PALIKIR, Pohnpei – The Government of the Federated States of Micronesia (FSM) officially launched its new Financial Management Information System (FMIS) — a major national milestone under the World Bank—supported Public Financial Management (PFM) Project. Designed to modernize and strengthen the country’s capacity to manage and report on public finances, the FMIS is expected to improve transparency, efficiency, and service delivery across national and state governments.
The launching event held earlier this month on October 6th, brought together senior leaders, government officials, and development partners, including representatives from the World Bank and FreeBalance, the company supporting the system’s implementation. The program opened with remarks by Hon. Rose N. Nakanaga, Secretary of Finance and Administration, followed by a keynote address by Hon. Aren B. Palik, Vice President of the Federated States of Micronesia, and a speech by Mr. Rajesh Bhandari, FreeBalance’s representative.
In his speech, Vice President Palik described the FMIS as a transformational tool that modernizes governance and strengthens the nation’s foundations.
“This FMIS enhances transparency and accountability in the management of public funds, ensuring that every dollar is traceable and directed toward improving services for our people,” he said. “I am especially pleased that we are celebrating this launch in our National Convention Center, a symbol of FSM’s growth and renewal.”
Secretary Nakanaga emphasized that the new system marks a shift toward more efficient and transparent public finance management.
“This is more than a software launch — it is a leap forward in how we, as a nation, manage public funds,” she stated. “Through a system that is used independently by each State and the National Government but reports as one, we are ensuring greater efficiency, consistency, and accountability in how financial data is managed and consolidated. Ultimately, this strengthens good governance and builds public trust.”
Representing FreeBalance, Mr. Rajesh Bhandari congratulated the FSM Government on the successful implementation of the new system.
“This milestone reflects FSM’s vision for a modern, connected, and citizen-focused public sector,” he said. “FreeBalance is honored to support this journey by providing technology that empowers better financial management and accountability across all states and the national government.”
The new FMIS integrates critical financial functions — from budget preparation and treasury operations to payroll and accounting — into a unified reporting platform. The FMIS is fully branded as GoFSM, highlighting national ownership and alignment with the government’s digital transformation vision.
The event also included a live system demonstration by the Department of Finance and Administration and FreeBalance technical teams, giving participants a first look at the GoFSM interface and its key capabilities. The program concluded with a ceremonial exchange of gifts, symbolizing collaboration and partnership between the FSM Government and its development partners.
The FMIS is part of a broader national effort to modernize financial systems under the PFM Project. Earlier this year, FSM launched its Revenue Management System (RMS) to strengthen domestic revenue collection and improve taxpayer services. Together, the RMS and FMIS represent a coordinated move toward an integrated, transparent, and efficient public financial management ecosystem.
“This is not the end,” said Secretary Nakanaga in closing. “It is the beginning of a new chapter — one where our institutions are more responsive, our systems more efficient, and our citizens better served.”
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About the FMIS and the Public Financial Management Project
The Financial Management Information System (FMIS) was developed under the Public Financial Management Project, a national reform initiative supported by the World Bank. The project aims to strengthen transparency, improve budget execution and financial reporting, and build long-term institutional capacity in the management of public resources.
Media Contact:
FSM Department of Finance & Administration
Central Implementation Unit – Communications
Mr. Alvaro Hoyos, Communications Specialist
ciu.pfm@gov.fm | 
www.dofa.gov.fm
