KPress Vol. 08 Iss. 01
Jaynes, Bill (2007-12-12). KPress Vol. 08 Iss. 01 (PDF) (Report). Kolonia, Pohnpei: Kaselehlie Press.
- Has attachment: File:MIAC5AZ4.pdf
Abstract: KPress Vol. 08 Iss. 01: NEWS: Pohnpei, FSM—Pohnpei State Public Auditor Annes H. Leben released on November 13, 2007 an audit of the Pohnpei Utilities Corporation (PUC) for the fiscal year ending September 30, 2006, conducted by the Office of the Public Auditor (OPA) to assess the effectiveness of management controls and PUC’s compliance with applicable laws, regulations, contracts, and grant agreements; the audit found several areas in which PUC failed to meet these objectives, identifying nine internal and management control weaknesses after revisions, three of which resulted in noncompliance with laws, regulations, contract agreements, and internal policies; since PUC’s establishment in 1991, OPA had conducted only two audits, despite annual independent audits performed by private contractors, and the 2007 OPA audit was strongly contested by PUC after Governor Johnny David directed it earlier in the year, prompting PUC to seek a temporary restraining order to delay the audit until completion of the external review; during this period former General Manager Marcelino Actouka was relieved of duty by the Board of Directors after Governor David removed Anna Mendiola as chairperson of the PUC board; the OPA audit was conducted from August 20 through October 6, 2007, and following PUC’s response one audit exception was removed and two others reworded; a principal audit finding stated that management should reduce operating costs when revenues are insufficient, with analysis showing that PUC operated at a loss for at least five consecutive years and that in 2005 it spent approximately $10.6 million against revenues of about $7 million, while accounts receivable—including unpaid bills owed by Pohnpei State—were not quantified; OPINION / EDITORIAL: a letter published in the opinion section expresses gratitude from a bereaved family to the community for support and prayers during a funeral; a separate opinion column discusses uncertainty surrounding continued participation by the Republic of the Marshall Islands in the Association of Pacific Island Legislatures (APIL), noting that RMI had not sent a delegation to APIL meetings for more than five years, that APIL continued to treat RMI as a member absent formal withdrawal, and that consultations led by APIL Vice President Hawaii Senator J. Kalani English indicated Marshall Islands leaders were considering reengagement after national elections, while Guam Senator Jim Espaldon questioned the fairness of continuing to list RMI as an active participant.
