SAIPAN — At a press conference this morning in the Governor’s Conference Room, Secretary of Finance Tracy Norita outlined FY 2022 Single Audit results before a room filled with cabinet members. The Department of Finance says the audit puts the Commonwealth at serious financial risk, including possible repayment of federal funds and disruptions to programs if agencies or the U.S. Treasury move to collect. Procurement and grants could face delays, tighter rules, or even termination as federal partners review the findings.
The audit itself came back with a disclaimed opinion and about $257.5 million in questioned costs, according to DOF’s briefing remarks and slide deck. A “disclaimed opinion” means auditors couldn’t get enough reliable evidence to say whether the numbers are right. It’s not claiming the statements are wrong, it’s saying the auditors couldn’t verify them, often triggering closer scrutiny and corrective steps.
By year, questioned costs total $163,084,625 (FY22), $50,203,077 (FY21), and $44,178,874 (FY20), for $257,466,576 overall. COVID-era funds make up a large share: ARPA ($110,874,355) and CARES ($54,704,601), a combined $165,578,956.
Finance also reported a CARES Act desk review launched in 2022 by Castro & Company that remains unresolved at $11,093,139. DOF says it has submitted $22 million in corrections and provided updated financials to Treasury’s ACT in January 2025 to resolve questioned costs. A voluntary-return request of about $11 million for 2020–2022 CARES spending is being appealed.
Officials said finishing the audit is only the start and that they’re pushing corrective action plans, stronger internal controls, and continued work with federal grantors. A Single Audit Committee and an executive order are also in place to keep agencies on task.
The slide deck lists 38 findings in FY22 (25 in FY21, 24 in FY20). In this context, “findings” are reportable issues the auditors flag, like noncompliance with grant rules or weak internal controls that require a fix, typically outlining the criteria, what went wrong, why it happened, the impact, and recommendations. Some findings also carry questioned costs.
Finance also published a catch-up timeline for audits through FY2027 and pointed the public to completed audits at the Office of the Public Auditor and the Federal Audit Clearinghouse.
Secretary Norita said that while the results of the audit are “difficult news,” it’s also a point to start fixing problems, stabilize federally funded operations, and move forward with more accountability.
