GOVERNOR David M. Apatang, in the presence of executive branch officials, signed Executive Order 2025-003 on Thursday, forming a single audit committee to address delays in the Commonwealth’s audits. The committee includes the Office of the Public Auditor, Department of Finance, Office of Management and Budget and Office of Grants Management & State Clearinghouse.
The EO cited findings from the fiscal year 2021 single audit, which determined that the CNMI “was not in compliance” with Governmental Accounting Standards Board Codification 2600. The Commonwealth failed to obtain audited financial statements from component units, including the Commonwealth Healthcare Corp., Northern Marianas Housing Corporation, and Northern Mariana Islands Retirement Fund. The auditor issued a disclaimer of opinion for governmental activities and an adverse opinion on the component units.
Under the EO, OPA will oversee the audit and contract, the Department of Finance will handle financial audits, including reconciled trial balances and schedules of expenditures, and the OMB and OGM-SC will assist with compliance audits and participate in mandatory audit entrance conferences and compliance supplement training.
“This is a serious issue,” Gov. Apatang said. “The late Gov. Arnold I. Palacios addressed this audit issue for years, and we are still struggling to complete it. Timely audits are critical for our financial health, federal funding eligibility, and public trust. This is not a problem that can be resolved by a single agency — it requires coordinated, intentional, and sustained effort across all responsible entities.”
Finance Secretary Tracy B. Norita highlighted the consequences of delayed audits, which include grant terminations, withholding of funds, designation as a high-risk grantee, and suspension of ongoing projects. She thanked the U.S. Department of the Interior’s Office of Insular Affairs for providing funding and technical assistance to help the CNMI catch up on audits.
Norita said the main contributing factors to audit delays were the transition from the legacy JD Edwards financial system to Munis, and the departure of Deloitte, the longtime auditor, which created a steep learning curve with the new auditor, Ernst & Young.
She added that the CNMI has already completed the FY 2020 audit and is on track to complete the FY 2022 audit. The plan is to finish the FY 2023 audit by May 2025, FY 2024 by October 2026, and complete FY 2025 and FY 2026 audits by FY 2027.
“The formation of this committee ensures that all responsible agencies coordinate and take audit completion seriously,” Norita said. “With leadership from the governor and support from federal partners, we are committed to strengthening financial reporting, restoring public trust, and safeguarding federal funding for the Commonwealth.”
Apatang emphasized that EO 2025-003 “underscores our commitment to improving audit timeliness and accountability. By reinforcing the roles and collaborative responsibilities of each member agency, we are laying the groundwork for long-term progress in addressing audit delays, improving internal controls, and ensuring the integrity of our financial reporting systems.”
Finance Secretary Tracy B. Norita, second left, delivers her remarks prior to the singing of Executive Order 2025-003, as Gov. David M. Apatang, left, and other CNMI officials look on.
Office of the Governor photo
Gov. David M. Apatang signs Executive Order 2025-003, creating the Commonwealth Single Audit Committee, in the governor’s conference room on Capital Hill, Thursday.
Office of the Governor photo