OPA made the statement in its 318-page Audit Recommendations as of Dec. 31, 2009 released last week.
OPA said PSS has yet to provide a copy of its policies and procedures, and/or regulations addressing the issue of the security of public funds.
PSS is an autonomous agency governed by the Board of Education whose members are elected by the people.
Its local funding of over $38 million this current fiscal year is mainly used for the salaries of teachers and other personnel and the operations of all public schools.
PSS also receives millions of dollars in federal grants for its different programs and projects, including repairs of school buildings.
“PSS should provide OPA with evidence showing that it is the policy of PSS that all monies belonging to PSS be deposited into FDIC insured banks,” OPA said.
The Retirement Fund, the Department of Public Lands and the Marianas Visitors Authority had their assets frozen in the Bank of Saipan a few years ago after the then non-FDIC bank experienced financial troubles.
