OPA backs creation of CNMI Board of Accountancy

Backing the appeal made by administration officials to lawmakers, Public Auditor Leo L.LaMotte has stressed the need for the Board of Accountancy on the island which he said will safeguard the interests of the Commonwealth.

The bill called the CNMI Accountancy Act has been sitting in the Senate since the House of Representatives passed the measure last year in fear it would lay off many of the accountants working in the Northern Marianas.

Mr. LaMotte maintained, however, a public accountant can still provide bookkeeping services and prepare tax returns, although expression of opinions on financial statements will need specialized professional skills to ensure reliability on the part of the business sector and the general public.

Under House Bill 11-12, the government will establish the board to oversee licensing of public accountants through written examination to determine their competency and qualifications.

The system has been in place in the United States and its jurisdictions, except in the CNMI where it has no standards for the accounting profession.

“People need to have assurance that those individuals who are performing accounting services have at least a minimum level of professional qualifications to deliver adequate performance,” said Mr. LaMotte in a statement.

“Meeting the continuing education requirements will mean that the accountants are up-to-date on the current state of laws and recognized accounting standards,” he added.

The OPA chief also brushed off fears that by having the board in place, non-licensed public accountants will be forbidden from performing the same functions they now provide.

The proposal intends to protect the public by requiring only that accountants maintain their competence through continuing professional education, he added.

Mr. LaMotte’s public support of the measure came after Mr. Dan Nielsen, the governor’s special assistant for education, urged the Senate to pass the measure as it is depriving the island millions of dollars in potential revenues generated from the twice-a-year examination.

Since the accountancy test is administered each May and December, Guam has taken advantage of the people, including CNMI residents, who fly to the island just to take the examination.

Taking all the factors together such as hotel accommodation, air fare, cost of the test, board review as well as other incidental expenditures for off-island examinees, the Commonwealth could earn up to $8 million per exam period, according to Mr. Nielsen.

“We regulate health care professionals, legal professionals, education professionals, but not professionals who handle, count and account for our money. This is dangerous to the public,” he said. (BS)