In the latest audit report, CPA recorded total assets of $229,563,519, a $6,086,656 increase from the previous year.
As well, net assets jumped 2.7 percent or a $4.36 million increase from the previous fiscal year’s $160,062,593 to $164,424,605 in FY’10.
Of the $229 million in total assets, $198.26 million were in noncurrent assets with $195 million in capital assets.
Its total current assets were $31 million for FY’10, a $3.32 million increase from the previous fiscal year.
It also had $16.84 million in net operating revenues in 2010, compared to $$17.38 million in 2009, and $13.35 in 2008.
CPA spent $5.63 million on salaries and wages, $1.65 million on employee benefits, and incurred $11.67 million for depreciation and amortization.
The ports agency saw a decrease in expenses for insurance ($1.62 million), utilities ($787,129), repairs and maintenance ($303,071), and professional fees ($222,816).
There was an increase in the following expenses compared to their fiscal year 2009 level: contractual services, from $981,942 to $1.45 million; supplies, from $404,144 to $448,214; travel, from $58,287 to $72,585 and training, from $42,317 to $54,445.
The report stated that the ports authority has been experiencing a declining revenue trend “due to the reduction of their revenue generating base.”
The report said traffic at the airport has been declining when it lost the signatory airlines Continental and Japan Air Lines and replaced with airlines that offer charter flights on “as needed basis.”
This impacted non-aviation revenue with concessionaires experiencing declining revenues as well that result in decrease in percentage rent to CPA.
With the demise of the garment industry, seaport operations have been severely impacted as the seaport saw its gross revenue tons plummet.
Anticipating losses, the ports authority raised the fees for the airport in 2008 and tariff in the seaport in 2009 resulting in the stabilization of revenues for the seaport that subsequently met compliance with its bond indenture requirements.
However, the airport wasn’t as fortunate as it had to deal with declining tourists arrivals and reduction in air seats.
According to CPA, since it could no longer raise fees, it cut back expenditures and implemented austerity measures for fiscal year 2010. Employees work hours were cut as well as their benefits.
The airport was bond indenture compliant for the second consecutive year. Its actual revenues amounting to $12,981,565 exceeded the required revenues for bond compliance of $12,667,624 leaving it with an excess of $313,941.
Like the airport, seaport was in compliance having actual revenues of $6,815,486 compared to required revenues of $6,535,929.
The audit report stated that the agency is anticipating a 2 percent decline in combined revenue due to the disaster that hit Japan in March.
Since it could not absorb any additional rate increases, the agency is maintaining a strict monitoring of its expenses in order to achieve bond compliance for the succeeding fiscal year.
For a complete copy of the audit report, go to opacnmi.gov.mp.
