According to independent auditing firm Deloitte & Touche’s financial audit of CPA for fiscal year 2007, operating revenues for the airport and seaport operations decreased by 24 percent, or $4.8 million, from $19.9 million in FY 2006 to $15.1 million in FY 2007.
The airport operating revenues decreased by 10 percent, or $1.1 million, from $10.9 million in FY 2006 to $9.8 million in the last fiscal year.
The seaport operating revenues dropped by 41 percent, or $3.6 million, from FY 2006’s $9 million to $5.3 million in FY 2007.
But the audit report noted that the total assets for the airport and seaport operations increased by 13 percent, or $25.5 million, from $201.6 million in FY 2006 to $227.1 million in FY 2007, mainly due to a substantial progress made in projects undergoing construction.
The net assets for the airport and seaport operations also increased by 17 percent, or $22 million, from $131.8 million in FY 2006 to $153.8 million in FY 2007.
Likewise, the operating expenses for the airport and seaport operations decreased by 4 percent, or $615,083, from $13.9 million in FY 2006 to $13.3 million in FY 2007.
Deloitte & Touche said air passenger departures declined by 10 percent, and passenger arrivals dropped by 10 percent in FY 2007.
Moreover, seaport inbound cargo declined by 16 percent while outbound cargo dropped 13 percent during the same fiscal year due to the closure of several garment factories and a decline in orders and inbound commodities from existing factories.
“Due to a revenue shortfall of $2.7 million for the airport division and $1.3 million for the seaport division on Sept. 30, 2007, or a combined shortfall of $4 million, CPA was not in compliance with its 1998 Bond Indenture Agreement,” the report stated.
To comply with the agreement, CPA hired a bond consultant, Ricondo & Associates, to conduct an airport rate study.
Ricondo & Associates has already submitted its recommendations to CPA which earlier said that it is likely to increase airport rates.
