By Moneth G. Deposa
Variety News Staff

THE accounting firm of Deloitte & Touche LLC issued a “clean” unqualified audit opinion on the financial performance of the Commonwealth Ports Authority for fiscal year 2005.
The CPA board earlier disclosed that the agency had not submitted its annual report since 2005.
“In our opinion, (the agency’s) financial statements present fairly, in all material aspects, the financial position of CPA as of Sept. 30, 2005 and 2004, and its changes in net assets and its cash flow for the years then ended in conformity with accounting principles generally accepted in the U.S.,” Deloitte & Touche said in its letter to the ports authority.
During the board meeting on Wednesday, CPA Executive Director Clyde Norita said the audit report has been submitted to the Legislature in compliance with the law.
Deloitte & Touche stated that CPA, “during these years, operated on an accrual basis wherein revenues were recognized when earned, not when received and expenses were recorded when incurred, not when paid.”
It added that CPA’s capital assets, except for land, are capitalized and depreciated over their useful life.
The financial statement in the annual report consists of three parts — management discussion and analysis, basic financial statements and notes to the financial statements.
Deloitte & Touche said the FY 2005 enplanement reached 661,538 which exceeded passenger levels in FY 2002 — 554,794.
This “strong rebound” was attributed to the aftermath of 9/11 in FY 2002 which was followed by the impact of SARS and the Iraq war in FY 2003.
Compared to the FY 2004 figures, those in FY 2005 show a decrease of only 3 percent, or 19,129 passengers due to the load factor from Guangzhou, China, and cessation of one of the domestic carriers serving between the islands.
As to the operating revenue in FY 2005, records show that there was an increase of 1 percent, or $126,601 from the FY 2004 figure.
Operations and maintenance expenses during the time also decreased by 2 percent, or $20,612 from the 2004 level.
This was due to a reduction in personnel costs and removal of certain airline incentives and fee discounts, the audit report stated.