SUBJECT:
Title
Present Report No. 2026-03 Grant Compliance Review FedEx Ground Package System, Inc.
Body
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INITIATOR: |
DEPARTMENT: |
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Sachiko Horikawa, Internal Audit Director |
Clerk of Courts |
DESCRIPTION/BACKGROUND:
Pursuant to the Economic Development Financial Incentive Grant (EDFIG) Agreement executed on February 5, 2013, a compliance review was performed of FedEx’s mandatory requirements. The EDFIG award consisted of waived impact fees, reimbursement for gas line relocation costs, and the County’s match for the State’s Qualified Target Industry (QTI) Tax Refund program. Our review focused on the reporting, staffing, and occupancy requirements tied to the County funded portion of the agreement.
FedEx has satisfied the mandatory requirements necessary to receive the $400,000 reimbursement for gas line relocation expenses. In March 2026, County Administration processed the tenth and final $40,000 installment.
Our opinion is that the County Administration’s assessment was reasonable and supported by sufficient documentation. The areas reviewed are summarized in the table below.
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Areas Reviewed |
Results |
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Occupancy Requirement |
No exception |
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Maintained required minimum of 165 FTEs |
No exception |
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Timely submission of the Annual Report with appropriate required supportive documentation |
No exception |
The EDFIG agreement requires FedEx to maintain facility occupancy through December 31, 2026. Accordingly, FedEx must submit its final annual report by March 1, 2027, after which Internal Audit will conduct a close out review.
BUDGET/IMPACT:
None
RECOMMENDED ACTION:
Recommended action
None, informational purposes only.
end