2007 Comprehensive Annual Financial Report
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ALBANY COUNTY AIRPORT AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2007 Prepared by the Finance Department J. Dwight Hadley, CPA Chief Financial Officer Margaret Herrmann Chief Accountant A Component Unit of the County of Albany Town of Colonie, New York www.albanyairport.com CUSIP #012123XXX TABLE OF CONTENTS PAGE(S) I. INTRODUCTORY SECTION Albany County Airport Authority: Members and Principal Officers......................................Inside Front Cover Chairman’s Message ........................................................................................3 Organizational Chart .........................................................................................4 Letter of Transmittal .................................................................................... 5-15 Certificate of Achievement for Excellence in Financial Reporting...................16 II. FINANCIAL SECTION Independent Auditor’s Report .........................................................................18 Management’s Discussion and Analysis ................................................... 19-33 Financial Statements: Comparative Statements of Net Assets ................................................ 34-35 Comparative Statements of Revenues, Expenses and Changes in Net Assets ..........................................................................36 Comparative Statements of Cash Flows ....................................................37 Notes to Financial Statements .............................................................. 38-64 Supplementary Information: Schedule of Debt Service Requirements to Maturity ............................ 66-67 Schedule of Governmental Payments and Services ..................................68 III. STATISTICAL SECTION Total Annual Revenues, Expenses and Changes in Net Assets ............... 70-71 Changes in Cash and Cash Equivalents .................................................. 72-73 Principal Revenue Sources and Cost per Enplaned Passenger .............. 74-75 Ratios of Outstanding Debt....................................................................... 76-77 Revenue Bond Debt Service .................................................................... 78-79 Population in the Air Trade Area .....................................................................80 Major Employers in Air Trade Area .................................................................81 Colleges and Universities in the Air Trade Area..............................................82 Airport Information ..........................................................................................83 Enplaned Passengers............................................................................... 84-85 Airline Landed Weights ............................................................................. 86-87 Aircraft Operations .................................................................................... 88-90 Airlines Serving the Albany International Airport .............................................91 Scheduled Jet Airline Service .........................................................................92 Scheduled Commuter Airline Service .............................................................93 Primary Origination and Destination Passenger Markets ...............................94 i IV. COMPLIANCE SECTION Independent Auditors’ 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 ..............................................................97 Schedule of Expenditures of Federal and New York State Department of Transportation Financial Assistance and Notes thereto ............................................................................ 98-99 Independent Auditors’ Report on Compliance with Requirements Applicable to the Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 .................... 100-101 Independent Auditors’ Report on Compliance with Requirements Applicable to State Transportation Assistance Expended and on Internal Control over Compliance ............................................. 102-103 Schedule of Findings and Questioned Costs........................................... 104 Independent Auditors’ Report on Compliance with Requirements Applicable to the Passenger Facility Charge Program and on Internal Control over Compliance ............................................. 105-106 Schedule of Passenger Facility Charges Collected and Expended And Notes thereto ................................................................................ 107 Passenger Facility Charge Program Schedule of Findings And Questioned Costs ......................................................................... 108 ii Introduction INTRODUCT I ON An aerial view of the Airport’s Runway-28 and the terminal from 2000 feet. 1 Introduction ALBANY INTERNATIONAL AIRPORT Airport Website www.albanyairport.com 2 Introduction ALBANY COUNTY AIRPORT AUTHORITY TEL: 518.242.2222 ALBANY INTERNATIONAL AIRPORT ADMIN FAX: 518.242.2641 ADMINISTRATION BUILDING FINANCE FAX: 518.242.2640 SUITE 200 SITE: www.albanyairport.com ALBANY, NEW YORK 12211-1057 March 3, 2008 Chairman’s Message The calendar year 2007 proved to be yet another complex year for both airports and the airline industry. Airlines were faced with finding the means to overcome the high price of fuel and declining revenues. They responded by reducing flights and moving to smaller more efficient aircraft. As a result, airports such as Albany International, saw a decline in the number of available seats. However, the decision enabled the airlines to increase their load factors on each flight which resulted in fuel savings and improvement in revenue for the airlines. Over all, Albany enplanements remained essentially flat for the year as the region began to feel the impact of higher gasoline and fuel oil prices. Despite the lack of growth, the Airport maintained its strong financial posi- tion and bond ratings while once again returning nearly one-half million dollars in revenue sharing to our tenant airlines. During 2007 the Albany County Airport Authority became one of the first local public authorities to be audited by the state’s new Authority Budget Office (ABO). The office was created under the New York State Public Authori- ties Accountability Act with the goal of reviewing and analyzing the operations, practices, reporting and compli- ance with all applicable laws. It is with great pride that I can report the finalABO report stated “We found that the Authority appears to be a well-functioning public authority with an informed and involved Board and management team.” The audit speaks volumes of the outstanding performance and practices of the Authority’s Board and our staff. Our economic development initiative aimed at attracting new airport-related businesses has also proven fruitful. Eclipse Aviation’s new northeast Aircraft Maintenance and Service Center neared completion and will result in the creation of over 30 new jobs. Colgan Air has expanded its presence at the Airport with expanded hangar facilities that will serve as a maintenance hub for its substantial fleet of turbo-prop aircraft. The demand for additional hangar space for general aviation aircraft prompted the Airport to begin construction of two new T-hangar buildings to house 20 additional airplanes. This will go a long way to fulfill our goal of increas- ing the number of aircraft based in Albany. In furtherance of our position as a regional economic engine and our partnership with the Albany Regional Cham- ber of Commerce, the Airport Authority hosted the seventh annual Summit in Tech Valley. The event, in the expansive Million Air hangar, drew more than 250 CEOs, presidents and senior-level executives from the technol- ogy, business, government and academic communities while showcasing the Airport and the Capital Region as an exceptional place to conduct business. Today, we look forward to 2008 as yet another opportunity to provide outstanding air transportation to our travel- ers and to further engage our Board and staff in pioneering economic development and environmental initiatives that will continue to place Albany International Airport as a leader among the nation’s airports. David E. Langdon Chairman 3 Introduction ALBANY INTERNATIONAL AIRPORT ORGANIZATIONAL CHART As of December 31, 2007 ALBANY COUNTY AIRPORT AUTHORITY David E. Langdon, Chair Richard J. Sherwood,Vice-Chair Henry E. Dennis, Jr. John A. Graziano, Jr. Elliott A. Shaw Daniel M. Sleasman Dorsey M. Whitehead CHIEF EXECUTIVE Admin.Services OFFICER G. Olthoff John A. O’Donnell DBE Liaison Counsel Public Affairs J. Hayes P. Stuto D. Myers • Human Resources R. Meyers • Support Services CHIEF FINANCIAL OFFICER • Contracts • Communications J. Dwight Hadley • Litigation • Public Relations • Advertising Budget & Performance Mgmt Planning/ Chief Accountant R. Cerrone Engineering Economic Marketing & Environment M.Herrmann R. Morgan Development Concessions S. Iachetta D. Zieske H. Chadderdon Electronic Data Processing D. Lovely • FAA/DOT Liason • Project Mgmt •Acct/Finance • AIP Program • Architects / Manager Enginneering •Audits Telecommunications • Environmental Consultants •Grants/PFC’s W. Normandin •Lease Admin. Health • Bldg Code •Rates & Charges • Noise Program Enforcement • Remediation •Risk Management Procurement B. Matthews