AR-03-05: Monthly Subsistence Allowance Provided to Members of the Senate Covering the Six Months Ending June 30, 2002 (Issued 8/6/03)

Summary

This report presents the Office of the Public Auditor’s (OPA) evaluation of the monthly subsistence allowance provided to the members of the Senate for the Thirteenth Legislature in the Commonwealth of the Northern Mariana Islands (CNMI). The evaluation’s objectives were to determine whether: (a) the Senate has authority to grant the monthly $5,000 subsistence allowance; (b) the amount of the $5,000 monthly allowance satisfies public purpose requirements; (c) senators receiving monthly allowances are required to submit documentation detailing travel; and (d) the Commonwealth is compensating senators twice for items covered by the monthly subsistence allowance.

Senators from the First Senatorial District (Rota), Second Senatorial District (Tinian and Aguiguan) and Third Senatorial District (Saipan and the Northern Islands) receive a monthly subsistence allowance for local inter-island travel within the CNMI. The allowance is based upon Senate rules and resolutions.

Our review of the NMI Constitution, statutes, regulations, legislative resolutions and rules, current quoted air fares, and applicable per diem rates show that the monthly travel expenses for Rota and Tinian senators are likely to be considerably less than the $5,000 monthly subsistence allowance provided to them when traveling to Saipan, resulting in an unjustified personal benefit to the senators in violation of public purpose.

Our review also found:

Accordingly, we recommend that the Senate:

1. introduce legislation to grant it authority for the subsistence allowance and its amount, to set the amount of the allowance, and to certify it as a public purpose;

2. undertake an analysis of reasonable travel costs to ensure that the amount set for allowances is appropriate given expenses incurred;

3. document travel activity to enable it to more accurately estimate an appropriate monthly allowance;

4. require that travelers document trip activities to ensure compliance with applicable regulations and the law, a practice which would support Senate efforts to determine a reasonable monthly allowance amount; and

5. draft amendments to current legislation or other travel policies to prevent senators from being reimbursed for other concurrent travel.

In a letter response dated June 25, 2003, the Senate agreed with recommendations 2, 3, and 5. More specifically, the Senate agreed to replace the existing subsistence allowance system with a new revolving reimbursement system that would use uniform per diem rates to reimburse senators for expenses incurred in the exercise of their constitutional duties. The Senate also agreed to conduct an analysis of travel expenses to ensure that the new per diem rate was reasonable. Further, it agreed to adopt policies to ensure compliance with public purpose requirements. Also, the Senate confirmed that any disbursements of funds from the new revolving account would be predicated on the provision of sufficient documentation of expenditures. Finally, it agreed to take action to ensure that members of the Senate do not receive "double compensation" for travel costs.

The Senate did not, however, adequately respond to recommendations 1 and 4. More specifically, the Senate did not agree:

• with OPA’s position that authority for the monthly subsistence allowance, created in the Senate rules, must be in the form of a law. Instead the Senate asserts that it has the implied statutory authority to establish the subsistence allowance for its members by Senate rule; or

• to submit travel vouchers documenting travel purpose and expenses.

Download Report No. AR-03-05
Go to Reports Page

N O T I C E

OPA Reports and Decisions are published in Adobe Acrobat (PDF) format. You will need the FREE Acrobat Reader to view them. Click here or the icon to get it.