Aaae Board of Directors and Policy Review Council Meeting
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AAAE BOARD OF DIRECTORS AND POLICY REVIEW COUNCIL MEETING JANUARY 10, 2021 | VIRTUAL MEETING AGENDA AAAE Board of Directors and Policy Review Council Meeting January 10, 2021 | Virtual Event A. Welcome and Announcements* 3 – 3:15 p.m. B. Guest Speaker* 3:15 – 4 p.m. Adam Bryant Managing Managing Director Merryck & Co. C. Chair’s Report* 4 – 4:05 p.m. D. President’s Report* 4:05 – 4:10 p.m. E. Financial Reports 4:10 – 4:25 p.m. 1. 2020 First Eleven Months’ Financial Results 2. Draft Final 2020 Financial Results 3. 2021 Budget Approval 4. AAAE Investment Management F. Consent Agenda Items 4:25 – 4:30 p.m. These items will be approved by a single vote during the Board meeting. A Board member may remove any of these items by advising staff in advance of the Board meeting the items they wish to remove from the consent agenda. 1. Approval of Applications for Membership 2. Approval of Membership Status Report 3. Approval of Foundation Financial Report 4. Approval of September 2020 AAAE Board/PRC Meeting Minutes Break: 4:30 – 4:40 p.m. *No attachment. G. Open Discussion of Washington Policy 4:40 – 5:10 p.m. 1. Legislative Affairs 2. Regulatory Affairs 3. Transportation Security Policy 4. International Facilitation Subcommittee H. Committee Reports 5:10 – 5:45 p.m. Five-minute verbal reports by Industry Committees (listed in blue bold below). Additional committees listed will not provide verbal reports, but have submitted written reports, included in the meeting document. Q&A from Board/PRC members for committees and any motions/action items from committees. 1. Transportation Security Services 2. Operations/Safety/Planning/ 9. General Aviation Airports Emergency Management 10. Finance and Administration 3. Facilities and Technical Services 11. Industrial Aviation/Military Relations 4. Environmental Services 12. Board of Examiners 5. Air Service 13. Corporate 6. International Association of Airport 14. Foundation Executives (IAAE) 15. Training 7. U.S. Contract Tower Association 16. Academic Relations 8. Diversity, Equity & Inclusion I. AAAE Internal Association Issues 5:45 – 6 p.m. 1. 2021 Nominating Committee Update* 2. 2021 Membership Benefits Update* 3. AAAE Programs & Services Update a. Airport Consortium on Trust Program (ACT) b. AAAE Training Services c. Transportation Security Clearinghouse (TSC) d. App-Based Transportation (ABT) Clearinghouse e. AAAE GBAC Star Facility Accreditation Program J. Information Items Not scheduled for presentation at the Board/PRC meeting; a Board/PRC member may request to have any of these items discussed at the Board/PRC meeting. 1. Airport Magazine and @AAAEDelivers Social Media 2. AAAE Conference Calendar 3. AAAE Board Bylaws and Responsibilities 4. AAAE and Chapter Leadership Lists 5. AAAE Staff Update K. Other items* *No attachment. Financial Dashboard--November 2020 SUMMARIZED INCOME STATEMENT--November 2020 SUMMARIZED BALANCE SHEET--November 2020 Actual 2020 Actual vs Budget 2020 2019 YTD Budget Variance TOTAL CASH 4,048,706.44 4,471,436.52 TOTAL REVENUE 49,434,558.97 144,104,388.74 (94,669,829.77) Accounts Receivable 4,079,535.32 