MISSA's financial performance in FY 2009
posted October 30, 2009
The Administration’s $1.731 million investment gain in September virtually saved MISSA from the year-long rollercoaster ride of its offshore investments which dropped in value by as much as $12.28 million in the first five months of FY2009. This resulted to a cumulative net investment gain of 2.04 million dollars for the twelve months ended September 30, 2009.
According to the latest (unaudited) financial report for the FY ended September 30, 2009 prepared by Sheryl Profeta, MISSA’s Finance Manager, MISSA’s net assets increased by $2.6 million mainly due to other income comprised mainly of interest and dividends and the effect of the cumulative net increase of $0.99 million in the fair market value of MISSA investments.
As of September 30, 2009, MISSA’s net assets totaled $65.8million, up by about $2.6million or 4.12% from the start of the fiscal year.
Contributions for FY 2009 totaled $13.5 million, net of bad debt expense of $1.2 million. It surpassed MISSA’s target of $12.95 million and was 0.39% higher than the contributions of $13.47 million in FY 2008.
Benefits continue to increase at an average rate of 8% and totaled $13.55 million in FY 2009. The amount is $1.1 million or 8.87% higher than the benefits paid in the previous fiscal year. The Administration’s average monthly benefit payments amount to $1.1 million.
Total administrative expenses amounted to $971 thousand, and were $291 thousand or 4.44% lower than the approved budget of $1.16 million. It was also lower by $170 thousand or 15% when compared to FY 2008 and represent 6.86% of total contributions. By law, MISSA may spend up to 20% of total contributions in administrative expenses.
Despite the growing imbalance between collections and benefits/administrative expenses, the Administration did not experience any cash flow problem in FY 2009. The main revenue drivers include the consistent timely remittances of the RMI Government and the prompt payments of MalGov on their monthly installments. The three major employers in Kwajalein, Chugach Corporation, KRS and AAFES also provided MISSA with the much needed contributions.
With the quarterly deadline (due on October 12, 2009) for the 4th quarter of 2009 fast approaching, the Administration remains optimistic that contributions will sustain the benefit payments and administrative expenses for the next three months. If collections fall short of what are expected, MISSA may pre-terminate its TCD held by a local bank to ensure uninterrupted benefit payments in the coming months.
In a related development, MISSA is the first government agency to have its books ready for audit by its external auditors for the fiscal year ended September 30, 2009. The Administration is confident that it will earn again an unqualified opinion from its auditors and another “no finding audit”, a feat it achieved consistently since FY 2002.