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ClimateScanner© Global Assessment of the Government of Guam's Actions Related to Climate Change

Hagåtña, Guam: The Guam Office of Public Accountability (OPA) has released the flash report of the ClimateScanner© assessment of the Government of Guam’s (GovGuam) actions related to climate change. Our objective was to report the results of the assessment, and the scope of the assessment is from the adoption of the Paris Agreement in December 2015 through August 2024.

The ClimateScanner© Global Assessment is a priority project of the International Organization of Supreme Audit Institutions (INTOSAI), currently chaired by the Supreme Audit Institution (SAI) Brazil, the Federal Court of Accounts. ClimateScanner© is an initiative in which member SAIs participate in an assessment of their respective governments’ actions related to climate change. As the SAI for Guam, the OPA was invited to participate in this initiative to assess GovGuam’s actions towards climate change.

Government of Guam ClimateScanner© Assessment Results

There were 66 items for assessment. Results show that of the 66 items, GovGuam was rated at Advanced Implementation for 49 items, Intermediate Implementation for six items, and Early Implementation for five items. Six items were not applicable to GovGuam (explained in the Finance Axis section of this report).

Conclusion and Recommendations

This is the first-ever assessment of GovGuam’s action for climate change. These results will be consolidated with results from other participating member SAIs and presented to the Conference of Parties 29 at the United Nation Framework Convention on Climate Change to be held in November 2024. The assessment did not evaluate for the effectiveness of GovGuam’s climate change actions. It is OPA’s observation that improvements can be made on the transparency of GovGuam’s efforts in addressing climate change. We recommend for GovGuam to establish an overarching law or a legal or regulatory framework on climate change that would include reporting requirements and the centralization of GovGuam’s climate change action to increase public awareness, stakeholder engagement, and monitor progress.

GovGuam officials generally agreed with our conclusion and recommendation. They welcome a full performance audit on GovGuam’s effectiveness in addressing climate change action be conducted by OPA. An environmental performance audit will be considered as part of the Annual Audit Work Plan.

“I am very pleased that we participated in this global assessment, because now the rest of the world can see that Guam has been actively pursuing climate change action. I want to thank the government of Guam officials who provided evidence and most of the information that was needed to complete this assessment,” says Public Auditor Benjamin J.F. Cruz. “These results will guide the Office of Public Accountability with environmental performance audit projects for effectiveness, efficiency, and equity in climate change action.”

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 For more information, please contact Selina Onedera-Salas at (671) 475-0390 ext. 207 or at sonederasalas@ugamopa.com.

PDF of press release

You can also download the flash report from www.opaguam.org.

Office of the Chuuk State Public Auditor releases new strategic plan

Chuuk State, FSM: The Office of the Chuuk State Public Auditor (OCPA) released its Strategic Plan (FY 2024-2028). The comprehensive plan was completed with the assistance of the Pacific Association of Supreme Audit Institutions (PASAI), and will serve as a roadmap to strengthen and improve the office performance of the OCPA for the next five years.

The vision statement of the office is to become ‘an effective audit agency that promotes a high performing government.’ Guided by this vision; including its mission, and core values; the OCPA is aspiring to deliver performance that would impact the timeliness of government services and programs, identify areas of improvement within government agencies, integrate information technology in auditing, effectively communicate the results of the audits to the public and therefore, enhance government transparency and accountability.

The key focus areas of the strategic plan with key performance indicators include:

  1. Toughen Independence: Safeguarding organizational autonomy and advocating for a clearer mandate.

  2. Strengthen Internal Governance: Updating and implementing strategic and annual operation plans, fortifying internal control systems, and establishing robust management systems for support services.

  3. Delivering Quality and Timely Audit and Investigation: Ensuring adequate staffing to execute a sufficient number of audits, nurturing staff competencies, refining operational standards and tools, optimizing work planning and controls, and implementing an effective quality control system.

  4. Foster Engagement with External Stakeholders: Developing and updating strategies, policies, and procedures for stakeholder engagement, and nurturing professional relationships.

