Inos: New law will not compromise NMC’s autonomy

Acting governor Eloy S. Inos says improving Northern Marianas College’s financial oversight will not compromise the institution’s autonomy, despite concerns about a bill’s impacts on accreditation, among other things.

Inos gave this assurance when he signed into law Saturday a bill that he says will maintain NMC’s fiscal stability for students’ well-being and accreditation reasons.

“The administration has reviewed and taken into consideration the Northern Marianas College’s resolution and comments as submitted, regarding infringement on NMC’s autonomy. However, thorough review of this legislation indicates that passage of this measure will not compromise the autonomy of NMC,” Inos said in his message to House Speaker Eli Cabrera (R-Saipan) and Senate President Paul Manglona (Ind-Rota).

House Bill 17-93, Senate Substitute 1 is now Public Law 17-47.

The bill amends sections of the Post Secondary Act of 1984, as amended, to modify the financial duties of the Board of Regents.

It requires the board, for example, to ensure that all gifts, grants, donations, bequests, endowments, educational tax credits or other contributions, their management and the expenditures of the income, and a detailed financial statement of suitable books of account of all trust funds are included in the annual financial report submitted to the governor and the Legislature.

Rep. Stanley Torres (Ind-Saipan), author of the bill, said yesterday he’s happy that his work has come to fruition, and thanked Inos for understanding the need to improve NMC’s financial oversight.

“I hope that NMC will follow this new law to better manage the college’s finances,” Torres told Saipan Tribune.

NMC officials had opposed the bill, saying that financial reporting requirements are already covered by existing laws and college policies that only need to be properly enforced, and do not need new legislation.

Inos said Article 10 Section 8 of the NMI Constitution mandates the Department of Finance to regulate and control expenditure of public funds to ensure monies are expended for public purposes.

He said since NMC receives funds annually through the appropriation process, the Department of Finance must ensure all expenditure of public funds, including NMC’s expenditures, are for public purposes.

“This cannot be considered an infringement on NMC’s autonomy as the Department of Finance must perform its constitutionality mandated duties,” Inos said.

The acting governor said with respect to reporting requirement on public funds, NMC is not the sole instrumentality that is required to submit an annual financial report to the governor and the Legislature.

“In fact, all government departments, agencies, instrumentalities that receive public funds are required to report its expenditures annually. It makes for sound public policy,” he added.