BY failing to adhere to the single audit requirement, the CNMI government may jeopardize federal grant opportunities, Lt. Gov. Arnold I. Palacios said.
An independent candidate for governor, Palacios has sent a letter to Finance Secretary David DLG Atalig inquiring about the status of the government’s financial audit.
Atalig told Variety last week that the submission of necessary documents for the audit had been delayed due to staff shortage and the Covid-19 pandemic.
In a statement to Variety on Tuesday, Palacios said, “At a time when the Commonwealth remains heavily reliant on grant funds such as American Rescue Plan Act to maintain continuity of government, failure to adhere to the single audit requirement may jeopardize any current, and future funding opportunities availed…by the CNMI.”
He said the CNMI’s single audit requirement “aligns with federal mandates [that are] implemented to maintain eligibility for receiving federal financial assistance such as grants.”
Palacios said Finance has “seemingly refused” to provide the Office of the Public Auditor the documents necessary to carry out the CNMI financial audit for fiscal year 2020 as mandated by law.
He said online records indicate that the last completed single audit report was for FY 2019.
He added that OPA has yet to obtain the documents needed to initiate the financial audit for FY 2020, which means that the FY 2021 audit has also not been initiated yet.
He reiterated that the annual audit is required by law, and not providing the required documents to OPA is a violation of the law and “inhibits transparency and accountability of the CNMI government to its people.”
Atalig, for his part, said the FY 2020 audit “should be finalized by the end of this month,” adding that Deloitte & Touche LLC “has been wrapping it up as we speak and we will be engaging right away, in early November, into the FY 2021 audit.”
Lt. Gov. Arnold I. Palacios delivers a speech during a campaign event in Dandan last week.
