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‘A six-month nightmare ahead’
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Posted on Jul 25 2023
Arnold I. Palacios
Figuring out how the previous administration spent the CNMI’s share of American Rescue Plan Act funds is potentially a six-month nightmare facing his administration, according to Gov. Arnold I. Palacios last Thursday.
Speaking at a press briefing last week, Palacios said that, as far as he is concerned, ARPA funding is a moving target, a double-edged sword, and a nightmare. He said a lot of the processes were buried into the government’s Munis accounting system, which they are also having problems.
The governor said the audit into ARPA expenditures that they requested would soon come out and will hopefully have answers to many questions. “What we did with it, how we did it, who did it? And those things, hopefully, would be identified,” he said.
Palacios said if there are situations where individuals were either paid illegally or unlawfully, he is hoping that these individuals will be identified in the audit findings and either be prosecuted or whatever the prosecution decides to do.
“It’s a longer process than six months,” he said.
Nevertheless, Palacios said, he wants to commend some of the department heads who have diligently worked to look for funding for their offices to move away from their reliance on suddenly nonexistent ARPA funding that were promised by the previous administration. He said some of them have done this transition seamlessly, while others are still struggling.
Palacios also commends departments that are very aggressive in looking for funding from programs, services, and even infrastructure projects.
“There’s a lot of funding opportunities out there. …That’s why a lot of folks were able to attend that big workshop that Interior sponsored in Honolulu,” he said.
Palacios said the Office of the Public Auditor has contracted an auditing firm to do the audit on the 2021 and 2022 ARPA expenditures. He said they have to comply with auditing requirements as it does impact the CNMI’s ability and fiscal credibility when applying for federal funds.
“It’s supposed to happen every year. Unfortunately, we are behind with it,” the governor said.
