Page 112 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED
AND EXPENDED

NOTE 1 BASIS OF PRESENTATION

The accompanying Schedule of Passenger Facility Charges (PFC)
Collected and Expended includes all the PFCs and the interest earnings
thereon collected by the Authority from August 1, 1997 (original date of
approval) through June 30, 2017. The schedule also includes all funds
expended life to date. The Authority currently collects $4.50 per enplaned
passenger. The current approval for charges as approved by the Federal
Aviation Administration is estimated to end on February 1, 2031.

NOTE 2 BASIS OF ACCOUNTING

The accompanying Schedule of Passenger Facility Charges Collected and
Expended present revenues received on a cash basis, while expenses are
reported based upon the allocation of costs to approved projects.

NOTE 3 PROGRAM COSTS

The amounts shown as current year revenues and expenses represent only
the Passenger Facility Charges portions of the project costs. Entire project
costs may be more than shown.

NOTE 4 RECONCILIATION TO STATEMENTS OF REVENUES,
EXPENSES, AND CHANGES IN NET POSITION

Passenger facility charges are reported on an accrual basis in the Authority’s
Statement of Revenues, Expenses, and Changes in Net Position in the
Comprehensive Annual Financial Report. Reporting standards adopted by
the FAA require for purposes of the Schedule of PFC Collected and
Expended such charges be reported on a cash basis. A reconciliation
between cash collections and revenues reported on the accrual basis is as
follows:

Fiscal year 2017:
Passenger Facility Charges:
Cash collections per Schedule of
PFC Collected and Expended $ 5,222,702
Less prior year accrual (750,876)
Add current year accrual 736,515
Amounts Per Statements of
Revenues, Expenses, and
Changes in Net Position $ 5,208,341