New accountancy board needs $200K funding

The newly created CNMI Accountancy Board needs some $200,000 to begin operations.

Gov. Juan N. Babauta, in a letter to the Legislature, said the budget can be included in the 2005 appropriation bill, which has yet to be passed by both chambers.

In particular, he said that, while the new item was not part of the budget proposal submitted by the administration in April this year, his latest additional revenue projection totaling $6.65 million, would address the matter.

This additional revenue includes $5.1 million from the enactment of the tax amnesty and tax enhancement bills, as well as $1.5 million from the $50 increase in nonresident worker’s fee that took effect this year.

The Babauta administration originally submitted $226 million for fiscal year 2005 but the House approved only $212.7 million. The Senate, however, raised the amount to $217.7 million in consideration of the additional $5.1 million.

Both houses will meet this week to reach a consensus on the budget.

“While I cannot deviate from the balanced budget I am required by law to submit to you, I think it proper to express belief that investment in the board of accountancy would be wise. Perhaps, in the context of the additional revenues of $6.65 million I have recently identified as available for FY05, you will be able to accommodate the request of the board,” said Babauta in his letter to Senate President Joaquin A. Adriano and House Speaker Benigno R. Fitial.

Babauta said that funding the board is a good example of “spending money to make money.”

The board is tasked to develop a program that would allow the CNMI to become a training and testing site for people seeking to become U.S. certified public accountants.

It is also mandated to promote the reliability of information used in transactions, accounting, or assessing of financial status or performance of commercial, non-commercial, and government enterprises.

“We only have to look at Guam to recognize that there’s significant potential to develop the NMI as training and testing site. …Our local immigration control puts us in a particularly advantageous position to tap the demand for this testing,” he said.

The promise of direct revenues to the government and the economic activity to be generated convinced him to sign the bill creating the board, he said.

“But that’s only the first step. Now we have to provide the board with the tools to establish the standards and make other provisions that will permit testing here. I hope you will agree that we have more opportunity here to make an investment that holds substantial promise of return,” Babauta said.

The board consists of five CPA, headed by

Deloitte & Touche Saipan managing partner Michael S. Johnson as chair. Other members include James Whitt as vice chair, David Burger as treasurer, Dora Inos-Deleon Guerrero as secretary, and Office of the Public Auditor’s Rufo Mafnas as member.

The board is now looking at setting up an office space at either the Nauru Building in Susupe or the La Fiesta complex in San Roque. The board was also told to check out possible offices in one of the government housing units on Capitol Hill.