MPLT financial statements get good marks in audit

The Marianas Public Land Trust has received good audit findings from an independent auditor, which audited its financial statements as of and for the year ended Sept. 30, 2023.

Auditor Ernst & Young found that MPLT’s financial statements and the related notes to the financial statements present “fairly, in all material respects, the financial position of the Trust at Sept. 30, 2023.”

Ernst & Young, which was hired by the CMMI Office of the Public Auditor to conduct the audit, submitted its report to the MPLT Board of Trustees on Oct. 21, 2024.

The independent auditor said the change in MPLT’s net position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the USA.

Ernst & Young said in their opinion, the combining statements of net position, of revenues, expenses and changes in net position and of cash flows, the schedules of investments—general fund and park fund and the schedule of administrative expenses compared to budget is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Ernst & Young said their tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

As part of obtaining reasonable assurance about whether MPLT’s financial statements are free of material misstatements, Ernst & Young performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.

On financial highlights, MPLT disclosed that its total operating revenues for 2023 and 2022 were $13.3 million and $15.2 million, respectively.

The total performance of MPLT for 2023 and 2022 was 11.94% and -15.66% respectively.

The overall administrative costs for 2023 increased by $13,619 over the amount for 2022, which was due primarily to the increases in salaries and miscellaneous expenses.

MPLT’s investment income (excluding net increase in fair value of investment) for 2023 and 2022 was $2.8 million and $2.3 million, respectively.

For 2023 and 2022, MPLT’s total assets were $110.1 million and $101.8 million, respectively.

On the economic outlook, MPLT said the resulting outlook for the next several years is not as strong as recent years, but the Trust has a long-term time horizon and is prepared to weather any poor economic conditions, by diversification of its investment.

MPLT said it will continue to monitor the investments and review investment options on its current investment allocation to manage its risk-adjusted yields.