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Audit report: MVA’s fiscal house in order
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Posted on Mar 14 2001
An audit report made on the Marianas Visitors Authority indicated that its expenses exceeded its revenue last year, according to an audit opinion submitted to the Office of the Public Auditor.
Auditing firm Burger and Comer, P.C. said MVA generated over $6.3 million in total revenues, while expenditures reached more than $7.7 million largely for promotion and advertising activities.
This translates to a $1.4 million excess of revenue over expenditures in fiscal year 2000, the report stated.
MVA also witnessed revenue over expenditure deficiencies in financial years 1999, 1997 and 1996. OPA said the sum were covered by available fund balances carried over from previous years.
Public Auditor Michael Sablan said this simply means MVA gets funding from its “kitty bag” of accumulated fund reserves. He noted that the tourism body already had a substantial fund reserve even before OPA started tracking them beginning in 1996.
The agency quoted the MVA’s accumulated fund balance as of September 30, 2000 at a level of $953,668.
Another bright spot in the audit report was Burger and Comer’s recommendation, which emphasized that no internal control weaknesses were noted during the FY 2000 audit.
This was a “significant turnaround in the financial management and internal control environment at MVA,” noted David Burger, CPA. He said prior years’ audit revealed major weaknesses in funds reporting, expenditure controls and adherence to financing standards.
Mr. Burger also added that MVA’s success at strengthening controls during a period of budgetary limitations was especially noteworthy.
Mr. Burger and the Public Auditor last week commended MVA Managing Director Perry Tenorio, MVA Chief Accountant Tess Castro and the whole of the agency for audit results and even encouraged MVA’s board and management to continue efforts at strengthening the integrity of the agency’s financial management and reporting.
