THE Commonwealth Ports Authority incurred a combined net loss of $5.8 million in the last fiscal year, an independent audit report showed.
The report prepared by Deloitte Touche Tohmatsu said the net loss was incurred by CPA’s two divisions—the airport and seaport.
According to CPA Executive Director Carlos H. Salas, the losses were due primarily to the decline in CPA revenues.
“Everybody experienced a great deal of losses even prior to the Sept 11. incident. A lot of it was caused by the economic downturn, particularly that of the Japanese market,” Salas said in an interview.
CPA also spent over $587,000 to clean up a jet fuel leakage on its property.
It recorded a $213,696 loss of revenue as a result of the delay of a project on Rota. CPA assessed penalties amounting to $645,000 against the contractor for the “substantial delay” of the project.
The financial report, released during the CPA board meeting Friday, also indicated that as of Sept. 30, 2001, airport facilities “were underinsured by approximately $11 million.”
“In the event of an accident, CPA may be partially self-insured to a material extent,” the report said.
CPA, according to the same financial report, faces various risks of loss related to torts, theft, damage and destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The agency has decided to purchase commercial insurance and partial insurance from independent third parties for the risks of losses, the report said.
In general, the auditing firm said, financial statements “present fairly, in all material respects, the financial position of CPA…in conformity with accounting principles.”
