'Errors are possible': FAA says Erie airport sought reimbursement that wasn't allowed

The Federal Aviation Administration rendered a split decision on a complaint that the Erie Airport Authority had misused $758,764 in Coronavirus Aid, Relief and Economic Security, or CARES Act funding.

Some of that money — $168,000 that was used to make 12 monthly payments of $14,000 each to the employee pension plan — was determined to be a valid use of CARES Act funds. That's according to a letter sent to the Airport Authority by a representative of the FAA.

But David Cushing, manager of airports financial assistance for the FAA, said the same cannot be said of $590,764 that was used to pay off the Airport Authority's existing pension debt.

Cushing spelled out the difference in a letter, a copy of which was obtained by the Erie Times-News, that was addressed to Daniel Giannelli, president of the Airport Authority board.

According to the letter, "It is our preliminary determination that the $168,000 in CARES Act funds provided to ERAA to reimburses itself...was a valid use of CARES Act funding."

Why wasn't the $590,764 valid as well?

The difference, Cushing explains in his letter, that "The CARES Act does not specifically provide for reimbursement of an entire pension plan as it does for reimbursement of a debt service."

Airport Executive Director Derek Martin said the issue already has been resolved with what he describes as a credit memo, a bookkeeping move that substitutes an expense that wasn't permitted under the CARES Act for one that was.

"It was an offset," Martin said. "We needed to give them another expense that met their criteria. We gave them payroll as a different offset."

In other words, the CARES Act essentially picked up the tab for some of the airport's payroll expenses during the early days of the COVID-19 pandemic.

In the end, Martin said, "It's a wash."

Giannelli said in a previous interview that the investigation was probably initiated in response to a citizen's complaint about the use of federal funding.

Despite the negative finding, the Sept. 27 letter strikes an understanding tone and invites the Airport Authority to explore ways to resolve the matter.

According to the letter, "The CARES Act program is fairly new so we recognize that errors are possible."

Correspondence from the FAA did not address other concerns raised in an informal complaint — including questions about the 2021 sale of airport property on Powell Avenue and concerns about whether some customers are charged more than others for aircraft fuel.

Funds usage: FAA reviews use of CARES funds to pay airport pension deficit, other concerns resolved

More air service coming?: Airport is partnering with Erie community to build air service, airport director says

Contact Jim Martin at jmartin@timesnews.com.

This article originally appeared on Erie Times-News: Erie PA airport director says FAA ruling on CARES funding is resolved