ALBANY COUNTY AIRPORT AUTHORITY
Independent Accountants’ Report
on Applying Agreed-Upon Procedures
For the period January 1, 2022 through December 31, 2024
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INDEPENDENT ACCOUNTANTS’ REPORT
ON APPLYING AGREED-UPON PROCEDURES
The Board of Directors
Albany County Airport Authority
Albany, New York
We have performed the procedures enumerated below to determine the compliance of the Albany
County Airport Authority (the Authority) with the requirements of applicable procurement laws and
policies, as well as time and attendance records (procurement and time records), for the period January
1, 2022 through December 31, 2024. The Authority’s management is responsible for the
procurement and time records.
The Authority has agreed to and acknowledged that the procedures performed are appropriate to meet
the intended purpose of evaluating the accuracy of procurement and time records. This report may
not be suitable for any other purpose. The procedures performed may not address all the items of
interest to a user of this report and may not meet the needs of all users of this report and, as such,
users are responsible for determining whether the procedures performed are appropriate for their
purposes.
The procedures and associated findings are as follows:
Compliance with Procurement Laws and Policies
1) Procedure:
We obtained a listing of all contracts and contract expenditures maintained by the Authority for
the period January 1, 2022 through December 31, 2024, and selected 10% of all contracts to ensure
that written, approved contracts were properly maintained. Additionally, we selected the top
five highest paid vendors from the period and traced those vendors to the list of active contracts.
Finding:
a) We viewed the contract agreements and extension approvals for selected vendors ensuring
proper maintenance of contracts. All vendors selected maintained a valid contract with
the Authority. No exceptions noted.
2) Procedure:
From the listing of contracts and contract expenditures maintained by the Authority, we reviewed
the Authority’s purchases to determine whether any purchases were made from vendors with
whom the Authority did not maintain a contract. For any vendors without a contract, we
inquired of Authority management.
Findings:
We identified four vendors without approved contracts. For each, we inquired of management as
to the reason, noting the following:
a) Adirondack Trailways: We noted that Adirondack Trailways provides bus service from
the airport. Per discussion with the Acting Chief Financial Officer (CFO), the
Authority collects money for Adirondack Trailways from the sale of bus tickets, and
then passes their share to the vendor after withholding an agreed-upon percentage.
b) Guardian Life Insurance and Capital Districts Physicians: Per discussion with the
Acting CFO, Guardian Life Insurance and Capital Districts Physicians are health service
providers, selected and used, by AFCO AvPorts for their employees. Since the
Authority holds a contract with AvPorts, they must pay Guardian Life Insurance and
Capital District Physicians to cover the benefits of AvPorts employees even though the
Authority does not have a proprietary contract with those vendors.
c) National Grid: Per discussion with the Acting CFO, National Grid is the sole source for
electricity delivery and, therefore, there is no contract maintained with National Grid.
As such, no exceptions noted.
3) Procedure:
We obtained a listing of all purchase requisitions for the period January 1, 2022 through December
31, 2024. From this listing, we selected all purchase requisitions over $50,000 that were noted as
being approved by the Chief Executive Office (CEO). Authority procurement guidelines
indicate that all purchases over $50,000 must be approved by the Board.
Findings:
a) Dust Busters Cleaning Service was approved by the CEO for cleaning services of $50,000
at Million Air (requisition No. 63874 dated 7/18/2022) and $30,030 (requisition No.
65380 dated 1/13/2023), for which no competitive bids were maintained in the purchase
requisition system. Purchase was not subsequently approved by the Board.
b) Cristo Demolition, Inc. was approved by the CEO for demolition of 362-364 Old
Niskayuna Road for $96,000 (requisition No. 67182 dated 8/31/2023). Purchase was not
subsequently approved by the Board.
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c) Flooring Environmental Corp. was approved by the CEO to replace the carpet in
Transportation Security Administration office spaces for $54,961 (requisition No.
