2010-2103

 

"Performance in Investments for Maximum Returns for the General Fund"

EXECUTIVE SUMMARY

This Strategic Plan is intended to serve as a roadmap for the Marinas Public Land Trust in its administration of the funds pursuant to the CNMI Constitution. The Plan is intended to outline the goals and objectives in Trust Administration in order to achieve maximum returns in investments and efficiency in the operations of MPLT. The purpose of the Trust is to manage the net revenues from the leasing of public lands to be distributed to the CNMI's General Fund for appropriations by the Legislature.


MISSION

The mission of the Marianas Public Land Trust is to maximize the return on its investment for the benefit of the people of the CNMI through the General Fund and for the American Memorial Park through its efficient and strict stewardship of investments and efficient operations of its administration.


VISION

The vision of the Marianas Public Land Trust is to set the standard of fiduciary excellence in financial investments and trusteeship within the Micronesia region inclusive of its Investment Policy Statements; its exercise of fiduciary prudence; and the returns on its investments.

 

VALUES

  • Integrity and Trust. We are committed in adhering to the strictest standards of fiduciary care. We are responsible to our beneficiaries.We will exercise our responsibilities professionally and ethically.
  • Stewardship and Accountability. We are dedicated to providing the highest level of safeguards. Our ability to meet our investment
    expectations depends on maintaining a sound financial position that takes it possible to effectively deliver results for the beneficiaries.
  • Quality and Excellence. We recognize the need to excel to meet the needs of our beneficiaries. With a diverse highly qualified team staff and consultants, we are committed to the highest standards of trust, hard work and cooperation. We strive to maintain culture of excellence.
  • Efficiency. We expect to continuously provide a substantial distribution to our beneficiaries by maintaining an reasonable amount for administrative expenses. We devote our resources to meeting those needs by continually cutting cost.

 

OBJECTIVES

GENERAL SUMMARY

The purpose of the Trust is to manage the net revenues from the leasing of public lands as managed by the Marianas Public Land  Corporation (MPLC), or its successor entity. Net revenues derived from the lease of public lands are to be distributed by MPLC to the Trust for the establishment of the Trust's principal.

The Trust will be responsible for the investment management of the principal allocated to the American Memorial Park per Article VIII § 803 (e) of the Covenant to Establish a Commonwealth of the Northern Mariana Islands (U.S.Public Law 94-241) and shall transfer to the general revenues of the Commonwealth the remaining interest accrued on the trust proceeds except that the trustees may retain the amount necessary to meet reasonable expenses of administration.

The Trustees shall be held to strict standards of fiduciary care. Whenever necessary for the exercise of their duties and responsibilities, the Trustees shall be guided by the Restatements of the Law including the Restatement (Second) and (Third) of Trust which, in the absence of written or customary law, is the common law pursuant to 7 CMC § 3401.


PARK FUND

The American Memorial Park Fund is a separate trust within the MPLT structure. The implementing authority for this trust fund is Article VIII § 803 (e) of the Covenant.

The purpose of this memorial park is to honor the American and Marianas dead in the World War II, Marianas Campaign.

From the proceeds derived from the lease of Tinian Island; Tanapag Harbor, Saipan; and Farallon de Medinilla to the U.S. Government, two million dollars shall be placed in a trust fund to be used for the maintenance and development of a 133 acre park established on Saipan  at the Tanapag Harbor in accordance with the Technical Agreement (Covenant to Establish a Commonwealth of the Northern Mariana Islands).

The Technical Agreement Part I, §5 (B) and N.M.I. Const. Art. XI, §6 (d) permit the income from the Park Trust to be used for the maintenance and development of the memorial park.

 

GOALS AND OBJECTIVES

ADMINISTRATION

GOAL 1   To improve the administration of MPLT through efficient and timely recording of meeting minutes.

                 Objective 1.1 MPLT shall update all meeting minutes through FY 2009 by March, 2010.

                 Objective 1.2 MPLT shall become current on preparation of meeting minutes for review by the Trustees no later than 1 week before the next scheduled monthly meeting.


GOAL 2   To establish performance goals for all MPLT Staff and Consultants.

                 Objective 2.1 The Office Manager shall submit a monthly report of activities to the Trustees detailing the work in progress;  work achieved; pending issues or activities at each meeting.

                 Objective 2.2 Each consultant shall submit his/her monthly status or work in progress report to the Office Manager no later than one week prior to the monthly meeting. Consultants may submit reports, as appropriate, at the beginning of each month.


GOAL 3   To have an updated an organized record system of MPLT's financial, operation, investment, and legal history.

                 Objective 3.1 The archives and index of all records shall be completed by MPLT on or before July 2010.

                 Objective 3.2 All records of meetings and annual reports shall be made available on the MPLT website for public access by July 2010.

                 Objective 3.3 MPLT shall establish a document retention policy and archival system on when documents shall be             digitized and indexed. Hard copies of all documents shall be retained for two years.

 

TRUSTEES


GOAL 4   To improve the communication among and between the Trustees and MPLT Administration/Staff/Consultants.

                 Objective 4.1 The Trustees shall endeavor to relay and communicate operational concerns through the MPLT Chairman as soon as possible including e-mails or direct meetings.

                 Objective 4.2 The Trustees shall review each meeting agenda from the Office Manager and confirm the agenda; the time allotted for discussions; and the priorities for the meeting no later than five (5) days prior to the scheduled meeting in order to have an organized agenda.

                 Objective 4.3 Each Trustee shall disclose and report on all meetings, discussions, or communications with the Executive or Legislative Branch officials; interested parties; and the General Public on matters affecting the Trust or its Administration.

 

INVESTMENTS

GOAL 5   To continue to monitor the investments of MPLT consistent with the Investment Policy Statement.

                 Objective 5.1 Require the investment consultant to submit monthly flash reports and quarterly performance reports prior to the MPLT Trustee Meeting.

                 Objective 5.2 At each quarter, the MPLT Trustees shall discuss with the investment consultant the performance of the money managers; any issues regarding performance; and receive recommendations, if any, to improve performance or make changes in the investment allocation.


OTHER TOPICS:

  • Fiduciary Audit
  • Office/ Physical Plant Needs (CEC building)
  • Staffing/ Consultant/ Money Manager Needs
  • Property Development (Capital Hill lot)
  • NMHC Home Loan Portfolio (goals towards retirement of this investment)
  • APLE 501 (collection)
  • High Yield Local Investments
  • Trustee Development/ Training Plans
  • Next IPS Review: 2013
  • Bylaws/ Administrative Manual (if anything to do)
  • Annual Self-Assessment (at the end of each Fiscal Year)
  • Annual Report
  • Annual Independent Audit


RECOMMENDATIONS:

  • To adopt the strategic plan by March 2010.
  • Align staff responsibilities with the strategic plan.

o Responsibility shifting
o Title Changes
o Salary Alignment