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Recommendation to receive and file the Annual Audit Reports for the Long Beach Airport Passenger Facility Charges (PFC) program for Fiscal Years Ending September 30, 2018, 2019, and 2020. (District 5)
DISCUSSION
Federal regulations allow a public agency that operates a commercial service airport to charge a Passenger Facility Charge (PFC), which is a “per enplaned passenger” fee, for expenditure on eligible non-revenue generating airport capital improvements. In 2003, the Long Beach Airport (Airport) implemented the PFC to fund eligible Airport capital improvement projects. PFCs are allowed only for approved airport capital project costs that meet the program objectives related to safety, security, capacity, noise mitigation or competition. The Federal Aviation Administration (FAA) must approve the imposition and use of PFC revenue through an application process.
In accordance with federal regulations, an audit of the Airport’s PFC program is conducted each year by an independent auditor to obtain reasonable assurance that the Airport complied with FAA’s PFC program requirements. KPMG, LLP (KPMG), is the City’s independent auditor that also audits the City’s Comprehensive Annual Financial Report and conducts the annual Single Audit for grant funded programs. The annual audit reports for the Airport’s PFC program for fiscal years 2018, 2019, and 2020 are attached. The audit resulted in no program-related findings and no questioned costs for the reporting years 2018, 2019 and 2020.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on October 11, 2021 and by Budget Analysis Officer Greg Sorensen on October 18, 2021.
TIMING CONSIDERATIONS
City Council action on this matter is not time critical.
FISCAL IMPACT
There is no fiscal or local impact associated with this recommendation. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities.
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