62736 dated 3/21/2022). Purchase was not subsequently approved by the Board.
d) A-J Lawn Sprinkler Company Inc. was approved by the CEO for installation of an
underground sprinkler system for $46,500 (invoice No. 81468 dated 12/13/2022;
requisition No. 64225 dated 9/1/2022). As amount was below the $50,000 threshold,
Board approval was not required. However, a change order for $11,000 was made
during the project and was billed separately, but with the same invoice number
(invoice No. 81468 dated 12/13/2022), although a separate purchase requisition was
created (requisition No. 64653 dated 10/19/2022. As such, the project totaled
$57,500 but was not subsequently approved by the Board. The Authority’s
procurement policy states that all approvals are cumulative, and therefore, Board
approval was required for this purchase.
e) Since 2011, the Albany International Airport has maintained an Air Service Incentive
Program, which supports the Airport’s development efforts by encouraging
incumbent and new entrant carries to consider new market opportunities and
expansion. This is achieved by waiving certain fees for a period of 24 months,
including landing fees, terminal fees, boarding bridge fees, and several other fees.
Previous versions of the program were submitted for Board approval at various dates
between 2011 and 2018. However, management of the Authority indicated that the
last two versions of the Air Incentive Program, the first covering calendar years 2021-
2022 and the second covering calendar years 2023-2024, were not submitted for
Board approval. The Board requested quarterly briefings regarding airline
development and the incentive program during this period, but the previous executive
team provided none despite repeated requests. Management tracks the incentive
credits to airlines. Utilizing supporting documentation provided by management, we
recalculated that the following credits were provided under programs which had not
been approved by the Board:
Year Airline Amount
2022 Delta $ 262,823.84
2023 Delta 269,493.77
2023 American 301,862.76
2024 Delta 19,540.27
2024 American 341,456.06
2024 Avelo 344,785.64
4) Procedure:
From the listing of purchase requisitions, we selected all purchase requisitions over $50,000
that were noted as being emergency purchases. Authority procurement guidelines indicate
that all emergency purchases must be subsequently approved by the Board through a CEO
board report.
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Finding:
a) Precision Industrial Maintenance, Inc. was approved to provide closed circuit television
and UV pipe lining under runway 1-19 for $123,850 per requisition No. 69265 dated
4/30/2024. Management indicated that this was initially approved as an emergency
purchase, and subsequently was properly approved by the Board. No exceptions noted.
5) Procedure:
From the listing of purchase requisitions, we scanned for any other irregular or unusual purchases,
and inquired of the management of the Authority as to the nature of the purchase.
Findings:
a) Purchases for Million Air: Although each individual purchase for Million Air did not
exceed the $50,000 threshold requiring Board approval, we noted several purchases which
we questioned. These included the purchase of a Polaris Utility Task Vehicle (UTV)
for
$30,521 (requisition No. 68613 dated 2/27/2024). The UTV purchase was approved by
the Board on 3/18/2024. Additionally, we noted purchase requisitions totaling
$78,231.99 for snacks, soda, cookies, and other items deemed “incentives” for Million
Air during the period January 1, 2022 through December 31, 2024. This amount is
composed of numerous purchase requisitions with Sysco ($29,976.69), Restaurant Depot
($19,535.87), and DeCrescente Distributing Co. ($28,719.43) for these items, for which
no competitive quotes were maintained in the purchase requisition system. Purchasing
guidelines indicate that three price quotes must be received for all purchases over
$5,000.
b) We noted an invoice from James Grady for $13,000 dated 7/25/2022 (requisition No.
63911 dated 7/26/2022) for the installation of fir trees near the terminal entrance, for which
no quotes were received. Management was unable to find evidence of three quotes
before the purchase was made. Purchasing guidelines indicate that three price quotes
must be received for all purchases over $5,000.
6) Procedure:
We obtained a listing of all purchases made by the Authority for the period January 1, 2022
through December 31, 2024, and sorted this listing to determine whether purchases which would
have exceeded the $50,000 threshold requiring Board approval were separated into smaller
purchases which could have circumvented the need for Board approval.
