96.43% Reporting Success Rate

85% Reporting Success Rate

Section 104(h)(2) of the Amended Compact mandates a comprehensive review every five years. This report covers 2004-2008.

94% Reporting Success Rate
  

The FSM Office of SBOC has released the final report on the recently concluded Survey of FSM Migrants in the US including Guam and the Commonwealth of the Northern Mariana Islands (CNMI).

Welcome to the Division of Compact Management (DCM) section of the FSM Office of SBOC Website.  The DCM serves as the coordinating office between the FSM National Government, the State Governments and the U.S. Office of Insular Affairs (OIA) on Compact of Free Association (as amended) related matters.  We hope that the information you find on this web page is useful and informative.  Please feel free to send us any comments and/or suggestions on how we can improve the information provided and enhance your future visits to the site. 

Kalahngan, Kinnisou, Kulo & Kamagar,  

Suzanne Lowe Gallen
Assistant Director
Division of Compact Management

As per Executive Order (as amended) April 2008, the Division of Compact Management is:

1. To assist in advising the President on Compact matters
   
2. Responsible for the day-to-day communications with JEMCO and the United States Government with regards to JEMCO and other Compact matters 
   
3. To submit information on the FSM Trust Fund to the President, Congress and State governments
   
4. Monitor compliance on Compact implementation including adherence to grant award terms and conditions and JEMCO and Trust Fund Committee resolutions
   
5. Assist in the preparation of annual budget for Compact Sector grant assistance
   
6. Coordinate with recipients of Compact grants for effective and efficient use of Compact funds
   
7. Compile, develop, and analyze performance progress reports, financial management and other reports to the President, Congress, JEMCO and Trust Fund Committee
   
8. Develop and maintain an integrated information management system on Compact grant assistance. 

JOINT ECONOMIC MANAGEMENT COMMITTEE
 MID-YEAR MEETING
March 23, 2012

ADOPTED RESOLUTIONS

RESOLUTION JEMCO 2012-MT-1   
Review of the Compact Fund Control Commission

RESOLVED, JEMCO extends its appreciation to all parties involved in the review for completing a thorough review and agreeing upon a sensible approach to modifying the role and responsibilities of the CFCC and Chuuk State’s financial management operations.

BE IT FURTHER RESOLVED, that JEMCO reaffirms the need to continue the CFCC as an independent monitoring body in Chuuk but with its responsibilities modified in consistency with the newly enacted CFCC Act and the other agreements reached as a result of the CFCC review. 

BE IT FURTHER RESOLVED, the GFSM shall report on progress made in modifying and adjusting CFCC and DAS financial management responsibilities at JEMCO’s mid-year meeting in 2013.

RESOLUTION JEMCO 2012-MT-2
National Minimum Competency Tests

RESOLVED, JEMCO recognizes that the National Minimum Competency Test is the GFSM’s only standard assessment tool for elementary and secondary student performance.  JEMCO further recognizes that the GFSM needs to develop clear policies and guidelines for the administration of the test, properly budget for the annual testing, and increase use of the test results to evaluate and improve student performance.

BE IT FURTHER RESOLVED, the GFSM shall develop guidelines for the administration of the National Minimum Competency Test (NMCT) to be applied to primary and secondary schools receiving Compact funds in all four states.  The release of each year’s examination results shall be made available no later than August 1 of that school year.  The GFSM shall submit its goals, guidelines, work plan, and budget for administration of the Fiscal Year 2013 NMCT to OIA by July 1, 2012.

RESOLUTION JEMCO 2012-MT-3
Independent Verification of Performance Indicators and Data

RESOLVED, that JEMCO reaffirms the need for reliable and quantifiable health and education data to evaluate performance outcomes, consistent with the Compact, as Amended, and to  provide both the JEMCO and the GFSM with sound information to formulate policy, program, and fiscal decisions.

