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Airport authority accepts 2025 audit and reviews financials showing depreciation-driven paper loss
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Summary
The Fargo Airport Authority approved a clean 2025 audit and reviewed year-end financials showing $5.8 million in depreciation that produced a reported operating loss of $395,000 but a positive operating position when depreciation is excluded; auditors reported one prior‑year retainage correction and no compliance exceptions on federal programs.
The Fargo Airport Authority on Thursday accepted a clean independent audit of its 2025 financial statements and reviewed year-end financial results that include a large non‑cash depreciation entry.
A staff presenter summarized the audited statements and key performance indicators, saying the amount of depreciation added into 2025 expenses was $5,800,000 and that the depreciation produced a net operating loss of $395,000. "If we add the depreciation back in, we are seeing — excuse me — we are seeing just fine," the presenter said, noting operating performance improves when depreciation is excluded.
Auditor Brian Uppsala of Brady Martz Associates told the board the firm issued an unmodified opinion on the financial statements and a clean single-audit on federal programs. "We had no difficulty performing the audits," Uppsala said, and he noted one corrective adjustment during 2025 related to prior-year retainage that was accrued and corrected.
Board members pressed staff on cash forecasts and capital‑project funding. Staff said forecasts include a 5% local match on federal projects and that competitive or discretionary funding is not guaranteed. The board was told parking-ramp utilization was about 78% in March and short-term parking utilization for that segment was roughly 25%; March net parking revenue through the period reviewed was $918,000.
Staff also briefed the board on a $40 million Bank of North Dakota loan for the parking project, reporting the loan was nearly fully drawn at $39,439,000 and warning that once fully drawn the authority would begin drawing approximately $6.5 million from savings for final project expenses.
After the presentations the board moved to approve the audit and the February financials; both motions carried by vote.
Next steps: staff will continue monthly financial reporting, pursue planned reimbursements under the $45 million state aid award and return with updates on capital‑project funding and forecasts.
