Interior warns it may withhold Compact funds over late audits; FSM agrees to redirect $1M to audit capacity.

What happened

The FSM’s required single audits for FY2019–2024 were between 183 and 547 days late, partly because of a shortage of trained accountants and an outdated data system. At joint committee meetings, US Interior officials warned they could withhold funds; the FSM agreed to set audit timelines and use $1 million in grants to build its audit capacity.