Audit committee steps up efforts to comply with OPA

Finance Secretary Lucy Nielsen has expressed confidence majority of outstanding recommendations issued by the Office of the Public Auditor in its reports will be closed by the end of the current financial year.

Ms. Nielsen said the Interagency Audit Coordinating Advisory Group, which she currently chairs, meets with individual agencies on a weekly basis in fresh efforts to resolve and close all outstanding recommendations.

“We have found the meetings of the IACAG with OPA and the individual agencies to be extremely positive in improving communications and enabling OPA to close outstanding recommendations,” she said.

According to Ms. Nielsen, lack of communication between OPA and agencies resulted in some recommendations remaining on the Public Auditor’s tracking list although actions have already been taken by concerned government offices.

“Implementing recommendations that involve revision of regulations, legal proceedings or computer software changes usually take fairly long periods of time and may be shown as delinquent even though actions are proceeding,” she added.

At present, there are 50 recommendations to the finance department on OPA’s tracking system for audits issued from 1995 to June 2000. Six of these recommendations which pertain to lottery, are directly addressed to DOF.

Ms. Nielsen said none of these recommendations are delinquent, adding that the remaining 44 are deficiencies from other agencies that were transferred to DOF for corrective actions, mainly to collect for the government payments previously made.

“DOF has responded to all these recommendations, most of which relate to prior administrations, and is actively trying to implement them. Six of these recommendations have a status of “Resolved, Active” and are not listed as delinquent,” the finance chief said.

She pointed out that the recommendations listed by OPA as delinquent are now being worked on, and that 17 of these relate to revising the CNMI Procurement Regulations which the DOF expects to publish in December.

Public Auditor Leo L. LaMotte earlier said regular meetings held with the Department of Public Safety through the assistance of the Coordinating Group beginning September this year have resulted in the closure of a big slice of delinquent recommendations.

A report on CNMI government agencies’ implementation of audit recommendations by end-June 2000 has already included the suggestions that have been closed by DPS resulting from the regular meetings facilitated by the Coordinating Group.

According to Mr. LaMotte, results of the regular meeting held last month will be considered in the next OPA report on outstanding recommendations which will be released by the end of the calendar year.

“We appreciate the actions taken by the Coordinating Group to assist OPA in the follow-up on the actions taken by various government agencies to address the outstanding audit recommendations,” said Mr. LaMotte.

During the early part of 1999, the governor appointed Ms. Nielsen as chair of the Coordinating Group along with Commerce Secretary Frankie Villanueva as member, in increased efforts to help pursue closure of open and resolved recommendations.

An OPA report revealed that the Public Auditor has issued 34 recommendations in the first half of the calendar year, which add up to the existing 194 suggestions that were yet to be acted upon by offices that were subjected to audit investigations.

Only 42 of the 228 recommendations issued by end-June 2000 were considered closed while 186 remain open, awaiting action from concerned government agencies, according to Mr. LaMotte in an earlier letter to the Coordinating Group.

Mr. LaMotte said 159 of the 186 open recommendations are now considered delinquent since concerned agencies fail to take action within the 180-day grace period.

He explained that recommendations are considered delinquent if these remain outstanding for 180 days and OPA has not been informed of any action being taken to close the case.