BE IT FURTHER RESOLVED, that to effect the routine review of data quality, the GFSM will conduct an objective, professional, third-party review of performance data.  The selection of the reviewer and the proposed review methodology shall be undertaken following consultation with OIA. This review shall include an assessment of:  (1) the appropriateness of the nation’s education and health data framework; (2) the soundness of processes used, whether manual or computerized; (3) the reliability of inputs to documentation; and (4) the verifiability of data at both points of entry and in abstracted reports.

BE IT FINALLY RESOLVED, that the GFSM shall report on the findings of the review at the next midyear meeting of JEMCO in March 2013.  The report shall include steps taken by the National Departments of Education (NDOE) and Health and Social Affairs (DHSA) to address data vulnerabilities and a description of methods applied by the departments in incorporating annual monitoring of data quality in their information framework in FY 2014 and beyond.  The FSM shall submit a full written description of the third-party review and, as applicable, essential solutions to OIA by July 1, 2013, for distribution to JEMCO in advance of the annual meeting in August 2013.

RESOLUTION JEMCO 2012-MT-4
Chuuk Education Reform Strategy

RESOLVED, in order for JEMCO to make sound policy decisions with respect to allocation of Compact Education Sector funds, it would benefit from a review and assessment of the Chuuk Education Reform Strategy.

BE IT FURTHER RESOLVED, no later than August 1, 2012 the GFSM will send a report to JEMCO through the Office of Insular Affairs (OIA) that assesses and validates progress in implementing the Chuuk Education Reform Strategy. The assessment shall be conducted by an independent individual or entity with requisite experience and qualifications in conducting such a review. The selection of the reviewer and the proposed assessment methodology of the reform strategy shall be undertaken following consultation with OIA. The report shall identify successes, delays and impediments in implementation of the Strategy. The report shall also give specific attention to identifying legislative, institutional, and operational barriers to the Strategy’s implementation and recommend practical remedies.

BE IT FINALLY RESOLVED, allocation by JEMCO of Fiscal Year 2013 Compact sector and SEG funds to Chuuk State will be contingent upon verifying the validity of elements of the reform strategy, and achievement of progress in implementing the Chuuk Education Reform Strategy.

RESOLUTION JEMCO 2012-MT-5
Ensuring Adequate Funding for MDRTB, Leprosy Elimination, and Reduction of Diabetes-related Hospitalizations

RESOLVED, JEMCO shall approve the Fiscal Year 2013 Health Sector Grant contingent upon the GFSM including in its budgets for Fiscal Year 2013 plans to achieve measurable impact to eliminate leprosy, the continuation of multiple drug resistant tuberculosis control efforts, and decrease the number of diabetes-related hospitalizations.  JEMCO approval of Health Sector grants for Fiscal Years 2014 through 2017 will similarly be contingent on continued support for these specific programs. 

BE IT FURTHER RESOLVED, the GFSM shall pursue activities to ensure effectiveness of effort and efficiencies within the health sector, and strengthen revenue enhancement efforts to augment sustainable funding for health services and programs.

RESOLUTION JEMCO 2012-MT-6
Honolulu Medical Referral Housing, Staffing, and Related Expenditures

RESOLVED, JEMCO no longer will allocate Compact funding for Honolulu-based operating expenses for medical referral coordination and the patient housing programs of the FSM states.   The exclusion shall begin in FY 2013 and apply annually thereafter.

RESOLUTION JEMCO 2012-MT-7
Infrastructure Development Plan, Health Facilities, and FAA Matching Funds

RESOLVED, consistent with Article V (1)(e) of the Fiscal Procedures Agreement ,  the GFSM shall develop and submit to JEMCO a professionally prepared update of its Infrastructure Development Plan (IDP) to reflect GFSM priorities for new and reconstructed capital infrastructure to be financed by Compact funds.  Insofar as Sector Grant funds are involved and prior to allocation of Public Sector Infrastructure assistance by the JEMCO, the IDP shall be subject to the concurrence of the JEMCO.

BE IT FURTHER RESOLVED, the GFSM shall conduct a comprehensive health-needs assessment and facility assessment of the Chuuk State Hospital and present its findings, recommendation and cost estimates to JEMCO upon completion of the assessment.

