Revenue Diversions at San Francisco International Airport: $12.5 Million
April 02, 2004
Project ID: SC-2004-038
We publicly issued our audit report on revenue diversion at the San Francisco International Airport, in which we found about $12.5 million of airport revenue in FYs 1998-2002 was diverted to city and county uses. Eight city departments diverted revenues by charging the airport for indirect costs that were already paid according to an annual service agreement, for unsupported costs, and for direct services which were based on an allocation that was inconsistent with other comparable units of government. We recommended that FAA determine the extent of revenue diversion since fiscal year 1998, find out if identified revenue-diversion practices had been corrected, and seek full recovery of the revenues, including the $12.5 million identified in the audit.