Hofschneider earlier sought clarification from the Department of Finance and the Office of Management and Budget regarding which local law governs SHEFA’s operations.
“OMB expressed an opinion that SHEFA should be operating under Saipan Local Law 17-9,” he said.
Signed on June 7, 2011 by acting Gov. Eloy Inos, this law appropriated $3,454,000 of poker fees collected for fiscal year 2011.
Of this amount, $3 million was for SHEFA’s scholarship fund and the remaining $454,000 was allocated for its different programs including $100,000 for operations and personnel.
But unlike the $3 million for the SHEFA scholarship fund, the funds for operation and personnel will lapse at the end of the current fiscal year, or on Sept. 30, Hofschneider quoted OMB as stating.
Although, OMB has already expressed its opinion about the allocation of the funds under S.L.L. 17-9, Hofschneider still has concerns about the money for operation and personnel.
“I believe there are still concerns about whether funds allocated to SHEFA for its operations and personnel are subject to lapse at the end of the fiscal year,” he said.
He said the law provides for a continuing appropriation to SHEFA in the amount of $3 million for its financial assistance program and $100,000 for its operation and personnel needs.
Inos noted, in signing S.L.L. 17-9, that the estimated poker fees to be collected in fiscal year 2011 will not reach $3,454,000 as stated by the measure.
Based on the trend of poker machine license renewals, the Department of Finance anticipated a 2.6 percent reduction in collection.
Hofschneider said SHEFA is prohibited to use the $100,000 appropriated for operations for any consulting and professional services contracts.
