A report from the state auditor shows the state-owned Honey Creek Resort along Rathbun Lake in southern Iowa lost just over $46,000 in the fiscal year that ended in June. State legislators raised concern after an audit showed the resort had lost $900,000 in its first 10 months of operation.
The Department of Natural Resources hired a private consultant that confirmed the losses, but said the resort was “well managed,” and told legislators they needed more time to get the golf course established. Chief Deputy State Auditor, Warren Jenkins, says the audit gives an update of the operating numbers for the resort.
He says the audit includes just the operations account, the daily inflows and outflows. He says audit is not indicative of what a private company would report, which has depreciation, fixed assets and long-term liabilities.
The report shows the resort had just over $2,908,205 in revenue from lodging, $2,017,879 from its restaurant, and $591,774 from golf course operations. Operating expenses were just over $5.7-million. Jenkins says the loss is not major when you look at all the factors involved.
Jenkins says with the economic and weather circumstances the state had in the last year, the financial picture is “pretty good.” The D.N.R’s Natural Resources Commission will discuss the audit and the operation of Honey Creek at their meeting next Wednesday.
The 58-million dollar Honey Creek resort opened in September of 2008.