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Commissioner Scott asked if Myrtle Beach was Elite’s choice or ours. Mr. Giardino
reported that it was their choice and that Myrtle Beach Airport wanted this as well and
influenced the decision for Elite to come here with no input from us.
DIRECTOR OF FINANCE & ADMINISTRATION
Ms. Renee Ford, Director of Finance & Administration gave the following report:
FY2017 FINANCIAL AUDIT
Ms. Ford introduced Leslie Roberts from Dixon, Hughes and Goodman to give the
overview of the findings from the FY2017 Financial Audit. Ms. Roberts reported that the
audit this year was a more intense audit than usual. It was considered high risk after the
findings of the State Audit. The sample size of items they looked at were double or
tripled in size. They also looked at different tasks than before such as all accounts,
contracts, travel, entertainment and technology.
The Peninsula Airport Commission was issued the highest level of assurance that the
auditors can give.
Under basic financials, there is the statement of net positions that shows that the cash
and cash equivalents are down this year. The majority of this is due to capital projects.
We had more expenses in this area than in the past related to Professional Services.
Also, in the terminal area, the consolidated checkpoint was finishing and the Take
PHFlight Restaurant opened and had expenditures associated with that. The net
position showed that more than 100% of net position was in capital assets which is not
unusual for airports.
Commissioner Steve Mallon asked what unrestricted cash is. Ms. Ford explained that
unrestricted cash is airport revenue that still has restrictions because it has to stay on
the airport and be used for capital improvements or operating expenditures. Mr.
Giardino, Executive Director, stated he would like to provide Commissioner’s training on
the FAA grant assurances.
The Statement of Revenue shows a new item this year entitled Cost of sales, this is
related to the new restaurant that opened this year. Also, depreciation is flat this year
over last year and the reason for this is that we brought the new Consolidated
Checkpoint into being in June so it will not show depreciation until next year.
The findings show there were some material weaknesses and deficiencies. There was
failure to procure bids according to the amount of the threshold the contract fell under,
and there was use of a personal credit card in instances where people had an airport
credit card. Both of these have had a policy revision by management.
Regarding federal money, there were some allowable and unallowable costs that were
charged to a grant. One resolution for this is to have an RPR (Resident project
representative) on site for large projects. It was also noted that some of the certified
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