This report presents the results of our audit of travel transactions of the Tinian Casino Gaming Control Commission (TCGCC) for the six -year period ending September 30, 2001. The objectives of our audit were to determine whether: (1) commissioners, officials, and employees liquidated travel advances based on applicable travel liquidation policies; and (2) government-paid travel performed by commissioners, officials , and employees was necessary and was completed within a reasonable period of time. This audit was conducted in accordance with Government Auditing Standards issued by the Comptroller General of the United States.

TCGCC processed 361 TAs with total advances of $857,285 in the six years ending 2001. Of these advances, $673,625 was advanced in Fiscal Years 1996 and 1997 alone.

Travel advances granted to commissioners, officials, and employees while on official business are considered loans which should be liquidated in accordance with TCGCC travel policies. OPA found that $406,925, or 60 percent of the $673,625 that TCGCC management advanced to travelers, remains outstanding because these advances were not properly liquidated in accordance with TCGCC policy. More specifically TCGCC: (1) failed to obtain travel vouchers but continued to issue advances; (2) allowed advances to be liquidated without adequate supporting documentation; (3) approved unallowable expenses; (4)requested the CNMI's DOF to advance funds to four individuals in violation of an agreement with the CNMI; and (5)allowed excessive per diem allowances to travelers.

Poorly written TCGCC travel policies have allowed TCGCC travelers to engage in very questionable travel. We found that the per diem provided did not always have a valid basis; travelers took unnecessarily long trips and incurred major expenditures for ground transportation without valid documentation. Also, TCGCC advanced air fares to both the carrier/agent and the traveler for the same trip. TCGCC needs to modify its policies to prevent such potential abuses. Also, when travelers fail to liquidate travel advances within 15 days of completion as required, TCGCC has not always taken the steps necessary to promptly recover these funds.

Conclusions and Recommendations

TCGCC management abused its responsibility to the public when it disregarded TCGCC policy both by accepting travel liquidations without valid or appropriate documentation, and by granting new advances to individuals without liquidating previous advances. As a result, $406,925 in public funds is now outstanding and needs to be recovered. Unless valid evidence is presented to TCGCC, the concerned travelers should be required to return the advances to TCGCC. Poorly written TCGCC travel policies have allowed TCGCC travelers to engage in very questionable travel. Finally, TCGCC did not enforce its policy on the timely submission of vouchers. Consequently, travel funds may have been wasted.

Accordingly, we recommend that the Tinian Casino Gaming Control Commission: (1) recover advances totaling $406,925 from the commissioners, officials, and employees unless convincing evidence is submitted showing otherwise. If the commissioners, officials, and employees refuse to repay the funds, TCGCC request the Attorney General's Office to take legal action against the commissioners, officials, and employees to recover the amount of funds outstanding; (2) revise TCGCC policies to prevent questionable travel; (3) establish a subsidiary ledger to account for advances, and use it to recover and monitor outstanding travel advances; (4) designate one individual to review and approve travel vouchers; and (5) ensure that only the Chairman approves advances as specified in TCGCC travel policy.

Based on TCGCC's response dated August 16, 2002, we consider Recommendation 1 as open and Recommendations 2 to 5 as resolved. The additional information or actions required to consider the recommendations closed are presented in Appendix C.

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