MPLT assets grow to $68M

Assets of the Marianas Public Land Trust reached nearly $70 million at the end of fiscal year 2005, more than double the amount when MPLT was created in 1982, according to an audit report.

Deloitte and Touche, an independent auditing firm, conducted an audit of MPLT’s finances as of Sept. 30, 2005. The audit included trust funds that benefit the CNMI General Fund and those used for the development and maintenance of the American Memorial Park.

An executive summary of the audit report, prepared by the Office of the Public Auditor, stated that MPLT has managed to grow its trust assets from $26.9 million in 1982 to $68.9 million as of FY2005. This is a total growth of 155 percent over the 23 years the trust has been in operation.

Total net assets combined for the two trust funds increased from $63.4 million in FY2004 to $68.4 million in FY2005, a $5.2 million overall increase.

OPA also said that MPLT has recovered from net losses caused by the stock market declines of the investment portfolio in FYs 2001 and 2002. From FY2003 to FY2005, MPLT recovered its total losses of $6.5 million and experienced capital gains amounting to $5.1 million.

MPLT operating revenues also increased 10.8 percent from $6.1 million in FY2004 to $6.8 in FY2005. The growth was attributed to increases in the fair value of investments and interest and dividend income earned on those investments.

Likewise, operating expenses increased by $110,000 or 11.9 percent over the prior year, with professional and consultancy fees making up the bulk of the increase in expenses.

As of FY2005, MPLT has receivables of $10.843 million from the three “economically targeted investments” the trust made in 1998.

Some $8.9 million remains to be paid out of the $10 million given to the Northern Marianas House Corp. for its mortgage financing program for low-income residents. The loan given to Adelantun Publickun Luto Enteramente, a scholarship loan program for Rota residents, is in default and currently suspended. Outstanding receivables on the APLE loan amount to $143,000. Meanwhile, a $2-million loan given to the Commonwealth Development Authority for construction projects at the American Memorial Park was at $1.8 million as of FY2005.

MPLT manages funds from the Department of Public Lands, formerly the Marianas Public Lands Authority. DPL’s revenues are derived from the use and administration of public lands less a deduction for reasonable expenses.