GAO Finds: FSM & RMI Continue Accountability Problems

The Government Accountability Office (GAO) reported that the governments of the FSM and the RMI have not submitted plans to address decreasing compact funding.

Through fiscal years 2007 – 2011, both governments used about 50 percent of compact sector funds for education and health. A “significant amount” was used for personnel costs. As funding continue to decrease until fiscal year 2023, both the governments of the RMI and the FSM have not explained how they will handle annual decreases in compact funds. Because they have not submitted plans, both governments may not be able to provide important services in education and health sectors in the coming years. 

GAO found issues in much of the data collected. Without proper data collection, GAO cannot determine if funds have been used appropriately. In other words, without proper data, we cannot know if both governments are making progress.

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“… some FSM states reporting data for both public and private schools while other states included only public schools in their data.”

“… in the RMI, 1 health indicator was sufficiently reliable and 2 were not sufficiently reliable…”

“… the governments’ single audits showed repeat findings and persistent problems in noncompliance with U.S. program requirements, such as accounting for equipment.”

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The GAO advises the Office of Insular Affairs:

1. Take all necessary steps to ensure the reliability of FSM and RMI indicators in education and health.
2. Assess whether to designate each country as high risk.
3. Take actions to correct its disproportionate staffing shortage related to compact grant implementation and oversight.

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Sources:
1. GAO Report.
2. U.S. Department of the Interior.