An independent audit report by Ernst &Young showed that the assets of the Marianas Public Land Trust increased in 2014 by $3.71 million over the amount in 2013.
The audit report was published by the CNMI Office of the Public Auditor in its website.
According to the audit report, the asset increase was due to principal contributions of $1,303,852 and due to a continuing trend of increasing fair value of investments.
The assets of MPLT increased in 2013 by $859,120 over the amount at 2012. This increase in assets was due to a continuing trend of increasing fair value of investments.
The assets of MPLT increased in 2012 by $5,942,187 over the amount at 2011.
This increase in assets was due primarily to the increase in fair value of investments rebounding from the 2011 that showed an overall loss of value.
Total liabilities for 2014 decreased by $1,117,955 from 2013 due primarily to a decrease in the amount due to brokers, which is a function of security purchases that did not clear by year end.
Total liabilities for 2013 decreased by $985,900 from 2012 due primarily to a decrease in the amount due to brokers, which is a function of security purchases that did not clear by year end. Total liabilities for 2012 increased by $278,251 from 2011 due to an increase of due to brokers resulting from a change in money managers and the sale of investments.
This was offset somewhat due to the application of the amount due to the CNMI General Fund being applied as of yearend. Accounts payable and accrued expenses did not change materially from the amount in 2011.
The above changes resulted in an increase of $4,828,930 in total net position for 2014, increase in total net position of $1,845,020 for 2013, and an increase in total net position of $5,663,936 for 2012.
Total revenues of MPLT are a combination of gains (losses) attributable to the valuation of investments plus income earned on such investments. Total operating revenues for 2014, 2013, and 2012 were $5,382,094, $5,087,100, and $7,630,783, respectively.
The total performance of MPLT for 2014 was 6.9 percent, which did not exceed its target rate of return of 7.5 percent, for 2013 was 6.2 percent, and 2012 was 11.3 percent.
The overall administrative costs increased in 2014 by 10 percent or $76,642, decreased in 2013 by 1 percent or $10,099, and decreased in 2012 by 11 percent or $101,108 as there was a small impairment loss recognized.
The investment income for 2014, 2013, and 2012 was $1,624,905, $2,625,814, and $2,942,976, respectively.
The distributions to the CNMI General Fund paid for 2014, 2013, and 2012 was $844,111, $1,908,543, and $1,894,921, respectively. The cumulative amount distributed to the CNMI General Fund since inception in 1983 has been $54,621,234.
This has occurred while growing the principal fund by $38,386,441 for the same time-period. The General Fund’s annual return for 2014 was 6.82 percent, 2013 was 5.91 percent, and 2012 was 11.03 percent. The loan made to the Northern Marianas Housing Corp. became un-performing when NMHC defaulted in 2007 when P. L. 10-29 and 12-27 was repealed per P.L. 15-48. MPLT negotiated a settlement agreement wherein $2,025,000 was paid and the related loan portfolio was transferred to MPLT. MPLT is currently managing these loans and attempting to recover its $8.9 million principal.
Due to collection uncertainty for this investment, a write-down of value amounting to $4,830,000 was recognized by MPLT as of September 30, 2014.
The OPA, meanwhile, clarified that the figures contained on a separate report on the NMI Retirement Fund’s financial record is financial information taken directly from the actual audit report and should not be attributed to OPA. The Saipan Tribune published the report on Monday.