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Audit of SFO Enterprises finds about $1.4—6$1.5 million loss; airport director accepts recommendations

Government Audit and Oversight Committee, City and County of San Francisco · February 12, 2007
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

A controller audit of SFO Enterprises found recorded and unrecorded liabilities leading to an estimated aggregate loss of about $1.4 million; the audit flagged weak controls, late agreements and an improper $40,000 travel advance; Airport Director John Martin said he accepts the recommendations and the airport has set up a reserve for the loss.

The committee heard a controller audit of SFO Enterprises (SFOE), the city-owned, for-profit corporation created by a 1997 resolution to market airport services. Controller staff described recorded and unrecorded liabilities and concluded, after accounting adjustments, that the operation produced an aggregate loss of about $1.4 million. The airport projects the ultimate loss at about $1.5…

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