By Bryan Manabat
[email protected]
Variety News Staff
THE Marianas Visitors Authority failed to follow key procurement and payroll procedures during fiscal year 2023, resulting in three significant internal control deficiencies, according to an independent audit covering fiscal years 2022 and 2023.
Auditors from Burger Comer & Associates reviewed MVA’s financial statements and identified weaknesses in how the agency processed contracts, purchase orders, and personnel actions. The audit did not find material weaknesses but noted extensive issues involving procurement.
According to the audit report, MVA did not consistently comply with its own regulations. Auditors cited missing sole-source justifications, inadequate documentation for competitive sealed proposals, and insufficient public notice for certain procurements. One contract contained conflicting numerical and written payment amounts. Four contracts lacked required written determinations explaining why competitive bidding was bypassed, and seven contracts had no written justification for using proposals instead of sealed bidding. Three procurements did not meet the required 30-day newspaper publication period.
The audit warned that such lapses reduce transparency and increase the risk of disputes, higher costs, or challenges to contract awards.
Payroll controls were also scrutinized. Of 33 personnel actions reviewed, 12 lacked effective dates, and 22 were approved by the managing director after the effective date had passed. Two actions were missing required signatures.
The report attributed these issues to “delays in processing personnel actions, lack of oversight, and staffing gaps in HR during the period reviewed.” Auditors said the deficiencies increased the risk of unauthorized hires, payroll errors, and unbudgeted personnel costs.
Purchase order processing was the third area of concern. Eleven of 93 purchase orders were approved only after invoices were received, and one was approved after payment had already been issued. Twelve purchase orders over $10,000 lacked evidence of required bidding or sole-source documentation, and nine appeared to be split to avoid higher procurement thresholds. Several small purchases also lacked the required three quotes or written justification for fewer quotes.
These issues were attributed to “insufficient monitoring and inconsistent application of procurement policies,” which increased the risk of overspending, favoritism, and failure to obtain best value for public funds, the report stated.
Despite the internal control issues, auditors reported no instances of noncompliance with federal grant requirements. MVA received and spent $11.76 million in federal funds during the fiscal year, primarily from the American Rescue Plan Act and Community Development Block Grant–Disaster Recovery programs.
MVA management submitted responses to the findings, which auditors noted but did not evaluate as part of the audit.
David Burger, managing partner of Burger Comer & Associates, presented the findings to the MVA board of directors on Jan. 28. He said his team has a work plan to complete the FY 2024 and 2025 audits by June 30.
“It is a hard deadline. There are different levels of audit depending on whether federal money is involved. MVA has received federal funds, so the Uniform Guidance Audit applies,” Burger said.
From 2020 to 2023, MVA’s managing director was Priscilla Iaokopo. Christopher Concepcion was reappointed in May 2023 and resigned in February 2025. He previously served as MVA’s chief from 2016 to the early 2020s. The current managing director, Jamika Taijeron, was appointed on March 1, 2025.
Bryan Manabat was a liberal arts student of Northern Marianas College where he also studied criminal justice. He is the recipient of the NMI Humanities Award as an Outstanding Teacher (Non-Classroom) in 2013, and has worked for the CNMI Motheread/Fatheread Literacy Program as lead facilitator.
