MPLT funds soar to $77M in FY07
An independent audit has shown a significant growth in the Marianas Public Land Trust’s financial standing during the 2007 fiscal year.
The audit, done by the Deloitte accounting firm, revealed MPLT’s total assets increased by 12.2 percent, or $8.4 million, from $68.6 million in fiscal year 2006 to $77 million in FY 2007.
“MPLT’s overall financial condition substantially improved in fiscal year 2007. The change was marked by increased investments, increased income, and decreased operating expenses. These changes caused total assets to increase,” the Office of the Public Auditor said in a summary of the audit report.
MPLT manages two trusts. One is for the benefit of the CNMI government, and the other is for the development and maintenance of American Memorial Park. To date, principal payments made to MPLT total $28.2 million, of which $2 million was for the AMP fund.
According to the OPA, assets for the general fund soared by $7.8 million, while assets for the AMP fund grew by over $500,000 year on year. The hikes were attributed to increases in MPLT’s security investments, by $5.4 million, cash and cash equivalents, $2.6 million, and accrued income, $1.9 million.
MPLT’s liabilities in fiscal year 2007 reached $2.27 million, up from $450,000 the prior year. A huge bulk, $2.23 million, of the liabilities represents MPLT transfers out to the central government’s fund, as required by the Constitution. The transfer was made to the general fund in October 2007, after the close of the fiscal year.
MPLT’s revenues climbed 52.7 percent, from $5.5 million in FY 2006 to $8.4 million in FY2007. The revenues increased because of the $2.2 million rise in the fair value of investments and $700,000 increase in interest income.
Since FY2003, MPLT’s revenues were highest in FY 2007 and lowest in FY 2006, OPA noted.
Meanwhile, MPLT’s expenses plunged by $240,000, or 27 percent, from $890,000 in FY 2006 to $650,000 in FY 2007. MPLT achieved this by cutting spending on professional fees, money management administration, salaries and benefits, contract services, and trustees’ spending, OPA said.
OPA added that there were increases in other areas, but they were not significant. Consultancy fees increased by $13,000, office supplies by $2,000, and rent and utilities by $3,000.
MPLT’s expenses in FY 2007 were the lowest in the past five years.
Under the Constitution, the Department of Public Lands is tasked with managing leases of public lands on behalf of the people of Northern Marianas descent. After deducting administrative costs from the collected fees, DPL transfers the balance to the Marianas Public Land Trust. MPLT then invests the money. Income earned from those investments is transferred to the general fund for appropriation by the Legislature.