THE CNMI government received a total of $2,026,341 in indirect cost reimbursements from the federal government last year, Office of Grants Management and State Clearinghouse Administrator Epiphanio E. Cabrera Jr. told the Senate Fiscal Affairs Committee on Thursday.
The CNMI receives indirect cost funds as federal reimbursement for administering federal grants.
Cabrera and other OGM-SC officials were invited to a meeting by the Senate Fiscal Affairs Committee chaired by Senate Vice President Donald M. Manglona, to discuss the agency’s current status. Other committee members present were Senate Floor Leader Corina L. Magofna, Sen. Paul A. Manglona and Sen. Celina R. Babauta.
Created by Public Law 19-49, OGM-SC is funded by indirect cost reimbursements. These do not require legislative appropriation.
Cabrera told the committee that “indirect cost only works when you spend the grant. When the grant is not expended you don’t collect.”
He said it is “not something like, you get a grant and right there and then, you [receive] it,” referring to the indirect cost reimbursement.
He also said that his office does not receive indirect cost reimbursements for all kinds of federal grant projects. They don’t collect indirect cost reimbursements for construction and other federal programs like the Nutrition Assistance Program and the childcare program, he added.
Cabrera said on average, the CNMI government receives from $3.2 million to $3.6 million annually in indirect cost reimbursements.
But when the Covid-19 pandemic hit the CNMI, he said “that situation caused a slowdown in growth because government employees were not able to come to work and spend money. So that means, we dipped at that period for collections of indirect cost.”
Last year, Cabrera said, the CNMI’s indirect cost collection was $2,026,341. He said they learned about the total amount when the Department of Finance in March, authorized a portion of it — $709,210 — to OGM-SC.
Of the $709,210, Cabrera said OGM-SC has obligated $353,949.31 for “all other” expenses, leaving them with a balance of $326,334.43.
“So therefore, the CNMI government Department of Finance has the remaining 65% or $1,317,104 in indirect cost reimbursements. And according to the secretary of Finance that [money] is in the general fund,” Cabrera said.
He also told the senators that “every week, we bring in millions of grant money to the CNMI.”
Their job, he said, is to bring in money to the Commonwealth, “and I think we are doing a great job in bringing in money.”
Office of Grant Management and State Clearinghouse Administrator Epiphanio Cabrera Jr. smiles during a meeting with the Senate Fiscal Affairs Committee on Thursday.
