May 20, 2008 - Colonia, Yap - In an effort to prevent more carry-over funds under the US Compact Sector Grants, Governor Anefal issued a memorandum to all recipients of Compact funding to "wisely and timely spend all their sector grant allocations to the last penny" by the end of the fiscal year. In his memo, he said this should not be viewed as "a marching order for a wild spending spree", but rather for recipients to begin spending their allocated funds in a timely fashion and in accordance with the approved budget and the law.
To ensure this matter is carried forward, Anefal directed the Office of Planning and Budget (OPB) to monitor and assess spending patterns of Sector Grant funds. Along with the directive to OPB, the Office of Administrative Service (OAS) has been tasked to generate and disseminate financial reports on a monthly basis to all grant recipients. Such reports should show expenditures against the approved budget as well as remaining balances in all sector grant accounts.
Governor Anefal further made a policy direction on the issue stating, "any recipient department/ agency that ends up at year-end with carry-over balances, will have a budget for the ensuing fiscal year that is negated by the same amount".
He stressed at his monthly Cabinet meeting that he would rather that such unspent funds go for other reasonably justifiable and qualified instate programs than submission to re-allocation elsewhere as rewards for misdeeds, a growing practice which at best is in defiance of peace, unity and nation-building efforts.