Reno-Tahoe Airport Authority Reno, NV
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Reno-Tahoe Airport Authority Reno, NV Comprehensive Annual Financial Report For the year ended June 30, 2006 RENO-TAHOE AIRPORT AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2006 Prepared by Finance & Administration Department Joan E. Dees Senior Director of Finance & Administration RENO-TAHOE AIRPORT AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2006 Table of Contents I. Introductory Section Page(s) Letter of Transmittal.....................................................................................................................................1-13 Board of Directors and Senior Management…………………………………… ............................................14 Organization Chart .........................................................................................................................................15 Certificate of Achievement for Excellence in Financial Reporting .................................................................16 II. Financial Section Independent Auditors’ Report on the Basic Financial Statements And Supplementary Information ...............................................................................................................17-18 Management’s Discussion and Analysis ...................................................................................................19-27 Basic Financial Statements: Statements of Net Assets ............................................................................................................28-29 Statements of Revenues, Expenses and Changes in Net Assets.......................................................30 Statements of Cash Flows...........................................................................................................31-32 Notes to Financial Statements.....................................................................................................33-44 Supplementary Information: Schedule of Revenues and Expenses, Comparison of Budget to Actual..........................................45 Schedule of Debt Service Requirements on Bonds..........................................................................46 Recapitulation of Cash and Investment Accounts and Sub-Accounts .............................................47 III. Statistical Section (Unaudited) Statistical Section Explanations.......................................................................................................48 Financial Trends Net Assets and Changes in Net Assets.............................................................................................49 Summary of Operating Results........................................................................................................50 Revenue Capacity Revenue Rates ................................................................................................................................51 Debt Capacity Rate Maintenance Covenant Performance.......................................................................................52 Ratios of Outstanding Debt and Debt Service .................................................................................53 Demographic and Economic Information Population in Air Trade Area...........................................................................................................54 Fortune 500 Companies within Air Trade Area...............................................................................55 Operating Information Employees .......................................................................................................................................56 Operational Statistical Summary .....................................................................................................57 Enplanements and Market Share by Scheduled Airline..............................................................58-59 Landed Weights and Market Share by Scheduled Airline ..........................................................60-61 Capital Asset Information................................................................................................................62 IV. Compliance Section Report on Internal Control Over Financial Reporting and on Compliance And Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.....................................................................................63-64 Report on Compliance with Requirements Applicable to the Major Program and the Passenger Facility Charge Program and on Internal Control over Compliance .............................65-66 Supplementary Schedule of Expenditures of Federal Awards.........................................................................67 Notes to Supplementary Schedule of Expenditures of Federal Awards ..........................................................68 Supplementary Schedule of Passenger Facility Charges Collected and Expended .........................................69 Schedule of Findings and Questioned Costs....................................................................................................70 Summary Schedule of Prior Audit Findings...............................................................................................71-72 Independent Accountant’s Report on Nevada Revised Statute 354.6241........................................................73 Auditor’s Comments........................................................................................................................................74 Reno-Tahoe International Airport P.O. Box 12490 Reno, NV 89510-2490 (775) 328-6400 Fax (775) 328-6510 November 15, 2006 Board of Trustees Reno-Tahoe Airport Authority Reno, Nevada This report is the Comprehensive Annual Financial Report (CAFR) of the Reno-Tahoe Airport Authority ("RTAA") (formerly the Airport Authority of Washoe County), for the fiscal year July 1, 2005, through June 30, 2006. The staff of the RTAA prepared this report and is responsible for the information it contains. The purpose of this report is to fully and fairly present the financial position, operating results, and cash flows of the RTAA. This CAFR contains financial statements and statistical data that fully disclose all the material financial operations of the RTAA. The financial statements and statistical information contained herein are the representations of the RTAA’s management, which bears the responsibility for the accuracy, completeness, and fairness of this CAFR. A narrative overview and analysis of the financial activities of the RTAA that occurred during the year ended June 30, 2006 is presented in the Management’s Discussion and Analysis (MD&A) found at the beginning of the Financial Section. This Comprehensive Annual Financial Report has been prepared and organized based on guidelines recommended by the Government Finance Officers Association of the United States and Canada (GFOA). The GFOA awards a Certificate of Achievement to those entities whose annual financial reports are judged to conform to the high standards of public financial reporting, including generally accepted accounting principles issued by the Governmental Accounting Standards Board (GASB). It is our belief that the accompanying 2006 CAFR meets program standards, and it will be submitted to the GFOA for review. In accordance with the above-mentioned guidelines, the accompanying CAFR consists of four parts: 1. Introductory Section, including members of the Board of Trustees, an Organization Chart and listing of Senior Management, a reproduction of the 2005 Certificate of Achievement, and this Letter of Transmittal. 2. Financial Section, including the Management’s Discussion and Analysis (MD&A) of the 2006 financial statements, financial statements (with related footnotes) as of June 30, 2006 and 2005, and for the years then ended, accompanied by our independent auditor’s report. 1 3. Statistical Section, providing financial, economic, and industry specific information. 4. Compliance Section, providing the Schedule of Expenditures of Federal Awards, the Schedule of Passenger Facility Charges, related notes, the Schedule of Findings and Questioned Costs and the independent auditor’s report on the RTAA’s compliance with Federal OMB Circular A-133 and Passenger Facility Charge program requirements. REPORTING ENTITY RTAA is a quasi-municipal corporation that was created by the Nevada State Legislature and began operation on July 1, 1978. The act creating the RTAA provides that it will serve a public use and will facilitate safe and convenient air travel and transport to and from the Reno-Tahoe area. The RTAA is an independent entity that is not part of any other unit of local government and does not use local property or sales tax revenue to fund its operation. The RTAA owns and operates Reno-Tahoe International Airport and Reno-Stead Airport. Reno-Tahoe International Airport (RTIA) is a medium hub airport that served 5.2 million passengers last fiscal year representing a 1 percent increase in passengers over the previous fiscal year. With 9,851 daily departure seats available on 10 major/national, and 5 regional airlines, RTIA offers better air service than any other airport from a city of comparable size anywhere in the United States. Fares to and from Reno-Tahoe are among the lowest in the nation, with only 14 cities in the top 100 routinely offering lower fares than RTIA. RTIA is home to Alaska/Horizon Airlines, Aloha Airlines, American Airlines,