By Haidee V. Eugenio
Variety Assistant Editor

THE Office of the Public Auditor says it will review the impact, if any, of the government’s austerity measures on federal grants received by the CNMI.
OPA’s statement was in response to Washington Rep. Pedro A. Tenorio’s March 30 letter requesting a review of the effects of the austerity program on federal grant programs administered in the CNMI.
Public Auditor Mike Sablan, in an April 4 response letter, told Tenorio that OPA shares his concern that necessary steps be taken to ensure that the austerity program does not violate the terms and conditions of grant agreements, which may lead to further loss of financial resources for the CNMI and possibly impact program activities.
“Given the variety and diversity of federal grants and programs that may be impacted, OPA will be reviewing the specific grant terms and conditions of the affected federal grants,” Sablan told Tenorio.
Sablan added that OPA will be communicating directly with the major grantor agencies as well as the program and grant managers in order to better understand what impact, if any, the austerity cutbacks might have on their grants. OPA has assigned analyst Merced Ada to lead this undertaking.
Tenorio’s letter to Sablan reiterated his Aug. 28, 2006 concerns he shared with Gov. Benigno R. Fitial regarding the impact of the austerity plan, including the 10 percent salary cut, on federally funded programs.
Tenorio said these federal programs are in essence contracts with federal agencies to accomplish a goal or set of objectives, carry out a federal initiative or perform a federal service.
“When our obligations with these federal grants are unfulfilled, the funding of our programs in turn us cut. I feel that the CNMI cannot afford to be losing these much needed federal grants to fund vital programs and services, given our desperate situation,” said Tenorio.