Friday, 14 April 2017

OPA audit reveals GPA closed FY16 with $7M net loss

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The Office of Public Accountability is commending the Guam Power Authority for achieving low-risk auditee status, however, the OPA notes that GPA closed FY16 with a net loss of $7 million.

Guam - The Office of Public Accountability is commending Guam Power Authority for achieving low-risk auditee status, however, the OPA notes that GPA closed FY16 with a net loss of $7 million.

OPA attributes the decrease to the extraordinary net loss of $19.8 million from damage to the Cabras 3 and 4 power plants.

Both generators were written down to zero value in August of 2015 after suffering major damage from an explosion.

The audit adds that it was determined that Cabras 4 could not be repaired and bringing Cabras 3 back online was not feasible.

As a result, even the related facilities and equipment were all written down to zero value as well in September 30 of last year.

In addition, GPA lost 78.6 megawatts of base load capacity causing insufficient generation reserve, but was able to augment the shortfall by swiftly coordinating with large customers to establish 29 megawatts of interruptible load program as well as installing 40 of newly acquired temporary generation. 

Despite this, independent auditors Deloitte and Touche, LLP rendered a clean opinion on GPA's financial statements and compliance over major federal programs.

 

To read the audit in its entirety, click on the audit below. 

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