Hawaii Administrative Rules › Title 19 - DEPARTMENT OF TRANSPORTATION › Subtitle 2 - AIRPORTS DIVISION › Chapter 20.1 - COMMERCIAL SERVICES AT PUBLIC AIRPORT › Subchapter 1 - GENERAL PROVISIONS › Section 19-20.1-5 - Records; audit of records; reports

Current through June, 2024
(a) This section
				  shall apply to permittees who are required to pay percentage fees.
(b) The permittee shall maintain up-to-date
				  records and books in accordance with a recognized system of bookkeeping and
				  such records and books shall reflect a segregation of airport revenue in the
				  general ledger, reconciled and supported by original source documents. Such
				  records including original source documents shall be kept for three years in
				  the state following the end of the permit year.
(c) The State shall be granted access, at all
				  reasonable times, to all books, accounts, records and reports including gross
				  income tax reports and data from a digital network or software application
				  service, as defined in section
				  19-20.1-55
				  and as required by section 19-20.1-62, showing daily receipts; and at any
				  reasonable time on twenty-four hours' notice the permittee will permit a
				  complete audit to be made by the State's accountant or by a certified public
				  accountant of the permittee's entire business affairs and records relating to
				  the business conducted at, from or in connection with the airport for the term
				  of the permit. The permittee will cooperate fully in the making of any
				  inspection, examination or audit. Should such audit by the State's accountant
				  or by a certified public accountant disclose that fees have been underpaid by
				  two percent or more for any period under examination, the State shall, in
				  addition to the remedies provided in subsection (e) of this section, be
				  entitled to reimbursement of the reasonable cost of any such audit in addition
				  to the deficiency. If such audit by the State's accountant or by a certified
				  public accountant shall disclose that fees have been underpaid by five percent
				  or more for the period under examination, the state shall, in addition to the
				  foregoing rights, have the right, upon ten days' notice, to revoke the
				  authorization to conduct the applicable commercial service at public
				  airports.
(d) The permittee shall,
				  on or before the twentieth day of the succeeding month, file with the director,
				  on forms prescribed by the director, a report of its gross receipts for the
				  previous month certified to by a qualified representative of the permittee; the
				  certifier shall state that it has examined the books, records, and other
				  evidence of the gross receipts of the permittee for the period reported and
				  that to its knowledge the statement is true and correct. The statement shall be
				  in such form and contain such details and breakdowns as the State may require.
				  Payment of requisite fees shall be submitted with the report. Any amount
				  payable which shall not have been paid when due shall bear interest at the rate
				  of one percent per month
(e)
				  Without prejudice and in addition to any other remedies the State may have for
				  such default, if the permittee shall fail to promptly furnish any monthly
				  report, the State may have such report prepared by an accountant to be selected
				  by the State, at the expense and on behalf of the permittee. The permittee
				  shall furnish to such accountant all records requested for the purpose of
				  preparing such reports, and the permittee shall pay to the State all expenses
				  incurred by the State in securing such reports. Furthermore, the State may
				  select procedures which would produce a reasonable gross receipts expectation,
				  and assess percentage fees based upon gross receipts so computed. In the event
				  that records have not been prepared and kept in accordance with this chapter,
				  the State shall, in addition to all other payments required herein, be entitled
				  to demand and receive an additional payment of ten percent of the gross receipt
				  fee for the periods involved.