Page 12 - BAA CAFR 2017

2018 as of June 30, 2017. This CIP was developed in conjunction with the master plan study currently
being completed. Future improvements will be funded with airport funds, proceeds from new bond issues,
FAA and other grants, passenger facility charges, and rental car customer facility charges. The Authority
continually reviews its CIP to address changing economic and air traffic demands, operating conditions,
and assessments of facility condition.

The Authority is proceeding with the planning, procurement, and design of a new Rental Car Quick Turn
Around Facility (QTA). The new QTA facility is projected to be completed by 2019 and will include
maintenance and washing bays, staging areas for fleet management, and administration space for all four
rental car brand families operating at the airport. Currently, the rental car agencies are meeting these
obligations at non‐contingent locations near the economy parking lot.

Financial Information

Management’s Discussion and Analysis (MD&A), starting on page 20, summarizes the Authority’s
Statements of Net Position and Statements of Revenues, Expenses, and Changes in Net Position and
reviews the changes from the beginning to the end of fiscal year 2017 as well as certain comparisons of
the current year to the prior year. The actual financial statements and related footnotes are presented on
pages 28 to 69. The information contained in the MD&A should be considered in conjunction with the
information contained in this report.

Internal Control Structure Framework

The financial statements of the Authority are prepared following U.S. generally accepted accounting
principles applicable to governmental unit enterprise funds. This results in financial statements prepared
on the full accrual basis. Internal control is a process affected by an entity’s governing board,
management, and other personnel and designed to provide reasonable assurance regarding the
achievement of objectives in the following categories: (a) safeguarding of assets from loss from
unauthorized use or disposition; (b) execution of transactions in accordance with management’s
authorization; (c) reliability of financial records for preparing financial statements and maintaining
accountability for assets; (d) effectiveness and efficiency of operations; and (e) compliance with applicable
laws and regulations, including contracts and grant agreements.

Internal controls, no matter how well designed and operated, can provide only reasonable assurance to
management and the board regarding achievement of an entity’s control objectives. The likelihood of
achievement is affected by limitations inherent to internal control. Such limitations include:

• Human judgment in decision‐making can be faulty;
• Breakdowns in internal controls can occur due to errors or mistakes;
• Controls can be circumvented by the collusion of two or more people or management override
of internal controls;