- Accountability“(a) Regulations and policies normally applicable to United States financial assistance to its state and local governments, as reflected in the 2004 Fiscal Procedures Agreement, shall apply to each sector grant described in section 211, except as modified in Article IX of the Agreement Concerning Procedures for the Implementation of United States Economic Assistance Provided in the 2023 Amended Compact Between the Government of the United States of America and the Government of the Federated States of Micronesia, done at Palikir on May 23, 2023 (‘2023 Fiscal Procedures Agreement’), and to grants administered under section 221 made before Fiscal Year 2024, except as modified in the separate agreements referred to in section 231 or by United States law. Through Fiscal Year 2023, the Government of the United States, after annual consultations with the Government of the Federated States of Micronesia, may attach reasonable terms and conditions, including annual performance indicators that are necessary to ensure effective use of United States assistance and reasonable progress toward achieving program objectives. Through Fiscal Year 2023, the Government of the United States may seek appropriate remedies for noncompliance with the terms and conditions attached to the assistance, or for failure to comply with section 234, including withholding assistance.
“(b) The Government of the United States shall, for each fiscal year of the twenty years during which assistance is to be provided on a sector grant basis under section 211, grant the Government of the Federated States of Micronesia an amount equal to the lesser of (i) one half of the reasonable, properly documented cost incurred during each fiscal year to conduct the annual audit required under Article VIII(2) of the 2004 Fiscal Procedures Agreement or (ii) $500,000. Such amount will not be adjusted for inflation under section 217 or otherwise.
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