BE IT FURTHER RESOLVED, the GFSM shall submit to JEMCO for its review and concurrence a plan for the implementation of the Kosrae Hospital Project. The plan shall be based upon the “Site Scope Definition” prepared by BECA International Consultants Ltd. dated May 23, 2011.

BE IT FURTHER RESOLVED, the JEMCO will look favorably upon a request from the GFSM for the use of Public Sector Infrastructure funds for the purchase of an emergency stand-by generator for Pohnpei State Hospital.

BE IT FINALLY RESOLVED, no requests will be considered by JEMCO for GFSM matching funds of FAA AIP projects unless the following is included in future requests; 1) a clear description of local revenue efforts by the GFSM in providing matching funds to AIP projects, and 2) a revision by the GFSM to prevailing infrastructure project lists contained within the updated IDP that demonstrate the trade-offs of approving AIP projects against projects that would otherwise be funded with Compact sector assistance.

USG Policy Statement Regarding Long Term Planning in the FSM

Nikolao Pula, JEMCO Chairman
2012 Mid-Year Meeting
March 23, 2012

Although we have agreed not to pursue the resolution addressing the Long Term Planning and Economic Framework, we want to revisit the matter to make very clear the views of the United States with regard to the use of Compact funds to support sustainable essential services in health and education.

We all realize that the annual decrements to Compact operational funding make it impossible to maintain the current level of services provided by the four FSM States in healthcare and in primary and secondary education without changing the allocation of Compact funds, or by committing other revenues to those services.

Without a clear strategy proposed by the GFSM and embraced by the state and national leadership, JEMCO has a responsibility to ensure that adequate funding is dedicated to health and education in each of the four states.   That is the intent of the resolution that we tabled this morning.

The GFSM has more options than JEMCO to ensure that adequate resources are available to the States for health and education.  These options might include using the increased revenues generated by Comprehensive Tax Reform, increasing State shares of other nationally collected revenues, or by reallocating the percentage of Compact funds shared by the States and the National Government. These are choices that can be made by the GFSM, not by JEMCO. 

JEMCO has fewer options.   It has the authority under the Compact and consistent with the FSM Constitution to change the allocation of Compact funds among sectors and among the five funded governments.  Most importantly, it can shift funds from the National Government to the States, moving funds from national offices to State education and health departments where services are delivered.  The US believes that JEMCO is obligated to exercise this authority, if warranted, to assure that sustainable services are maintained. 

That said, our preference is that the GFSM, through its Long Term Planning and Economic Framework makes the fiscal and program adjustments that will make one-sided JEMCO action unnecessary.

So we ask you to seriously consider the intent of the tabled resolution and take into account the views of the US as sector budgets formulated and as the impact of the decrements become more severe.

JEMCO ADOPTED RESOLUTIONS
September 2, 2011
Honolulu, Hawaii

Resolution JEMCO 2011-1 
Sustainability of Sector Budgets and Strategic Planning

JEMCO resolves that no Compact assistance will be approved for Health and Education Sectors in Fiscal Year 2013 until the FSM demonstrates to the satisfaction of JEMCO that budgetary levels for personnel costs within the FSM’s Fiscal Year 2013 Health and Education Sector proposals shall not exceed the Fiscal Year 2011 levels. 

Resolution JEMCO 2011-2  
College of Micronesia (COM) Operational Funding through the Compact Education Sector

JEMCO resolves that, effective in FY 2013, Compact sector funds provided to the College of Micronesia (COM) shall be reduced at a minimum annual rate of $700,000. The reduction shall be implemented over a four year time period or until annual Compact funding for the College of Micronesia is reduced to $1,000,000 per year. 

JEMCO further resolves that project proposals for COM infrastructure projects will not be considered for approval by the JEMCO during the Fiscal Years period of 2012-2016. 

JEMCO further resolves that this resolution will be reviewed at its midyear meeting in Fiscal Year 2012. 

