CDA posts $63.2M assets in FY’07

The Commonwealth Development Authority had total assets of $63.281 million in Fiscal Year 2007, based on a recently released audit report. The figure reflects a “very slight” decline of 1 percent from the previous year’s assets totaling $63.338 million.

CDA’s functions are carried out through the development banking division, development corporation division, and the Northern Marianas Housing Corp.

Assets recorded for the development banking division totaled $11.7 million compared to FY 2006’s $11.9 million, the sole area that showed the 1 percent drop in the agency’s overall assets.

The development corporation division posted $20.8 million assets, while NMHC had $31.5 million.

The development banking division covers the government and public sectors while the corporate division is intended for private entities. These three main areas reported almost the same amount of assets in FY 2006.

The audit report indicated that as of Sept. 30, 2007 and 2006, total restricted cash and cash equivalents and time certificates of deposits under the development banking corporation were $9 million and $8.5 million, respectively—or those maintained in financial institutions subject to FDIC insurance.

For the development corporation division, restricted cash and cash equivalent of deposit amounted to $6.6 million and $5.8 million as of September 2007 and 2006, respectively.

NMHC maintains depository accounts with financial institutions in the CNMI, which are restricted for various purposes. In 2007, this amounted to $6.1 million while $5.2 million in FY 2006.

CDA also contributed to the Retirement Fund the required actuarial rate of 26.4 percent, which amounted to $409,185 and $326,053 respectively.

The agency, according to the report, is also exposed to various risks of loss related to rots, theft, damage and destruction of assets, and others.

“It has elected to purchase commercial insurance from independent third parties for the risks of loss to which it is exposed. Settled claims for these risks have not exceeded commercial insurance coverage in any of the past three fiscal years [2005, 2006, 2007],” the report indicated.

CDA executive director Manuel Sablan described the audit report as “good” when it was presented to the board during a recent meeting.

Citing the self-sufficiency of the agency, he considered the FY audit report a clean record for CDA.

“We’re very happy because it reflects a clean record and a clear audit report for CDA,” he said, adding he will continue the important mission and goal of the agency which is to stimulate the economy.

The combined statement of net assets and liabilities of the agency also reflect a “balance” figure of $63.281 million in FY 2007.