The Indiana State Board of Accounts reviewed and released the Gary Chicago International Airport Authority’s audit for 2022.
The organization released the audit on Dec. 18 and called special attention to misstatements in the airport authority’s financial statements. It was recommended that the airport establish a secondary review process for its financial reporting.
The Forvis Mazars Group, an international auditing and accounting firm, completed the Gary/Chicago International Airport Authority’s 2022 audit and found that its cash flow for the year was in accordance with U.S. accounting principles.
The audit found that the airport’s receivables and revenue were impacted by about $5.5 million and capital investments were impacted by about $395,000.
“The authority’s internal control environment did not identify these adjustments in a timely manner due to there not being a secondary review process in place for all year end reconciliations,” said audit documents. “In addition, there is not an effective process in place to properly reconcile federal grant and passenger facility charges on a timely basis.”
Dasha Chandler-Thompson, the airport’s finance manager, completed a corrective action plan, which is a guide to help reach compliance in the future. The airport has hired competent staff and has revised its accounting policies and practices to ensure revenues and expenses are recorded properly, the corrective action plan said.
“We will also create a year-end plan and timeline to ensure that all revenue and expenditures related to the current year are posted in a timely manner,” Chandler-Thompson said in the report. “Staff will complete the financials postings while management will be responsible for reviewing transactions and approving adjustments before the year end close is finalized.”
Chandler-Thompson said in her report that many of the errors related to revenue recognition were due to a lack of appropriate staffing in the airport finance department. The department recognizes that changes need to be made, she said.
For 2022, the audit found that the airport had more than $131.8 million in total assets, which include cash, receivable property taxes and charges for the passenger facility. Property tax rates for the airport in 2022 collected about $2 million for operating and $178,093 for cumulative building expenses.
The airport has about $7.2 million in liabilities, which include the organization’s bonds and long-term debt.
Bonds and long-term debt for 2022 added up to more than $22.8 million, according to audit documents.
In July, the airport authority approved an ordinance that called to issue two revenue bonds that total about $35 million, according to Post-Tribune archives. Some of the funding will go towards renovation work at the passenger terminal.
In October, the Gary Common Council didn’t approve the airport’s budget and reverted it to its 2024 numbers. The 2024 budget was about $4.4 million, and the maximum tax levy was about $2.7 million, according to Post-Tribune archives.
The estimated 2025 budget was more than $4.7 million, and the airport’s current tax levy is almost $2.3 million.
“Going forward, all employees and the board will continue working hard to develop the Gary/Chicago International Airport in order to create new jobs and economic opportunities in Gary and Northwest Indiana,” Former U.S. Rep. Pete Visclosky, airport authority chairman, said in a statement after the council’s original decision.
