Cl TC & GALC FY 2015 Citizen Centric Report 2 messages
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1 7/19/2016 Mail at Judi Won Pat Mail - CLTC & GALC FY 2015 Citizen Centric Report I Speaker Won Pat <speaker@judiwonpat.com> Cl TC & GALC FY 2015 Citizen Centric Report 2 messages Joseph B. Cruz <Joseph.Cruz@land.guam.gov> Fri, Jul 15, 2016 at 1:27 PM To: "Honorable Judith T. Won Pat, Ed.D." <speaker@judiwonpat.com> Cc: Michael Borja <Michael.Borja@land.guam.gov>, "Virginia R. Flores" <Virginia.Flores@land.guam.gov> Good Afternoon Madam Speaker, In accordance with the Citizen Centric Report Act please attached the Chamorro Land Trust Commission and Guam Ancestral Lands Commission's FY2015 Citizen Centric Reports. Si Yu'us Ma'ase, Joseph B. Cruz Jr. Program Coordinator Ill Department of Land Management Chamorro Land Trust ext.430 Check Your Property On Guam Land App 2 attachments CLTC CCR FY2015.pdf 1746K GALC CCR FY2015.pdf 1550K Speaker Won Pat <speaker@judiwonpat.com> To: "Joseph B. Cruz" <Joseph.Cruz@land.guam.gov> Mon, Jul 18, 2016 at 11:11 AM The Office of Speaker Judith T. Won Pat, Ed.D. is in receipt of this . Have a great day. [Quoted text hidden] l Etmlis Ge 'helo 'Gi Liheslaturan Guahan Otlice of Speaker.Judith T. Won Pat, Ed.D. Kumiten Jdukasion Tinakhelo'. Kottura, Laibirihan Pupbleko siha yan Asunton Famalao 'an 155 Hesler Place, Suite 20 l, Hagatna, Guam /2
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3 KUMISION INANGOKKON TANO CHAMORRO (CHAMORRO LAND TRUST COMMISSION) Fiscal Year 2015 Citizen Centric Report Our Mission Director Michael J.B. Borja To hold and protect Chamorro homelands for it s beneficiaries and exercise diligence and uphold our fiduciary responsibility in the management of Chamorro homelands. About CLTC The Chamorro Land Trust Commission (CLTC) was created through the passage of Public Law with the task to administer Chamorro Homelands. CLTC offers three types of lease programs which are residential, agriculture and commercial. Deputy Director David V. Camacho Table of Contents CLTC has a land inventory of 11, acres that are located throughout the northern, central, and southern parts of Guam. The total land inventory administered by CLTC accounts for 33% of Government of Guam owned property. CLTC was merged with the Department of Land Management (DLM) through Advisory No Progress in FY CLTC Finances 4 Future Challenges Our Goal Advance the well-being of the Chamorro people by way of equitable land distribution. Board Members Pascual V.A. Sablan Chairman Joseph I. Cruz Vice-Chairman Amanda L. G. Santos Gyongyi P. Fejeran (Vacant)
4 Our Progress in FY 2015 Page 2 Agriculture and Residential Program In FY 2015 CLTC qualified a total of 49 applicants for its residential and agriculture programs amounting to a cumulative total of 11,263 since its inception. Furthermore, in FY 2015 CLTC issued a total of 100 residential and agriculture leases bringing total leased properties for the two programs to 2, acres. Commercial Program During FY 2015 the CLTC Board and Director worked collaboratively to initiate and complete the approval process of the CLTC Rules and Regulations for Commercial Use, in accordance with the Administrative Adjudication Law. As part of the process a public hearing was held and appropriate changes were made based on public comment. Immediately after board approval the Rules and Regulations was forwarded to the Office of the Attorney General for approval. Unfortunately, at the end of FY 2015 the proposed Commercial Rules and Regulations was disapproved by the Guam Legislature. One commercial lease was issued in FY 2015 to GTA Teleguam for the properties occupied but granted a 10-year moratorium on lease payments as a result of the privatization sale. Chamorro Home Loan Guaranty Program In FY 2015 CLTC has work diligently with the Small Business Administration and Guam Housing Corporation to ensure that constituents with CLTC loan guaranties were current with their payments. As a result CLTC was able to identify loan guarantees that were considered charge-offs by the United States Treasury. Immediately after notifications were mailed and published. The constituents with charge-off accounts met with the Director to resolve the matter and prevent any defaults and foreclosures from occurring. During FY 2015 two leases with loan guarantees have been reassigned and the new lessees assumed the indebtedness of the loans. At the end of FY 2015 CLTC Loan Guarantee liability decreased to $8,762,603. Real Property Taxes At the end of FY 2015 real property tax assessment on CLTC property continued to experience anomalies associated with the identification and valuation of property. To address the concerns CLTC and Department of Revenue & Taxation initiated a Memorandum of Agreement (MOA) which is anticipated to be finalized and approved in the following fiscal year. Financial System The three previous financial audits conducted on CLTC each contained a finding regarding CLTC s lack of utilization of a formal accounting system. In FY 2015 CLTC implemented and utilized a financial accounting system. As a result this finding was not a rollover in CLTC s FY 2015 Financial Audit.
