OPA seeks purge of non-essential services to reduce personnel costs

Public Auditor Leo L. LaMotte yesterday prodded the House Ways and Means Committee to look deeper into the personnel costs of the Saipan mayor’s Office to purge non-essential services which only duplicate the functions of the central government.

In light of the austerity measures implemented by Gov. Pedro P. Tenorio, LaMotte recommended that “the budget for personnel expenses be scrutinized to ensure that only positions which are directly related and essential in the delivery of services required from the Mayor’s office are maintained.”

He said in his report to the committee that “services being rendered by the office should be reviewed and evaluated to determine whether it is advantageous to the government to eliminate those services found to be duplicate of those already provided by other agencies.”

The Saipan mayor’s office has been doing road repairs and water delivery on the island — functions which are handled by the Department of Public Works, according to the OPA.

The recommendations came amid appeals for additional funding from the municipal government, noting the $2.04 million set aside by administration for FY 2000 is insufficient to meet its operational and personnel costs.

But LaMotte agreed that a higher budget should be appropriated by the government to the mayor’s office on such expenditures as office lease payment which, under the proposed budget being reviewed by the Ways and Means Committee, would only cover four-month rent.

Budgeted at $30,000 for the next fiscal year, actual expenses for lease of the space in Afetna Square in San Antonio normally amount to $90,000 annually.

“The budget therefore is unrealistic unless a substantial decrease in the existing office rental charges is expected (which is remote) or a transfer to a less expensive office is planned,” the OPA chief said.

He suggested that if the budget could not be raised due to funding limitations, the mayor should cut other expense accounts to meet the shortfall.
Among items that need a second look by legislators are the proposed funding for Official Representation and Dues and Subscriptions, accounts which exceeded the actual expenses in previous years. Each account received allotment of $25,000 and $4,100, respectively, or an increase from previous appropriation of $13,000 and $1,000,
according to LaMotte.
“Necessary adjustments should be made on the amounts requested to reflect realistic funding needs of the Saipan Mayor’s Office and to prevent misappropriation of funds,” he said.