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NMC wants $60K reimbursement for La Fiesta
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Posted on Apr 01 2005
Northern Marianas College is seeking reimbursement for the nearly $60,000 shortfall it incurred from the operation of the La Fiesta shopping complex for more than two months.
NMC president Antonio Deleon Guerrero reported that La Fiesta mall generated total revenues of $62,161 from Dec. 27, 2004 through March 8, 2005. The college, however, spent $119,790 for the operation of the facility.
Thus, a shortfall of $57,629 was incurred for the period.
In a letter to Gov. Juan N. Babauta, Guerrero noted that the official transfer of the La Fiesta mall to the CNMI Executive Branch took effect Jan. 31, 2005.
He recalled, however, that the administration and the college had agreed that NMC would continue to make payments for all billings through Jan. 31, 2005 “to ensure a smooth transition on all financial transactions relating to this period.’
It had also been agreed that NMC would communicate the net shortfall for this period to the Governor’s Office for reimbursement, Guerrero said.
“The last billing submitted to your office was for the shortfall incurred from Oct. 1, 2004 through Dec. 27, 2004. [This letter] details the net shortfall from Dec. 27, 2004 through March 8, 2005. We kindly request reimbursement of the La Fiesta shortfall of $57,629 for this period,” Guerrero said.
The financial statement showed that utility payments reached $70,913 or almost 60 percent of the total La Fiesta expenses for the period.
Contractual services cost $26,630. Repairs and maintenance cost $7,289, while the rest on other expenditures.
La Fiesta was transferred from NMC to the central government after management of the mall took its toll on the college’s finances and accreditation.
The Accrediting Commission for Community and Junior Colleges and the Senior College Commission placed NMC’s accreditation on warning status last year due to the college’s failure to correct finance-related problems and inability to comply with certain accreditation standards.
Both accrediting arms of the Western Association of Schools and Colleges expressed concern over La Fiesta’s adverse impact on the college’s financial standing. The two agencies have now taken NMC’s accreditation off warning status.
