The report on the financial audit of the Northern Marianas College for the years ended September 30, 2009 showed a net operating loss of $4.52 million. The audit was conducted by Deloitte & Touche in accordance with OMB Circular A-133.

The highlights of the Statement of Revenues, Expenses and Changes in Net Assets were as follows:

• Student tuition and fees (net) decreased by approximately $134K between FY2008 and FY2009. The College has noted a declining trend in student enrollment since FY2004. This is attributed to various factors including the current state of the CNMI economy as a
  good number of people attaining college age are either relocating, joining the workforce or the military. To compensate for the decreased enrollment and to adjust its rate structure to the times, the College increased its tuition and fees in FY06 after an extensive review process. GASB 34 and 35 require that tuition and fees revenues from students be reported net of scholarship discounts and allowances. Discounts and allowances are the difference between the College’s stated charges for tuition and fees and the amount paid by the students or third parties on behalf of the students.
• It is noted that a material portion of the College’s tuition and fees are funded via Pell Grants to students. The College relies on revenues from tuition and fees for nonpayroll related expenses of the College, including equipment renewals, replacements and
  maintenance.
• Federal grants increased by approximately $309K, which is primarily attributable to new grants and increased levels of expenditures for several U.S. federal grant assistance programs at the College.
• Expenses increased over those incurred in 2008, by approximately $567K, which is consistent with the increased level of operating revenues as a result of new grants and related support costs.
• Appropriations from the CNMI for FY2009 remained consistent with the level of funding received in FY2008. The CNMI’s support of the College has remained consistent in spite of the times, which the College is appreciative of. This has enabled the College to maintain its current staffing levels as CNMI appropriations primarily fund salaries and benefits.
• The College’s Endowment Fund investments posted a net gain in fair value of approximately $303K for the year, consistent with the overall performance of the market. This is a significant positive turn around considering the fact that in FY2008 the fund lost
  approximately $694K in value.

View/download the Audit Report.