5 FY 2015 Finances Page 3 A Financial Audit conducted on CLTC s FY 2015 financial statements received an unmodified (clean) opinion from independent auditors, Deloitte and Touche, LLP. Commercial $ 826,250 Agri. & Res. Lease License $ 4,427 Royalties $ 153,662 Land Trust Application Fees $ 4,400 Interest Income $ 761 Total Revenues $ 989,500 CLTC Operations Fund $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- $826,250 $153,662 $4,427 $4,400 $761 $989,500 Salaries $ 276,315 Fringe Benefits $ 82,201 Health Benefits $ 32,638 Contractual Services $ 139,850 Building rent $ 124,390 Supplies $ 8,735 Miscellaneous $ 2,190 Total Expenditures $ 666,319 $8,735 $2,190 $276,315 $124,390 $139,850 $32,638 $82,201 Chamorro Loan Guaranty Fund Salaries Fringe Benefits Health Benefits Contractual Services Building rent Supplies Miscellaneous Payment In Lieu of Real $ 59,286 Interest Income $ 615 Total Revenues $ 59,901 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $- $59,286 Payment In Lieu of Real Property Taxes $615 Interest Income
6 Future Challenges FY 2015 has been a productive fiscal year for CLTC. Although, there are challenges that continue to adversely affect CLTC s ability to perform and accomplish our tasks mandated by law. Constituents are burden with the responsibility to survey property leased. Unfortunately, this has caused a delay in the issuance of leases due to the constituents inability to afford the cost of survey. Furthermore, CLTC does not have the financial resources to pay for the installation of basic infrastructure for leased property. Which has restricted our constituents from utilizing leased property to its full potential and calling a place home. CLTC has many other programs that have been dormant due to the unfunded accounts of several revolving and special funds. Outlook The Board of s and Director will continue to work with the resources made available through legislative appropriation to ensure that CLTC continues to fulfill our tasks mandated by law. Furthermore, management will continue the open door policy to work with our constituents, senators and the administration to ensure we bring our constituents a step closer to obtaining a land lease and calling a place home. We Want to Hear from You Did you find this report informative? Do you think we need more information added? If yes, please contact our office at ext. 600 or us at dlmdir@land.guam.gov. Complete budgetary reports may be found on our website
7 Guam Ancestral Lands Commission Fiscal Year 2015 Citizen Centric Report Our Mission Administer the Guam Ancestral Lands Act in order that ancestral landowners, their heirs and descendants may expeditiously exercise all the fundamental civil rights in the property they own; establish a land bank to provide just compensation for dispossessed ancestral landowners; and when appropriate, assume the role of Claims Facilitator to assist ancestral landowners in pursuit of just remedies. Director Michael J.B. Borja About GALC The Guam Ancestral Lands Commission (GALC) was created through Public Law to acquire federal excess lands and convey properties to the original land owners. GALC is known as the Land Claims Facilitator. Also, GALC was merged with the Department of Land Management (DLM) through Advisory No. 9. Our Goal Deputy Director David V. Camacho Increase the number of federal return parcels and provide just compensation to the families who will not benefit from the returns. Board Members Table of Contents 2 Progress in FY GALC Finances 4 Challenges Anita F. Orilino Chairwoman Ronald F. Eclavea Ronald T. Laguana Vice Chairman Anthony J.P. Ada Maria G. Cruz Secretary/Treasurer Antonio A. Sablan Louisa M. Wessling
8 Page 2 FY 2015 Progress Returned Property In FY 2015 GALC returned a total of acres to the original landowners. This increased the cumulative total of returned property to 2, acres. Land Bank GALC board members, Director, and the Assistant Attorney General assigned to DLM worked collectively to finalize the proposed Land Bank Rules and Regulations (LBRR). The proposed LBRR will be submitted to the AG s office for review immediately after GEDA submits the Economic Impact Statement as requested and required under the Administrative Adjudication Law. Financial System The last three financial audits conducted on GALC each reported a finding of GALC s lack of utilization of a formal accounting system. In FY 2015 GALC implemented and utilized a financial accounting system. As a result, the finding from previous financial audits was not a rollover in GALC s FY 2015 Financial Audit.
9 FY 2015 Finances P a g e 3 A Financial Audit conducted on GALC s FY 2015 financial statements received an unmodified (clean) opinion from independent auditors, Deloitte and Touche, LLP. Ancestral Lands Operations Fund GovGuam Appro. $ 113,174 Total Revenues $ 113,174 Landowners Recovery Fund Salaries $ 60,758 Fringe Benefits $ 16,639 Health Benefits $ 8,567 Contractual Services $ 24,460 Miscellaneous $ 2,755 Interest $ 2 Total Expenditures $ 113,179 Total Revenues $ 2 Land Bank Trust Fund Base Rent $ 495,431 Participation Rent $ 5,763 Interest $ 26,954 Other $ 1,974 Total Revenues $ 530,122 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- $495,431 $5,763 $26,954 $1,974 $530,122 Management Fee $ 71,999 Total Expenditures $ 71,999 F a c i l i t a t i n g. P u r s u i n g a n d A d v o c a t i n g. M a i n t a i n i n g. M a i n t a i n i n g
10 Future Challenges Due to budgetary constraints GALC continues to struggle with acquiring more federal excess property and conveying of excess property. Furthermore, GALC beneficiaries of federal returned property continue to experience the inability to access properties returned. GALC has many dormant programs due to the unfunded status of the programs. Outlook GALC Board and Director will remain optimistic that the Land Bank Rules and Regulations will be completed and forwarded to the Guam Legislature in FY Moreover, management will engage with the administration and Guam Legislature to create legislation to authorize GALC to expend an agreeable percentage of commercial revenue to fund administrative costs and reduce the financial obligation of the General Fund. We Want to Hear from You Did you find this report informative? Do you think we need more information added? If yes, please contact our office at /7 or us at
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