single audit reports
The Compact of Free Association (Compact) between the Federated States of Micronesia (FSM) and the United States, which was implemented in 1986, contains economic assistance, programs and services, and tax and trade benefits, to assist FSM toward achieving economic self-sufficiency. Certain provisions of the Compact, particularly the financial provisions, expired in 2003, but were renegotiated (amended Compact) by the United States and FSM. The amended Compact stipulates that the Government of the United States shall provide for annual audits of FSM with the cost of annual audits to be allocated to and paid for by both governments. The revised fiscal procedures call for, among other things, financial and compliance audits for each fiscal year in accordance with the Single Audit Act of 1984, as amended, and in conformity with OMB (Office of Management and Budget) Circular A-133.