Be it enacted by the Legislature of the State of Yap.
Section 1
Operations, Programs and Projects. The sum of $14,480,720, or so much thereof as may be necessary, is hereby appropriated from the Special Revenue Fund under the 374 Amended Compact Fiscal Year 5 2026 Sector Grants for the purpose of funding government operations, programs and projects during Fiscal Year 7 2026. The allocation of the sum shall be $7,344,594 from Education Sector, $6,470,841 from Health Sector, $268,409 from Public Sector capacity building, and $396,876 from Enhanced Reporting and Accountability Sector.
Section 2
Conditions and Restrictions.
(1) Funds herein appropriated under the 3*4 Amended Compact sector grants shall not be available for obligation for their planned uses by the respective agencies unless the planned uses are unconditionally approved by the Joint Economic Management Committee (JEMCO) under the Amended Compact through issued grant awards and until the respective grant cash amounts have been drawn-down by the State and are deposited in the respective State accounts and available for disbursement. Any amount not unconditionally approved by JEMCO shall be deemed not appropriated herein.
(3) Lump-sum budget amounts shall not be advanced to any agency at the beginning of the fiscal year. Memorandum of agreement (MOA) or other forms of agreement the purpose of which is to obligate and
disburse to a respective agency its annual budget as approved herein, including reimbursements to such
agencies for payments for expenditures under their respective budget, is prohibited. All funds appropriated
by this Act shall be maintained under the authority of the Director of the Office of Administrative Services.
(4) Funds herein appropriated shall be allotted only on a quarterly basis, except where it is essential for the effective and efficient performance of the duties and responsibilities of an agency to allot certain lump- sum amounts at the beginning of the fiscal year such as for the purchase of fixed assets and for contractual services.
Section 3
Allotment and Management of Funds, and Lapse Date.
(1) The sums appropriated by this Act shall be allotted to the Governor, or his designee (s).
2) All allottee shall be responsible for ensuring these funds are used only for the purposes specified in their respective budgets approved by the Legislature, and that no obligations are incurred in
excess of the respective sums appropriated under the Section 1 of this Act. The sum appropriated by this Act
shall be administered in accordance with the provisions of applicable law, including, but not limited to, the
State Financial Management Act of 1983, the State Contracts Act and whenever applicable, the Amended
Compact between the Governments of the Federated States of Micronesia and the United States of America. The authority to obligate the funds appropriated by this Act shall lapse as of September 30, 2026. Any part of this appropriation not obligated as of September 30, 2026, shall revert to the Special Revenue Fund of the State of Yap.
Section 4
Reports.
The allottee shall submit to the Legislature their respective performance and financial quarterly reports for each of the quarters in Fiscal Year 2025, no later than twenty days after the end of each quarter. Each quarterly report shall include, but not limited to, complete descriptions of the obligations incurred against the respective apportioned sums appropriated by this Act, and the status of the respective funds as of the end of the completed quarter.
Section 5
Effective Date.
This Act shall become effective on October 01, 2026 upon the approval by the
Governor, or upon its becoming law without such approval.