Task force to monitor spending of American Rescue funds unrealistic, says OPA

THE proposed creation of a task force to monitor the CNMI government’s expenditure of the American Rescue Plan Act funding is not realistic, the Office of the Public Auditor said.

The proposal is among the key provisions of House Bill 22-33, which will also require CNMI legislative appropriation of the American Rescue Plan Act funds.

In her letter to the bill’s primary author, Rep. Donald Manglona, Public Auditor Kina Peter said OPA has serious concerns regarding its ability to meet the bill’s mandate from a practical capacity standpoint and OPA’s need to remain independent.

The bill will require the public auditor to establish a task force “to monitor expenditure of all Coronavirus State Fiscal Recovery Fund monies for compliance with the terms of the certification mandated by the Act, and shall report on the task force’s findings quarterly to the Legislature.”

Peter said the more OPA becomes entangled in outside agencies or engages in other government branches’ basic operations, the less autonomy OPA retains.

She said in order to maintain independence with the proposed new mandate, OPA would have to separate staff assigned to the task force from staff working on other OPA mandates.

This, she said, would affect OPA’s productivity. OPA has seven staff members only, she pointed out.

“We do not have the capacity to achieve this new mandate while meeting our other statutory and constitutional mandates,” she said.

Peter likewise noted that the American Rescue Plan Act will provide the CNMI with over $500 million in federal funds, but there will be no increase of funding provided to OPA.

She said in order to staff a task force to monitor the spending of the federal monies, OPA would need to not only double its current auditing staff but also acquire additional space for the task force.

“The operational and capacity buildup required to achieve this new mandate is not realistic,” Peter said.

In a separate letter to Manglona, who chairs the House Ways and Means Committee, Deputy Attorney General Lilian A. Tenorio said enacting a CNMI law to appropriate the American Rescue Plan Act funds is not required.

She noted that the CNMI is already required to comply with the federal procedures, restrictions and other obligations that may be imposed by the U.S. secretary of the Treasury.

She said these include submitting regular reports to the U.S. secretary of the Treasury on the use of the funds that will include detailed accounting reports.

House Bill 22-33 was introduced by the House Democratic-Independent leadership without a committee review or a public hearing. It was passed despite a 10-10 deadlock after the speaker invoked the House interim rules that allowed him to vote twice.

H.B. 22-33 is now headed to the nine-seat Senate, which is led by five Republicans and their two Independent allies.

Kina Peter

Kina Peter

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