‘PSS high-risk status to remain for now’

The U.S. Department of Education told the CNMI Public School System that its high-risk status will remain for some more time to ensure its consistent compliance with federal regulations.

This was made clear by a team of USDE representatives during their one-day visit to Saipan last week, according to Board of Education chair Roman Benavente yesterday.

“It will take a while before we get out of the list. They said that it can’t be taken off easily even though we’ve already complied. It takes time. They want to see consistency. It’s sort of letting us be aware of our responsibility and the consequences of not complying in the first place,” he said.

Benavente said that PSS’ high-risk status was caused “more by negligence, not fraud or misconduct,” unlike in other areas.

Benavente said the meeting with the USDE team took about two hours last Thursday.

The team members, composed of Tina Otter, Christine Jackson, Phil Maestri, Mark Robinson, and Todd Jones, made the side trip to Saipan last week from Guam.

Benavente described the meeting as “open,” noting that the team members fully explained funding rules and grant requirements and how PSS can cope with the requirements.

“One positive thing I saw there was their willingness to have a dialogue with us. They want constant communication to avoid inconsistencies and problems in the future,” he said.

The PSS was designated as a high-risk grantee last year due to non-compliance with federal requirements. In particular, the USDE said the designation was made due to unresolved delays and gaps in PSS’ submission of audit reports.

It said that PSS failed to submit audited financial reports on time under the Single Audit Act for four consecutive years—fiscal years 1997, 1998, 1999 and 2000.

Aside from being late, the audits reportedly did not have appropriate information to meet the requirements of the Act.

The department said that submission of late audits has a substantial negative impact on submitting high quality audits, while the submission of single audits past the statute of limitations circumvents the department’s ability to recover costs that are questionable.

PSS has acknowledged its late submission of audits to USDE, but it said everything had been corrected.

Benavente, meantime, said the USDE assured PSS that it would continue to get funding and grants despite the status designation. Just recently, the PSS received nearly $10 million in federal funds that were formerly used under Title 5.

The USDE has refused to allow PSS to use the funding under Title 6 rules because it “has not demonstrated the effectiveness” of Title 6—rural and low-income school program—in its implementation last year.

PSS prefers to use the funding under Title 6 saying it gives greater flexibility to spend it based on local needs.

Meantime, about $2 million of the Title 5 will be shared with some private schools in the CNMI, as granted by the USDE.