To continue to seek out new and innovative ways to effectively administer thefinancial needs and requirements of the CNMI government:

OUR TEAMCollect, deposit, disburse, manage,and account or public funds inaccordance with the CNMIStatutes.Enforce CNMI Tax Laws, otherapplicable laws, and customsregulations by encouragingvoluntary compliance or, asneeded by enforcement.Exercise general supervision andaccountability of governmentasset, and provide resourcesneeded by the accomplishment oftheir mission.

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DIV. OF PROCUREMENTSERVICES

Francisco Aguon, Acting Director

CNMI TREASURYAsuncion Agulto, CNMI Treasurer

DIV. OF INFORMATIONTECHNOLOGY SERVICES

Frank Celis, Director

DIV. OF CUSTOMSJose Mafnas, Director

DIV. OF FINANCIAL SERVICESBernadita Palacios

Director

D E P A R T M E N T O F F I N A N C E

F Y 2 0 2 0 : C I T I Z E N - C E N T R I C R E P O R T

Tel: 1-670-664-1311

Fax: 1-670-664-1331

Tel: 1-670-322-1201

Fax: 1-670-664-1215

Tel: 1-670-664-1610

Fax: 1-670-664-1615

Tel: 1-670-322-1418

Fax: 1-670-664-1115

Tel: 1-670-664-1500

Fax: 1-670-664-1515

Tel: 1-670-664-4760

Fax: 1-670-664-4764

Tel: 1-670-664-1000

Fax: 1-670-664-1015

Division of Customs

Div. of InformationTechnology Services

DIRECTORYfinance.gov.mp

P.O. Box 5234 CHRBSaipan, MP 96950

Office of the SecretaryTel: 1-670-664-1100

Fax: 1-670-664-1115

CNMI Treasury

Division of FinancialServices

Div. of Revenue &Taxation

Div. of ProcurementServices

Passport Office

SAIPAN - TINIAN - ROTA

44%56%

DIV. OF REVENUE & TAXATION

Tracy Norita, Director

DEPARTMENT OF FINANCECommonwealth of the Northern Mariana Islands

WHO WE ARE

Performance

Finances

Challenges

VISION

MISSION

"Driving practical, cost-effective, and quality outcomes across government to benefitthe people of the Commonwealth of the Northern Mariana Islands"

David AtaligSecretary of Finance

OFFICE OF THE SECRETARY

PASSPORT OFFICE Geraldine Cruz, Manager

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DIV. OF ADMINISTRATIVESERVICES

Margaret Bertha Torres, Director

11,1236,90611639,9155,992

General FundFederal FundCIP Tax/Stimulus - ChecksTax/Stimulus - ACH

SOURCE

CNMI TREASURYThe CNMI Treasury is responsible forthe receiving and safekeeping of allrevenues coming in to the CNMIGovernment. Its mission is to pursueeffective revenue enhancementprograms to monitor, control, audit,and invest government funds.

The following data reflects all checksand electronic fund transfersfacilitated by the CNMI Treasury forFiscal Year 2020:

409General Issue

193Programming

Issue JDE Technical SoftwareIssue

2526Programming IssueTax System

0 25 50 75 100 125

Change Orders

Sole Source

ITB/IFB

RFP/RFQ

Expedite

Quotes

Ratification

Emergency

NO. OF TRANSFERS BUSINESS LICENSENew ApplicationsRenewalsAmendments

5333,163391

TECHNICAL RESEARCHDisclosure RequestsSocial Security ValidationCertifications/Recertifications

3197,160

80

$4.8M$8.8M$99.8K

COMPLIANCE

86391667,090

COLLECTIONS

Tax Rebates/RefundChild Tax RefundsEducation Tax Credit

Installment AgreementsTax Liens FiledTax Levies FiledCashiers Transaction

DIVISION OF CUSTOMSSERVICES

The Division of Customs Service isresponsible for the facilitation oftrade, collection of revenue throughthe enforcement of excise taxes onimported goods and indentifying andseizing prohibited (contraband) itemsimported to and exported from theCNMI.

The following data provides aglimpse of the Division of CustomsServices effort in line with itsmission to safeguard our borders:

CONTROLLED SUBSTANCECRYSTAL METH MARIJUANA THC POWDEROTHERHALLUCINOGENS

1,072.71g 1,492.80g 23.6g317.5 pcs.39 pcs.

APPAREL FOOTWEAR BAGS & etc.

3,420 pcs. 230 pairs 151 pcs.

COUNTERFEIT ITEMS

APPAREL ELECTRONICS HOUSEHOLD ITEMSCOSMETICSLIQUORCIGARETTESPHARMACEUTICALS

419 pcs. 85 pcs. 588 pcs.585 pcs.3,466 bottles2,305 packs5,800 pcs.

UNDECLARED/UNDERVALUED

DEPARTMENT OF FINANCE

31 32 2 3 1 53

SAIPAN TINIAN ROTAMinor passport Adult passport Minor card Adult card Expedite Execution

825 1,304 97 177 356 1,751

25 15 2 1 0 33

CATEGORIES

PASSPORT OFFICE

Commonwealth of the Northern Mariana Islands Who we are

FinancesChallenges

PERFORMANCE

To implement, maintain, secure, and provide technical support to the financialmanagement system and other network systems of the CNMI Government.

