Aviation Audit May Contain Caution Flag

A new audit of the Kansas City Aviation department shows the agency’s books to be in good shape.

The audit, however, also shows a concern.

Auditor Doug Smith report says the Aviation Dept. is “breaking even.

The report, however says “if additional debt is incurred, Aviation may need to improve margins” to cover its debt.

That may be an issue depending on if the city moves ahead with improvements at Kansas City International airport.

The City is expected to decide what, if anything, it will do at KCI during the first half of this year.

The audit also pointed to another issue. City Auditor Jones says the Aviation Dept.’s capital assets are aging. That earned the department an “unfavorable” rating in that category.

Most other categories earned a favorable rating from the auditor.
Jones says the financial condition
of the Aviation Dept. is “generally favorable”.

His audit also measured the financial health of two other city departments that are considered “enterprise funds”.

That means they operate more as separate businesses than most City Hall Departments.

Enterprise fund agencies are expected to operate based on the revenue they collect for their services. in the case of the airport that would be fees from airlines and passengers.

In the case of the water service and waste water departments, it would be the revenue collected from billing.

The financial condition of the sewer and water funds was rated, “mostly favorable”.

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