CUC only one in the red

Among other component agencies, the Commonwealth Utilities Corp. turned out to be the only one with a negative net asset, totaling $13 million as of end of fiscal year 2003, based on the 2005 audit report by accounting firm Deloitte & Touche.

At the same time, the report cites “inadequacies in the accounting records and internal controls” of CUC.

“Because of inadequacies in the accounting records and internal control, we were unable to form an opinion regarding inventory, federal agencies receivables, utility plant and obligations under capital lease of the CUC,” said the report.

As a result, the auditing firm said it was unable to determine whether taxes receivable, receivables from federal agencies, advances, accounts payable, other liabilities and accruals due to component units, and reserve for continuing appropriations were fairly stated for all governmental funds as of Sept. 30, 2003.

Further, Deloitte and Touche cited that “CUC management was unable to provide minutes of board of directors’ meetings subsequent to December 14, 2004.”

The audit report, which was completed in May this year and made available to the Saipan Tribune last week, showed that, of the eight autonomous government agencies in the CNMI, it was only CUC that posted a negative total net asset.

Audit records showed that the Commonwealth Ports Authority had the biggest net asset of $107.3 million; followed by the Public School System with $83.2 million; Commonwealth Development Authority, $64.5 million; Marianas Public Land Trust, $59 million; Marianas Public Lands Authority, $13.4 million; Northern Marianas College, $13.4 million; and Marianas Visitors Authority, $1.5 million. CUC posted a net loss of $13 million.

The records showed that, as of September 2003, CUC had total assets of $151 million: current assets of $37.8 million, other assets/ restricted assets of $8.6 million, and non-current assets of $104.4 million.

During that period, it registered total liabilities of $164 million, consisting of $157 million in current liabilities and $7 million in non-current liabilities.

Data showed the CPA had $171.3 million in total assets: $12 million in total current assets, $11.4 million in restricted and other assets, and $148 million in non-current assets. It had $64 million in total liabilities: $8.7 million in current liabilities and $55. 3 million in non-current liabilities.

CDA posted $79.3 million in total assets and $15 million in total liabilities; PSS registered $92 million in total assets and $8.3 million in total liabilities; while NMC showed $17 million in total assets and $3.2 million in total liabilities.

MPLT had $59.1 million in total assets and $192,105 in total liabilities; MPLA had $16.5 million in total assets and $3 million in total liabilities; and MVA had $2 million in total assets and $572,082 in total liabilities.

Deloitte & Touche also reported that the CNMI primary government had total assets of $270.5 million and total liabilities of $246 million or a total net asset of $24.5 million.

The report showed that the CNMI’s total net assets decreased by $6.2 million or 20 percent compared to FY 2002’s $30.7 million.

Meantime, in capital assets, the CNMI posted a net increase of $18.4 million or 14.2 percent over FY 2002.

It said that the CNMI had $147.5 million invested in capital assets, including land, roads and bridges, vehicles, and other machinery equipment, buildings, and various projects under construction.