House OKs OPA bill, funding for Rota

The House of Representatives passed Friday a measure that would authorize the use of the reserved funding for the public auditor to pay for audits performed by private auditing firms on any Commonwealth department, agency, and entity.

The measure, House Bill 14-150, would allow the Office of Public Auditor to use part of the 1 percent that the agency receives from the CNMI government to pay for audits contracted out to private auditing firms.

The House Committee on Ways and Means said that OPA currently receives up to $3.4 million from the annual 1 percent that it automatically gets from the budgets of government agencies.

The committee said that through the measure, OPA would be able to better negotiate, supervise, and coordinate the single audits of all government entities, which will ensure consistent and reliable single audits and conserve valuable resources.

Also, the bill will increase OPA’s supervision and would allow it to oversee the individual audits. This supervisory role will ensure that all engagements are conducted in accordance with the applicable established contracts. In addition, OPA has the expertise to determine what type of engagement is appropriate such as audit, review, compilation, survey or a management letter where it best suits to solve or rectify any deficiencies.

According to legislation, OPA requires approximately $2.4 million to provide audit services for CNMI government departments, agencies or entities. OPA plans to open office branches on Rota and Tinian, which will increase its annual operating cost to approximately $2.6 million per year.

“By having this measure in place, it will authorize OPA to approve audits by private firms and still ensure consistent and reliable single audits. This will also stimulate growth funds into the economy and the multiplier effect resulting from funds being awarded to private firms,” reads the recommendation of the committee.

Also, the House on Friday passed by majority votes House Bill 14-193 that re-appropriates remaining fund balances from completed capital improvement project appropriated for Rota under Public Laws 11-7, 11-79, and PL 11-119.

The legislation, which was introduced by Rep. Justo Quitugua, will re-appropriate $79,000 for the construction of an outdoor boxing arena, to renovate the Rota Liaison Office recreational facility on Saipan, to renovate the Luta Amateur Sports Federation building on Rota, and the lighting fixture of the Rota basketball and tennis court.

These projects, Quitugua said, merit funding since these will benefit the youth in providing a recreational and sports center that would serve as a place for the youths to enjoy camaraderie, sportsmanship, and other needed services.