Page 70 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS

NOTE 14 RISK MANAGEMENT

The Authority is exposed to various risks of loss related to torts; theft of, damage
to and destruction of assets; errors and omissions; injuries to employees, and natural
disasters. The Authority has purchased commercial insurance for all risk above
minimal deductible amounts. In addition, all tenants and users of the Airport are
required to have commercial insurance coverages naming the Authority as
additional insured.

Following the events of September 11, 2001, all insurance companies canceled their
war risk liability coverage for airlines and airports. During fiscal year 2017, the
Authority was able to obtain $570,588,514 of coverage for a premium of $322,968.

No liability is recorded at June 30, 2017, for outstanding claims or for any potential
claims incurred but not reported as of that date. Settled claims have not exceeded
these commercial coverages by any material amounts during the year ended June
30, 2017.

NOTE 15 RELATED PARTY TRANSACTIONS

The Authority reimburses the City for the cost of providing security and fire
protection services to the Airport. Amounts charged by the City are reported as
operating expenses during the year incurred and totaled $4,520,505 and $4,080,074
for the fiscal years ended June 30, 2017 and 2016, respectively.

NOTE 16 COMMITMENTS

At June 30, 2017, the Authority is committed under contracts for the following
construction and planning projects:

Committed
Amount

Land Acquisitions (Churches) $ 84,104
Airport Master Plan 83,310
Taxiway A Stabilization 636,214
Parking Revenue System 672,517
QTA ‐ Rental Car Facility (Land Acquisition) 3,980,241

Total Committed Amounts $ 5,456,386

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