New arts council manual seeks to allay NEA concerns

The Commonwealth Council for Arts and Culture has already developed a Policy and Procedure Manual in response to concerns raised by the National Endowment for the Arts Office of the Inspector General about the improper use of grant funds awarded the council.

Arts Council executive director Angel S. Hocog said yesterday that the manual aims to guide staff and board members “in the effective and ethical management of the grant funds entrusted to the CCAC.”

The manual, which has over 90 pages, contains 14 policies: policy manual requirement, code of conduct, grant ineligibility due to disbarment or suspension, non-discrimination and accessibility, grant application guide, grant management, internal control systems, accounting system identifying and tracking expenditures, allowable charges, personnel activity report, purchase of capital equipment, allowable travel, grant obligation requirements, and reference materials.

“It is the Council’s responsibility to ensure that all board members and employees read these policies and procedures, fully understand them and both comply with and implement them. The integrity and effectiveness of the Council will be measured by its success in meeting this responsibility,” states part of the manual.

The manual was signed by Hocog, Council board chair Joe M. Diaz, and Gov. Benigno R. Fitial.

Hocog disclosed that the manual, which was submitted to inspector general Tonie Jones on Jan. 31, was crafted with the help of Frank Gibson of HR Support, CNMI, which was contracted in August 2011 to develop the manual to comply with NEA requirements.

The NEA Office of the Inspector General issued in August 2010 a report that prompted NEA in October 2009 to suspend funding for the Arts Council. The report covers grants received by the Council from NEA from 2005 to 2009. Among the NEA recommendations was for the Arts Council to develop written policies and implement procedures that will address inadequacies and conform with NEA requirements.

Since the report was issued, Hocog said they have been working with NEA through Jones with whom they discussed the findings and recommendations in several teleconferences.

Hocog said that Department of Community and Cultural Affairs Secretary Melvin Faisao and accountant Roselle Teregeyo worked with NEA in reconciling the $337,666 identified as potential refund by the Council to NEA. The amount, Hocog said, went down to just $48,000.

“It was a very challenging journey,” Hocog told Saipan Tribune, referring to the process of working on the recommendations of the report.

Hocog said they have yet to hear from Jones, who will review and approve the manual.

He is hoping that the Council will be able to receive funding from NEA once again following the approval of the manual and compliance with other NEA requirements. He said the Council has been struggling to look for funds for its events and activities following the suspension of NEA grants.

“I have faith that, at least, NEA will give us a chance to correct our errors,” he added.