Gov’t agencies ignore OPA recommendations

The number of delinquent recommendations issued by the Office of the Public Auditor soared 18 percent to 181 in 1999 from the previous year’s 153, indicating several government agencies’ apparent neglect in taking prompt action to address financial loopholes.

The finance department topped the Public Auditor’s list of CNMI government agencies that are unable to act on the several recommendations it issued last year.

DOF failed to take action on at least 50 recommendations issued by the OPA in its 18 audit investigation reports for the agency in 1999, while the Department of Public Safety failed to address 11 loopholes identified by the Public Auditor in its report.

The Commonwealth Ports Authority and the Department of Lands and Natural Resources are still to act on 10 recommendations each by the OPA. OPA conducted five audit investigations for CPA and three for the DLNR last year.

“Agencies failed to take action on the recommendations and did not respond to the follow-up letters sent by OPA,” according to Public Auditor Leo LaMotte.

In a year-end report, Mr. LaMotte explained that 19 of the 76 audit recommendations issued by the OPA in 1998 became delinquent last year which contributed to the increase in the number of derelict recommendations in 1999.

This does not include the nine new recommendations issued by the Public Auditor in 1999, with which government agencies failed to take action on.

Mr. LaMotte noted progress in the implementation of the recommendations issued by the OPA from 1994 to 1997, with a total of 57 delinquent recommendations now considered closed.

However, the public auditor disclosed that the agencies did not act on most of the delinquent recommendations since events actually overtook the need for those approbation.

At the same time, OPA reported the government can actually recover only $612,821 of the total $869,641 amount of money, which were initially identified by the public auditor as recoverable.

This, after the Attorney General’s Office ruled that seven of the 15 referred recommendations that involve the recovery of $250,820 will not be pursued for various reasons.

Accordingly, the money will be dropped from the public auditor’s list of outstanding recommendations. Those which the AGO ruled that no action will be taken include:

• Improper payments to the former Marianas Visitors Bureau managing director for damages and loss of wages, involving $151,180;

• Advances, expenses paid twice and improper reimbursements to the former Utilities Corporation executive director; and the hotel expenses of the other CUC travelers, amounting $46,016;

• Overpayment of professional services contract of the former acting Attorney General, which involves $35,125;

• Improper payment to business of former Rota mayor for apartment rental, which amounts $12,000;

• Hawaii Liaison Office: Receivable for funeral expenses of two families and receivable due to NSF check paid by Pan Korea Enterprises;

• Legal action against current and previous Marianas Visitors Authority officials; and

• Cost of hiring 12 personnel in excess of Rota Mayor’s authorized full-time employment ceiling.

The public auditor issued 14 audit reports in 1999 to various CNMI government agencies, 13 of which resulted to a total of 28 recommendations, according to the OPA report.

This is in addition to the 284 outstanding recommendations at the beginning of the year, making a total of 312 recommendations tracked for the year.

Of the 312 audit recommendations, 118 were closed and 194 remained either open or resolved. Of the 194 open or resolved recommendations, 181 were considered delinquent.