10,261,918.10 TOTAL EXPENSES 46,902,185.52 143,715,404.45 (96,813,218.93) AAAE's Securities and CD's 12,699,659.85 9,174,985.42 EBITDA 2,532,373.45 388,984.29 2,143,389.16 Foundation Securities and CD's 5,010,772.26 4,514,636.46 Depreciation 498,600.85 725,000.00 (226,399.15) Prepaid Expenses 231,835.15 325,357.65 Interest 93,695.16 87,500.00 6,195.16 Split Dollar 436,997.04 368,938.45 EBIT 1,940,077.44 (423,515.71) 2,363,593.15 457 B/F 3,771,968.77 3,070,065.61 TOTAL CONSOLIDATED INVESTMENT ACTIVITY 256,284.66 445,000.00 (188,715.34) Note Receivable--DTIS - - TOTAL NET INCOME 2,196,362.10 21,484.29 2,174,877.81 Due to/from other Funds (325,566.56) (99,589.45) Ownership Stake in DTIS 847,883.94 1,302,816.10 Building and Land 4,782,236.63 4,875,897.71 Leasehold Improvements 514,446.15 651,639.88 Furniture & Fixtures 47,386.37 60,565.27 HISTORICAL NOVEMBER YTD Computer Equipment & Software 262,999.86 466,215.41 FINANCIAL PERFORMANCE TOTAL ASSETS 36,408,861.22 39,444,883.13 TOTAL LIABILITIES 22,662,761.54 23,671,190.10 Revenue Expense FUND BALANCE 13,746,099.68 15,773,693.03 TOTAL LIABILITY AND FUND BALANCE 36,408,861.22 39,444,883.13 2017 2018 2019 2020 AMER. ASSOC. OF AIRPORT EXEC. Balance Sheet For the Eleven Months Ending Monday, November 30, 2020 10/31/2020 11/30/2020 11/30/2019 ASSETS Petty Cash 138.11 138.11 138.11 AAAE Checking 793,531.91 789,534.00 1,799,188.66 TSC Operations Checking 2,774,328.55 3,259,034.33 2,672,109.75 TOTAL OPERATING CASH 3,567,998.57 4,048,706.44 4,471,436.52 Accounts Receivable 4,145,970.52 4,079,535.32 10,261,918.10 AAAE's Securities and CD's 12,481,195.49 12,699,659.85 9,174,985.42 Foundation Securities and CD's 4,687,440.83 5,010,772.26 4,514,636.46 Prepaid Expenses 230,348.21 231,835.15 325,357.65 Split Dollar 435,330.37 436,997.04 368,938.45 457 B and 457 F 3,771,968.77 3,771,968.77 3,070,065.61 Note Receivable--DTIS (Write Down) 0.00 0.00 0.00 Due to/from other Funds (113,925.33) (325,566.56) (99,589.45) Ownership Stake in DTIS 894,308.18 847,883.94 1,302,816.10 TOTAL CURRENT ASSETS 30,100,635.61 30,801,792.21 33,390,564.86 2.359554129 2.389441267 1.822645394 Building and Land 4,790,041.72 4,782,236.63 4,875,897.71 Leasehold Improvements 529,356.65 514,446.15 651,639.88 Furniture & Fixtures 49,696.49 47,386.37 60,565.27 Computer Equipment & Software 275,790.21 262,999.86 466,215.41 TOTAL OTHER ASSETS 5,644,885.07 5,607,069.01 6,054,318.27 TOTAL ASSETS 35,745,520.68 36,408,861.22 39,444,883.13 LIABILITIES Accounts Payable 958,696.07 802,258.78 724,390.78 Refunds Payable - Customer 275.00 0.00 0.00 Accrued Expenses 2,475,468.59 2,408,223.19 7,539,073.15 Payroll Withholding 3,052.67 4,065.97 11,132.88 Accrued Wages/Vacation 301,980.23 366,654.79 431,349.04 Line of Credit 0.00 0.00 0.00 Deferred Revenue 9,009,281.03 9,301,426.87 9,605,727.07 Tenant Deposits 8,163.17 8,163.17 8,163.17 TOTAL CURRENT LIABILITIES 12,756,916.76 12,890,792.77 18,319,836.09 Mortgage Payable--601 Madison 6,000,000.00 6,000,000.00 2,281,288.40 457 B and 457 F 3,771,968.77 3,771,968.77 3,070,065.61 Capital Lease -- Computers 0.00 0.00 0.00 TOTAL LONG TERM LIABILITIES 9,771,968.77 9,771,968.77 5,351,354.01 TOTAL LIABILITIES 22,528,885.53 22,662,761.54 23,671,190.10 FUND BALANCE