DIVISION OF INFORMATION TECHNOLOGY SERVICES

DIVISION OF REVENUE & TAXATION

WE ARE ONLINE!

F I S C A L Y E A R 2 0 2 0 : C I T I Z E N - C E N T R I C R E P O R T

The Division of Revenue & Taxation provide taxpayers assistance inunderstanding and meeting their tax responsibilities while enforcing the law.

In Fiscal Year 2020, the Division of Revenue & Taxation launched an onlinetax filing and payment service platform via https://lata.localgov.org.Additionally, the division assisted in the release of approximately $51MEconomic Impact Payments (Stimulus) to thirty-three thousand taxpayers andconducted a comprehensive update on its regulations.

DIVISION OF PROCUREMENT SERVICES

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To promote the general supervision and accountabilityof the requisition and provision of government assetsand contracts needed by the government to providepublic services across departments and agencies withinthe CNMI government.

Invitation to Bid 110Request for Proposal 32 Purchase Orders 10,497

FY 2020 CONTRACTS

PROCESSED INVENTORY/RECONIn-house Inventory 40 Reconciled Inventory 40Random Audits 12

EXAMINATIONCase Closed 2

FY 2020: PERSONNEL

Public Law (PL) 21-08 allotted the CNMI Department of Finance$5,363,486.00 for personnel cost. This amount was later reducedby approximately 48% pursuant to a budget act amendment,forcing the CNMI Department of Finance personnel expense intoa deficit.

DEPARTMENT OF FINANCECommonwealth of the Northern Mariana Islands

Who we are Performance

Challenges FINANCES

F I S C A L Y E A R 2 0 2 0 : C I T I Z E N - C E N T R I C R E P O R T

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FINANCIAL PERFORMANCEBUDGET VS. EXPENSES

FY 2020: OPERATIONS

PL 21-08 provided the CNMI Department of Finance$1,218,940.00 for operations and utilities, this amount wasalso reduced by approximately 48%. Due to previouslyencumbered expenses prior to the budget reduction, softwarelicense renewals, and network infrastructure modifications theexpenses surpassed the remaining budget.

The CNMI is currently experiencing its most severe contraction of governmentrevenue in generations caused by the immediate andglobal spread of COVID-19. This has and is anticipatedto continue to present serious and complex challengesto the collection and management of public funds. Thenear elimination of tourism arrivals has caused thesole economic industry in the CNMI to collapse,impacting government revenue streams acrosscategories. The magnitude of this crisis globally anddomestically is unprecedented, and projecting theextent and duration of this pandemic is challenging.Yet, we must adapt and respond to the fiscalchallenges presented by this crisis and work towardthe improvement of our financial managementframework to safeguard the resources necessary forour public service.

The CNMI Department of Finance's (DOF) Financial Management System is unable to provide the capacity necessary to adapt to theevolving needs for accurate and efficient financialprocesses, and strengthened internal controls.Unfortunately, our current network infrastructure isunable to withstand these significant technologicalchanges with current funding levels. Nevertheless, InFiscal Year 2020, the CNMI-DOF took strides toward theacquisition and implementation of a new financialmanagement system to address current and futurecapacity demands while improving efficiency in themanagement and accountability of government resources.

In an effort to adapt to the "new normal" necessary to safeguard ourcommunity from the spread of the deadly COVID-19disease, the need to utilize online platforms aregreater than ever.

On Fiscal Year 2020, the CNMI Department of Financelaunched several online portals to host applicationprocesses including tax filings. Additionally, the CNMITreasury installed kiosks, promoted automatedclearing house (ACH) transactions, and utilizedavailable online banking features for improvedefficiency, while adhering to CNMI social distancingprotocols and guidance. Although we remain fiscallychallenged, the Department of Finance is determinedto pursue wider implementation of online transactionsfor efficient administration of public services.

F I S C A L Y E A R 2 0 2 0 : C I T I Z E N - C E N T R I C R E P O R T

Following the Fiscal Summit on March of2020, large number of Department of Financeemployees were furloughed as part of the government-wide cost mitigation effort. Unfortunately, the currentfinancial system in place requires significant numberof personnel to maintain its daily processes. With thereduction in workforce, remaining employees wereforced to shoulder additional responsibilities. Theseresponsibilities have been increased with the neededresponse to COVID-19. Furloughs have strained theDepartment's already limited capacity, but havebecome necessary in the current fiscal environment.

REVENUE SOURCES

As the needs of the CNMI government and the public services provided to thecommunity, a consistent review and revision of CNMIDepartment of Finance Regulations needs to beundertaken. These regulatory reviews andamendments must ensure our system keeps pace withevolving best practices in government financialmanagement and is adaptable to the changingcircumstances in the coming years.

In response to the present challenges and difficulties in off-island travel, theCNMI Department of Finance has placed greatemphasis on continuing the professional developmentof our staff through online training opportunities andcontinuing education platforms.

FINANCIAL MANAGEMENT

ONLINE TRANSACTIONS

PERSONNEL

REGULATIONS

TRAINING

Challenges & Opportunities

DEPARTMENT OF FINANCECommonwealth of the Northern Mariana Islands

Who we are PerformanceFinances CHALLENGES

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