Inspector general underscores oversight of $5T in pandemic spending at APIPA

09/09/2025 - U.S. Inspector General for the Federal Reserve Board and Consumer Financial Protection Bureau Michael Horowitz opened the 36th Association of Pacific Islands Public Auditors Annual Conference on Saipan with a sobering account of lessons learned from overseeing $5 trillion in pandemic relief spending.

Speaking virtually, Horowitz said federal agencies too often rushed out funds without adequate safeguards, allowing fraudsters to siphon off funds intended for struggling families and small businesses.

“They simply self-certified that they were, in fact, who they said they were, that they, in fact, had the business that they said they had, were from employment, that they were, in fact, unemployed, when the reality was they were fraudsters. They weren't really the person they represented. They didn't really have the business they said they had. And rather than take even the most minimal steps to check to confirm identities, agencies simply sent out the money in response to the application, in many instances,” he added.

Horowitz, who also chaired the Pandemic Response Accountability Committee, stressed that preparation must happen before crises. “The time to prepare isn’t after the tragedy happens,” he said. “It’s before the inevitable event.”

He encouraged closer partnerships between local public auditors and federal inspector generals to strengthen accountability, adding that every misused dollar meant less funding for legitimate needs.

“The pandemic brought us all together in a way that I think never happened before. And it's something we as IGs on the federal level have agreed amongst ourselves, we need to be better partners with all of you across the country, and whether it's in the Pacific Islands, whether it's Puerto Rico, whether it's other Virgin Islands, other parts of the United States. We're not doing as good a job as we should have in the past.”

Joining the conference remotely, CNMI native Angel Demapan, now deputy assistant secretary for Insular and International Affairs at the U.S. Department of the Interior, echoed that message, zeroing in on the urgent need for timely audits.

“They tell us whether public funds are being spent properly, whether systems are functioning as intended, and whether the trust placed in us by the people we serve is being followed. Without timely and reliable audits, confidence begins to erode. Development projects stall, federal partnerships weaken, and our ability to secure future resources is put at risk,” he said. 

Demapan also outlined Interior’s goal for all jurisdictions to submit FY2023 audits by October 2025, warning that delays could jeopardize critical programs in healthcare, infrastructure, and education. “Every delay, every missed deadline slows down the programs our communities depend on,” he said.

Following this, FY2024 audits should also be completed by June 2026, FY2025 audits by December 2026, and FY2026 audits by June 2027, according to Demapan.

Gov. David M. Apatang, who formally welcomed participants to the CNMI, recognized the heavy responsibility auditors shoulder in balancing transparency, impartiality, and accountability. 

“I do not envy you, for you have to be impartial, transparent, accountable, and helpful enough to cross any clean line that can put you to question or interfere with you. I respect and admire you for your independence. I know that this is like saying a lot, but the work that you do and your responsibilities that follow you wherever you go and with whoever you're acquainted with rightly fit those words,” he said.

Temporary CNMI Public Auditor Dora I. Deleon Guerrero, whose office hosted the event, thanked her team for making the gathering possible. She called accountability “a living, breathing culture” that must be nurtured across island communities.

“Your steadfast commitment to capacity building and professional development in our region has been instrumental to APIPA's success and the advancement of public accountability throughout the Pacific. As we embark on this exciting conference, let us remember that the cultures of accountability we build today will shape the future of our islands for generations to come. Thank you all for your dedication, passion, and presence here this week,” she said.

Also addressing the opening was Nikki Miller, Assistant Inspector General at the U.S. Department of the Interior, who underscored the shared goal of strengthening integrity in government.

“Your role in protecting the integrity of federal dollars is more important than ever. That's why I'm so pleased that there are so many interesting learning opportunities on the agenda this week, including classes on grant auditing, contract auditing, and understanding the single audit. There will also be valuable opportunities to learn more about the nuts and bolts of procurement fraud, artificial intelligence in the workplace, and strengthening collaboration for oversight,” she said.

The week-long conference, held at the Saipan World Resort, brings together auditors and financial managers from across the Pacific Islands to share best practices, strengthen professional standards, and reinforce public trust in governance.

Report by Mark Rabago