11 Oct 2017
- By Cherrie Anne E. Villahermosa – [email protected] – Variety News Staff
THE Performeter report for fiscal year 2015 indicated that approximately 199.5 percent of the CNMI’s $216.6 million of total assets were funded with debt or other obligations which means that no assets of the CNMI were debt-free.
For every $1 of assets that the CNMI owned, almost $2 is owed to others, according to the prepared by Crawford & Associates through the assistance of the CNMI government, the U.S. Department of the Interior and the Graduate School.
However, the report stated that the ratio does represent a slight improvement from the debt-to-assets ratio of the prior period.
According to the report, as of Sept. 30, 2015, the CNMI’s total deficit decreased by $23.9 million or 10 percent from the prior year.
The report stated that in the prior year, the CNMI transferred all of the hospital assets and activity to a separate entity which accounted for much of the decline in net position or deficit.
Performeter is an analysis of a government’s financial statement, and a measure to determine whether the government lived within its means in the measurement years or was required to use prior year resources to fund a portion of current year costs or shifted the funding of some of the current year costs to future periods.
“For the year ended Sept. 30, 2015, CNMI funded 109.4 percent of their current year expenses with current year revenues which is an excellent ratio and a slight improvement from the ratios of prior periods.”
The report said the level of total unrestricted deficit is an indication of the amount of unexpended and available resources the CNMI had at a point in time to fund emergencies, shortfalls or other unexpected needs.
According to the report, for the year that ended Sept. 30, 2015, the CNMI’s total unrestricted deficit was $302.2 million, which is equivalent to 108.2 percent of annual total revenues.
“This represents an improvement in the ratio when compared to the ratio of the prior year,” the report stated.
The commonwealth’s unassigned fund balance deficit was $97.8 million or 60.4 percent of the general fund revenues, which the report said represents an improvement in reducing the size of the deficit-to-revenue ratio from the prior year.
The unassigned fund balance or the budgetary carry over is the unexpended or unencumbered available resources that the CNMI has at a point in time to carry over into the next fiscal year to fund budgetary emergencies, shortfalls or other unexpected needs.
The report also mentioned the financial ratio of taxes per capita which it said is an indication of the CNMI’s tax burden on its citizens and other taxpayers. The ratio includes business gross receipts and most taxes (hotel taxes are excluded), the report said.
“For the year ended Sept. 30, 2015, total taxes referred to above amounted to $135.3 million or $2,510 per capita. This indicates a relatively high tax burden when compared to other insular governments, and represents a slight decrease from the ratio of the prior period.”
Source: Marianas Variety : http://www.mvariety.com/cnmi/cnmi-news/local/99217-report-no-nmi-assets-are-debt-free