TITLE
Recommendation to receive and file the Annual Audit Report for the Long Beach Airport Passenger Facility Charges (PFC) program for Fiscal Year Ended September 30, 2021. (Districts 4,5)
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, and 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 the PFC program requirements. KPMG, LLP (KPMG), is the City of Long Beach’s (City) 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 report for Airport’s PFC program for Fiscal Year 2021 is attached. The audit resulted in no program-related findings and no questioned cost for the reporting year 2021.
This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on July 19, 2022 and by Budget Analysis Officer Greg Sorensen on July 22, 2022.
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.
SUGGESTED ACTION
Approve recommend...
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