The OCPA also developed an operational plan that delineates the milestones for each fiscal year, as well as established the mechanism for monitoring and evaluating its performance. Furthermore, the OCPA conducted a risk assessment and identified the threats to the accomplishment of its strategic objectives.

These threats include potential challenges such as enactment of the proposed legislative amendments, insufficient budgetary support for manpower and operational needs, shortages of qualified personnel at Chuuk State, staff retention concerns, and limitations in the funds for IT resources. The OCPA would endeavor to address these potential challenges with the support from the political leadership and cooperation from departments within the government.

Strategic Plan 2024-2028; Monitoring and Evaluation Framework; Operational Plan 2024

PDF of OCPA press release 2024-01

SAI Chuuk releases its audit on the Chuuk Housing Authority

18 December 2023

The Office of the Chuuk State Public Auditor (OCPA) completed its Audit Report No. 2023-02 entitled Chuuk State Housing Authority: Not Aware of the Extent of Families in Housing Needs. The coverage of the audit was for the period beginning fiscal year 2020 to fiscal year 2022. The audit was conducted in accordance with the U.S. Generally Accepted Government Auditing Standards for performance audit. The objectives of this performance audit were to determine whether the Chuuk Housing Authority (CHA) spent its funds in accordance with the Chuuk State Financial Management Regulations and to determine the extent to which the Chuuk Housing Authority has been strategically managing its operations and effectively performing its function as mandated by the law.

The Authority used to provide loans for construction of housing units but, due to limited funding, was currently administering only an in-house CHA Loan Fund for house repair and renovation. The Authority operates on two budgets. The first budget was non-appropriated fund, which was being approved by the board for the operation of the CHA loan fund. The second budget was the appropriated fund passed by the Legislature and signed by the Governor. During three year period covered by the audit (FY2020-FY2022), the non-appropriated fund (loan fund) had average yearly collection of $145,051.65 while the average yearly appropriated budget was $67,182.50. The yearly average collections can be provided to only about 29 new loans.

The results of the audit disclosed that the CHA did not spend its funds in accordance with the Chuuk State Financial Management Regulations and other applicable laws for the spending of funds and managing its operations. The OCPA noted non-compliances with regard to loan processing documentations and internal control requirements for the operation of the CHA loan fund. Of the 25 samples of loan folders examined, there were 13 samples (52%) with non-compliance issues involving improper documentations of loans. Furthermore, the OCPA noted that CHA did not strictly follow the budget control procedures. The deficit spending was recurring problem in appropriated budget at an average of $7,000 per year or 10% over the budget while the cash operating losses were sustained in the operation of the loan fund at an average of $40,000 per year during the fiscal years covered by the audit. The OCPA also noted that the loan fund was used for expenditures not allowed by law, e.g., COVID 19 allowance, bonuses, and others. The Board approved these expenditures. The audit found that a total of $23,720 was spent for unallowable expenditures. Lastly, the OCPA noted at least nine conflicts of interest loans amounting $45,000. In the absence of related policy, these loans may have been prioritized and unnecessarily competed and crowded out the funds that were otherwise available to low-income households.

The OCPA also noted that the CHA has not been strategically managing its operation and effectively performing its functions that were mandated by the law. There was no strategic plan in place that will provide direction on how it could fulfill its functions mandated by the law. The CHA was not aware of the extent of families in housing needs. On current lending activities, the OCPA noted that the CHA and the Department of Administrative Services (DAS) could improve their operating efficiencies by refraining from being involved in the procurement of the construction materials on behalf of the borrower. Unnecessary administrative time was being consumed waiting for quotation, creating and issuing Purchase Order (PO) based on summary of quotations, and processing the disbursements for POed items. These activities must be transferred to the responsibility of the borrowers. Furthermore, the OCPA also noted that the CHA has not been efficiently managing its accounts receivables (AR) and accounts payables (AP). The CHA was not efficient in collecting loans. In FY 2021, the CHA had written-off $1.5 million bad debts or uncollectible accounts on loans for the construction of housing units. Of the new loans granted during the period covered by the audit, the accounts receivable as of September 30, 2022 amounting to $44,658.48 from 10 debtors either had no collection or missed the periodic installment. There was also absence of reconciled subsidiary ledgers for both Accounts Receivable and Accounts Payable which could result in potential misstatements of the financial statements, particularly the receivable and the payable balances.

