(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.
(c) In this
section, unless the context otherwise requires,
(1) "lease" includes "permit" and
"concession";
(2) "lessee" includes
"permittee" and "concessionaire" and each sublessee of the lessee, permittee,
or concessionaire with respect to that sublessee's operations;
(3) "lessor" means the department as the
grantor in permits and concessions, as well as leases.
As of Register 165 (April 2003), the regulations attorney
made a technical revision under
AS
44.62.125(b)(6), to
17 AAC 45.420(b) (7)(B).