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NMIRF taps OPA to help fix accounting system
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Posted on Dec 01 2000
Northern Mariana Islands Retirement Fund Administrator Juan S. Torres has asked the Office of the Public Auditor to help the $400-million financial institution improve its accounting system.
The Fund has hired the services of Brian Macmillan to make sure that its accounting system is in compliance with the OPA recommendations. But Mr. Macmillan is apparently no longer interested to continue providing services due to the recent controversy involving his contract.
Mr. Torres said the OPA has pledged to help the Fund fix its accounting system at least temporarily. “This is priority because this is a $400-million institution. Imagine the implications if we cannot even count our assets correctly — it will be a disaster,” he said.
Since he assumed the post, Mr. Torres said he noticed that the Fund’s financial reports do not reflect its real financial situation, which include the $42 million unpaid liability of the government and the $4 million debt of the Government Health Insurance to numerous private health providers.
“The Fund is understating its real financial situation and as a result when we ask for help they do not believe us. The records would show that we are fine but in reality, the health insurance is bankrupt,” said Mr. Torres.
Mr. Torres has always maintained that the Fund needs a comptroller to monitor and oversee the financial side of the operation, a recommendation which Board Chair Vicente C. Camacho has ignored. Mr. Camacho believes that the Fund needs only an accountant to help efficiently run the system.
“We need a comptroller that can collect, interpret and employ a system that will be at par with a pension fund, ” Mr. Torres said.
Furthermore, the Fund must also improve integrate its system to ensure efficient monitoring of its $10 million home loan portfolio and retirees’ debts.
With the apparent differences in approach in solving the problem in the Fund, Mr. Torres said he still believes he can still work effectively with the board.
“I am not painting a gloomy picture of the whole situation. I just to emphasize that I want to bring certain changes to help improve the Fund,” he added.
