MVA, the report added, is also not in compliance with CNMI government property management policies and procedures.
Moreover, the report stated, MVA should improve its collection efforts and ensure that its travel policies are complied with.
The report said MVA’s operating lease agreement for its office space expired in July 2007.
It is now paying rent of $7,000 monthly without a valid contract.
MVA should obtain a contract for its operating lease in accordance with the procurement regulations of the CNMI, the report stated.
It added that MVA has not assigned property control numbers to its capital assets.
MVA, the report stated, believes that its capital assets, due to accumulated depreciation, are relatively low and manageable.
Still, the report said, “MVA should comply with the property management policies and procedures of the CNMI government by affixing identifying tags with numbers as assigned in the subsidiary ledger. This will aid in physical inventory reconciliation against property subsidiary ledger. Furthermore, this will also assist MVA to detect loss or unauthorized use of MVA’s property.”
The report, in addition, noted that MVA recorded $6,185 in outstanding travel advances as of Sept. 30, 2007.
Eighty-five percent of this amount, or $5,239, was received by the chairman of the House Commerce and Tourism Committee of the 15th Legislature — then-Rep. Martin B. Ada, who failed to get re-elected last year.
The advances were for a trip completed on Sept. 25, 2006.
MVA’s travel policy states that travel advances must be liquidated within 30 days from the completion of the travel.
Since travel advances are recorded as receivables and will only be recorded as expense upon liquidation by traveler, “the untimely liquidation results in untimely recording of expenses,” the report stated, adding that the former lawmaker failed to respond timely to MVA’s collection efforts.