Resolution JEMCO 2011-3
Education Priorities and Resources 

JEMCO resolves that a comprehensive review of the educational priorities and resources of the FSM should be undertaken which involves all appropriate leaders, officials and community leaders. The review should determine the most appropriate funding resources, in light of decreases in Compact funding over the remaining years of the Compact, and should take into account additional funding resources such as local revenues, increased fees and PELL grant revenues.  National recommendations shall be made and presented to the FSM President and Congress and to the JEMCO prior to June 1, 2012.  

Resolution JEMCO 2011-4
Scholarships Financed by the Compact Education Sector

FSM Government statistics indicate that 94% of scholarship students did not achieve a degree by 2010.

JEMCO resolves that, effective in Fiscal Year 2013, no more than $1,000,000 in Compact assistance may be applied toward scholarship programs.  

Further recognizing that the effort to restructure Scholarship administration has just begun, but also recognizing the continued increasing cost of postsecondary education and the need to better frame the core tracking needs for this new administration framework, and acknowledging the effort FSM has made since January 2011 to reassess how scholarship funding is administered throughout FSM, JEMCO resolves that effective in Fiscal Year 2013:

1) Compact-funded scholarships must only be awarded to students accepted into degree credit course work or an FSM approved training program.  Scholarship funding must not support remedial academic work.  
2) Compact-funded scholarships must be provided directly to the educational institution instead of directly to the students.
3) Compact-funded scholarships may only be released for continuing students upon submission of transcript demonstrating successful completion of the previous quarter/semester’s work.
4) Students must maintain a Grade Point Average (GPA) of 2.5 to continue to receive a Compact-funded scholarship.
5) A yearly update of all students receiving Compact-funded scholarships must be submitted no later than July 1 each year to the Government of the US and FSM National Department of Education for audit purposes.  The report shall contain the following:  students; name of college or training program, numbers of years on scholarship, total to-date amount of scholarship funds received, major, GPA and expected year of graduation.
6) The yearly update must further include data on number of graduates each year by degree and certificate types.

Resolution JEMCO 2011-5
FSM Education: Site-Based Budgets

Effective Fiscal Year 2013, JEMCO resolves that education sector proposals for the four state governments of the FSM will only be considered for Compact assistance if they include individual school budgets containing a breakdown of funding by object classes as mutually agreed-upon by the Governments of the FSM and the United States.  At a minimum, these object classes must specifically include personnel, training, consumables, contractual and fixed assets.

JEMCO further resolves that the OIA, SBOC and NDOE shall report to JEMCO at its mid-year meeting on steps taken to implement the first paragraph of this resolution.

Resolution JEMCO 2011-6 
Army Corps of Engineers Assessment of the FSM Program Management Unit

JEMCO resolves that it will not consider approval of any new infrastructure project proposals until a professional contracting officer is hired by the FSM for the PMU.  

Resolution JEMCO 2011-7
Public Sector Infrastructure Funding for the Repair of the Pohnpei State Hospital

JEMCO allocates $1,900,000 of Public Sector Infrastructure Funds for the renovation of the Pohnpei State Hospital Project.   

Resolution JEMCO 2011-8
Project Based Proposals

JEMCO resolves that, effective FY 2012, health and education sector proposals for the FSM National Departments of Health and Education must be submitted in a format containing program-specific commitments that are linked to activity-based budgets.

Resolution JEMCO 2011-9
Trafficking in Persons

JEMCO resolves that it would look favorably on budget proposals for the use of Public Sector Capacity Building grants to conduct anti-trafficking activities as recommended in the FSM Country Narrative of the 2011 U.S. Trafficking in Persons Report.

Resolution JEMCO 2011-10a
Fiscal Year 2012 Sector Grant Allocations (adopted)

RESOLVED, that JEMCO allocates the following amounts for use of Fiscal Year 2012 Compact sector grant funding subject to Resolutions JEMCO 2011-6, 2011-7, and 2011-8:

Note 1:  The allocation for Enhanced Reporting and Accountability is subject to necessary agreement between the two governments.

Note 2:  Funding for the National Departments of Health ($878,750) and Education ($637,560) was allocated by JEMCO in Resolution 2011-10a.

JEMCO further allocates the following amounts from unallocated funds for Fiscal Year 2012 as shown below. 

For a breakdown of these funds, please click here.