THE Commonwealth Ports Authority board on Monday approved the CPA comptroller’s request to write off a total of $821,592.85 in account receivables that are deemed uncollectible from delinquent debtors.
CPA’s auditors recommended that the board’s approval is required to officially write off and remove the accounts from its financial reports, CPA comptroller Skye Lynn Hofschneider told the board of directors.
In a meeting on Monday, the board approved Hofschneider’s request to write off bad debts in the amount of $786,651.02 for airport services and $34,941.83 for seaport services.
“This is in an effort to accurately state account receivables and update the allowance for doubtful accounts,” the comptroller told the board.
“The specific accounts requested for write-off have been deemed uncollectible, as these businesses have ceased operations or have filed for bankruptcy,” she added.
Among these companies is Aviation Services Ltd., which used to operate Freedom Air. The company has filed for bankruptcy and owes CPA a total of $537,569.18 in aviation fees for Saipan, Tinian and Rota; $72,985 in badge fees and ground rental; and a total of $320.47 in passenger facility charge for Saipan, Tinian and Rota.
Fly Guam, which closed in 2012, owes CPA $103,089.29 in incinerator and aviation fee while Islands Development Corp., which has also closed, owes CPA $30,054.99 in car rental.
The other defunct businesses with unpaid debts to CPA are Unlimited Services Group in the amount of $33,333.34 in ground handlers fee; CNMI Currency Exchange, $5,200 for currency exchange and for a badge that was not returned; Fas Moving, $31,359 in warehouse rental charges; and USA Island Seafood, $2,294.25 in port charges.
