STATE OF CONNECTICUT
Auditors of Public Accounts
John C. Geragosian • Craig A. Miner
STATE AUDITORS' FINDINGS AND RECOMMENDATIONS
STATUS OF PRIOR AUDIT RECOMMENDATIONS
OBJECTIVES, SCOPE, AND METHODOLOGY
July 21, 2026
We are pleased to submit this audit of the Tweed-New Haven Airport Authority for the fiscal years ended June 30, 2022, 2023, and 2024 in accordance with the provisions of Sections 2-90 and 15-120g through 15-120o of the Connecticut General Statutes. Our audit did not identify instances of noncompliance with laws or regulations.
The Auditors of Public Accounts wish to express our appreciation for the courtesies and cooperation extended to our representatives by the personnel of the Tweed-New Haven Airport Authority during the course of our examination.
The Auditors of Public Accounts also would like to acknowledge the auditors who contributed to this report:
Jaimey Makie
Kristy Sleight
Jaimey Mackie
Associate Auditor
Approved:
Our examination of the records of the Tweed-New Haven Airport Authority disclosed no recommendations.
Our prior audit report on the Tweed-New Haven Airport Authority contained one recommendation. The recommendation has been implemented or otherwise resolved during the current audit.
The Tweed-New Haven Airport Authority should contract for annual compliance audits in accordance with Section 15-120o(b) of the General Statutes.
We have audited certain operations of the Tweed-New Haven Airport Authority in fulfillment of our duties under Sections 2-90 and 15-120o(c) of the Connecticut General Statutes. The scope of our audit included, but was not necessarily limited to, the fiscal years ended June 30, 2022, 2023, and 2024. The objective of our audit was to evaluate the authority's compliance with Sections 15-120o(b) and (c) of the General Statutes which require the board of directors of the Tweed-New Haven Airport Authority to annually contract for compliance and financial audits of the authority's activities during the preceding fiscal year. Our primary audit objective was to evaluate whether the authority complied with its statutory requirement to obtain and submit these audits.
Our methodology included, but was not limited to, reviewing the annual compliance reports and the audited financial statements; and interviewing various personnel, as well as certain external parties. We obtained an understanding of legal provisions that are significant within the context of the audit objectives, and we assessed the risk that illegal acts, including fraud or other legal provisions could occur. Based on that risk assessment, we designed and performed procedures to provide reasonable assurance of detecting instances of noncompliance significant to those provisions.
The accompanying financial information is presented for informational purposes. We obtained this information from various available sources including the authority's management and the authority's information systems. It was not subject to the audit procedures applied in our audit of the authority. For the areas audited, we did not identify apparent noncompliance with laws and regulations.
Overview
The Tweed-New Haven Airport Authority (the "authority") created July 1, 1997, by Public Act 97-271, codified under Title 15, Chapter 267a of the General Statutes.
The authority was created to maintain and improve Tweed-New Haven Airport. The authority is a body politic and corporate constituting a public instrumentality and political subdivision of the state, created to perform an essential public and governmental function.
According to Section 15-120j of the General Statutes, the authority shall manage, maintain, supervise, and operate Tweed-New Haven Airport; conduct the business of a regional airport; charge reasonable fees for the service it performs; enter into contracts, leases, and agreements for goods and equipment and for services with airlines, concessions, counsel, consultants, and advisors; contract for construction projects; contract to finance the operations and debt of the airport and borrow funds for airport purposes; employ staff necessary to carry out its functions and purposes; acquire property for airport purposes; prepare and issue budgets, reports, procedures and audits; and execute all other powers granted.
The authority is authorized to issue bonds, notes, and other obligations for any of its corporate purposes. Debt issued by the authority is not debt of the State of Connecticut or any other political subdivision, and the state is not obligated for such debt, as specified in Section 15-120l(g) of the General Statutes. The authority has issued no bonds during the audited period.
