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‘Poor accounting of federal grant pension funds’
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Posted on Jul 28 2008
The NMI Retirement Fund has criticized government agencies for their poor accounting of pension contributions for employees paid with federal grant funds.
Fund administrator Mark A. Aguon said that local recipients of federal funds have been unable to account for money that, according the terms and conditions of the grants, should go to the pension of federally funded employees.
“Accordingly, insufficient records exist as to whether these individuals have contributed to the Retirement Fund, notwithstanding the federal grant for this purpose [payroll costs],” Aguon said in a memorandum to heads of government agencies.
He reminded the agencies that federal grants can be used for their intended purposes only. They are not subject to the Commonwealth’s appropriation process.
Aguon also urged the agency heads to verify the names of employees paid with federal grants. He said the Fund needs them not only to maintain strict accounting measures, but also to help the pension agency in drafting its budget.
“Absent a strict accounting of the federal funds contributed and the individuals for whom those funds apply, the Retirement Fund will defer processing of applications for retirement for federally funded employees,” Aguon said.
