Port of Guam Receives Clean Internal Audit Report

Lucas Gilmore, “Big 4″ observer
January 21, 2011 /

GUAM – The Port Authority of Guam has received a clean internal audit report from Ernst & Young LLP for its financials in fiscal year 2010 released today by the Office of Public Accountability.

“The Port Authority of Guam closed fiscal year 2010 with net assets of 12% or $7.1 million primarily due to an increase in capital contributions from the federal government of $6.1M and net earnings of $985 thousand,” the report said, which reflects increases in almost every category of its revenues for the eighth time in a row. But in the adjustments made by Ernst & Young with the financial statements of the port, it came out that the actual net assets were $1.2 million less.

The internal audit report showed four thousand more containers being shipped through the Port of Guam in the fiscal year 2010, with the total operating revenues having increased by $5.7 million in FY 2010 compared with that in 2009. All of the categories saw an increase by 40 percent in equipment and space rental, 16 percent in the charges of cargo throughput, and 300 percent in the rest of the operating expenses. Total operating expenses are up by $5.4 million.

Overall, Ernst & Young has issued an “unqualified or clean opinion on compliance and internal controls” to the Port of Guam as it found no holes in the materials presented.

The internal audit report cited a letter addressed to the management that “identified one control area relating to the Port’s capitalization policy as certain expenditures were capitalized to construction-in-progress accounts instead of being expensed.”

“The letter also identified other matters relating to the Port’s improvement of controls on annual and sick leave process, need to revisit its emergency procurement requirements and documentation on procurement,” the internal audit report added.

 

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