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MPLT passes audit with flying colors
The Marianas Public Land Trust has received a good audit report from independent auditor Ernst & Young, which audited MPLT’s financial statements and the related notes to its financial statements for the year ended Sept. 30, 2022.
Ernst & Young, which was hired by the Office of the Public Auditor to do the audit on MPLT, issued its report last May 22, informing the MPLT board of trustees that they did not identify any deficiencies in internal control that they consider to be material weaknesses. However, the auditor said, material weaknesses may exist that have not been identified.
Under auditing standards, a material weakness refers to deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.
Ernst & Young said the results of their tests disclosed no instances of noncompliance or other matters that have to be reported under Government Auditing Standards.
As part of obtaining reasonable assurance whether the MPLT’s financial statements are free of material misstatement, Ernst & Young performed tests of compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
Ernst & Young found that MPLT’s combining statements of net position, or revenues, expenses and changes in net position and of cash flows, the schedules of investments—general fund and Park Fund and the schedule of administrative expenses compared to budget “are fairly stated, in all material aspect, in relation to the financial statements as a whole.”