On other matters, the CHA Executive Director, based on a Memorandum of Understanding (MOU), was asserting that CHA has uncollected receivable account since 2007 from the Chuuk Public Utility Corporation (CPUC) amounting to $219,838.82. It helped CPUC then in resolving power outages and in purchasing its fuel needs. The DAS Director confirmed that the money was indeed provided to the CPUC through several cash releases as decreed by the Governor. He also said that intention was to get back the money; hence, an MOU was signed. He further said that they kept requesting for reimbursement. Since the CHA needs the fund for their loan activities, the OCPA recommend that the CHA should continue requesting for the reimbursement of the amount.

The OCPA had several recommendations to improve the operation of the CHA. It should update loan policies and procedures that should include policy on conflict of interest. Furthermore, it should strictly follow the budgetary control. Also, it should implement long term strategic plan and should refrain from being involved in the procurement of the construction materials on behalf of the borrower. Furthermore, it should implement strategies that would ensure that receivables are collected on time and the subsidiary ledgers are reconciled. Lastly, there should be regular management information reports that should be provided to the Board on cash in bank, accounts receivable, uncollected accounts, net resources (net position), net income/losses, cash forecast, revenue and expense report, and fund status report to serve as the basis of their informed decision related to the operation of the CHA and to keep intact and sustain the value of the loan fund.

The OCPA requested a formal response from both the management of the CHA and the DAS. It received the management response from the CHA but not from the DAS. The CHA management generally agreed on some recommendations but explained that the deficit spending that has been recurring in the appropriated budget was the salary increase that was approved by the Board to be funded by the loan fund.

Press Release 2023-02

SAI Chuuk releases audit report on the Department of Health Services

4 December 2023

The Office of the Chuuk State Public Auditor (OCPA) completed its Audit Report No. 2023-01 entitled Chuuk State Department of Health Services: Issues Found on Documentation, Inventory System, and Warehousing. This audit covered the period beginning fiscal year 2020 to fiscal year 2022. It was conducted in accordance with the Generally Accepted Government Auditing Standards issued by the U.S. Comptroller General.

The objective of this audit was to determine whether the Chuuk State Department of Health Services (DHS) is effectively ensuring that financial transactions are compliant with applicable laws and regulations of Chuuk State, focusing on the proper filing and complete documentation of obligation and appropriate payment of government housing allowance. In addition, the second objective was to determine the efficiency and effectiveness of internal controls on pharmaceutical products, medical supplies. and donated items; focusing on inventory system and warehousing management.

The OCPA concluded the DHS did not comply with the Chuuk State Financial Regulation regarding the proper documentation and filing. Important documents were misplaced and untraceable. The OCPA found the documentation of $354,210.73 worth of payments was missing on file: $648,132 worth of payments was lacking supporting documents and, this cannot be substantiated. However, $356,480.27 of this amount represents document for formulation of pharmaceuticals which was explained as filed with the Division of Planning and Statistics. In addition, a total of $118,200 was overspent in housing allowance for three years caused by variance in rate and conflict of interest.

The OCPA also concluded that the DHS poorly managed its inventory and warehousing. The DHS was incurring a substantial amount estimated at $1.5million yearly for procurement of pharmaceutical products and medical supplies. And an estimated of about $1 million is left in the inventory. However, the pharmaceutical products were manually tracked using Microsoft Excel which is not updated timely, and there was no system for medical supplies and donated items. As a result, an estimated purchased of medical supplies worth of $432,514.32 was not properly accounted for. In addition, the OCPA noted that the inventory was stored in four different, fully packed warehouses.

The OCPA recommended proper filing of documentation and an updated policy on housing allowance. Regarding the inventory, the OCPA recommended for investment on new inventory system and bigger warehouse.