Organizational Structure
Pursuant to Section 15-120i(b) of the General Statutes, the authority is governed by a 15-member board of directors, each serving not more than two consecutive four-year terms. Eight board members are appointed by the mayor of New Haven, five by the mayor of East Haven, and two by the South-Central Regional Council of Governments.
The board of directors elects a chairperson from among its members and annually elects one of its members as vice-chairperson. Robert Reed served as chairperson and John Picard served as vice-chairperson during the audited period.
The airport is staffed via a management contract and an executive director appointed by the authority. Sean Scanlon served as executive director during the audited period and until his resignation in December 2022. Thomas Rafter was appointed executive director in January 2023 and continues to serve in that capacity.
Significant Legislative Changes
There were no notable legislative changes that took effect during the audited period.
Financial Information
In June 2021, the authority and two contractors entered a three-party agreement that led to significant upgrades to the existing westside terminal, traffic, circulation, and parking.
On August 19, 2022, the authority amended its agreement with the City of New Haven, extending the airport lease through 2064. This agreement no longer anticipates the City of New Haven would provide subsidies for airport operations or capital projects. On the same date, the authority also entered a 43-year lease and development agreement (lease) with a lessee that included plans for future airfield enhancements and a new eastside terminal.
During the audited period, the authority accounted for its activities in five funds.
General Fund
Historically, revenues and expenses applicable to the operations of Tweed-New Haven Airport were accounted for within the General Fund. Following the lease execution on August 19, 2022, few transactions occurred in this fund. General Fund operating revenues for the fiscal years 2022, 2023, and 2024, respectively, are summarized below.
| As of June 30, | |||
| 2022 | 2023 | 2024 | |
| Revenues Description | |||
| State of Connecticut Subsidy | $ 750,000 | $ 0 | $ 0 |
| Concessions, Fees, and Rentals | 3,478,144 | 1,202,682 | 0 |
| Government Reimbursement and Other Income | 51,192 | 646,983 | 234 |
| City of New Haven Funding | 300,000 | 162,500 | 0 |
| Grant Income | 1,016,669 | 1,240,815 | 0 |
| Interest and Investment Income | 701 | 759 | 252 |
| Avports Reimbursements | 1,033,658 | 0 | 0 |
| Total General Fund Revenues | $ 6,630,364 | $ 3,253,739 | $ 486 |
The decreases in revenues in fiscal years 2023 and 2024 were due to provisions in the lease and development agreement in which the lessee recorded revenues from sublease agreements. Fiscal year 2023 revenues also included the recognition of federal CARES Act operating grants and certain professional fee reimbursements from the lessee.
General Fund expenses for the fiscal years 2022, 2023, and 2024, are summarized as follows.
| As of June 30, | |||
| 2022 | 2023 | 2024 | |
| Expenses Description | |||
| Management and Performance Fees | $ 305,964 | $ 42,358 | $ 0 |
| Authority Management | 132,150 | 20,717 | 0 |
| Professional Fees | 2,155,361 | 571,657 | 0 |
| Avports ASD Fund | 81,954 | 11,346 | 0 |
| Marketing and Promotional | 2,415 | 0 | 0 |
| Engineering Fees | 93,049 | 0 | 0 |
| Airport Operations: | |||
| Salaries and Benefits | 1,829,403 | 445,154 | 0 |
| Maintenance | 575,836 | 101,060 | 0 |
| Utilities | 282,626 | 74,836 | 0 |
| Residential Sound Insulation | 0 | 0 | 0 |
| Administration, Office, and Marketing | 409,956 | 45,872 | 0 |
| Insurance | 106,102 | 14,401 | 0 |
| Security | 290,542 | 51,942 | 0 |
| Interest Expense | 0 | 0 | 0 |
| Bad Debts | 0 | 0 | 0 |
| Parking Contractor Expense | 226,682 | 209,590 | 0 |
| Capital Outlays: | |||
| Infrastructure Capital Cost | 0 | 0 | 0 |
| Total General Fund Expenses | $ 6,491,950 | $ 1,588,933 | $ 0 |
The decreases in expenditures in fiscal years 2023 and 2024 were due to provisions in the lease and development agreement in which the lessee assumed responsibility for terminal operating expenses after August 19, 2022.
