Johnson heads new accountancy board

Deloitte & Touche Saipan managing partner Michael S. Johnson was elected yesterday as chair of the newly created CNMI Accountancy Board.

Johnson, together with four other colleagues, took their oath of office administered by associate justice Alexandro Castro yesterday at the Governor’s Office Conference Room on Capitol Hill.

Also elected were James Whitt as vice chair, David Burger as treasurer, and Dora Inos-Deleon Guerrero as secretary. Office of the Public Auditor’s Rufo Mafnas, who nominated most of his colleagues, serves as a member.

Johnson, in an interview, expressed readiness to head the regulatory body.

“Well, it’s a real challenge,” he said, noting that the board will prioritize the formulation of rules and regulations to start the job of licensing certified public accountants in the CNMI.

“This has not been the case before. Anybody could just practice. With this set of rules, it would allow us to issue licenses,” he said.

He said the board, which postponed its first meeting yesterday for next Friday, will look first toward hiring an executive director and a staff.

He said the board will submit a budget proposal to the Legislature and the Executive Branch for the operations of the office.

As for office location, he said the governor has offered a government housing on Capitol Hill “if there is any available.” He said the board may also get a low-rate office at the Nauru building.

In yesterday’s meeting, Babauta said he expects the board to work toward making the CNMI a testing center for certified public accountants.

“This is a historic day. The lieutenant governor and I are very optimistic about this. We’re seeing the CNMI as a center for CPA exams. And that’s what we ask of you as a favor, that you work diligently to make that happen here in the CNMI,” the governor said, addressing the board members.

The board’s creation came as a result of the signing of the Accountancy Act of 2003 (Public Law 13-052) in May 2003.

The board is tasked, among others, to promote the reliability of information used in transactions, accounting, or assessing of financial status or performance of commercial, non-commercial, and government enterprises as well to provide an economic opportunity for the CNMI by allowing individuals from Asian countries and the Pacific to travel to the CNMI to upgrade their accounting skills by taking the U.S. CPA examination.

The CNMI, however, must first secure the approval of the American Institute of Certified Public Accountants to administer the U.S. CPA exam here before the CNMI can begin administering the test.