OPA's inspection of the Tobacco Fund Status found that within fiscal years 2003 to 2009, the required amount to cover all enacted appropriations out of the Fund exceeded actual Fund revenues. Also, appropriations were enacted for purposes that have no relationship to the original legislative intent. OPA concluded that the Tobacco Control Fund has become merely a reserve for the General Fund.

The major recommendation was to have the Tobacco Control Fund merged with the General Fund. This would simplify the budgeting process and allow greater transparency in the budgeting and accounting process. The Acting Secretary of Finance concurred with OPA’s recommendation.

Also, in the review of the Fiscal Year 2008 CNMI Single Audit, OPA noted a total of 18 similar special revenue funds and suggests that the Legislature consider looking into these funds and take similar actions if found warranted.

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