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Savings give CPA a lift
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Posted on Mar 17 1999
After five months of carrying out intensified cost-cutting measures, the aviation division of the Commonwealth Ports Authority finally registered a 213 percent jump in net income totaling $56,068 in February, compared to the same period in fiscal year 1998.
As of February 28, 1999, the ports authority was able to save $205,872 from the budget of operating expenses and capital expenditures, according to Dave S. Demapan, comptroller.
Management is expecting to save some $550,000 at the end of this year with the reduction in working hours from 80 to 72 hours per pay period starting April 1, 1999. Furthermore, management is encouraging employees who are eligible to retire to avail of the early retirement program to reduce contribution to the Retirement Fund.
Gov. Pedro P. Tenorio is now asking various government agencies to follow the ports authority in cutting down cost amid declining revenues brought about by Asia’s financial crisis.
Operating revenues in February declined by 17 percent amounting to $946,179 compared to the same period in fiscal year 1998 . However, it showed an 18 percent increase compared to the operating revenues in January of this year.
On the other hand, the marine division generated a $197,263 net income for the month of February, or a 5 percent increase compared to the same period in fiscal year 1998.
As of February 28, 1999, the actual operating revenues already exceeded expectation by $179,666 or a 13 percent jump while actual operating expenses realized savings of $12,554 or three percent below the budget.
Operating revenues for February registered a slight increase of 4 percent amounting to $319,768, mainly from land rental, gross receipts and wharfage.
Gross revenue tonnage increased by 8 percent from fiscal year 1998 for the same period or a total of $71,757.
Operating expenses increased by $41,177 or a 57 percent jump from the same period in fiscal year 1998 primarily due to the allocation of the 10 percent share of salaries and wages with the benefits from the airport division to the seaport division.