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Finding:
a) M&K Greenhouses supplied flowers and plants to the Authority for landscaping. For
2022, we noted two purchase requisitions totaling $66,868, each of which were separately
below the $50,000 threshold: requisition No. 62668 for $26,528 dated 2/8/2022, and
requisition No. 65688 for $40,340 dated 2/22/2023. Note: despite the 2023 date on
requisition No. 65688, the description indicates the requisition is for spring, summer, and
fall flowers 2022. For 2023, we noted two purchase requisitions separated by one
number totaling $67,690, each of which were separately below the $50,000 threshold:
requisition No. 67657 for $33,290 and requisition No. 67658 for $34,400. Both of these
two requisitions were dated 11/1/2023. For 2024, we noted three consecutive
requisitions totaling $92,915, each of which were separately below $50,000: requisition
No. 70137 for $29,915, requisition No. 70138 for $31,150, and requisition No. 70139 for
$31,850. All three of those requisitions were dated 8/22/2024.
7) Procedure:
We obtained a listing of all purchases made by the Authority for the period January 1, 2022
through December 31, 2024. We sorted this listing by date to determine whether purchases, which
would have exceeded the $50,000 threshold requiring Board approval, were separated into smaller
purchases within seven days of each other in order to circumvent Board approval.
Finding:
a) There were several invoices that were paid within seven days of each other, to the same
vendor. We inquired of management regarding these invoices and were informed that
these invoices were incurred in the normal course of business, for expenditures such as
management services, fuel, and employee benefits. Management indicated that such
expenditures are recurring in nature, and are made with vendors that are under contract
with the Authority. As such, no exceptions noted.
Recommendations for Improvement Over Procurement
1) We recommend that the Authority maintain a listing of all vendors with notations as to whether
quotes and/or bids have been received as well as which vendors have received Board approval.
When processing cash disbursements this vendor listing should be cross-referenced before any
payments are processed. This will assist in reducing and, potentially eliminate, any payments to
vendors to whom have not yet received the necessary approvals. We did note that there are
currently notes with similar information being tracked in an excel spreadsheet. The purpose of
this recommendation is to make this a formal aspect of the cash disbursement process.
2) We recommend that all change orders be presented to the Board for approval. Presenting
change orders to the Board will allow the Board to approve cash disbursements that were
originally below the $50,000 threshold, that have aggregated to an amount in excess of $50,000.
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Review of Time and Attendance Records
8) Procedure:
We obtained access to the Authority’s payroll system and generated reports of time charged as
“COVID time” or “Work Offsite time” for the period January 1, 2022 through September 10,
2024. September 11, 2024 through December 31, 2024 were excluded from the calculations as
all work was required to be from the office during this period. Authority guidelines indicated
employees were only allowed three hours of time charged to these codes daily depending on
position level. From the reports, we determined whether employees charged more than three of
eight hours daily (i.e., 37.5% of their time charges) to these codes.
Findings:
a) There were no employees who exceeded the 37.5% threshold of allowable COVID/Work
Offsite time.
b) As there were no employees who exceeded the 37.5% threshold of allowable
COVID/Work Offsite time, we selected the five individuals who charged the most
COVID/Work Offsite time during the period January 1, 2022 through September 10,
2024 for performance of procedures #9, #10, and #11.
9) Procedure:
In order to verify whether employees worked the required amount of on-site hours daily as
required by Authority guidelines, we obtained parking ramp records to determine the arrival and
departure time of each employee selected for the period January 1, 2022 through September 10,
2024 which was established in finding #8(b) above. Additionally, we selected one contractor at
the request of management. From these records, we calculated the number of hours that each
employee was parked in the airport’s parking ramp and what percentage of total days did not
meet the requirement to work on-site for five hours.
Findings:
a) The parking garage records contained multiple days without “in” or “out” times recorded due
to possible errors in the system or circumstances that would cause the parking garage to not
record time properly. Therefore, those days have been excluded from the calculation in
finding #9(c) below.
b) The percentages are not exact representations of hours worked, but are estimates of time spent
on-site at the airport for each year based on parking records. Therefore, immaterial
differences can be expected.
c) We determined that the tested individuals’ percentage of time in the parking garage that did
not meet the minimum number of hours required to be on-site (five of eight hours) ranged
from 31.4% to 74.6% during 2022, from 2.1% to 72.9% in 2023, and from 3.2% to 84.1% for
the period from January 1, 2024 to September 10, 2024.