Press Release 2023-01

SAI FSM National releases report on government's potential liability in $9.5 million lawsuit

The Office of the National Public Auditor (ONPA) Releases Inspection Report on the $9.5 million initially booked by the Department of Finance & Administration as the Government’s Liability in a Lawsuit Involving a Contractor for Road Projects in Chuuk State.

We have completed our Inspection on the $9.5 million based on a request from the FSM Congress per Congressional Resolution No. 22-194: To request the Office of the National Public Auditor to audit the accounts, books, and other financial records of the Department of Finance and Administration in regards to the $9,500,454 reserved by the Department of Finance and Administration in Fiscal Year 2019 to cover the potential National Government liability in FSM v. Pacific International, Inc., Civ. Case No. 2014-46, Appeal Case No. P12-2021. We conducted this Inspection in accordance with the Council of the Inspectors General on Integrity and Efficiency Quality Standards for Inspection and Evaluation (QSIE) and also included reviews of journal entries and their supporting documents and interviews of key officials to obtain sufficient, appropriate evidence to provide a reasonable basis for our conclusions.

Based on our objective, we concluded that the $9.5 million initially booked in 2019 to cover the potential National Government liability in Civil Case No. 2014-46, Appeal Case No. P12-2021 was an adjusting journal entry to reduce the Fund Balance and to set up a related liability based on the legal representation from the Department of Justice. The arbitration was completed and the final award was reduced to $6 million, thus another adjusting journal entry was posted to increase Fund Balance and reduce liability by $3.5 million. The National Government’s debt of $6 million remained unpaid as of the date we issued this final Inspection Report. No cash was reserved as a result of such transactions.

Audit Report No 2023-02

For more information contact: Email: info@fsmopa.fm; Phone: (691)320-2862/3; Facebook: https://www.facebook.com/fsmpublicauditor

Article XII, Section 3 of the F.S.M Constitution and Title 55, Chapter 5 of the FSM Code authorized the Public Auditor to direct a broad, comprehensive program of auditing within the National Government.

Media Release No. 2023-02

Peer review team reviews works of SAI Chuuk

The Peer Review Team consisting of auditors Mr. Satrunino Tewid, Acting Public Auditor from the Office of the Public Auditor, Republic of Palau; Ms. Elizabeth M. Jonah, Staff Audtior II, Office of the Public Auditor, Kosrae State; and Ms. Dilrae U. Mechol, Junior Auditor II, Office of the Public Auditor, Republic of Palau; completed a peer review of the Office of Chuuk State Public Auditor (OCPA).

The peer review team reviewed the procedures comprising the internal quality control system of OCPA if adequate and operating effectively to provide reasonable assurance of compliance with Government Auditing Standards issued by the Comptroller General of the United States and applicable legal and regulatory requirements.

According to the opinion of the peer review team, the internal quality control system was adequately designed and operating effectively. The office received a rating of “pass” in the review. A sample of audit engagements that were reviewed was the completed engagements during the period October 1, 2017 to September 30, 2020.

Copies of the peer review reports were also directly issued to Honorable Alexander R. Narruhn, Governor; Honorable Arno H. Kony, President of the Senate 16th Chuuk State Legislature; and Honorable Lester Danny Mersai, Speaker of the House of Representatives 16th Chuuk State Legislature.

PDF of OCPA press release 2023-01

Peer review results

Response of the Public Auditor

24th PASAI Congress Communiqué

24th Pacific Association of Supreme Audit Institutions (PASAI) Congress

Koror, Palau

28 February to 3 March 2023

PASAI Communiqué

  1. PASAI held its 24th Congress in Koror, Palau from 28 February to 3 March 2023. The Office of the Public Auditor for the Republic of Palau hosted the Congress. The theme for the Congress was “Looking to the future.” Representatives of 22 PASAI member national, state or territory government audit offices attended from the Australian National Audit Office, Australian Capital Territory (Australia), New South Wales (Australia), Western Australia (Australia), the Cook Islands, the Federated States of Micronesia (FSM) National, FSM Pohnpei, Fiji, French Polynesia, Guam, Kiribati, Marshall Islands, Nauru, New Caledonia, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.

