OPA: Only 5 of 46 audit, inspection recommendations had been resolved

Of the 46 audit and inspection recommendations the Office of the Public Auditor had issued to government agencies as of Dec. 31, 2023, only five had been resolved.

It was also learned from interim public auditor Dora I. Deleon Guerrero that OPA requested agencies to provide updates on the corrective actions they have taken to resolve each recommendation and OPA received only nine responses.

Of those nine, five came from the Department of Finance, two were from the Commonwealth Healthcare Corp., and one each from the Department of Lands and Natural Resources and the Commonwealth Election Commission, according to OPA’s report to the Interagency Audit Coordinating Advisory Group last Wednesday.

OPA said it did not receive official responses from the DOF regarding the audit of collection on Saipan, audit of cash on Tinian and Rota, and with respect to audit of the Division of Revenue and Taxation’s Hotel Occupancy Tax.

Most of the 41 unresolved audit recommendations are from DOF, at 32. CHCC has four unresolved recommendations, CEC has three, and DLNR has two.

An unresolved recommendation refers to one where the agency cannot take immediate action or OPA has not been informed by the agency or department of any action taken to address the recommendation.

OPA said it will follow up on the agencies’ progress toward addressing the recommendations in the next reporting period.

Regarding the audit of collection on Saipan issued on Aug. 4, 2023, the recommendation was for DOF to develop and implement a uniform Standard Operational Procedures for accountability of collections at all DOF-sanctioned collection points.

DOF’s initial response to the audit report was on Aug. 1, 2023, in which it stated that the Division of Treasury has begun efforts to finalize and disseminate an official cash handling SOP, along with other agency-specific SOPs being compiled for all DOF-sanctioned collection points on Saipan.

DOF’s proposed completion date was Aug. 31, 2023.

As of Dec. 31, 2023, OPA said it has not received an update from DOF.

Pertaining to the audit report of cash on Tinian and Rota issued on Dec. 28, 2021, OPA has seven recommendations, including that collection points within the same building be consolidated to provide a central collection point for efficiency and better use of resources.

On Dec. 23, 2021, DOF noted the recommendations and stated it will work to further enhance their internal process. That was the last of it. OPA said DOF did not respond on Dec. 31, 2022, on June 30, 2023, and on Dec. 31, 2023.

As for OPA’s recommendations on Sept. 2, 2020, after its audit of the Division of Revenue and Taxation Hotel Occupancy Tax, there were nine recommendations, including to adopt regulations that interpret the HOT Law’s use of the term “accommodations” and enable the Division of Revenue and Taxation’s uniform enforcement of HOT.

On Feb. 24, 2021, DOF’s response was that DRT is currently developing draft regulations for review and approval. The proposed completion date was Sept. 30, 2021. OPA said DOF did not respond to that specific recommendation on June 30, 3021, on Dec. 31, 2021, on June 30, 2022, and on Dec. 31, 2022.

On June 30, 2023, the legal counsel for DRT had a discussion with the auditors assigned to this. The legal counsel explained that changing regulation was not necessary.

OPA said there was no response from DOF on Dec. 31, 2023 with respect to the nine recommendations.