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Port of Skagit Receives Clean Audit for 17th Straight Year

The state Auditor’s Office has given the Port of Skagit a clean bill of health for its operations during fiscal year 2010, the port’s seventeenth consecutive year of clean audits.

The Auditor’s Office issued no recommendations and no findings in its report. The port’s annual audits examine financial information and compliance with state, federal and local laws.

“We audit the port every year. As an indication of strong internal controls, the port has been free of findings since 1995,” the Auditor’s Office reported.

The Auditor’s Office also included highlights from the port‘s financial statements.

The report found that the port’s total assets exceeded its liabilities at Dec. 31, 2010, by $31.9 million. Of this amount, $29.4 million is invested in capital assets, net of related debt, $2.1 million is restricted and $352,906 is unrestricted.

The port’s net assets decreased by $156,618 in 2010, compared to a decrease in net assets of $425,350 in 2009.

Port operating revenues for the year ended Dec. 31, 2010, totaled $4.6 million, compared to 2009 operating revenues of $4.3 million, an increase of 7 percent, the report stated. Skagit Regional Airport revenues increased 4 percent, mostly attributed to the construction of two T-hangar facilities located on Crosswinds Drive that provided 20 additional hangars to lease. Bayview Business Park revenues increased $120,438, which was 9 percent, and the La Conner Marina also increased 9 percent, both attributed to increased occupancy.

Total operating expenses increased $364,635, which was 6 percent higher than 2009. The increase between 2009 and 2010 was attributed to adding a communications position, additional seasonal employees and overlap of two positions for transition time due to employee retirements.

According to the audit report, the port had $40.4 million (net of accumulative depreciation) in capital assets as of Dec. 31, 2010. The port’s capital assets include land, buildings, improvements, machinery, equipment and construction in progress. Capital assets (net of accumulative depreciation) at Dec. 31, 2009, totaled $41.6 million so 2010 net capital assets dropped $1,174,920. The decrease is primarily attributed $2.5 million in construction in progress in 2009 that was not being depreciated. The majority of those projects were completed during 2010, increasing accumulated depreciation and decreasing net capital assets.

“As part of obtaining reasonable assurance about whether the port’s financial statements are free of misstatement, we performed tests of the port’s compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts,” the audit report concluded. “The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.”

If you are a reporter seeking information about the Port of Skagit, please call Andrew Entrikin, community outreach administrator, at 360-757-0011 or email andrew@portofskagit.com