THE Marianas Visitors Authority complied with federal program requirements for the fiscal year that ended Sept. 30, 2022, according to an independent audit conducted by Burger, Comer & Associates.
On Tuesday, July 16, the Office of the Public Auditor posted a copy of the audit report on its website (https://www.opacnmi.com).
“In our opinion, the MVA complied, in all material respects, with the types of compliance requirements…that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2022,” the audit report stated.
Moreover, “during our audit, we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses….”
According to the report, MVA spent $988,005 in Coronavirus Relief Fund/Coronavirus State Fiscal Recovery Funds established under the American Rescue Plan Act to help speed the recovery of the tourism, travel and hospitality sectors.
“There were no financial statement audit findings reported during the fiscal year ending September 30, 2022,” the report stated.
MVA’s sources of revenue are hotel and container tax entitlements, grants and in-kind contributions, program revenues and other income such as royalty and memorial maintenance fees.
Program revenues are those directly generated by an MVA function or activity. These include membership dues, tour guide certification, fees that MVA charged for specific events, and contributions from the private sector in support of MVA programs.
MVA’s total revenue for fiscal year 2022 totaled $4,511,956 while expenditures amounted to $5,329,292, the report stated.
According to the report, “MVA is exposed to various risks of loss related to thefts of, damage to, and destruction of assets; injuries to employees and third parties; and natural disaster.” But these risks “are covered by commercial insurance purchased from independent third parties.”
The report said MVA entered into a short-term lease agreement covering its office on Saipan with a term of one year and an option to renew for five one-year terms expiring on May 13, 2023, with an option to renew for an additional three years on the same terms and conditions.
“Rent expenses were $77,500 and $51,750 for years ended September 30, 2022 and 2021, respectively,” the report said.
MVA likewise “entered into promotional roundtrip flights contracts with Asiana Airlines, Jeju Air and T’Way Air in Seoul, Korea, including promoting the CNMI on their company website and social media platforms such as Facebook and Instagram, promoting the CNMI through their in-flight entertainment such as destination videos…. The contracts include and provide incentive programs….,” the report added. The minimum contract fee as of September 30, 2023 was $1,730,000.
MVA also entered into contracts for professional services for local public relations. The minimum future contract fees were as follows:
• 2023 — $46,105
• 2024 — $38,420
