The report on the financial audit of the Northern Marianas College for the years ended September 30, 2010 showed a net operating loss of $4.54 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 $243,354 between fiscal years 2009 and 2010. The College has noted a declining trend in student enrollment since fiscal year 2004. This is attributed to various factors including the current state of the CNMI economy as people attaining college age are either relocating or joining the workforce or the military. GASB 34 and 35 requires 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 $1,146,028, which is primarily attributable to the State Fiscal Stabilization Fund (SFSF) - Education State Grants, Recovery Act program of ARRA and other new grants.
• Expenses increased over those incurred in 2009 by $987,087, 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 fiscal year 2010 remained consistent with the level of funding received in fiscal year 2009 as a percentage of revenues available for appropriations. The CNMI’s support of the College has remained consistent in spite of economic times, which the College is appreciative of. This has enabled the College to maintain its current staffing levels as CNMI appropriations primarily funds salaries and benefits.
• The College’s Endowment Fund investments posted a net gain in fair value of $466,636 for the year, consistent with the overall performance of the market.

The report on the audit of internal control and on compliance of the Northern Marianas College for the year ended September 30, 2010, found that the College did not comply with requirements regarding the following:

• Equipment and real property management that are applicable to its Payments to Agricultural Experiment Stations Under the Hatch Act major program (CFDA # 10.203);
• Allowable costs/cost principles and equipment and real property management that are applicable to its Cooperative Extension Service major program (CFDA # 10.500);
• Procurement and suspension and debarment that are applicable to its Economic, Social and Political Development of the Territories: Accreditation Reaffirmation Plan major program (CFDA # 15.875);
• Procurement and suspension and debarment that are applicable to its TRIO Cluster major program (CFDA #s 84.042, 84.044 and 84.047);
• Allowable costs/cost principles that are applicable to its College Access Challenge Grant Program major program (CFDA # 84.378); and
• Subrecipient monitoring that are applicable to its State Fiscal Stabilization Fund (SFSF) - Education State Grants, Recovery Act major program (CFDA # 84.394).

Compliance with such requirements is necessary, in the auditors’ opinion, for the College to comply with the requirements applicable to those programs.

View/download the report on the Audit of Financial Statements

View/download the report on Internal Controls and on Compliance