and
all activities performed by any citizen or noncitizen
contractor or subcontractor pursuant to any such public
contract. Except for this section, the provisions of
chapter 4 shall not apply to public contracts referred
to in this subsection.
(2) Notwithstanding section 205
of Title 32 of the Code of the
Federated States of
Micronesia
, no Foreign Investment
Permit shall be required to conduct any activity
referred to in subsection (1).
(3) The President shall be
responsible for establishing procurement procedures
specifically for use with all public contracts referred
to in subsection (1), which shall
(a)
meet or exceed prevailing international standards for
free and open competitive bidding, transparency, and
fairness to all parties,
(b)
effectively and efficiently facilitate the execution and
implementation of public contract referred to in
subsection (1),
(c)
protect resident workers, and
(d)
protect the public interest.
Such procurement procedures
shall take effect upon adoption by the President in
accordance with title 17 of the Code of the
Federated States of Micronesia
.
(4) Any citizen taxpayer in the
Federated States of Micronesia may seek to enjoin a
public contract referred to in subsection (1) to the
same extent and in the same manner as such remedy is
available to bona fide unsuccessful bidders on the
contract under the procurement procedures established
and approved by the President pursuant to subsection
(3).
(5) The courts of the
Federated States of
Micronesia
shall recognize and
give full force and effect to the dispute resolution
methods established by the President pursuant to
subsection (3).
Source:
Public Law 14-48
.
