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Audit: Govt income in FY 2016 was higher than estimated
An audit on the entire CNMI government covering fiscal year 2016 that came out last week disclosed that general fund revenue for the year exceeded estimates by nearly $21 million.
The audit, conducted by Deloitte & Touche for the Office of the Public Auditor, stated that fiscal year 2016 general fund revenue was “higher than final estimates” by $20.8 million, or 11.4 percent.
In contrast, actual expenditures exceeded final estimated appropriations by $17.9 million, or 9.8 percent, the audit report stated.
The audit specified that these amounts excluded transfers to and from other funds as well as the receipt or use of long-term debt proceeds.
Final revenue estimates for fiscal year 2016 were at $182.7 million but, according to the audit report, the general fund actual revenues for fiscal year 2016 was at $203.0 million, with a difference of $20.8 million or 11.4 percent.
While this may seem like good news, the audit also noted that general fund expenditures exceeded appropriations by $17.9 million, or 9.8 percent due mainly to “unanticipated expenditures.”
Included in the unanticipated expenditures list is $2.9 million that went to the Department of Public Safety; the payment of $4.3 million to the Government Health and Life Insurance Trust Fund for employee benefits; Medicaid expenses and medical referrals amounting to $8.5 million; and disaster expenditures amounting to $3.3 million.
The audit concluded that, at the end of fiscal year 2016, the CNMI’s General Obligation Bonds went down, from $84.78 million in fiscal year 2015 to $80.48 million at the end of fiscal year 2016—a reduction of $4.3 million.
Deloitte & Touche is upbeat about the CNMI’s economic activity, saying the “temporary gaming facility” would “infuse additional revenue into the economy well in advance of the project.”
“The positive financial impact of the casino and electronic gaming industry in such a short period of time has been dramatic. It is expected that this positive impact will continue and be reflected in future budgets,” the audit reported.
