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PENINSULA AIRPORT COMMISSION
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2023
8
Summary of Cash Flow Activities
The following shows a summary of the major sources and uses of cash and cash equivalents for the past
two years. Cash equivalents are considered cash-on-hand and bank deposits with an original maturity of three
months or less:
2023
2022
Cash flow from operating activities
(3,882,895)
$
(3,291,577)
$
Cash flow from noncapital financing activities
487,689
5,480,914
Cash flow from capital and related financing activities
3,641,018
(546,383)
Cash flow from investing activities
369,232
(1,362,308)
Net change in cash and cash equivalents
615,044
280,646
Cash and cash equivalents, beginning of period
3,211,730
2,931,084
Cash and cash equivalents, end of period
3,826,774
$
3,211,730
$
The Commission’s available cash and cash equivalents increased by $615 thousand between 2022 and 2023.
Pending reimbursements from the Federal Aviation Administration on capital projects totaled $217 thousand at
June 30, 2023 and is not reflected in the cash flow above.
Financial Statements
The Commission’s financial statements are prepared on the accrual basis in accordance with accounting principles
generally accepted in the United States of America. The Commission is structured as a single enterprise fund with
operating income recognized when earned, not when received. Expenses are recognized when incurred, not when
they are paid. Capital assets are capitalized and (except land and construction-in-progress) are depreciated over
their useful lives. Reference the notes to the financial statements for a summary of the Commission’s significant
accounting policies.
Capital Acquisitions and Construction Activities
During FY 2023, the Commission expended $8.42 million on capital activities. This included costs incurred during
2023 for $1.73 million on airfield projects, $188 thousand on maintenance equipment and vehicles, $648 thousand
on terminal equipment, and $891 thousand on parking lot projects. Construction-in-progress during FY 2023
related primarily to airfield and terminal improvements.
Capital asset acquisitions and improvements, exceeding $5,000, are capitalized at cost. Acquisitions are funded
using a variety of financing techniques, including federal grants with matching state grants and Airport funds, debt
issuance, and Airport revenue.
Long-Term Debt
In 2002, the Airport issued $2,500,000 of Virginia Resources Authority Airport Improvement Revenue Bonds,
Subordinate Series 2002, at 4.5% interest, maturing in July 2027. The Airport used the proceeds to pay down
$2,500,000 of 3.93% short-term financing. State entitlement funds are designated for payment of these bonds.
During 2016, the interest rate was reduced to 2.75%.
Balance outstanding June 30, 2023 – $-0- and 2022 – $696,006.
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