Alaska Administrative Code › Title 17 - Transportation and Public Facilities › Chapter 45 - Rural Airports › Article 4 - Public Notice; Lease, Permit, and Concession Terms; Insurance; and Cancellation › 17 AAC 45.420 - Terms for a lease, permit, or concession for operations that require certified activity reports

Current through May 31, 2024
(a) In addition to
				the other applicable requirements of this chapter, and when not prohibited by
				applicable law, the department will include, as applicable, in a lease, permit,
				or concession a means for collection of data necessary for receipt of certain
				federal money, for participation in a federal aviation program, for
				determination of fees payable under the lease or under this chapter, or for
				airport planning and operational management. The lease will require the lessee
				to submit periodically a certified activity report that contains all
				information required in the lease.
(b) In a lease, permit, or concession that
				requires the lessee to submit a certified activity report the department will
				include provisions that
(1) require the lessee
				to submit periodically to the lessor on an airport form or in another form
				acceptable to the lessor certified activity reports that contain all
				information required under the lease;
(2) require the lessee to accurately and
				contemporaneously document in the lessee's records all information required
				under the lease;
(3) require the
				lessee to establish and maintain books and records in accordance with generally
				accepted accounting principles;
(4)
				reserve to the lessor the right to audit, during regular business hours, the
				lessee's books, records, including electronic data and text files, and
				supporting data and documents regarding the lessee's activities that are
				subject to certified activity reporting under the lease, permit, or
				concession;
(5) require the lessee
				to either transport the necessary books and records to a location on the
				airport for inspection and copying or allow the audit to be performed at the
				location where the lessee maintains the books and records; the department may
				also include provisions in the lease that provide that the lessor may, upon
				reasonable notice, require the lessee to give an auditor designated by the
				lessor access to relevant books and records where and as the lessee maintains
				the documents;
(6) require that a
				lessee who elects to, but not a lessee who is required to, have an audit
				performed at the location where the lessee maintains the records pay the
				lessor, within 30 days of the billing date, the audit costs the lessor incurs;
				in this paragraph, "audit costs" include round trip air and ground
				transportation from the auditor's duty station to the location where the lessee
				maintains the books and records and per diem at the State of Alaska rate for
				each day of travel and on-site audit work; in this paragraph, "audit costs" do
				not include salary and benefit costs of an auditor;
(7) require the lessee to pay, within 30 days
				of the billing date, any underpayment disclosed by an audit plus
(A) interest at the rate provided in
				AS
				45.45.010 from the date payment was required
				to be made for the relevant activity had it been accurately and timely
				reported;
(B) any actual costs and
				attorney fees that the lessor incurs to collect the underpayment; and
(C) if the underpayment is more than $5,000
				in any fiscal year, all audit costs that the lessor incurs, including salary
				and benefit costs of the auditor;
(8) require the lessor to credit a lessee's
				account if an audit discloses that the lessee has overpaid for the audit
				period;
(9) require the lessee
				annually to furnish the lessor with a special purpose financial statement,
				certified as true and correct and signed by an independent certified accountant
				or the lessee's chief financial officer; the financial statement must
(A) reflect the lessee's gross sales, fuel
				deliveries, passenger volumes, or other information required under the lease,
				as applicable, during the year and for which certified activity reports are
				required under the lease; and
(B)
				certify whether the lessee is maintaining accounting records in accordance with
				the lease;
(10) require
				the lessee to preserve and keep accessible all books and records, however
				recorded or stored, for the period of time described in the lease; the period
				of time to preserve all books and records in a lease will be a minimum of three
				years after the last entry of information into the respective book or record;
				notwithstanding the minimum period of time set out in this paragraph, if the
				lessor objects to any report or statement submitted by the lessee, the lessee
				shall preserve all books and records until the objection is resolved or for the
				period of time described in the lease, whichever is longer; and
(11) require the lessee to furnish other
				financial or statistical reports as the lessor may reasonably require regarding
				any business of the lessee for which the lease requires certified activity
				reports.