OPA begins CPA audit
The Office of Public Auditor has begun its financial audit of the Commonwealth Ports Authority, as requested by newly installed CPA executive director Clyde Norita.
“We’ve started our audit work. I think in CPA’s case, there are some problem areas that need to be looked into. The director [Norita] has also identified areas where he would like us to look at,” said Public Auditor Mike Sablan in an interview yesterday.
On Oct. 18, Norita wrote Sablan asking the latter to conduct an audit or audits of CPA “as you may deem necessary.”
In the letter, Norita recommended that OPA look at areas “where most of our funding is being used or where, in my opinion, better controls are needed.”
He identified these areas as personnel, procurement of professional services and construction services, travel, official representation, and board expenses.
In particular, Norita asked OPA to prioritize the audit of CPA’s professional and construction services procurement process.
“The audits may [also] assist us in making decisions regarding how to better allocate our resources during this period of economic downturn,” said Norita, a former lawmaker and police department official.
As a first-time lawmaker during the 14th Legislature, Norita proposed a constitutional amendment to convert the lawmaking body into a part-time legislature to save on costs. The bill was favored by many residents but not by his fellow lawmakers, resulting in its non-passage.
Norita, who got the CPA post last month, recently disclosed that CPA spends over $2.5 million for professional services a year, which he finds “too high.”
Norita said that he has started meeting with all consultants and contractors to inform them of the need to reduce contract prices.
He said this is necessary, citing that CPA has even resorted to in-house cost-cutting such as reduction of work-hours by eight hours per pay period and freeze hiring for fiscal year 2007.
CPA has existing contracts with 15 consultants.