NMC lowers audit’s questioned cost by 6 percent

The Northern Marianas College was issued a “clean bill of health” by an independent auditor that conducted the institution’s audit for fiscal year 2010—a first for the college in many years.

Citing a final audit report that will be released soon, Roger Madriaga told the Board of Regents that this latest audit will indicate that NMC is on the right track and direction when it comes to handling its finances and resources.

Fiscal year 2010 covers Oct. 1, 2009 to Sept. 30, 2010.

Madriaga, the college’s chief financial and administrative officer, said the draft audit report shows 13 findings, 22 conditions, and $680,000 questionable costs.

Following discussion of these findings with the auditor and submission of certain documents incorporating detailed explanations, the independent auditor was convinced and accepted NMC’s justifications in identified cases.

“From the $680,000 questioned cost for fiscal year 2010 audit report, we managed to lower it down to $35,000 questioned cost,” Madriaga told Saipan Tribune. This is a 6 percent reduction from the original questioned cost.

Madriaga said the original $680,000 questioned cost involved “certain major programs” of the college. He refused to elaborate.

An audit report is composed of two elements: the financial statements and internal control and compliance. The findings, conditions, and questionable amounts are incorporated in the financial statements portion of the audit report.

Madriaga reported that for the first time in many years, NMC’s audit for 2010 indicated “no material weaknesses” or no “significant deficiencies.” He labeled these results as “clean findings.”

Regent William Torres pointed out that NMC’s fiscal year 2009 audit report had $433,000 in “unresolved cost.” Madriaga explained, however, that this amount was the “accumulative” questioned cost incurred by the college for many years, including that for fiscal year 2009.

The board then voted to adopt the final copy of the fiscal year 2010 audit report. Copies will be submitted to the Office of the Public Auditor, which will make the record public.

The regents lauded the efforts of NMC management for working with the independent auditing firm to complete last fiscal year’s audit report.

NMC has two funding sources for its operations and personnel: from local appropriation and from students’ tuition and fee revenues.