MORGAN CITY — The Morgan City Harbor and Terminal District received a clean audit report for its finances during the 2010-11 fiscal year, which ended June 30.
Barbara Watts of the Morgan City office of accounting firm Darnall, Sikes, Gardes & Frederick, delivered the news during the port’s monthly meeting Monday.
The only finding, uncovered when testing various aspects of internal control, was an inadequate segregation of accounting functions, Watts said.
However, she said that finding has been found before when conducting the port’s audit and is something that affects other small entities, too.
“Due to the size of the entity and the cost-benefit of putting on more personnel to get total segregation, it’s just not (feasible), and it’s not a recommendation,” Watts told commissioners.
Despite the finding, she said the port is able to counteract it with a lot of mitigating factors, such as board oversight.
In an examination of the financial statements for the period between June 30, 2010, to June 30 of this year, the port’s total operating revenues increased $227,000, approximately 24 percent, from the prior year to roughly $1.17 million.
The main factor in the increase was found in the port’s rental collections with Cenac Offshore, which increased by approximately $17,000, while InterMoor paid about $200,000 more during the past year compared to the previous year.
On the expense side, total expenses also increased by approximately $298,000, or 22 percent from the previous year to about $1.62 million.
The majority of the expenditures were found in depreciation, where the port added $4.7 million in assets during the last fiscal year.
At the end of the current fiscal year, a net appreciation of $764,000 is expected for the port, Watts said.
Other expenditures included professional services, which increased by $68,000 because of the port’s sediment study, its Delta Regional Authority grant application and grant research.
Together, the total operating revenues and expenses produced a net loss of $456,459 this past year, compared to $385,000 in the prior year.
Other total revenues increased by approximately $2.3 million, mainly from a $1.7 million increase in intergovernmental revenue from the prior year. Much of that came from the Economic Development Administration and Port Priority grants.
Overall, the port had an excess of revenues over expenditures of $6.5 million in 2011 compared to $4.3 million in 2010.
When excluding $554,000 in depreciation, the excess of revenues over expenditures increases to $7.1 million compared to $4.7 million in the prior year.
Of its revenues, intergovernmental monies (EDA and Port Priority grants) make up 63 percent followed by ad valorem, which were higher this past year, and rentals.
On the expense side, the highest area is depreciation at 31 percent, while the next highest was professional services.
Because the port spent more than $500,000 in federal expenditures due to its EDA grant, it was required by federal law to undergo a separate audit in accordance with the Single Audit Act. No findings were reported.