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CUC short by $8.3M in Q2
CUC gets $6.3M reimbursement from FEMA, still has remaining balance of $7.7M
The Commonwealth Utilities Corp. failed to meet its projected revenue of $27.9 million in the second quarter of fiscal year 2019 because of Super Typhoon Yutu’s devastation.
CUC budget officer Corina Magofna disclosed that the agency’s expected earnings in the second quarter was short by $8.3 million due to the restoration efforts in the months of January, February, and March this year.
Yutu devastated Saipan and Tinian last Oct. 24 and 25.
“For operating expenses, we underspent by a million dollars,” said Magofna in her presentation about CUC’s financial updates during CUC’s board meeting last Wednesday.
CUC’s projection for personnel and operating expenses and capital outlays was $27.8 million for the second quarter, but it spent only $26.8 million.
On the status of Yutu expenses as of March 31, 2019, Magofna said they recorded a total of $16.9 million worth of expenses.
“Out of that, we already paid $15.5 million to our vendors,” she said.
That means CUC still owes its vendors $1.36 million.
Out of the $16.9 million in CUC expenses for Yutu, it already asked the Federal Emergency Management Agency $9.7 million in reimbursements, Magofna said.
Out of that $9.7 million, CUC has already been paid $6.3 million.
Magofna said they are also expecting to receive this month $4.3 million in FEMA reimbursement from Typhoon Soudelor, which hit the CNMI in August 2015.
“We are just waiting on FEMA to give us the payment,” she said.
She said they did receive last April 15 FEMA reimbursement for water system mitigation totaling $228,000.
CUC has a budget of $122 million this fiscal year.
At the end of second quarter, CUC spent 44 percent or $53 million out of that budget, Magofna said, leaving a balance of $68 million for the remainder of the fiscal year.