    Representatives attended from the Brazilian Federal Court of Accounts (Chair of INTOSAI), the Ministry of Foreign Affairs of Brazil, the Government Accountability Office USA, the INTOSAI Development Initiative (IDI), the International Journal of Government Auditing, the Australian Department of Foreign Affairs and Trade (DFAT), the United Nations Development Programme Pacific (UNDP) Office, Graduate School USA, the Minister of Finance of Palau, and Beasley Intercultural.

    Video presentations were provided by representatives from the Secretary-General of INTOSAI, the INTOSAI Working Group on Environmental Auditing (WGEA), the New Zealand Ministry of Foreign Affairs and Trade (MFAT) and the World Bank.

    PASAI Secretariat staff also attended.

  2. SAI Heads expressed their deep gratitude to the Public Auditor and staff of SAI Palau for making such excellent arrangements in hosting the Congress.

    Looking to the future

  3. SAI Heads acknowledged the invitation from the INTOSAI Secretary-General, Dr Margit Kraker, to visit the INTOSAI website to read an overview of the 12 professional pronouncements that were endorsed at INCOSAI in November 2022. SAI Heads noted her invitation to PASAI’s state and territorial members who are not already affiliate members of INTOSAI, to apply for this category of membership.

  4. SAI Heads agreed with the sentiment of the INTOSAI Chair, President of the Federal Court of Accounts of Brazil, Minister Bruno Dantas, that it is in the interest of all of humanity that small island developing states (SIDS) thrive. SAI Heads acknowledged his invitation to join the Climate Scanner project after the pilot stage and noted his recognition of PASAI’s mainstreaming of gender and inclusion in its Human Resource Management work. SAI Heads appreciated his offer to work together on IT capacity challenges.

  5. SAI Heads were encouraged by the Minister of Finance of Palau’s statement that all Pacific Island ministers of finance should be utilising the platform provided by the Pacific Island Forum Economic Ministers Meeting (FEMM) to advocate for high quality government audits.

  6. SAI Heads, along with all other Congress participants, concurred with the PASAI Secretary-General’s expression of appreciation for the attendance of the INTOSAI Chair and his delegation from Brazil and acknowledged the significance of the INTOSAI Chair’s support for the PASAI Congress. The Rio Declaration reinforces that we all face the same challenges no matter the size of the SAI.

    Secretariat work update

  7. PASAI Secretariat’s Chief Executive reported on the current focus areas of PASAI’s programme.

  8. SAI Heads noted that the completion of the SAI Performance Measurement Framework (PMF) assessments for all 20 SAIs that are beneficiaries of PASAI’s programmes has strengthened the evidence base on the status of SAI independence (Strategic Priority 1). The Secretariat continues to support work with SAIs across the region to improve independence and to monitor progress on independence at the SAI level. In-country visits to Samoa in December and Kiribati in recent months have been focused on supporting SAI Heads to undertake advocacy with key stakeholders. Assistance is also being provided to SAIs to develop independence strategies.

  9. SAI Heads noted that to advocate to strengthen governance, transparency, accountability and integrity (Strategic Priority 2) the Secretariat is progressing its ‘Accountability and Transparency Study’ report. This report is expected to be published soon. The Secretariat continues to collaborate with PFTAC to complete Public Expenditure and Financial Accountability (PEFA) assessments. PEFA assessment results are used to identify focus areas for PASAI’s programme. Supporting SAIs to develop and implement communications strategies continues. In-person communications and media workshop training has recommenced recently. PASAI’ s monthly blog continues to be used as part of its advocacy programme.

  10. SAI Heads noted that to achieve high quality audits on a timely basis (Strategic Priority 3) the Secretariat continues to support SAIs to complete the financial statements of government (FSG) audit where these audits have a backlog. PASAI continued its work with the IDI on the programme ‘Provide SAI level support for efficient and timely FSG audits in compliance with ISSAIs’. Quality Assurance (QA) reviews for SAIs involved in this programme are progressing. The Secretariat published a report on findings from FSG audits in December 2022. The insights into common issues identified from these audits will be used to inform support to SAIs.

