Fund threatens to stop contribution to OPA

The NMI Retirement Fund yesterday threatened to withhold its mandatory 1 percent annual contribution to the Office of the Public Auditor, citing OPA’s failure to complete audits that were requested at least 15 months ago.

But acting public auditor Rosauro D. Zapanta said yesterday an agency’s 1 percent mandatory annual contribution to OPA does not necessarily mean an audit every year.

“The 1 percent is not tied to any audit, and the excess funding goes back to the general fund,” said Zapanta.

Public auditor Mike Pai is currently off island.

During yesterday’s board of trustees meeting, Fund administrator Mark Aguon and internal auditor Esther Ada said OPA could not complete the audits because of lack of auditors.

Since last year, OPA lost so many of its employees that the agency had to announce 11 vacancies all at once, including four audit managers, three senior auditors, two audit supervisors and two audit managers.

Fund board chair Juan T. Guerrero said they requested a management audit as well as an audit of pension computations that could also pinpoint double dipping, 15 to 17 months ago.

“OPA said they lack staff and they have other priorities. That’s why we’re wondering about this 1 percent [contribution]. We’re paying 1 percent annually,” he told Saipan Tribune in an interview during a break in the board meeting.

He said the Fund is asking to waive the 1 percent mandatory contribution because OPA could not do its audit jobs.

“We’re not talking about financial audits; we’re just talking about audits that OPA should be doing. If they can’t do it because of lack of staffing, then they should at least waive [our] financial responsibility,” Guerrero added.

Board vice chair Pedro Q. Dela Cruz asked counsel Viola Alepuyo about the consequences to the Fund if it stops contributing 1 percent of its budget to OPA. The board went into executive session to discuss the OPA contribution, among other things.

Constitutional and statutory provisions guarantee funding for OPA. Under the law, OPA receives 1 percent of all local appropriations and is authorized to receive 1 percent of the operations budgets of all public corporations and autonomous agencies.

Double dipping

Guerrero said one of the audits will help the Fund identify cases of double dipping.

“Some of these costs may exceed $300,000 to $400,000,” he said.

Guerrero said OPA was in the process of working on the audit when former public auditor resigned in July 2008, and other staffers also left the office.

But OPA’s Zapanta said they recommended the Fund hire at least two internal auditors to audit the pension computation, which will also lead to identifying double dippers.

The Fund hired Esther Ada who, according to Guerrero, has started working on identifying double dippers.

“We’ve been receiving a lot of leads in which certain retirees were rehired, and currently working, and we’re just trying to ensure we’re doing our job. …Eventually, if the board determines, after the reports were received, that they are in violation, we will pursue to recover whatever is owed through double dipping, and some of these costs may exceed $300,000 to $400,000,” he said.

Double dipping refers to the receipt of retirement benefits and an employment salary at the same time.