The Ministry of Education in the Marshall Islands is finding it difficult to spend all of the funding provided to it through the Compact of Free Association.
It ended fiscal year 2011 with close to 800,000 US dollars in unspent Compact funding.
The Education Secretary, Gary Ueno, believes virtually all of the unspent money last year was for personnel who were not hired.
He says the Public Service Commission was just unable to fill the posts.
Mr Ueno who took over at the Ministry late last year, says they now a new minister, a new secretary and a new budget director.
He says their goal is to get real control on the ministry's budget and balance their budget sheet.
Unspent money is rolled over to a future year.