Finding No. 2022-003
Area: Allowable Costs/Cost Principles
Views of Auditee and Planned Corrective Action
Condition 1. Disagree with the finding.
The Education Stabilization Fund (ESF) of the Public System was awarded to and was designed to provide additional funding (supplement) support to the local school system (PSS) as a result of the impact of the COVID-19 pandemic.
Background: On March 16, 2020 PSS suspended classroom instruction, ease central office operation to a certain level, implemented furloughs, and effectuated cost-containment initiatives, among drastic measures to mitigate the crisis brought about by the pandemic.
Of the public elementary, middle, and high schools on Saipan, Tinian, and Rota, only one school - Kagman Elementary School - was provided limited instruction (during summer of 2020). Kagman Elementary School was the first to reconfigure its facilities to maintain a safe (social distancing) facility for in-person student learning.
The $480,743 as cited (Condition 1) was an ESF-approved and sanctioned funding allocation. However, the change in funding source was initiated after the payroll processing. And in order to reflect the correct funding source, the JE adjustment was initiated.
Due to JE limitation these entries are not reflected to “subsidiary” ledgers.
Condition 2. Disagree with the finding.
Cited in this finding were three (3) 190-day employees. The 190-day employees worked for ten months, however, their pay is stretched out over a period of twelve months. Further, these pay periods are inclusive of the days that they are not supposed to report to work including summer months. Hence, no timesheet(s) is/are required.
Anticipated Completion Date: N/A
Name of Contact Person and Title
Contact Person – Arlene Lizama, Director of Finance
Contact – arlene.lizama@cnmipss.org