Guam -An audit of the Guam International Airport Authority [GIAA] has found “significant deficiencies” in the airport’s handling of federal programs.
The Office of Public Accountability today [Thursday] released the results of an Ernst and Young audit of GIAA audit of the airport’s FY 2010 financial statement.
The auditors gave the airport an unqualified clean opinion on its financial statements. And they also gave GIAA an unqualified opinion on its compliance and internal controls, for the third year in a row.
But, they cited GIAA for “significant deficiencies with respect to the Airport’s major federal programs.”
“These deficiencies,” states the audit highlight report, did not involve questioned costs or material weaknesses. They “involved the Airport’s timeliness of reimbursement requests and the receipt and completion of weekly certified payroll required by the Davis-Bacon Act.”
The auditors issued a separate Management Letter containing 4 reportable control deficiencies involving cost of evaluation studies, lease agreements, clarification on Davis-Bacon Act rates and custom fees.”
The audit states that GIAA viewed 2010 as a “year of recovery.” And the airport did experience a growth in passenger activity with “enplanements” [or boardings] amounting to 1.5 million people. That is an 11.6% increase from the previous year which contributed to a $5.4 million dollar increase in operating revenues. However operating expenses also grew by $1.6 million, a 5.3% increase.
And the auditors found that federal funding alsoincreased. GIAA was awarded 10 grants in FY 2010 amounting to $19.4 million.
GIAA closed FY 2010 with an increase in net assets (net income) of $9.7 million and they also achieved Debt Service Coverage of 1.58 compared to the 1.25 required by their Bond Covenants.