Proposed Financial Management System for the Central Government of the Trust Territory of the Pacific Islands

The Office of Territorial Affairs of the Department of the Interior proposed and was beginning to install a financial management system for the Central Government of the Trust Territory of the Pacific Islands.

The proposed system appears to be more elaborate than would be necessary to meet operating manager requirements. Operating managers at both headquarters and the district levels feel their primary requirement is for current and accurate information to enable effective administrative control of funds and to provide information on expenditures by program. This information is within the capacity of the IBM 360/25 computer, which has been in place since 1971, and would not require the more sophisticated computer configuration called for by the proposed system and installed. The proposed system does not appear to be needed to meet the requirements of the present or future Government of the Trust Territory and the United States. The present requirements are to ensure fiscal accountability and to have accurate and timely information on expenditures under the various programs which are funded by grants from the United States. Current projections are that there will not be enough qualified Micronesian programmers to operate the system. The system cannot be financed from Trust Territory resources, and would appear to require a continuing subsidy from the United States.