For Immediate Release
Jan 11, 2017
CONTACT: David Doeringsfeld, Port of Lewiston Manager
Port Financial Position Strengthens in FY 2016
Commissioners Approve Independent Audit Report
(Lewiston, ID) – On January 11, 2017, the Port Commission approved an “unmodified” (clean) June 30, 2016 year-end audit report as presented by Presnell Gage, PLLC.
“Independent audits are important to safeguard public trust,” said Commission Vice President Jerry Klemm. “The Port Commission is responsible for ensuring that all taxpayer dollars are used wisely and help create long-term job growth in our community.”
According to the audit, current Port assets total $5.0 million. “The Port ends fiscal year 2016 in a strong financial position,” said Commission President Mike Thomason. “We are pleased that our continued financial strength has allowed us to aggressively build out a dark fiber optic network and contribute to other needed projects.”
A portion of cash assets are being used in the current fiscal year 2017 to continue the build-out of the dark fiber optic network; to complete earthwork, grading and infrastructure improvements to 15 acres at the Harry Wall Industrial Park; and to renovate the business incubator building.
Commission Secretary/Treasurer Mary Hasenoehrl stated, “It is crucial to invest in important economic development projects that will assist job creation in partnership with private enterprise. We are well positioned to move forward in FY17.”
Findings and projects highlighted in the FY16 audit report include:
- The Port’s Change in Net Position (synonymous with net income in the private sector) was a positive $335,947. Net position is the difference between assets over liability and an indicator of the long-term financial health of the Port.
- The Port phased construction of a dark fiber optic network. Approximately 12 miles of fiber optic line have been installed. The fiber network will improve fiber redundancy, provide faster internet service for businesses and residents and allow more internet service providers the opportunity to serve our community.
- The Port completed the design for an additional suite in the business incubator building. This project will create space for a local start-up business.
- Approximately 2.9-acres in the Business and Technology Park were sold to Advanced Health Care, which will create approximately 30 full-time and 25 part-time positions.
Accounting rules, not financial problems, drove an operating loss in the FY16 audit.
While the Port’s Net Position continued to be positive, the Port finished the fiscal year with an operating loss of $501,234, due principally to depreciation of $406,469, an expense that isn’t budgeted for in government accounting.
- Depreciation is a non-budgeted, non-cash operating expense for the Port.
- The actual cash loss in FY16 was $36,117.
The audit report is intended to provide citizens, taxpayers and customers with a general overview of the Port’s finances and to demonstrate the Port’s accountability for the financial resources it manages and the stewardship of the facilities it maintains. A complete copy of the audit report will be available on the Port of Lewiston’s website by January 25, 2017.
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