The Office of the Chuuk State Public Auditor (OCPA) announces the release of Audit Report No. 2019-03, a performance audit entitled Chuuk State Political Status Commission (PSPSC): Funds Could Have Been Used More Productively and Economically, which covered the fiscal year 2013 to 2018. Reports may be made available by request to any interested individual at the OCPA in Nantaku, Weno, Chuuk. The Public Auditor’s authority is based on the Chuuk State Constitution Article VIII Section 9 and Truk State Law 6-21 which states in part: “The Auditor shall conduct audits of all financial transactions of all branches, departments, offices, agencies, and instrumentalities of the government, and of all accounts kept by or for them.” We conducted the performance audit in accordance with US General Audit Standards. The objective of this audit included determining whether the Chuuk State Political Status Commission spent its funds in compliance with relevant laws, regulations, policies and prudent practices. The results of the audit disclosed that certain expenditures of the Commission were not spent in accordance with laws, regulations and prudent practices. We believe that the funds could have been used more productively and economically. Specifically, our audit has disclosed the following weaknesses: 1. Some Opportunities Exist in Improving the Control for Travel • Travel Regulations Section on Per Diem Needs Clarification • Travel Regulations Section on Premium Allowance Needs Clarification • None or Incomplete Trip Reports • No Approved Travel Authorization • Various Issues on Car Rental • None/Late Submission of Liquidation • Circuitous Travel 2. Under Assessment of Income Tax, Social Security and Chuuk Health Insurance Premium Small but Attractive Assets Not Recorded and Tracked We offered numerous recommendations to improve the issues and weaknesses noted in our audit. The Department of Administrative Services submitted a Management Response, which was in agreement to the findings; no response was received from the Political Status Commission. We included such response in the final report.
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Office of the Chuuk State Public Auditor P.O Box B Weno, Chuuk FM 96942 Tel: 691.330.8832/8835; Fax 691.330.8840 Website: http://www.fmocpa.com
