May 27--One look at the audit of Erie International Airport operations and you see red -- as in red ink, and plenty of it.
But airport officials insist the numbers are better than they first appear, despite an audit that shows an operating loss of $1.7 million. That compares to a loss of $1 million in 2004.
Airport Executive Director Kelly Fredericks and Chief Financial Officer Sheilah Bruno said Friday that Erie International had a solid year in 2005, regardless.
The airport had a paper loss of more than $1.9 million from depreciation of buildings and equipment, Bruno said. If not for the depreciation, the airport would have run a surplus.
The airport also had some unexpected costs, chiefly $108,000 in environmental costs and fines for an accidental paint spill and $422,000 in grants that had to be repaid to the Federal Aviation Administration because the airport expenditures were ruled ineligible under the terms of the grants.
On the plus side, operating revenues increased to $5 million in 2005, a jump of almost $700,000 from the year before.
Also, the airport finished 2005 with $518,969 in cash on hand, an increase of more than $200,000 over 2004.
Erie Municipal Airport Authority President Louis Porreco said the 2005 results were better than other recent years, but he worried that 2006 revenues might be trending down.
One thing that had airport officials smiling was that the audit, prepared by Malin, Bergquist & Co., contained no "findings"-- major issues that must be addressed and corrected.
Bruno said from that perspective, the audit results were especially good news.
"It was a glowing review. One of the best we have had in years," he said.
The audit was accompanied by recommendations in a management letter.
One recommendation suggested that the board review and tighten its policy on credit-card transactions. Auditors said it is better to have vendors bill the airport directly to make sure there is an adequate paper trail when federal officials seek documentation to justify grant expenditures.
The audit also questioned why the airport pays for cell phones and Blackberry communication devices for board members -- a question that Porreco has also raised.
Fredericks afterward said board members did not request cell phones. The practice started several years ago when the staff asked board members to carry cell phones so they would be easier to contact if needed.
The audit was presented to the Airport Authority on Friday at a meeting that ultimately proved unnecessary. The board called a special meeting to pass a resolution to accept the audit, but then discovered no resolution was necessary, and the meeting was quickly adjourned.
