Compact of Free Association: Palau's Use of and Accountability for Us Assistance and Prospects for Economic Self-sufficiency

Gootnick, David; Friberg, Emil (2008). Compact of Free Association: Palau's Use of and Accountability for Us Assistance and Prospects for Economic Self-sufficiency (Report). Washington, DC: Government Accountability Office.

• Has attachment: File:PAE78LKQ.pdf

Abstract: The Compact of Free Association between the Republic of Palau and the United States entered into force on October 1, 1994, with the U.S. interest of promoting Palau's self-sufficiency and economic advancement. The compact and its related subsidiary agreements provide for a 15-year term of economic assistance. In fiscal year 2009, the two governments must review the terms of the compact and related agreements and agree on any modifications. The Department of the Interior (DOI) has primary responsibility for oversight of Palau's use of compact funds. GAO was requested to report on (1) the provision of compact and other U.S. assistance to Palau in fiscal years 1995-2009; (2) Palau's and U.S. agencies' efforts to provide accountability over Palau's use of federal funds in 1995-2006; and (3) Palau's prospects for achieving economic self-sufficiency. GAO reviewed Palau's compact annual reports, financial statements and internal control reports for fiscal years 1995-2006, as well as other compact-related documentation. GAO interviewed officials from the U.S. and Palau governments and conducted fieldwork in Palau.