Financial Audits

NMHC 2014 Financial Audit

Summary


NMHC FISCAL YEAR 2014 FINANCIAL STATEMENTS ARE ACCURATE AND FAIRLY PRESENTED

 (The following summary is based on the independent auditor’s report prepared by Deloitte & Touche and does not constitute an audit report.  Please visit OPA’s website for the full audit report.)

The Northern Marianas Housing Corporation (NMHC) received a clean opinion on its financial statements from an independent auditor (Auditor) for Fiscal Year (FY) 2014.  This means that NMHC’s financial records are accurate and fairly presented.  However, the Auditor found that NMHC did not comply with certain laws, regulations, contracts, and grant agreements which may affect its financial records and federal programs.  This is the second consecutive year that NMHC received a clean opinion on it financial statements, but did not comply with certain applicable requirements.

Audit Findings

Audit findings generally occur when an auditor discovers weaknesses in internal control, or noncompliance with provisions of laws, regulations, contracts, and grant agreements.  For FY 2014, the Auditor cited NMHC for 11 findings which is a decrease from 14 findings in FY 2013.  These findings resulted from weaknesses in the procedures that allow management or employees to prevent, or detect and correct, noncompliance with a requirement of a federal program or misstatement of financial records on a timely basis.

Questioned Costs

A questioned cost is an expenditure that is questioned by the auditor and is the result of an audit finding:

  1. Which resulted from a violation or possible violation of a specific requirement;
  2. Where the costs, at the time of the audit, are not supported by adequate documentation; or
  3. A finding that the expenditure of funds for the intended purpose is unnecessary or unreasonable.

For FY 2014, questioned costs related to the findings amounted to $64,692, which is an increase from $42,216 in the prior year.  The total unresolved questioned costs at September 30, 2014, which includes questioned costs from FY 2011 through FY 2014, amounted to $193,194.

Background

The mission statement presented in NMHC’s website states that, among other things, the agency is committed to “Providing efficient and responsive delivery of housing, mortgage and community development programs to the people of the Commonwealth.” The agency is comprised of the several divisions that administer multiple programs including:

  • HOME Partnership Program 
  • USDA Rural Development Loan Program
  • Veterans Affairs Loan Program
  • New Construction (Scattered housing division owned by NMHC)
  • Housing Choice Voucher
  • Community Development Block Grant
  • Hearth-Emergency Solutions Grant Program
  • Low Income Housing Tax Credit Program

Financial Statements, Additional Information, and Independent Auditor's Report-View

Independent Auditor's Report on Internal Control and Compliance-View

 

.

Last Updated 6/8/2015 5:57:23 AM