Audit 305720

Title: (1) BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Marianas Visitors Authority (A Component Unit of the Commonwealth of the Northern Marianas government) under programs of the federal government for the year ended September 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). De Minimis Rate Used: N Rate Explanation: For the fiscal year 2022 the MVA did not utilize an indirect cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Marianas Visitors Authority (A Component Unit of the Commonwealth of the Northern Marianas government) under programs of the federal government for the year ended September 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”).

Title: (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Marianas Visitors Authority (A Component Unit of the Commonwealth of the Northern Marianas government) under programs of the federal government for the year ended September 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). De Minimis Rate Used: N Rate Explanation: For the fiscal year 2022 the MVA did not utilize an indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the MVA and is presented on the accrual basis of accounting, consistent with the manner in which the organization maintains its accounting records.

Title: (3) INDIRECT COST ALLOCATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Marianas Visitors Authority (A Component Unit of the Commonwealth of the Northern Marianas government) under programs of the federal government for the year ended September 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). De Minimis Rate Used: N Rate Explanation: For the fiscal year 2022 the MVA did not utilize an indirect cost rate. For fiscal year 2022, the MVA did not utilize an indirect cost rate.

Title: (4) ASSISTANCE LISTING NUMBER 21.027 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Marianas Visitors Authority (A Component Unit of the Commonwealth of the Northern Marianas government) under programs of the federal government for the year ended September 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). De Minimis Rate Used: N Rate Explanation: For the fiscal year 2022 the MVA did not utilize an indirect cost rate. Expenditures for Assistance Listing Number (ALN) 21.027 in the amount of $988,005 was reported in MVA’s expenditures and have been included in the Schedule for the purpose of reporting such expenditures that were funded by the COVID-19, Coronavirus Relief Fund – State Fiscal Recovery Fund and the Coronavirus Local Fiscal Recovery Fund established under the American Rescue Plan Act (ARPA) (Speeding the Recovery of Tourism, travel and hospitality sectors).