Financial Audits

NMIRF 2013 Financial Audit

Summary


NMIRF FISCAL YEAR 2013 FINANCIAL STATEMENTS ARE ACCURATE AND FAIRLY PRESENTED

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

The Northern Mariana Islands Retirement Fund (NMIRF) received a clean opinion on its financial statements for fiscal year (FY) 2013.  This means that NMIRF’s financial records are accurate and fairly presented.  However, the Auditor found that NMIRF did not comply with certain laws, regulations, contracts, and grant agreements which may affect its financial records.  This is the third consecutive year that NMIRF has received a clean opinion on its 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 requirements of laws, regulations, contracts, and grant agreements.  For FY 2013, the Auditor cited NMIRF for one finding which is a decrease from four findings in FY 2012.  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.

Background

The NMIRF is an autonomous agency and public corporation of the Commonwealth of the Northern Mariana Islands.  According to 1 CMC §8301, the purpose of the NMIRF is as follows:

“to provide retirement security and other benefits to government employees, their spouses and dependents, and former governors and former lieutenant governors, and to provide for an actuarially sound, locally funded pension system pursuant to the Agreement of the Special Representative on Future United States Financial Assistance for the Northern Mariana Islands and in accord with constitutional provisions protecting the rights of government employees.”

In June 2009, a class action lawsuit was filed against the CNMI as a result of its failure to pay legally mandated contributions to the NMIRF.   A settlement agreement was approved by the U.S District Court on September 30, 2013.  The NMIRF eventually paid over $51 million in employee contribution refunds to current government employees who opted to refund pursuant to the settlement agreement and Public Law (PL) 17-82 and PL 18-02.  The passage of PL 17-82 and its subsequent amendment by PL 18-02 permitted members of the Defined Benefit Plan to withdraw their employee contributions with interest and without penalty.

Reports on the Audits of Financial Statements in Accordance with Government Auditing Standards for the Year Ended September 30, 2013-View

 

 

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Last Updated 6/8/2015 6:03:50 AM