7 Comprehensive Annual Financial Report

2012_CAFR_Cover_fin.pdf 1 4/30/13 10:24 AM Washington Dulles International Airport Late 1970s 2012CAFR Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2012 Washington Dulles International Airport 7 50th Anniversary Geographically located in Virginia–serving the metropolitan Washington, D.C. area METROPOLITAN WASHINGTON AIRPORTS AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2012 BOARD OF DIRECTORS As of December 31, 2012 Chairman Vice Chairman Michael A. Curto The Honorable Thomas M. Davis III Earl Adams, Jr. Richard S. Carter Lynn Chapman Frank M. Conner III The Honorable H.R. Crawford Anthony H. Griffin Shirley Robinson Hall Barbara Lang The Honorable Elaine McConnell Caren Merrick Warner H. Session Todd A. Stottlemyer EXECUTIVE STAFF John E. Potter President and Chief Executive Officer Margaret E. McKeough Executive Vice President and Chief Operating Officer Quince T. Brinkley, Jr. Vice President and Secretary Andrew T. Rountree, CPA Vice President for Finance and Chief Financial Officer Mark D. Adams Deputy Chief Financial Officer Valerie A. Holt, CPA Vice President for Audit Prepared by the Office of Finance Geographically located in Virginia – serving the metropolitan Washington, D.C. area INTENTIONALLY LEFT BLANK COMPREHENSIVE ANNUAL FINANCIAL REPORT Metropolitan Washington Airports Authority METROPOLITAN WASHINGTON AIRPORTS AUTHORITY Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2012 Table of Contents INTRODUCTORY SECTION Transmittal Letter ............................................................................................................................................................................... 1 2011 Certificate of Achievement for Excellence in Financial Reporting .................................................................... 15 Organizational Chart ...................................................................................................................................................................... 16 II. FINANCIAL SECTION Independent Auditor’s Report ................................................................................................................................................... 17 Management’s Discussion and Analysis (unaudited) ........................................................................................................ 19 Basic Financial Statements Statement of Net Position ................................................................................................................................................... 44 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 48 Statement of Cash Flows ...................................................................................................................................................... 50 Notes to Financial Statements ........................................................................................................................................... 55 Note 1 – Summary of Significant Accounting Policies .............................................................................. 55 A. Reporting Entity ...................................................................................................................................... 55 B. Measurement Focus, Basis of Accounting & Financial Statement Presentation .......... 55 C. Use of Estimates in the Preparation of the Financial Statements ....................................... 56 D. Budgeting Requirements .................................................................................................................... 56 E. Net Position ............................................................................................................................................. 56 F. Revenue Recognition ........................................................................................................................... 57 G. Allocations of Overhead and Other Indirect Costs and Project Costs .............................. 58 H. Cash and Cash Equivalents ................................................................................................................ 59 I. Investments .............................................................................................................................................. 59 J. Accounts Receivable ............................................................................................................................. 60 K. Inventory and Prepaid Items ............................................................................................................. 60 L. Restricted Assets .................................................................................................................................... 60 i COMPREHENSIVE ANNUAL FINANCIAL REPORT Metropolitan Washington Airports Authority M. Capital Assets .......................................................................................................................................... 61 N. Capitalization of Interest ..................................................................................................................... 62 O. Long-Term Debt ..................................................................................................................................... 63 P. Federal, State & Local Grants ............................................................................................................ 63 Q. Passenger Facility Charges ................................................................................................................. 63 R. Lease Obligations .................................................................................................................................. 63 S. Post-employment Benefits................................................................................................................. 64 T. Compensated Absences ...................................................................................................................... 65 U. Advance Billings and Payments Received in Advance ............................................................ 65 V. Self-Insurance .......................................................................................................................................... 66 W. Taxes ........................................................................................................................................................... 66 X. Recently Issued Accounting Pronouncements ........................................................................... 66 Note 2 – Airport Use Agreement and Premises Lease ............................................................................. 67 Note 3 – Transfer of the Dulles Toll Road and Construction of the Dulles Metrorail Project .. 69 Note 4 – Deposits and Investments ................................................................................................................ 71 Note 5 – Accounts Receivable ........................................................................................................................... 77 Note 6 – Note Receivable .................................................................................................................................... 78 Note 7 – Pension Plans and Deferred Compensation Plan .................................................................... 78 Note 8 – Post-employment Benefits ............................................................................................................... 85 Note 9 – Changes in Capital Assets ................................................................................................................. 90 Note 10 – Accounts Payable ................................................................................................................................. 93 Note 11 – Lease Commitments ........................................................................................................................... 93 Note 12 – Changes in Long-Term Non-Debt Liabilities ............................................................................ 95 Note 13 – Derivatives............................................................................................................................................... 96 Note 14 – Capital Debt ........................................................................................................................................... 99 Note 15 – Net Position .......................................................................................................................................... 111 Note 16 – Aviation Enterprise Fund Revenues ............................................................................................ 113 Note 17 – Government Grants ........................................................................................................................... 114 Note 18 – Passenger Facility Charges ............................................................................................................. 117 Note 19 – Risk Management .............................................................................................................................. 118 Note 20 – Other Commitments and Contingencies .................................................................................

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