‘$49.2M in govt’s total negative expenditures reported’
The Department of Finance’s report for the fourth quarter of fiscal year 2023 that ended Sept. 30, 2023, shows a total of $49.2 million in negative expenditures across 67 activities, according to Senate president Edith E. DeLeon Guerrero (D-Saipan).
In line with this, DeLeon Guerrero asked Finance Secretary Tracy B. Norita on Tuesday to provide her the accounting entries or a copy of the general ledger that shows the financial flow of transactions causing these 67 activities to have negative balances of $49,256,781.
She also noted that, according to the FY 2023 Governor’s Annual Report, $4.7 million is reported in the general fund that was transferred from Commonwealth Economic Development Authority, while $3.2 million is reported in the general fund that was reimbursed by the federal Medicaid, yet the funds were not identified as additional revenues available for supplemental appropriation by the Legislature.
DeLeon Guerrero said that, according to the governor’s report, $4,746,993.26 ($4,435,871.41 plus $311,121.85) is reported in the general fund that was transferred from CEDA. She said it relates to the surplus funds of the State Small Business Credit Initiative. DeLeon Guerrero said surplus funds of the SSBCI program are to be deposited into the general fund.
She noted that Public Law 3-68—the Planning and Budgeting Act of 1983 (Planning and Budgeting Act)—requires that any additional revenues received by the CNMI after the CNMI budget law for the fiscal year is enacted shall be reported to the Legislature for appropriation.
DeLeon Guerrero said it appears that the $4.7 million and the $3.2 million were additional revenues that should have been reported to the Legislature for supplemental appropriation in fiscal year 2023.
Citing the Planning and Budgeting Act, the Senate president said she believes that both cases ($4.7 million and $3.2 million) would qualify as additional revenues of the Commonwealth that were required to be reported to the Legislature.
She said unless the Legislature recognized the $4.7 million and $3.2 million as additional resources by supplemental appropriation, the Planning and Budgeting Act prohibited the expenditure of these funds in fiscal year 2023.
DeLeon Guerrero said the administration/Finance and the Legislature must collaborate on the annual appropriations acts, but that requires Finance to be transparent on any, and all, revenues received by the CNMI, including additional revenues during any fiscal year.
Edith E. DeLeon Guerrero