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10) Procedure:
We obtained a listing of all Authority’s employees time logs which included login and out times.
Manual time logs, used when an employee does not login or out of the system, are tracked in the
time logs. Manual login and outs can be performed by another employee and can potentially
represent inaccurate time performed as the employee does not have to be present to do the time
log.
Finding:
a) We determined that, for the individuals tested in finding #8(b), the percentage of days using
manual login ranged from 2.9% to 11.6% during the period of January 1, 2022 through
September 10, 2024. Additionally, the percentage of days using manual logout ranged from
5.3% to 55.9% during the period of January 1, 2022 through September 10, 2024.
11) Procedure:
For the period January 1, 2022 through September 10, 2024, we compared manual login and out
times to arrival and departure parking records. As manual login and outs are subject to more
manipulation, they were deemed to be higher risk and, therefore, subject to this test.
Findings:
a) We determined that, for the individuals tested in finding #8(b), the percentage of days with
manual login times in which the login time was more than 15 minutes from the parking
garage arrival time ranged from 7.3% to 68.8% during the period of January 1, 2022 through
September 10, 2024. Additionally, the percentage of days with manual logout times in which
the logout time was more than 15 minutes from the parking garage departure time ranged
from 24.0% to 93.3% during the period of January 1, 2022 through September 10, 2024.
b) We selected the individual with the highest number of early departures from finding #11(a),
and determined that there were 119 instances in which this employee had a manual log out
time of 2:00 p.m., with a garage departure time of 12:00 p.m. or earlier, during the period of
January 1, 2022 through September 10, 2024.
12) Procedure:
For the period January 1, 2022 through December 31, 2024, we obtained the payroll timesheet
records of two contractors (Name Redacted and Name Redacted) who performed work for the
Authority, in order to determine how many hours each individual worked per day according to
the recorded times in and out.
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Findings:
a) We noted that Name Redacted worked 633 days during the period January 1, 2022 through
December 31, 2024, excluding vacation, holiday, and sick time, as well as other excused
absences. During this period, Name Redacted averaged 5.43 work hours per day. Of the
633 days worked, we noted 53 days had manual login times and 306 days had manual logout
times.
b) We noted that Name Redacted began work on September 25, 2023. Name Redacted’s
timesheet records initially included only 3 days with time out recorded from September 25,
2023 until October 4, 2024. As such, we utilized the parking garage time out as Name
Redacted’s exit time during this period. Overall, Name Redacted worked 242 days with
complete daily time records during the period January 1, 2022 through December 31, 2024,
excluding vacation, holiday, and sick time, as well as other excused absences. During this
period of time, Name Redacted averaged 5.20 work hours per day. Of the 242 days worked
with time records, we noted 20 days had manual login times and 17 days had manual logout
times.
Recommendations for Improvements Over Time and Attendance Records
1) The Authority’s payroll system tracks manual login and out times that are used when an employee
forgets to log-out in the system. We recommend that the Authority, on a monthly basis, perform
a count of number of times that each employee uses the manual login and out option as well as
send out reminders to employees that the manual login and out option be used sparingly. This
will assist in accurate time keeping and prevent employees’ estimating their approximate arrival
and departure times.
2) As part of this engagement, we requested access to employees’ login and out records tracked in
the computer software. We were informed that these records only go back as far as 30 days. We
recommend that this information be downloaded monthly in order to maintain a record of
employee time. We also recommend a monthly reasonableness test to compare employee time
recorded as logged in against employee time recorded in the payroll software. This will assist in
identifying any potential cases of time theft.
We were engaged by the Authority to perform this agreed-upon procedures engagement and
conducted our engagement in accordance with attestation standards established by the American
Institute of Certified Public Accountants. We were not engaged to and did not conduct an
examination or review engagement, the objective of which would be the expression of an opinion or
conclusion, respectively, on the procurement and time records. Accordingly, we do not express such
an opinion or conclusion. Had we performed additional procedures, other matters might have come
to our attention that would have been reported to you.
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We are required to be independent of the Authority and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the Board of Directors and management
of the Authority and is not intended to be and should not be used by anyone other than those specified
parties.
Williamsville, New York
March 4, 2025
