The Office of Public Accountability has released the Chamorro Land Trust Commission’s FY 2020 financial statements and report on compliance and internal controls.
Although the audit did not identify any significant deficiencies, it did identify a material weakness in their report on internal control and compliance.
According to the report, CLTC recorded coral extraction royalties of $230,000 from a construction company for mining activities on CLTC property, in which the revenue had no underlying agreements between parties such as the terms and conditions and rate per cubic yard extracted, and verification of actual coral materials extracted.
In addition, a separate letter to management cited six comments concerning leases, special fund revenues, leases receivable, bank accounts, lease revenues, and office lease. Specifically:
= Commercial leases did not have a formal lease agreement, expired, and did not have appraisals when renewed and extended; two agricultural lessees held two separate leases in separate villages; and a residential lease was transferred without meeting the seven-year requirement per CLTC rules;
= No cash transfers to respective fund bank accounts for $226K in special fund revenues;
= Of $1.1M in lease rental receivables, $543K were delinquent lease rental payments;
= Two CLTC bank accounts are currently held in other entity names;
= CLTC recorded $48K in lease revenue collections to its Operations Fund instead of the Survey and Infrastructure Fund as required by P.L. 34-142; and
= CLTC office lease did not explicitly disclose terms stipulating the commencement date.