"San Antonio moves to clean up airport accounting"

Tuesday, March 25, 2003

City moves to clean up airport accounting
By Ray Minor
The San Antonio (TX) Express-News


A federal audit has cited the city's two airports with several accounting
and leasing violations that resulted in nearly $500,000 of misappropriated
or uncollected revenue.

However, the city has taken steps to fix the mistakes, making sure the
airports' funds are up to date and there has been no evidence of any illegal
activity, officials said.

Between 1995 and 2000, the San Antonio International and Stinson Municipal
airports leased space to city departments for half what the airfields were
supposed to charge. The shortfall resulted in the loss of $333,000 of
potential revenue, according to an audit by the inspector general's office
at the U.S. Department of Transportation.

"Given the budget constraints now facing the (Federal Aviation
Administration), the results of this report regarding diversions of airport
funds underscore the need for continued and vigilant oversight of airport
revenue use," the report said.

In addition to the leasing concerns, the city incorrectly billed $166,000 to
the airports that should have been charged to other city departments,
including roughly $60,000 that partially covered the 1999 and 2000 salary
for an assistant city manager, according to the audit.

The city hasn't seen the final report, but was aware of the findings and had
been working on solutions, said Ryan Martinez, assistant director of finance
and administration.

"We were informed orally of the findings and knew what direction they were
going," Martinez said. "At that point we knew what the findings would be and
took proactive steps to take care of the issues."

The report said the airports undercharged rent to the city's public works,
police and parks and recreation departments. The Police Department rents
space at Stinson for the department's helicopter, and the other departments
have space at San Antonio International Airport, Martinez said.

Since the city learned of the findings early, the departments have performed
needed services at the airport in lieu of fees to cover the missed rent,
Martinez said.

The city departments also have signed leases for the space they use at the
airports charging "full market value," the standard the FAA requires. Before
the audit, the city departments were charged half the value.

The city also has adjusted how it reports the cost of one department doing
work for another so that those fees are now counted correctly, Martinez
said. That change includes the amounts paid for two years for the assistant
city manager who oversees the airport.

"We have made good in all funds," Martinez said.

The audit also said the airport failed to disclose its leases with the U.S.
Postal Service, the FAA and the Texas Department of Transportation during
the audit. Martinez said the airport inadvertently excluded those documents
from the audit and has told the inspector general's office about the leases.

The San Antonio issues were part of a spot study that found nearly $41
million in accounting problems at five airports around the country.
Accounting concerns ranged from $252,000 at Pittsburgh International Airport
to nearly $39 million at Miami International.

"This report is still under investigation, and everything will have to be
addressed," said Marcia Adams, spokeswoman for the FAA.

If the FAA's follow-up investigation reveals any wrongdoing, the agency said
it will try to recover the misappropriated money and change procedures to
prevent future violations, according to a written response from the FAA to
the report.

"Depending on what's found, the money ought to be reimbursed," Adams said.

Airports that don't comply with the FAA could risk losing future federal
money.

 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dc/dcboard.php

*****************************************