Passenger Facility Charge Fund
The authority accounted for passenger facility charges in the Passenger Facility Charge Fund. Passenger facility charges were fees collected for federally approved airport improvements and expenditures. The fees were added as surcharges to passenger airline tickets, with the approval of the Federal Aviation Administration (FAA) for a specific program period and are renewable upon request. The fund's expenditures are for various FAA-approved airport improvement projects. Revenues totaled $999,757, $2,036,808, and $2,256,419 during the fiscal years ended June 30, 2022, 2023, and 2024, respectively. The significant growth is due to an increase in passenger enplanements. There were no expenditures during fiscal years ended June 30, 2022, 2023, and 2024, respectively. As of June 30, 2024, the fund had a $4,400,360 restricted fund balance.
Capital Project Fund
The authority created this fund to account for restricted funds received from governmental agencies for capital projects. The fund was mainly comprised of Federal Aviation Administration and State of Connecticut Airport Authority reimbursements. The authority zeroed out year-end fund balances by making interfund transfers to or from the Passenger Facility Charge Fund.
| As of June 30, | |||
| 2022 | 2023 | 2024 | |
| Capital Project Fund | |||
| Revenues | $ 11,994,966 | $ 6,648,908 | $ 3,253,221 |
| Expenditures | 13,281,096 | 6,704,609 | 3,126,934 |
| Net Changes in Fund Balance | (1,286,130) | (55,701) | 126,287 |
| Fund Balance - Beginning of Year | (438,166) | 0 | 0 |
| Interfund Transfers | 1,724,296 | 55,701 | (126,287) |
| Fund Balance - End of Year | $ 0 | $ 0 | $ 0 |
Administration Fund
The Administration Fund was created in fiscal year 2023 to receive lease revenue and to pay administrative costs such as authority staff salaries and benefits, and legal, accounting, audit, and consulting services. Should the Administration Fund have a surplus at the end of the fiscal year, it is to be transferred to the Airport Reserve Fund.
| As of June 30, | |||
| 2022 | 2023 | 2024 | |
| Administration Fund | |||
| Revenues | $ 0 | $ 588,514 | $ 662,751 |
| Expenditures | 0 | 655,997 | 636,123 |
| Net Changes in Fund Balance | 0 | (67,483) | 26,628 |
| Fund Balance - Beginning of Year | 0 | 0 | (67,483) |
| Fund Balance - End of Year | $ 0 | $ (67,483) | $ (40,855) |
Airfield Fund
The Airfield Fund was created in fiscal year 2023 as part of the lease and development agreement to record revenues and expenses associated with the airfield. The lessee is required to subsidize any deficits in the Airfield Fund.
| As of June 30, | |||
| 2022 | 2023 | 2024 | |
| Airfield Fund | |||
| Revenues | $ 0 | $ 2,428,137 | $ 2,915,469 |
| Expenditures | 0 | 2,428,137 | 2,915,469 |
| Net Changes in Fund Balance | 0 | 0 | 0 |
| Fund Balance - Beginning of Year | 0 | 0 | 0 |
| Fund Balance | $ 0 | $ 0 | $ 0 |
Other State Financial Assistance
The State of Connecticut provided the authority with an operating subsidy of $750,000 in fiscal year 2022. The state did not provide any operating subsidies in fiscal years 2023 or 2024.
Other Audits and Engagements
An independent accounting firm performed compliance audits of the authority for fiscal years 2023 and 2024 and concluded that the authority complied, in all material respects, with the compliance requirements applicable to Chapter 267a of the Connecticut General Statutes. The fiscal year 2023 report noted that no formal appointment letters were on file for two board members. The finding was resolved, and no findings or recommendations were noted in the fiscal year 2024 compliance audit report.
An independent public accounting firm audited the authority's financial statements for fiscal years 2022, 2023, and 2024. The audit reports covering these fiscal years contained unqualified opinions and disclosed no reportable conditions or audit findings.