Finding Text
Special Tests and Provision
Criteria – The basic requirement for use of airport revenue is that all revenues generated by a
public airport must be expended for the capital or operating costs of the airport and the local
airport system. The City should have a proper written policy in regards to how airport revenue is
to be spent.
Condition – The City did not establish a written policy for the use of airport revenue. However,
the City has established a separate set of general ledger accounts specifically to segregate airport
revenues and expenses. While no written policy exists, the City has maintained proper tracking to
ensure revenue is spent according to the terms and conditions of the grant.
Cause – The City’s management was not aware that they needed to have a written policy
regarding airport revenue.
Effect – The City is not in compliance with Federal regulations pertaining special tests and
provisions as required by the Uniform Guidance.
Recommendation – The City should establish a written policy for the use of airport revenue.
Corrective Action – The City will establish a written policy for the use of airport revenue.
Conclusion – Response accepted.