Finance and Audit Committee Meeting - September 19, 2025
Finance and Audit Committee Meeting - September 19, 2025
The Finance and Audit Committee of the Indianapolis Airport Authority met on September 19, 2025, at 1:30 PM ET. The committee reviewed and approved items including the appointment of the external auditor for the 2025 audit and a transatlantic air service incentive plan supplement. Staff provided updates on internal audit findings, treasury and liquidity positions, and year-to-date budget performance.
Appointment of Auditor for 2025 Audit
- Robert presented a recommendation to utilize Forvus as the independent auditor for the 2025 audit, noting a competitive process in 2024 that secured a three-year rate guarantee. The committee discussed the firm's long tenure (over 30 years), local staffing, and expertise in airport auditing.
- A motion to approve was made and seconded, and the motion carried unanimously (all in favor, none opposed).
Transatlantic Air Service Incentive Plan Supplement
- Mario presented a proposed supplement to the air service incentive plan, seeking up to $3 million per year for up to two years (with a possible third year for specific key markets: Paris, London, Frankfurt, Amsterdam, and Madrid) to attract a new transatlantic flight. No single airline could receive more than $2 million per year.
- Staff highlighted that the Dublin flight (Air Lingus) has exceeded expectations, adding a fifth weekly frequency, and that peer airports like Cincinnati and Pittsburgh sustain two European flights. The economic impact of a year-round transatlantic flight is estimated at over $60 million annually.
- A motion to approve was made and seconded, followed by discussion. The motion carried unanimously.
Internal Audit Updates
- Rhea reported on completed audits for Concur (business expense reimbursement platform) and the procurement card (P-card) program. Findings included one incorrect expense type, one disallowed expense (subsequently reimbursed), and some missing receipts. No systemic issues were identified. A brief discussion ensued about the 20% tip limit in the travel policy; staff agreed to review it.
Policy Review
- Robert reviewed the policies under the committee's purview. Four policies (investment, company credit card, derivative, and financial policy) are being withheld for further analysis and will be brought back in November or later. All other policies were reviewed with no recommended changes and no action was required.
Liquidity and Treasury Updates
- Keith Rexing reported that days cash on hand remained at 542 (about 1.5 years) with no material change. The committee discussed potential changes to the financial policy to consolidate days cash on hand targets and clarify the target versus minimum.
- The treasury dashboard showed compliance with investment policy and an anticipated $3.5 million in excess investment income (largely from bond proceeds), with $500,000 allocated to the airline incentive program.
Budget Performance Through July
- Lisa Hawkins presented year-to-date results: passenger traffic was 0.8% below prior year but on budget, while cargo landed weights were 8.8% below budget (though July showed improvement). Total revenue was $2.1 million above budget, expenses $4 million under budget, and debt service coverage stood at 1.73 (well above the 1.25 requirement). The $4.4 million outperformance is being reviewed for one-time investments.
Accounts Receivable and Bad Debt
- Accounts receivable over 60 days totaled $268,000. The reserve for bad debt was $147,000, with no write-offs through July.
Key Outcomes
- Approved appointment of Forvus as auditor for the 2025 audit (unanimous).
- Approved transatlantic air service incentive plan supplement (unanimous).
- No other formal votes were taken; items were informational or discussion-only.
- Next meeting scheduled for November 21, 2025.
Meeting Transcript
Motion. So move. Motion by Tomikas or second. Second. Second by Dwayne. Any discussion. All in favor, say aye. Aye. Aye. Motion's been adopted. Somebody online, sir. Umber. Yes. Okay. So we're good. Oh, so motion's been adopted. Um next uh Robert recommendation of to utilize four of us as our auditor uh for the 2025 audit. Robert, yeah. So for us ours, uh, we went through a competitive process last year. When we go through that, we ask for a rate commitment for either three to five years. And in this instance, Forvus was comfortable with a three-year, a lot of uncertainty of inflation and that type of thing. And so um we obtained that, but that's a little unique compared to normal contract. Normal contract, we've we do a contract for the whole time period. The approach we've taken, and I think works very well, is to come back each year, have the rate guarantee in hand, but discuss if the Bennett's an audit committee is satisfied with the result and approaches by uh the independent auditor, and then to bring that forward each year to the board. That's what we're doing. Um the uh price that was in the memo is the uh agreed and negotiated uh three 2025 audit price that was in the three-year rate guarantee. There's one more year from that guarantee. That would be the basis, and if there's any questions, um Rick asked me if he should be here today. I said I don't believe he had another commitment. I said, I think the right place to invest your time is the full board. So um if there are any, then you can also ask those questions there, or we could uh follow up after this meeting in writing. A motion to approve so moved second, second by to make uh is there discussion or questions for Robert? Robert, I assume you don't you have not had any problems with Forvest, but can you confirm that that you're happy with what they do each year? They are experts and they bring value, so I would say no problems. It is uh and it's always when you have somebody auditing you, right? You're going through a process together, but the thing I would say is is they never uh have the relationship in the history stand in their way of doing what the board is in um engage them to do, which is to dig deep, go into things, and to bring forward anything that uh they would find. So it is kind of the best of both worlds to have that kind of integrity with that working relationship, so it is uh working very well. How long have we went with the so depending on the different firms? It actually has been over 30 years that and it used to be long time ago, George S. Olive, or just all of became BKD, BKD became Forbus, and now Forbus has become Forbus Mazars. We don't have the same audit team for that whole time, but the airport practice for that CPA firm actually, I think got its genesis in Indianapolis. They became experts. We are actually a somewhat complicated airport, having a noise program, all the grants, the different things, and they really became experts in that. Um, there are a couple other CPA firms that actually bid on the work that the last time. Um, and ultimately the approach by Forbus, their use of local uh other vendors. They are this audit is 100% staffed locally. Um, some of the other firms bring uh people from other other locations, all of those factors were what went into the selection team. Uh Maria, I think was part of when we were on that team, Alias was as well. So uh it is that longevity, and we have done many competitive processes through the years, it's not just uh roll roll roll, so that's why it was done again in 24. What you said, what's impressive to me is that they may have started going back to George Solliver whoever had the original contract, but based off this initial representation, they've built a national presence, right?
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