OAG backs ‘reasonableness’ of senators’ allowances

The Office of the Attorney General transmitted a letter of opinion to Public Auditor Michael Pai this month in its effort to improve compliance with recommendations from the Office of the Public Auditor. To address the backlog of outstanding audit recommendations, the OAG has been meeting with OPA as needed to gather the required information.

In 2003, the Office of the Public Auditor published a report based upon its evaluation of the monthly subsistence allowance provided to members of the Senate for the 13th Legislature over a six-month period ending June 30, 2002. OPA concluded, among other things, that the subsistence allowance may only be provided through legislation, the Senate had no authority to grant itself an allowance by rule, and that the amount of the subsistence allowance was set unreasonably high in relation to the senators’ likely travel expenses. The attorney general’s response traced the evolution of the CNMI Constitution and various public laws, and determined that the question of whether the allowance is properly authorized by law is affirmatively answered by the yearly budget law (section 703(c)(3) of Public Law 17-55 for the current fiscal year).

Regarding the reasonableness of the allowance, the OAG found that this kind of official expense allowance exists in virtually every state legislature across the United States and is routinely upheld by state courts as a valid and reasonable method of compensating legislators for their official expenses. The OAG noted that legislatures are routinely given wide latitude in setting the amount of the allowance.

The OAG further determined that the Department of Finance has the responsibility to control expenditures to prevent the waste of public funds. If the amount of the allowance claimed is unreasonable in relation to this purpose and appears to provide a personal benefit to the legislator, Finance does not have to pay the claim. Finance can require further justification or documentation before paying the claim. Finance regulations requiring documentation of expenses apply to the Legislature, but the current regulations must be amended to apply more effectively to the current form of allowance.

The OAG feels that it has fulfilled the requirements of OPA’s request and anticipates that OPA will close the audit recommendation. Closure of this recommendation would mean that, since the beginning of the year, the OAG has closed 27 percent of the outstanding OPA recommendations.

“The OAG is pleased with the progress that has been made since renewing its focus on bringing the office into compliance with OPA recommendations. However, this is a long-term project and some of the recommendations will require complex research and investigation that may take more time to resolve than others,” the OAG statement ends. [I](OAG)[/I]