Torres vetoes ‘redundant’ reporting requirements

The $233.22-million fiscal year 2020 budget that Gov. Ralph DLG Torres enacted last Sept. 26 had a total of 13 vetoes, including a whole section that imposes redundancy in financial reporting for certain government agencies.

Torres

In his notice about the vetoes last Sept. 26, 2019, Torres pointed out that reporting clauses are already embedded in existing laws to ensure transparency and accountability in the use of public funds and that additional reporting requirements should be proposed in a separate legislation.

He did describe these reporting requirements as both redundant and “unfairly burdensome” to other government agencies.

The governor vetoed Section 203 of Rep. Ivan A. Blanco’s (R-Saipan) House Bill 21-64, HD2, SD1, which would require the Department of Finance to submit monthly financial reports to the Legislature—instead of the quarterly standard.

“My administration fully recognizes that the need for transparency and accountability is critical for the monitoring of our government’s fiscal health. Nevertheless, this monthly report requirement inefficiently imposes unnecessary burdens onto the secretary of [the Finance Department] and [it’s] staff,” Torres stated in a note on the veto. “If the Legislature deems that a change in the frequency of reporting is necessary, I recommend that the respective body amend the Planning and Budgeting Act to effectuate these changes. For the time being, these reporting requirements should be kept in line with the Planning and Budgeting Act.”

While this section was included as a Senate amendment introduced by Sen. Sixto Igisomar (R-Saipan) during a previous session discussing the bill, Blanco told Saipan Tribune in a previous interview that the reporting requirement was necessary to give legislative officers more immediate access to up-to-date fiscal information instead of having to wait until the end of the fiscal year.

“While we understand this is an additional burden on the Department of Finance and [Office of Budget and Management], we felt timely financial information gives legislators a clearer and timely financial information to make well informed decisions,” he previously told Saipan Tribune.

‘Redundant and unfairly burdensome’
Torres also vetoed Section 712, a new quarterly reporting requirement that would have affected the Judiciary, Legislature, Executive Branch; the Saipan, Northern Islands, Tinian & Aguiguan, and Rota Mayor’s Offices and municipal councils; the Joeten-Kiyu Public Library; the CNMI Museum; the Ayuda Network; Karidat Social Services; Domestic Violence Task Force; the Office of the Attorney General; the Department of Public Lands; and the Commonwealth Health Care Corp., calling it both “redundant and unfairly burdensome.”

“…Reporting requirements that serve that same purpose already exist,” he said.

Section 712 in HB 21-64, HD2, SD1 would mandate expenditure authorities of these agencies to submit to the Legislature a quarterly fund status report pertaining to personnel and operations expenditures of each entity, including payments to the Office of the Public Auditor.

Torres noted that these reports were redundant with the Citizen Centric Report mandate, which requires leaders of Commonwealth agencies, departments, public corporations, commissions, mayor’s offices, municipal councils, autonomous agencies and semi-autonomous agencies to submit financial data to the presiding officers of the Legislature.

According to Section 712, failure to submit an expenditure report to the presiding officers of the Legislature will result in a suspension of future allocations until the delayed report has been submitted. Torres noted that this is too excessive and “unnecessarily punitive.”

“I find this disciplinary measure to be excessive and unnecessarily punitive in nature. More importantly, if enforced, this requirement will bear negative and irreparable consequences for essential departments and agencies,” he added.

Section 712 also required the CHCC chief executive officer to submit a feasibility report on the Universal Health Insurance Model for the Commonwealth by entering into a contract with a vendor to conduct the feasibility study.

“Performing this task will require CHCC to incur an obligation, of which funding was not included for in this appropriation,” the governor added.

“…If the Legislature deems that a change in the frequency or amount of reporting is necessary, I advise that the body amend the Planning and Budgeting Act to carry out these changes,” Torres reiterated.