Beginning Fund Balance 11,549,737.58 11,549,737.58 11,023,020.65 YTD Fund Balance 1,666,897.57 2,196,362.10 4,750,672.38 TOTAL FUND BALANCE 13,216,635.15 13,746,099.68 15,773,693.03 TOTAL LIABILITY & FUND BALANCE 35,745,520.68 36,408,861.22 39,444,883.13 Current Assets/Current Liabilities 2.36 2.39 1.82 Off Balance Sheet Assets: 1. AAAE Headquarters Market Value is approx $13.76 million (based on 2020 City of Alexandria Tax records) 2. AAAE Shares of SBCN, LLC is $9.1 million (based on 2006 SBCN closing price) AMER. ASSOC. OF AIRPORT EXEC. Income Statement For the Eleven Months Ending Monday, November 30, 2020 Actual PRIOR YEAR 2020 Last Year Year to Year Actual Last Year Variance Y-T-D FINAL Budget Y-T-D Variance OPERATING REVENUES Domestic Member Dues 169,324.41 165,322.37 4,002.04 1,845,879.80 1,902,891.80 1,987,640.79 1,742,843.38 103,036.42 INT'L Membership Dues 1,170.82 1,331.24 (160.42) 39,212.91 33,983.27 32,000.00 32,529.10 6,683.81 Domestic Conference Income 28,640.00 504,542.90 (475,902.90) 2,831,504.13 8,930,717.85 8,961,050.00 8,598,457.85 (5,766,953.72) INT'L Conference Income (2,388.00) 802.08 (3,190.08) 16,112.00 617,496.63 840,000.00 617,526.63 (601,414.63) Exam Fees 31,265.00 108,000.00 (76,735.00) 541,624.61 852,352.90 795,000.00 790,142.90 (248,518.29) TSC (and Other) 1,058,180.71 1,477,714.14 (419,533.43) 11,773,484.54 19,073,254.23 17,045,025.10 17,820,034.91 (6,046,550.37) ABT 1,518,654.25 6,684,579.17 (5,165,924.92) 22,738,936.45 79,191,456.13 101,657,391.54 72,342,928.59 (49,603,992.14) Federal Affairs 253,061.80 224,143.92 28,917.88 2,601,234.22 2,703,124.57 2,607,500.00 2,470,847.57 130,386.65 Magazine 1,700.00 16,699.97 (14,999.97) 253,238.50 464,122.48 485,000.00 373,285.98 (120,047.48) Domestic Training and Technology Services 329,222.28 386,790.37 (57,568.09) 3,887,812.88 5,489,194.61 6,104,746.00 5,089,923.02 (1,202,110.14) INT'L Training and Technology Services 295.00 55,090.00 (54,795.00) 46,595.00 266,137.00 280,000.00 171,195.50 (124,600.50) Foundation 21,894.50 28,608.46 (6,713.96) 203,686.98 809,426.34 635,500.00 791,041.58 (587,354.60) Contract Tower Association 6,400.00 14,175.00 (7,775.00) 558,985.00 562,575.00 560,000.00 562,150.00 (3,165.00) AAAE Accelerator 68,583.32 3,150.03 65,433.29 321,441.68 69,566.66 150,000.00 79,750.02 241,691.66 AAAE Real Estate 158,084.59 159,193.15 (1,108.56) 1,774,810.27 1,910,317.80 1,963,535.31 1,751,124.65 23,685.62 TOTAL REVENUE 3,644,088.68 9,830,142.80 (6,186,054.12) 49,434,558.97 122,876,617.27 144,104,388.74 113,233,781.68 (63,799,222.71) EXPENDITURES Salaries/Taxes 8,182.02 10,053.23 (1,871.22) 91,483.01 167,736.24 164,379.08 120,307.09 (28,824.08) G&A Expenses 2,417.91 3,948.69 (1,530.79) 30,155.08 47,346.77 42,842.22 38,368.54 (8,213.47) TOTAL G&A EXPENSES 10,599.92 14,001.92 (3,402.00) 121,638.09 215,083.01 207,221.30 158,675.63 (37,037.54) OTHER PROGRAMS DOMESTIC MEMBER SERVICES EXPENSE Salaries & Benefits 22,292.81 27,391.15 (5,098.33) 249,255.61 457,015.99 447,869.05 327,790.01 (78,534.40) Expenses 11,509.01 19,766.91 (8,257.90) 152,906.82 321,916.92 312,828.38 278,645.83 (125,739.01) TOTAL DOMESTIC MEMBER SERVICES EXPENSE 33,801.83 47,158.06 (13,356.23) 402,162.43 778,932.91 760,697.43 606,435.84