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 <subject>Accountability</subject>
 <subject>Cost analysis</subject>
 <subject>Economic analysis</subject>
 <subject>Economic development</subject>
 <subject>Economically depressed areas</subject>
 <subject>Federal aid programs</subject>
 <subject>Federal aid to foreign countries</subject>
 <subject>Financial disclosure</subject>
 <subject>Financial management</subject>
 <subject>Financial statement audits</subject>
 <subject>Fiscal policies</subject>
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 <subject>International economic relations</subject>
 <subject>International relations</subject>
 <subject>Private sector</subject>
 <subject>Reporting requirements</subject>
 <subject>Trust funds</subject>
 <subject>Cost estimates</subject>
 <subject>Compact of Free Association</subject>
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<titleInfo>
 <title>Compact of Free Association: Palau&apos;s Use of and Accountability for U.S. Assistance and Prospects for Economic Self-Sufficiency</title>
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<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&apos;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&apos;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&apos;s and U.S.	 
agencies&apos; efforts to provide accountability over Palau&apos;s use of  
federal funds in 1995-2006; and (3) Palau&apos;s prospects for	 
achieving economic self-sufficiency. GAO reviewed Palau&apos;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.</abstract>
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 <topic>Accountability</topic>
 <topic>Cost analysis</topic>
 <topic>Economic analysis</topic>
 <topic>Economic development</topic>
 <topic>Economically depressed areas</topic>
 <topic>Federal aid programs</topic>
 <topic>Federal aid to foreign countries</topic>
 <topic>Financial disclosure</topic>
 <topic>Financial management</topic>
 <topic>Financial statement audits</topic>
 <topic>Fiscal policies</topic>
 <topic>Foreign aid programs</topic>
 <topic>Foreign economic assistance</topic>
 <topic>Foreign financial assistance</topic>
 <topic>Foreign governments</topic>
 <topic>Foreign policies</topic>
 <topic>Funds management</topic>
 <topic>Internal controls</topic>
 <topic>International agreements</topic>
 <topic>International economic relations</topic>
 <topic>International relations</topic>
 <topic>Private sector</topic>
 <topic>Reporting requirements</topic>
 <topic>Trust funds</topic>
 <topic>Cost estimates</topic>
 <topic>Compact of Free Association</topic>
 <topic>Palau</topic>
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  <title>United States Statutes at Large</title>
  <partNumber>Volume 49 Page 1363</partNumber>
</titleInfo>
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  <title>United States Statutes at Large</title>
  <partNumber>Volume 79 Page 1219</partNumber>
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  <title>United States Statutes at Large</title>
  <partNumber>Volume 95 Page 499</partNumber>
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  <partNumber>Volume 115 Page 1425</partNumber>
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  <partNumber>Volume 122 Page 874</partNumber>
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  <title>United States Public Law 239 (99th Congress)</title>
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