Municipal Finance Agency posts loss in net position for FY 2022, audit found

By The Star Staff

The Puerto Rico Municipal Finance Agency (MFA), created to help cities finance their public investment programs, posted a net position of $76.4 million in FY22 that ended June 30, 2022, a 4.1% less than the $79.7 million net position posted at the close of FY21.

The information is contained in an audit for FY 2022 performed by Kevane Grant Thornton that was disclosed on July 19.

The commonwealth agency, however, experienced a 12.4% drop in its total assets, declining to approximately $349.4 million in FY22 compared to $398.7 million in FY21, according to the audited financial statements. The auditor signed the letter on July 5.

The statements also showed that deferred outflow of resources declined by 74.4%, falling to $21 million in FY22 from $82 million in FY21, and total liabilities dropped 14.5%, closing the FY22 at $273.0 million compared to $319.2 million in FY21, according to the report.

“These reductions are associated mostly with the bonds principal payments amounting to approximately $44.9 million and $61,000 of current year amortization of deferred loss on bond refunding,” the report said.

As of June 30, 2022, the MFA’s outstanding bonds amounted to approximately $243.3 million. “Debt repayments amounted to approximately $44.9 million during the year ended June 30, 2022,” the report explained.

There was an unrealized $4.1 million loss of the fair market value of the investments, the report said.