Treasury OIG letter OIG-CA-27-003 to Tracy B. Norita, Secretary of Finance (October 1, 2026)

Summary

A Department of the Treasury Office of Inspector General letter, OIG-CA-27-003, dated October 1, 2026, to Tracy B. Norita, Secretary of Finance of the Commonwealth of the Northern Mariana Islands. It gives the final determination on corrective actions for the desk review of the Commonwealth's use of Coronavirus Relief Fund proceeds (OIG-CA-23-039). It recalls that the CARES Act established the Coronavirus Relief Fund and appropriated $150 billion for payments to states and other governments, and sets out the cost criteria CRF recipients must meet.

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                                        DEPARTMENT OF THE TREASURY
                                               W ASHINGTON, D.C. 20220




     OFFICE OF
INSPECTOR GENERAL
                                                 October 01, 2026

            OIG-CA-27-003

            Ms. Tracy B. Norita,
            Secretary of Finance
            P.O. Box 5234 CHRP,
            Saipan, MP 96950

            Re: Final Determination on Corrective Actions for Desk Review of the
            Commonwealth of the Northern Mariana Islands’ Use of Coronavirus Relief Fund
            Proceeds (OIG-CA-23-039)

            Dear Ms. Norita:

            The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), 1 established
            the Coronavirus Relief Fund (CRF) and appropriated $150 billion for making
            payments to states, District of Columbia, local, territorial, and tribal government
            entities. CRF recipients may use the CRF award funds to cover costs that:

                1. were necessary expenditures incurred due to the public health emergency
                   with respect to the Coronavirus Disease 2019 (COVID-19);
                2. were not accounted for in the government’s budget most recently approved
                   as of March 27, 2020; and
                3. were incurred during the period that began on March 1, 2020, and ended on
                   December 31, 2021, for states, local governments, and territories. In the
                   case of tribal governments, were incurred during the period that began on
                   March 1, 2020, and ended on December 31, 2022 (covered period).
            Under a contract monitored by our office, a certified independent public accounting
            firm (IPA) performed a desk review to evaluate the Commonwealth of the Northern
            Mariana Islands’ (CNMI) documentation supporting its use of CRF proceeds as
            reported in the GrantSolutions 2 portal. In the desk review memorandum, 3 the IPA
            identified total unsupported questioned costs of $11,146,813.35. In the “contracts
            greater than or equal to $50,000” category, the IPA determined that CNMI was
            unable to identify the type of federal funding used to purchase COVID-19 tests and
            medical supplies of $11,093,139.95. In the “aggregate reporting less than
            $50,000” category, the IPA determined that CNMI was unable to identify the type
            of federal funding used to purchase medical supplies and equipment of

        1
            P.L. 116-136 (March 27, 2020)
        2
            GrantSolutions, a grant and program management Federal shared service provider under the
            United States Department of Health and Human Services, developed a customized and user-
            friendly reporting solution to capture the use of CRF payments from prime recipients.
        3
            Treasury OIG, Desk Review of the Commonwealth of the Northern Mariana Islands’ Use of
            Coronavirus Relief Fund Proceeds, OIG-CA-23-039 (August 8, 2023)
Page 2

$45,956.40. Lastly, in the “aggregate payments to individuals” category, CNMI
was unable to provide adequate support for $7,717 in expenditures related to non-
substantially dedicated 4 payroll costs.

In April 2025, we contacted CNMI requesting the territory to provide supporting
documentation for the questioned costs. Between December 2025 and May 2026,
CNMI provided eligible replacement expenses documentation for the
$11,146,813.35 questioned costs. The replacement expenses related to COVID-19
testing and disinfecting supplies and temporary quarantine sites. As such, CNMI’s
corrective actions addressed the questioned costs identified in the desk review.

We appreciate the courtesies and cooperation provided to our staff during the desk
review follow-up. If you have any questions or require further information, please
contact me at (202) 927-5792, or a member of your staff may contact Olivia
Scott, Acting Audit Director, at (202) 277-1196.

Sincerely,

/s/

Pauletta Battle
Assistant Inspector General for Audit


cc:     Michelle A. Dickerman, Deputy Assistant General Counsel, Department of
           the Treasury
        Danielle Christensen, Deputy Chief Program Officer for State and Local
           Programs, Office of Capital Access, Department of the Treasury
        Jeffery W. Stout, Acting Chief Program Officer, Office of Capital Access,
           Department of the Treasury
        Thao P. Tran, Acting Chief Operating Officer, Office of Capital Access,
           Department of the Treasury




4   Payroll costs that are not substantially dedicated means that the costs are not related to public
    health and safety; and not substantially dedicated to performing COVID-19 related tasks.


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