the Congress of the United States. The
High Commissioner adopts such
recommendations of the Congress as
he may deem appropriate, but he also
must transmit to the Secretary of the
Interior all recommendations he does
not adopt.
The Administering Authority controls and administers financial operations and construction as funded by

the U.S. Congress. The Secretary of

the

Interior's

Advisory Committee

exercises review of Trust Territory

proposed programs. Bureau of the
Budget hearings are held and the
budget for Trust Territory operations
and capital improvement projects is

included in the President’s Budget

submitted to the U.S. Congress each
year.
Budgeting, funding, and expenditure take place at all three levels of
government—territorial, district, and
municipal. The legal authorization for
local government financial operations
is contained in the Trust Territory
Code, Sections 46 to 48 and Chapter
18, Finance; Taxation.

District governments control and
administer financial operations at the
district level, with types of income and
responsibility for operations defined
separately
from Trust Territory
Government and municipal level
income and_ responsibilities. Each
district administrator is required by
law to present annually to the district
legislature a proposed budget based on
revenues anticipated as a result of
district and territorial tax laws. After
considering the district administrator’s
proposals as well as proposals of individual members, the district legislature
enacts a budget for the district in the
form of one or more appropriations

bills. Appropriations acts are submitted to the district administrator for
38

action. Upon approval, the approp!
tions acts become law, and expe)
itures are made in accordance w
their provisions.

The district treasurer is responsil
for receiving, maintaining, and disbu
ing district government funds
distinguished from Trust Territo
Government funds. He is appointed !

the district legislature and serves und

the direction and supervision of tdistrict administrator. The distri
treasurer is required by law to subir
an annual report of ali funds !
receives and disburses during ea
fiscal year.
Control of fiscal operations at t!
municipal level rests with the munic
pal administration, the district admi:
istrator having certain powers
supervision
and approval. Loc:

officials prepare the annual municip:

budget and refer it to the municip:

council for approval before it is tran:

mitted to the district administrator fc
ratification. Officials of the distric
administration assist and advise in th
original preparation of the budge
where such assistance is required o
requested. The approved budge
determines the extent of expenditure
which may be made locally during th:
fiscal year from municipal revenues
Tax and license fee schedules whicl
provide tax income for the municipality are similarly prepared and
approved. The treasurer, or in some
instances the magistrate, is authorized
to collect taxes and license fees and
expend them according to approved
schedules and budgets.
Revenues and expenditures of
municipalities and district governments which prepared budgets for
fiscal year 1967 appear in tables in
Appendix IV. A comparative statement of revenues and expenditures
also is given in Appendix IV.
Part VI—Economic Advancement

Select target paragraph3