Alaska Administrative Code › Title 17 - Transportation and Public Facilities › Chapter 42 - Ted Stevens Anchorage International Airport and Fairbanks International Airport › Article 4 - Public Notice; Lease, Permit, and Concession Terms and Cancellation › 17 AAC 42.420 - 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, the airport manager shall
				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 the fee schedule established under
				17 AAC 42.125, or for airport
				planning and operational management. The lease shall require the lessee to
				submit periodically a certified activity report stating the lessee's gross
				sales, fuel deliveries, passenger and cargo volumes, number and CMGTW of
				landings, or other specified information regarding the lessee's operations and
				activity at the airport.
(b) In a
				lease, permit, or concession that requires the lessee to submit certified
				activity reports, the airport manager shall 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 operations on an airport;
(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 manager 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 manager 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 must 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; "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 on 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 all books and records for the period of time described
				in the lease; the period of time to preserve all books and records in a lease
				shall be a minimum of three years; 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.