THE Northern Marianas Housing Corp. expects the Covid-19 pandemic to affect its financial status, according to a single audit report by Deloitte & Touche LLC.
The audit report, which was submitted to the Office of the Public Auditor, notes the economic uncertainties NMHC is facing as a result of the Covid-19 pandemic.
According to the report, NMHC’s total assets decreased from $22,427,674 in 2019 to $22,364, 311 or by 1% in 2020.
From $21,473,756 in 2018, NMHC’s total assets increased to $22,427,674 or by 4% in 2019.
Its foreclosed real estate increased by 9%, from $488,698 in 2019 to $530,698 in 2020.
NMHC’s total net position decreased by 4%, from $19,044,297 in 2019 to $18,307,559 in 2020.
The net position represents NMHC’s equity after liabilities are subtracted from assets.
According to the audit report, “Economic uncertainties have arisen as a result of the Covid-19 pandemic [and] are likely to negatively impact NMHC ‘s financial results.”
To prevent the spread of the Covid-19 pandemic, the CNMI government temporarily suspended commercial air travel to the Commonwealth effective April 6, 2020.
Although the suspension was temporary, the audit report said, there was considerable uncertainty on its duration, which negatively impacted businesses in the CNMI and resulted in employee furloughs in both the private and public sectors.
To assist its loan borrowers, NMHC implemented a payment deferral assistance program beginning March 1, 2020 until May 31, 2020. This was extended on June 1, 2020 until further notice. Under the program, interest will not accrue during the period.
According to the audit report, NMHC expects this matter to negatively impact its future financial results. However, the related financial impact cannot be reasonably estimated at this time, the audit report said.
