SHEFA response to OPA ‘review’

Following the delivery by OPA of information related to its “review” of SHEFA on April 28, the SHEFA Board of Directors engaged on its own independent evaluation of the OPA report. The OPA review focused on contractual services, compensation of board SHEFA policy on program eligibility. The SHEFA board forwarded its responses to OPA on June 3.

In response to OPA, the SHEFA board enumerated its own public policy recommendations, underscoring the importance in applying the Generally Accepted Government Auditing Standards and Protocols in future “review” of government agencies.

Last April, OPA released a “review” of the Saipan municipal postsecondary financial assistance program. It proffered over SHEFA’s lack of “fiscal prudence” in the operation and management of the program. OPA raised issue with SHEFA contracts over employment hiring, the frequency and amount of board remuneration, and SHEFA’s policy and practice on eligibility for assistance in Fiscal Years 2004 through 2006.

SHEFA’s objective analysis of the local municipal higher education assistance program shows SHEFA neither incurred operational cost overruns nor deficits in postsecondary assistance since its inception in Fall 2004.

Indeed, the SHEFA board is touted a model in fiscal restraint, operating in a fiscally conservative manner. For example, SHEFA’s operational expenses readily reveal the board’s frugal approach by its consistent pattern and practice against availing of publicly-financed lavishes and government-financed perks, or not even to engage in profligate spending propensities on government-paid travel off-island for “meetings with…”, “inspection of…”, “conference /training/professional development on…”, or even for “rest /recreation/business-related this and that” public purposes for travel.

Since its inception to this day, the board refused to purchase or lease SUVs or luxury vehicles with public funds, as doing so would also require government-paid accident insurance, government-paid gasoline and lubricant, government-paid vehicle repair and maintenance, among many other government-paid this and that categories.

Not that the board members are or want to be inaccessible, but the members most definitely do not want and have in fact refused any government-paid state-of-the-art cellular gadget (e.g., Blackberry) or have their personal cellular airtime paid using public funds, as there is no public purpose being served other than for the private convenience of the user at government expense.

The same fiscal restraint characterizes the SHEFA workplace. SHEFA’s office amenities consist of a single telephone landline and a facsimile line. The office also has operated with a rudimentary low-grade lethargic Internet connection. The bare bone office located in Garapan MIHA housing is equipped with two (2) generic desktop computers. They were purchased in 2005 at under $1500 each. A single generic wireless laptop is used on school visits or board presentations in public functions (e.g., workforce summit, school career day, etc.).

The board conference room reflects the board’s frugality: it is cramped by any standard on Capital Hill, not big enough to accommodate more than 8-10 persons. The boardroom does not even add up to any reasonable comparison imaginable with the distinctly ornate and plush government offices on Capital Hill.

Instead, approximately 97 percent of SHEFA’s fiscal and program resources accrue to the benefit of SHEFA scholars. These benefits include but not limited to SHEFA’s postsecondary financial assistance program, academic and career guidance and counseling activities, and SHEFA’s employment assistance referral services, among the activities of the board in the performance of their duties mandated in the SHEFA enabling statute.

SHEFA’s independent analysis also reveals how robust Saipan municipal postsecondary financial assistance program has been over the years since its inception. The program is responsible for over 100 SHEFA scholars who graduated from colleges and universities on Saipan and abroad in areas of studies which include accounting, business administration, criminal justice, mathematics, psychology, computer science, communication, education (elementary and secondary and specialized areas), engineering, history, marketing, nursing, sociology, economics, hospitality management, and liberal arts.

Since SHEFA’s inception, the board has meticulously reviewed and processed over 2,400 applications and support materials and awarded slightly over $5 million in grants, priority field incentives and grade point average scholarships to qualified Saipan residents, in sharp contrast to under $9,000 in board compensation for three years (2004-2006).

Monthly board remuneration in Fiscal Years 2004-2006 edged below $250. This figure translates to under $50 per month for every board member in the performance of board duties, which included review of student applications and supporting materials, inclusive of appeal hearings and dispute resolution activities in the formulation of board policies and program regulations. Not reflected in the computation are the time spent on other related activities of the board such as annual school visits to the participating public and private high schools (including the Northern Marianas College student body) on Saipan for a one-on-one question and answer engagement and dialogue with junior and senior high school students. Other SHEFA outreach activities include but not limited to face-to-face school visits, television talk shows, meetings with school counselors, forums with NMC, NMC counselors workshops, school career fair, NMC-WIA workforce summit meetings and manpower summit and SHEFA appeal conferences or hearings, work on rules and regulations with attorneys from the Attorney General’s Office, individual conferences with students, parents, appointed representatives, including meetings with members of SNILD (e.g., April 21 and May 8, 2008), Secretary of Finance, holding telephone conferences with students, parents and members of the community, etc.

Clearly, given the enumerated activities above, the seemingly endless dialogue, and non-stop participation of members of the board directly related to or incidental in their role as members of the SHEFA governing board are only specimens of the multifaceted tasks being performed on weekdays, weekends, or holidays, in which members freely volunteer their time and presence in the performance of their duties. The same work schedule applies to the contractors, who are often on 24/7 work status, especially during the formative stages of SHEFA.

In other words, the foregoing services and activities performed and work products delivered during the review period by the board on behalf of the SHEFA program were not figured in the calculation of board compensation (i.e., free of charge). The members were compensated only for board meetings/work sessions.

The SHEFA governing board has continued to operate the local municipal postsecondary assistance program in a fiscally responsible manner as evidenced in SHEFA not incurring cost overruns on both the student assistance and program operation sides of the budget equation.

Other recommendations proffered by the SHEFA board include:

1. That a minimum threshold of content validation be required in order to properly establish inter- or intra-agency program comparability relative to program delivery and/or program effectiveness in part or in whole referenced in any introductory text to research, program review checklist or standard evaluation procedure and process in order to raise the bar and standard of review above and beyond discretionary due diligence.

2. That any review in the future shall be required to provide the agency in review a reasonable opportunity for an entry briefing to all appropriate parties at a time, date and venue determined by the agency involved, and not at the discretion of the reviewing agency conducting the review.

3. That any agency subjected to a review in the future shall be afforded a reasonable opportunity for an exit briefing to all appropriate affected parties at a time, date and venue as determined by the agency involved, and not at the discretion of the reviewing agency conducting the review.

4. That any agency subjected to a review in the future shall be afforded a reasonable opportunity to prepare and provide written response(s) in reference to information contained in a review during or before the conclusion of any review in part or in whole. In addition, no review should be available for distribution or discussion without receipt of written responses by respondent(s) on a deadline mutually set by all parties involved in or affected by a review.

More detailed information on the response to OPA by the SHEFA Board of Directors may be accessed in the SHEFA homepage at www.saipanshefa.com .

For specific information on the rules and regulations of the Saipan Higher Education Financial Assistance program, visit the SHEFA website at www.saipanshefa.com , or contact the office by e-mail at contact@saipanshefa.com . Office hours are from 8am to 5pm, Monday to Friday, except austerity and legal holidays at which time staff may be contacted directly at telephone number (670) 233-5995 or queries may be made using SHEFA’s facimile at (670) 233-5996. Due to time differences abroad, the SHEFA Office is equipped with retrievable voice messages and may be accessed at (670) 233-5995.

Application and support materials for Fall 2008 must be submitted in person or online (electronically) to SHEFA before or on July 1, 2008.