NMC FY 2006 financial audit showed less Federal Grant received
(August 20, 2007)
The Northern Marianas College received $81 thousand less in Federal Grants for FY06 or $5.72M compared to the previous year of $5.80M. This is according to an audit conducted by Deloitte and Touche. Federal grants are one source of revenues for the college. Other revenues include private gifts and donation which also decreased by $20 thousand from $93K in FY05 to $73K in FY06 while student tuition and fees increased $230 thousand from $813K in FY05 to $1.043M in FY06.
Financial Highlights
The Northern Marianas College receives its revenues from several sources including federal grants, student tuition and fees, and private gifts, grants and donations. In FY06, NMC received $5.72M in federal grants compared to $5.80M the previous year, or a drop of about $81K. Student tuition and fees increased $230K or 28% from $813K in FY05 to $1.043M in FY06. Private gifts and grants declined 22% or $20K from $93K in FY05 to $73K in FY06. Since FY02, both student tuition and fees and private gifts and donations have remained fairly constant. U.S. Federal grants has also remained steady except for in FY04 where it dropped significantly by over $1M from the previous year due to decreased levels of federal assistance programs in FY03.
Another source of revenue for NMC comes from CNMI appropriations. These revenues are nonoperating revenues since services are not required or provided to obtain the revenues. Since FY02, CNMI appropriations have been fairly stable with the highest amount given in FY04 at $9.2M followed by FY05 with $9.1M. However, in FY06, appropriations dropped by over $2M falling to$7.0M or 23% than from the previous year. This decline is attributed mostly due to budget cuts across the government.
Expenses of the college are varied, but they can be grouped into four major areas: salaries, services, benefits, and miscellaneous items. Indeed, salaries comprise the largest of the college’s overall expenses. However, since FY02, salary expense have gradually declined. In fact, salary expense occurred highest in FY02 at $8.5M and the lowest occurred in FY06 at $7.0M compared to $7.7M the previous year. This decrease is due to personnel reductions and hiring freezes. When salaries decrease, benefits also decrease. Benefits decreased 10% or $241K from $2.26M in FY05 to $2.02M in FY06.
For miscellaneous items, they have increased since FY02, but decreased slightly in FY06 by $34K from $1.673M in FY05 to $1.639M in FY06. Services have also increased since FY02, but in FY05 it declined sharply by over $1M from FY04. In FY06, it increased again by about $121K or 5% from FY05 from $2.4M to $2.5M in FY06.
Other expenses of the college include insurance, utilities and rent, depreciation, and supplies.
Download/view OPA Executive Summary for CGECU Audited Financial Statements FY 2006