  11. SAI Heads noted that PASAI’s work to enhance SAI capacity and capability (Strategic Priority 4) is currently focused on assisting SAIs to design and implement strategic plans, operational plans, performance monitoring systems and to strengthening Human Resource Management (HRM). The HRM programme continued with support from SAI Sweden.

  12. SAI Heads noted that following the completion of SAI PMF assessments for all recipient member SAIs PASAI has now published a report summarising the results for the region. This work will guide the focus of PASAI’s programme into the future strategic period.

  13. SAI Heads noted that in support of member SAIs (Strategic Priority 5) the Secretariat’s four programme directors are now working with a portfolio of SAIs. This is intended to enhance the depth of understanding of PASAI’s staff of the needs of PASAI’s members to ensure the Secretariat is providing relevant support to SAIs.

    Development Partner and stakeholder updates

  14. SAI Heads acknowledged the clear messages of ongoing support received from PASAI’s development partners (the New Zealand Ministry of Foreign Affairs and Trade, the Australian Department of Foreign Affairs and Trade, the United Nations Development Programme and the World Bank).

  15. SAI Heads were grateful for the presence of the Australian Ambassador to Palau and the UNDP’s PFM Technical Specialist at the Congress and for the video messages provided by other development partners.

  16. SAI Heads noted the important contributions of other INTOSAI bodies in the development of PASAI’s member SAIs.

  17. SAI Heads noted the high level of participation of PASAI staff in the INTOSAI Development Initiative (IDI) Professional Education for SAI Auditors – Pilot (PESA-P). SAI Heads also noted PASAI member participation in the IDI’s Transparency, Accountability and Inclusion (TAI) Audit programme.

  18. SAI Heads noted the relevance of the INTOSAI Working Group on Environmental Auditing to Pacific Island nations and upcoming regional working group meeting to be held in New South Wales in May 2023.

  19. SAI Heads acknowledged the importance of building partnerships and the need for Development Partners and other stakeholders to join with SAIs to increase attention to issues such as SAI independence challenges.

    Twinning partnerships

  20. SAI Heads acknowledged the work of INTOSAI’s Capacity Building Committee to support peer-to-peer cooperation under the Goal 2 work programme and the alignment of this INTOSAI work stream with twinning activities occurring between PASAI members. SAI Heads noted the desire of PASAI to increase the extent of twinning work within its programme.

  21. SAI Heads heard the Head of SAI USA strongly supports the establishment of twinning partnerships for North Pacific SAIs. SAI Heads noted work that is underway to develop a connection between SAI USA’s Center for Audit Excellence and PASAI members to establish development partner supported twinning style long-term partnerships. SAI Heads noted other opportunities available through SAI USA including its international auditor fellowship programme.

  22. SAI Heads heard that Graduate School USA, in its role providing customised training and a peer review process support to Association of Pacific Island Public Auditors (APIPA) members, welcomes opportunities to work more closely with PASAI in the future.

  23. SAI Heads noted that the Congress provided a valuable opportunity for twinning partners to connect and reconnect, build mutual understanding and plan for future work together.

    Pacific SAIs living the INTOSAI motto

  24. Congress participants dedicated much of their time together to sessions where they shared experiences to achieve mutual benefit and encouragement. The INTOSAI motto, Experientia mutua omnibus prodest (Mutual experience benefits all), and PASAI’s motto, “Pacific auditors working together,” were confirmed as foundational guides for the work of PASAI through these sessions. Sub-region representatives shared their challenges and issues, SAI purpose and achievements were considered along with discussions on the important issues of SAI independence, delivering quality in their core audit mandates, and achieving impact through their work for the benefit of their communities.

  25. SAI Heads shared creative responses to the question, “What reflects the importance of your work?” which set the tone for the working sessions. This tied the SAIs’ work to their cultural heritage and highlighted that there is a commonality of challenges but also passion to maintain the important role of SAIs. SAI Heads resolved to work together to address the many common challenges that they have.

