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NMHC reduces questioned costs to just $42K
The Northern Marianas Housing Corp. has managed to reduce a total of $1.55 million in questioned costs from their books due to the efforts of management, according to NMHC corporate director Jesse Palacios.
Citing NMHC’s audit accomplishments in their 2014 annual report, Palacios said that questioned costs totaled $581,388 in fiscal year 2010. This went down to $215,907 in fiscal year 2011, then to $144,006 in fiscal year 2012, and further down to only five digits, about $42,216, in fiscal year 2013.
Questioned costs are costs or expenses that are questioned by the Office of the Public Auditor for potential violation of a provision of a law, regulation, contract, grant, cooperative agreement, or other agreement or document governing the expenditure of funds.
A finding at the time of an audit may also results in a questioned cost if it is not supported by adequate documentation and the expenditure of funds for its intended purpose is unnecessary or unreasonable.
According to OPA’s audit report for NMHC, about $42,216 in questioned costs remain for fiscal year 2013, mostly from NMHC’s Section 8 assistance programs through HUD.
“Last year brought about many challenges but the agency’s accomplishments were overcoming such challenges. First off, as the board repeatedly reminded NMHC, the audit is our report card to the world. The federal agencies, businesses, and the community look at the audit report to determine the stability and viability of NMHC,” Palacios said.
He said the reduction in questioned costs is a direct result of their management’s concerted effort, actively monitoring staff work performance, and strict adherence to program compliance.
“For fiscal year 2014, the audit is still ongoing so we anticipate the final product to be completed sometime in March; however, OPA will give a draft this February,” Palacios said.
