DESPITE the “setback” brought by the Covid-19 pandemic, causing “uncertainties and high volatility” in the economy, the outlook of the Marianas Public Land Trust for 2021 “appeared to be strong” with a $3,180,656 increase in its total fund balance for 2020.
But economic uncertainties as a result of the Covid-19 outbreak are expected to continue for some time, according to an independent auditor’s report prepared by Burger Comer Magliari Certified Public Accountants and submitted to the Office of the Public Auditor.
“As a result of the spread of the coronavirus pandemic, economic uncertainties have arisen which are likely to impact the [day-to-day] administration of MPLT,” the report added.
“While this matter is expected to negatively impact MPLT’s results of operations and financial position, the related financial impact cannot be reasonably estimated at this time.”
The audit report noted the following financial highlights from the audited financial statements for the year that ended Sept. 30, 2020, and 2019:
• The assets of MPLT increased in 2020 by $3,694,563 over the amount in 2019. This was due primarily to the increase of the fair market value of the investments.
• Total liabilities for 2020 increased by $513,907 from 2019 due primarily to net changes to amounts due to brokers, accounts payable and accrued expenses.
• The above changes resulted in an increase of $3,180,656 in total fund balance for 2020.
• Total revenues of MPLT are a combination of (1) gains (losses) attributable to the valuation of investments plus (2) income earned on such investments and (3) distributions received from the Department of Public Lands. Total operating revenues for 2020 and 2019 were $6,296,529 and $5,990,526, respectively.
The audit report stated that the 2020 economy was comparable to 2019, and that MPLT continued to add value to its portfolio.
MPLT’s returns in 2021 exceeded the returns for 2020, the audit report added.
It noted that “the Trust is continuously reviewing options to its current investment allocation in order to manage its risk-adjusted yields. The Trust may make changes to its asset allocation, but the basic investment approach will remain the same.”
Happy
In an interview on Thursday, MPLT Chairman Martin Ada said he was happy with the outcome of the MPLT audit.
He said that Burger Comer Magliari “are really professionals in what they do.”
