OPA issued its report on CNMI agencies’ implementation of audit recommendations included in audit reports issued by OPA as of June 30, 2011. OPA tracked a total of 40 audit recommendations during the first six months of 2011. Of the 40 audit recommendations, 4 were closed and 36 remained either open or resolved. Of the 36 open or resolved recommendations, 31 were considered delinquent.

Closed Recommendations

OPA closed 4 of the 36 audit recommendations during the first six months of 2011. An analysis of the recommendation closed showed that the Commonwealth Utilities Corporation, Northern Marianas College, and Northern Mariana Islands Retirement Fund have either implemented or have taken alternative actions to address OPA’s recommendations.

Delinquent Recommendations

The number of delinquent recommendations increased by 5 (19%) from 26 in 2010 to 31 during the first six months of 2011. Agencies with delinquent recommendations as of June 30, 2011 include the Office of the Attorney General, Commonwealth Ports Authority, Department of Finance, Department of Public Lands, and Department of Public Safety, and Northern Marianas College. The recommendations addressed to these agencies were classified as delinquent as OPA was not informed by these agencies within the last 180 days of any corrective action taken to implement OPA’s recommendations.

Potential Recovery of $2.6 Million Referred to the AGO

As of June 30, 2011, audit recommendations in 7 audit reports were referred to the Attorney General’s Office for legal action to recover monies improperly expended. According to these 7 audit reports, approximately $2.6 million is potentially recoverable. The AGO did not provide OPA an update on these referral cases during OPA’s follow-up process, therefore, the status of these referrals remains unchanged.

Potential Recovery of $3.6 Million Depend on Agencies’ Action

OPA identified potential recoveries of approximately $3.6 million in 8 audit reports addressed to various agencies. During its semi-annual follow-up process for the period January 1, 2011 through June 30, 2011, OPA did not receive updates from the Department of Public Lands. The Northern Mariana Islands Retirement Fund Administrator informed OPA that the status of recovery of funds will be provided to OPA once their review is completed.

Of the $4,726,434 identified as potentially recoverable, $1,054,605 has been partially recovered leaving a balance of $3,671,829 still recoverable as of June 30, 2011.

Independent Auditor’s Recommendations

OPA also includes in its Audit Recommendation Tracking Report a total of 122 recommendations from 10 recent audit reports issued by private CPA firms.

→ Download the report.