Acting Commerce Secretary Sixto K. Igisomar said they fully evaluate the overall success of projects funded by ARRA, and monitors information that needs to be reported.
Because of the significance of the federal funds provided and their importance to strengthening the CNMI economy, the Department of Commerce through the leadership of Secretary Michael J. Ada has taken steps to ensure that ARRA funds are appropriately tracked and transparent to the public, Igisomar said
Expenditures can be properly measured and reported clearly, accurately and in a timely manner, he added.
“Why is accountability important in moving forward with ARRA funding? Individuals are quick to make judgments without taking into account the full picture of the developmental phase of any program. Checking the Web site recovery.gov, disbursement of funds does not reflect the entire process leading up to this final step,” Igisomar said in a media statement.
He added that the CNMI financial management system is utilized and will reflect a variance in the numbers shown on recovery.gov due to lag time and processing.
He said there’s an interval between the time a federal agency awards the money and the time it reaches the CNMI financial management system account.
“Recovery.gov shows a higher award amount than what we actually received,” he said.
On the expenditure side, CNMI ARRA records indicate a higher amount than what is reported on recovery.gov because of reporting lags, he added.
According to Igisomar, federal reporting doesn’t include obligations while the CNMI financial management system does.
Many of the projects for which the CNMI was awarded money have been obligated, but the actual expenditures have not occurred, he said.
CNMI expenditures, obligations, and drawdowns of ARRA funding precede any final reporting on recovery.gov, he added, citing as an example the Workforce Investment Agency’s Summer Youth Program.
He said the program provided on-the-job training for the CNMI youth during the summer so they can enhance their work-skills in a paid employment setting.
The expenditures for this program created employment opportunities for 838 young men and women in the public and private sectors.
However, this has yet to be reported on recovery.gov because of the obligated and expended funds, Igisomar said.
The report is not due until Oct. 10 and it will be released on Oct. 30, he added.
At that point, the information will be placed on the recovery.gov Web site, he said.
Continued attention to accountability issues, he added, is essential and paramount to the success of the program.
