B55378 STATE OF INDIANA AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM E418 INDIANAPOLIS, INDIANA 46204-2765 Telephone: (317) 232-2513 Fax: (317) 232-4711 Web Site: www.in.gov/sboa July 1, 2020 Board of Directors Fort Wayne-Allen County Airport Authority 3801 West Ferguson Road, Suite 209 Fort Wayne, IN 46809-3194 We have reviewed the audit report of Fort Wayne-Allen County Airport Authority which was opined upon by BKD, LLP, Independent Public Accountants, for the period January 1, 2019 to December 31, 2019. Per the Independent Auditor’s Report, the financial statements included in the report present fairly the financial condition of the Fort Wayne-Allen County Airport Authority as of December 31, 2019, and the results of its operations for the period then ended, on the basis of accounting described in the report. In our opinion, the audit report was prepared in accordance with the guidelines established by the State Board of Accounts. The audit report is filed with this letter in our office as a matter of public record. Paul D. Joyce, CPA State Examiner FORT WAYNE-ALLEN COUNTY AIRPORT AUTHORITY FORT WAYNE, INDIANA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED DECEMBER 31, 2019 Prepared by: Douglas W. Robertson Controller Janice R. Lewis Accounting Nikki E. Davis Accounting This Page Intentionally Left Blank FORT WAYNE-ALLEN COUNTY AIRPORT AUTHORITY TABLE OF CONTENTS I. INTRODUCTORY SECTION (UNAUDITED) .......................................................................... Page(s) Geographic Locator Map............................................................................................................................ 1 Board and Executive Director .................................................................................................................... 2 Letter of Transmittal to Authority Board ................................................................................................ 3-6 Certificate of Achievement for Excellence in Financial Reporting ............................................................ 7 Organizational Chart .................................................................................................................................. 8 Principal Officials and Management .......................................................................................................... 9 Airport Layout Map ................................................................................................................................. 10 II. FINANCIAL SECTION Independent Auditor’s Report ............................................................................................................. 11-12 Management’s Discussion and Analysis (Unaudited) ......................................................................... 13-20 Financial Statements: Statement of Net Position ................................................................................................................. 21-22 Statement of Revenues, Expenses and Changes in Net Position............................................................ 23 Statement of Cash Flows .................................................................................................................. 24-25 Notes to Financial Statements ........................................................................................................... 26-49 Required Supplementary Information (Unaudited): Schedule of the Authority’s Proportionate Share of Net Pension Liability – Public Employees Retirement Fund ........................................................................................................... 50 Schedule of Contributions – Public Employees Retirement Fund ..................................................... 51 Schedule of Changes in the Authority’s Net OPEB Liability and Related Ratios ............................. 52 Schedule of the Authority’s OPEB Contributions .............................................................................. 53 Schedule of OPEB Funding Progress ................................................................................................. 53 Supplementary Information: Combining Schedules Combining Schedule of Net Position ............................................................................................ 54-56 Combining Schedule of Revenues, Expenses and Changes in Net Position ...................................... 57 Combining Schedule of Cash Flows ............................................................................................. 58-59 Other Supplementary Information: Schedule of Debt Service Requirements to Maturity ............................................................................. 60 Schedule of Capital Assets and Accumulated Depreciation .................................................................. 61 Schedule of Revenues-Budget and Actual ............................................................................................. 62 Schedule of Expenses-Budget and Actual ............................................................................................. 63 Schedule of Expenditures of Federal Awards.......................................................................................... 64 Schedule of Passenger Facility Charge Revenues and Expenditures........................................................ 65 III. STATISTICAL SECTION (UNAUDITED) Annual Revenues, Expenses and Changes in Net Position .................................................................. 67-68 Principal Revenue Sources, Cost per Enplaned Passenger, and Airline Rates and Charges ............... 69-70 Principal Taxpayers ....................................................................................................................................71 Tax Levies and Collections .................................................................................................................. 72-73 Assessed Values of Property ..................................................................................................................... 74 Property Tax Rates and Tax Levies – All Overlapping Governments ...................................................... 75 Property Values and Construction ............................................................................................................. 76 Ratios of Outstanding Debt ....................................................................................................................... 77 Pledged Revenue Coverage ....................................................................................................................... 78 Allen County Demographic and Economic Statistics ............................................................................... 79 Allen County Principal Employers ............................................................................................................ 80 Fort Wayne International Airport Information ..................................................................................... 81-82 Enplaned Passengers ................................................................................................................................. 83 Airline Landed Weights ....................................................................................................................... 84-85 Aircraft Operations .................................................................................................................................... 86 Fort Wayne International Airport Scheduled Airline Service ................................................................... 87 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards.................................................................................................................88 Report on Compliance for the Major Federal Program and Report on Internal Control Over Compliance and Report on Schedule of Expenditures of Federal Awards required by Uniform Guidance - Independent Auditor's Report...............................................................................90 Report on Compliance for the Passenger Facility Charge Program and Report on Internal Control Over Compliance - Independent Auditor's Report...................................................................92 Schedule of Findings and Questioned Costs................................................................................................94 Summary Schedule of Prior Audit Findings...............................................................................................96 Passenger Facility Charge Audit Summary................................................................................................97 Fort Wayne International Airport (FWA) Smith Field Airport (SMD) INTRODUCTORY SECTION L O C A T I O N FORT WAYNE INTERNATIONAL AIRPORT SMITH FIELD 1 Fort Wayne-Allen County Airport Authority Board and Executive Director Richard B. “Barry” Sturges, Jr., Gregg C. Sengstack, Timothy J. Haffner, Secretary President Vice President Cornelius “Neil” B. Hayes, Member Jerome “Jerry” Henry, Jr., Member Kimberly Wagner, Member Scott D. Hinderman, A.A.E. Executive Director of Airports 2 June 24, 2020 To the Members of the Board, and Citizens of Fort Wayne and Allen County: The Comprehensive Annual Financial Report (CAFR) of the