“This is the ideal,” he said, referring to the designation of the SHEFA chairman, but added there’s no assurance that the release of funds will be timely.
The Department of Finance secretary still has to determine the priority in funding releases, he added.
Hofschneider said S.L.L. 17-9 is unclear if it is also required that the expenditure of the funds follow the government’s fiscal year period.
“When does S.L.L. 17-9’s fiscal year begins and ends is the question that needs to be answered,” he said.
He said he will seek clarification from the Finance secretary, the special assistant for management and budget and the chairman of the Saipan and Northern Island Legislative Delegation Committee on Ways and Means.
Hofschneider said Section 3 of the law placed some restrictions on the expenditure of funds.
According to Section 3, he said, the board must concur with the chairman action before any funds are expended.
Further, there’s also a prohibition on using the funds for expenses related to legal fees and representation.
Section 4, he said, prohibits the use of SHEFA operations funds for consulting and professional services contracts.
“This provision basically means that SHEFA is not permitted to hire a consultant or an external auditor to audit the financials of the program, or even an attorney during the period of the appropriation, to provide assistance on legal issues or consultancy services to improve the SHEFA rules and regulations or policies,” Hofschneider said.
