ST. PETERSBURG-CLEARWATER

INTERNATIONAL AIRPORT

REVIEW OF LEASE AGREEMENTS

INDUSTRIAL PARK

REPORT NO. 2000-12

SEPTEMBER 28, 2000

Karleen F. De Blaker

Clerk of the Circuit Court

Ex officio County Auditor

Robert W. Melton, CPA, CIA, CFE

Chief Deputy Director

Internal Audit Division

Prepared by: Supervised by:

Deborah Cross-McCray Ronald M. Peters, CIA, CISA

Internal Auditor Senior Internal Auditor

Scope and Methodology

Our objectives were to: 1) determine if the terms of the Airport Industrial Park leases were being complied with, 2) evaluate the effectiveness of the lease oversight process, and 3) determine compliance with any applicable laws.

Our methodology included a review of lease terms, insurance coverage, and other documents that were required of the lease. We confirmed timely receipt of rent payments, and we tested internal controls over the collection of rent. Our review covered the Airport Industrial Park contracts from October 1, 1996, through the period ending March 31, 2000. We performed such other audit procedures as we considered necessary in the circumstances.

Overall Conclusion

We conclude Airport Administration is providing adequate oversight for leases and is generally in compliance with laws and lease terms. Our review revealed no matters which require management's attention.

Background

The United States of America, through the War Assets Administrator, entered into Quit Claim Deeds dated December 17, 1947, and July 2, 1948, with Pinellas County for land that includes St. Petersburg-Clearwater International Airport and surrounding areas. The deeds stipulate that the land is subject to the reservations and restrictions set forth by the Surplus Property Act of 1944, and is to be used solely for the benefit of the Airport. Land and buildings not used specifically for airport purposes are used to generate income to the Airport. This is done by leasing land and buildings to public and private entities. In many instances private developers have leased land and constructed buildings on the land. The developers then lease these buildings to public and private entities.

As of March 31, 2000 year to date revenue received for Industrial Park leases was $1,318,565 for Fiscal Year 1999/2000.

Our audit did not identify any policies, procedures or practices where significant improvement is needed. Our audit was neither designed nor intended to be a detailed study of every relevant system, procedure or transaction. Accordingly, opportunities for improvement could exist which were not identified in this audit.

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