    Exploring SAI independence

  26. SAI Heads noted:

    • The journey from a low to high level of SAI independence may take time and requires persistent advocacy.

    • That IDI provides a range of tools to help SAIs gain independence, monitor independence challenges and support SAIs with advocacy where needed. Where a SAI has high levels of independence it must be jealously guarded. In cases where SAI Independence is under threat IDI has a SAI Independence Rapid Advocacy Mechanism (SIRAM) available to support SAIs.

    • It is critical SAIs lead by example and act with integrity.

    Securing quality in SAI’s core mandate

  27. SAI Heads noted that:

    • Twinning and peer-to-peer support provide valuable ways of learning from the experiences of others.

    • Quality Assurance review processes build a culture of continuous improvement within SAIs.

    • Training staff at a time that is close to when they will be able to apply the skills is the most effective way to learn.

    • While technical training will be important, even more so is ensuring staff understand the values of their organisation and apply these in all that they do.

    Enabling audit impact

  28. SAI Heads noted that:

    • The INTOSAI Journal of Government Auditing provides a platform to share stories of audit impact for the encouragement of others. The Journal plans to dedicate an edition to small island states later this year.

    • PASAI’s recent focus on assisting SAIs to develop communications strategies is enabling SAIs to increase audit impact. Examples were shared of actions taken to implement these strategies including SAIs’ increasing interactions with public accounts committees and initiating events with community groups to share audit results.

    • Representatives of the INTOSAI Chair’s delegation provided the example of the coordinated audit on protected areas being implemented by the SAIs of seven Portuguese-speaking countries and who will disseminate communication products related to this work from the second half of 2023.

    • PASAI’s Enhancing Strategic Management Capability programme has developed the knowledge of participants on strategic management concepts including value creation, strategic priorities and key performance measures.

    Strategy development

  29. SAI Heads concurred that the existing Strategic Priorities have steered PASAI well and that significant progress has been made across all strategic priorities during that time.

  30. SAI Heads noted the continuity of PASAI’s role over many years and the importance of its continued focus on supporting the needs of its members.

  31. SAI Heads valued the opportunity to have detailed discussions with other Congress participants about what has helped and hindered PASAI in its work, how well it has succeeded in the past, what emerging issues are likely to affect its work in the future and what kind of activities PASAI should be prioritising.

  32. SAI Heads noted the next steps in the development of its future Strategic Plan would include extensive consultation with PASAI members, development partners and stakeholders over the coming months.

    PASAI general business

  33. SAI Heads reviewed the communique from the 23rd Congress meeting held online from Wellington from 22 to 24 June 2021.

  34. SAI Heads noted the Chief Executive’s report for the period July 2022 to January 2023.

  35. SAI Heads noted the current functionality of PASAI’s Learning Platform and development of a draft Competency Framework.

  36. SAI Heads adopted the recommendations provided to Congress by PASAI’s Governing Board that held its 33rd meeting on 27 February 2023 being the following:

    • the delay of the previously approved PASAI membership fee increase to NZD8,000 per annum scheduled for 1 July 2023 to 1 July 2024 as a consequence of the impacts of COVID-19 on the region.

    • in accordance with Article 3 of the PASAI Charter that the Australian Capital Territory Audit Office and the Western Australia Audit Office be admitted as new members of PASAI.

    • the PASAI Secretariat office to remain in New Zealand.

    • as previously agreed in 2021 that if the Secretariat was to be relocated it would require three years for selection of an alternative location and for relocation to take place.

    • that the next consideration of the Secretariat location is three years before the end of the next Strategic Plan period.

    • that the Secretary-General role is best linked to the country that hosts the Secretariat, although this is not a requirement of the Charter.

    • the position of the Secretary-General of PASAI remains with SAI New Zealand.

  37. SAI Heads confirmed SAI Tuvalu to represent the Polynesian group on the Governing Board and thanked Sefita Tangi, Auditor-General of Tonga, for his six years of service on the Board.

