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October 22, 2007


DiNapoli: Village of Endicott Should Increase Oversight of
Revenue from Airport Management Company

The Village of Endicott missed out on $13,608 in revenue because it did not oversee its agreement with the company it hired to manage operations of the Tri-Cities Airport, according to an audit released today by State Comptroller Thomas P. DiNapoli.

“Local governments have to monitor their third-party agreements to ensure all the revenue owed to taxpayers is received,” DiNapoli said.

According to the terms of the agreement between the village and the management company, Goodrich Aviation Development Services, LLC, the village pays Goodrich $50,000 annually to manage the airport. Goodrich is allowed to conduct other business at the airport, such as selling aviation fuel, training pilots, maintaining aircraft, selling and appraising aircraft, chartering planes and taking aerial photographs. Under the agreement, Goodrich must pay the village rent in the amount of 2.5 percent of the gross sales from these business activities. In addition, Goodrich must also pay a fee of seven cents per gallon of fuel sold at the airport.

Goodrich did not accurately calculate the amount of rent and fees owed to the village. Auditors found discrepancies in the following areas:

  • $426 not paid in fuel fees and revenue on an improperly recorded inventory purchase;
  • $1,333 in rent payments excluded from $53,313 of aircraft sales commissions;
  • $7,467 in rent payments excluded from nearly $300,000 in maintenance revenues; and
  • $4,382 that Goodrich deducted from rent payments to recoup rent that was previously paid.

The audit recommends that the village:

  • verify the accuracy of the airport management company’s rental payments;
  • designate an appropriate village official to periodically audit the management company; and
  • request payments from Goodrich for rental calculation errors.

Village officials contacted the Comptroller’s office and asked that an audit be conducted to determine if the management company paid the correct amount of rent to the village. The village agreed with the findings of the audit. The village’s response is included in the audit.

Click here for a copy of the audit.

Local Government and School Accountability
The State Comptroller’s office is responsible for monitoring the fiscal affairs of local governments and school districts statewide. To help local government and school officials successfully fulfill their public duties, each year the State Comptroller’s office offers numerous training sessions on accounting procedures and governmental accounting as well as customized training and workshops on a variety of other topics. In 2006, more than 12,900 local government and school officials attended 95 training sessions across the state.

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