Report approved for RMI trust fund


WASHINGTON, D.C.—The Trust Fund Committee of the Trust Fund for the People of the Republic of the Marshall Islands approved the Fiscal Year 2016 Annual Report on March 31. The audited financial statements were completed by the independent auditor Baker Tilly Virchow Krause, LLP, on March 27 and presented to the Committee on April 7.

Both reports were released to the respective governments.

The Fund’s restricted fiduciary net position value increased 19.2 percent to $294,545,533 for FY16 from $247,142,058 for FY15. The increase was primarily due to gross investment income of $28,071,341 and contributions from the U.S. government of $15,323,100, Taiwan of $2,400,000, and the Republic of the Marshall Islands of $2,200,000. There was a net investment gain of $27,646,543.

The Fund had a weighted annual rate of return of 10.37 percent, following a loss of 4.13 percent for FY15 and three consecutive growth years: 8.0 percent for FY14, 13.9 percent for FY13, and 18.5 percent for FY12. Overall, on a performance basis, net of fees, the Fund has had a 6.67-percent return since inception, above the benchmark return of 6.35 percent.

Total investment and administrative expenses decreased to 0.70 percent of restricted fiduciary net position in FY16 from 0.76 percent in FY15. Investment expenses increased in dollar value but decreased to 0.64 percent of restricted fiduciary net position from 0.68 percent in FY15. Administrative expenses decreased in dollar value and as a percent of restricted fiduciary net position to 0.06 percent from 0.08 percent.

The FY16 audit performed by Baker Tilly was completed on time and according to U.S Generally Accepted Auditing Standards and Generally Accepted Government Auditing Standards issued by the Comptroller General of the United States. There were no audit findings.

The Trust Fund for the People of the Republic of the Marshall Islands was established by the Compact of Free Association, as codified in the Compact of Free Association Amendments Act of 2003 (U.S. Public Law 108-188, December 17, 2003). The Trust Fund’s purpose is to contribute to the economic advancement and long-term budgetary self-reliance of the RMI by providing a source of revenue for the government and the people of the Republic of the Marshall Islands when certain grants under the Amended Compact of Free Association expire in 2023. (PR)

Press Release
News under Press Release are official statements issued to Saipan Tribune giving information on a particular matter.

Related Posts

Disclaimer: Comments are moderated. They will not appear immediately or even on the same day. Comments should be related to the topic. Off-topic comments would be deleted. Profanities are not allowed. Comments that are potentially libelous, inflammatory, or slanderous would be deleted.