  38. SAI Heads confirmed SAI Vanuatu to represent the Melanesian group on the Governing Board.

  39. SAI Heads confirmed SAI Marshall Islands to represent the Micronesian group on the Governing Board.

  40. SAI Heads confirmed SAI New Caledonia to represent the ‘Other’ group on the Governing Board.

  41. SAI Heads noted the confirmation of the continuation of Fuimaono Camillo Afele, SAI Samoa, as PASAI Representative on the INTOSAI Governing Board until 2025 that was confirmed in 2022 prior to INCOSAI.

    Host of the next PASAI Congress

  42. SAI Heads supported the offer of SAI Cook Islands to host the 25th PASAI Congress in 2024.


Koror, Palau
3 March 2023

PDF version of this Communiqué

SAI Chuuk releases final audit on State Election Commission

24 August 2022

Weno: Chuuk: The Office of the Chuuk State Public Auditor (OCPA) releases its final audit on the Chuuk State Election Commission entitled “Chuuk State Election Commission: Inadequate Compliance with the Financial Management Regulations and Needing Improvement in the Conduct of Election.”

This is to announce that we have completed the performance audit on the Chuuk State Election Commission covering fiscal years 2017 to 2021. The audit primarily focused on compliance with financial management regulations and determination whether the commission was strategically managing its operations. The audit report presents the findings and recommendations, which audit was conducted in accordance with the US Generally Accepted Government Auditing Standards (GAGAS).

Based on the audit, we summarize the following issues that the management should address:

  1. Inefficiency in handling overseas and Chuuk Islands voting resulting to incurring significant expenses for travel and fuel in every election.

  2. Compliance in internal control procedures for monitoring the appropriated budget, requiring the acknowledgement of payment checks by the recipients, managing and maintaining fixed assets records for monitoring and accountability, and improving record filing, management and retention.

  3. Development and implementation of a Strategic Plan that would provide clarity, long-term direction and focus activities toward protecting voters’ rights, efficient election and ensuring/safeguarding free and fair election.

Printed copies of the Report 2022-01 are available at the OCPA located in Weno, Chuuk State. You can also view and download copies through the “Office of the Chuuk State Public Auditor” Facebook group.

PDF of OCPA Press Release #2022-01

SAI FSM National releases final audit on the FSM Petro-Corp

15 July 2022

Palikir, Pohnpei: The Office of the National Public Auditor (ONPA) releases its final audit on the FSM Petro-Corp entitled “Deficiencies Noted Reflect the Need to Improve Enterprise-Wide Risk Management.”

This is to announce that we have completed the performance audit on the FSMPC (the Corporation) covering fiscal years 2019 to 2021. The audit primarily focused on processes of governance, internal controls, risk management and selected operations of the Corporation. This report presents the results of our audit, which was conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS).

Based on our audit, we found the following issues that the management should address:

  1. Outdated risk management procedure and no central monitoring of enterprise-wide

    risks;

  2. Procurement Manual remains in draft since 2018 & does not contain procedures for

    procuring fuel & lubricants; and

  3. Inconsistent documentation of minutes of meetings of the Board Committee for Risk

    and Audit.

Printed copies of Report 2022-04 are also available at the ONPA located in Palikir, Pohnpei.

PDF of ONPA Press Release #2022-06

SAI FSM National releases report on the Renewable Energy Development Project

12 July 2022

Palikir, Pohnpei: The Office of the National Public Auditor (ONPA) releases its final reports on the Financial Audit of the Financial Statements for Asian Development Bank (ADB) Renewal Energy Development Project (REDP) - Grant Number 0680-FSM(SF).

This is to announce the issuance of our new audit reports as the result of our audit of the financial statements of the ADB project mentioned above for the period December 03, 2019 to September 30, 2021.  This audit was conducted in accordance with the Generally Accepted Government Auditing Standards (GAGAS). 

View the full reports and communication below:

Auditing Financial Statements and Independent Auditors’ Reports

Communication to those charged with Governance

Management Letter

Printed copies are also available at the ONPA located in Palikir, Pohnpei.

PDF of ONPA Press Release #2022-05