The report also noted that MVA’s fund balance in FY 2005 decreased by $557,709 in FY 2006 due to CNMI appropriations recorded as “deferred revenue.”
Generally accepted accounting principles in the U.S. require that for revenues to be recorded it should be both measurable and available to finance current operations, the report stated.
“Since CNMI appropriations were uncollected, revenues from these were reclassified to deferred revenue, thus reducing the fund balance to a deficit…. For FY 2007, the fund balance increased by $841,335,” the report added.
MVA’s deficit as of Sept. 30, 2006 was $1.2 million but this decreased by $422,635 in FY 2007, the report stated.
The in-kind contributions generated by MVA were not enough to offset the decrease in general revenue to support its activities, the report added.
According to the report, MVA’s total revenues for FY 2007 amounted to $6.678 million — a $181,940, or 3 percent, decrease from FY 2006.
This was due to a decrease in supplemental funding from $500,000 in FY 2006 to $200,000 in FY 2007 and a decrease in in-kind contributions from $1.2 million in FY 2006 to $218,842 in FY 2007 received from the private sector to support MVA’s marketing initiatives.
In FY 2007, the report stated, MVA’s general revenues came from the following sources: CNMI appropriation, $6.1 million; CNMI supplemental appropriation, $200,000; other income, $21,000; royalty income from Saipanda, $47,293; interest income, $103; grants and contributions, $218,842; membership fees, $21,400; and special events, $29,166.
