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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023
15
Note 1—Organization and nature of business
The Peninsula Airport Commission (the “Commission”) is a municipal corporation created by the Virginia General
Assembly in February 1946. The Commission is directly responsible for operation of the Newport News –
Williamsburg International Airport (“Airport”) and is the owner of approximately 2,000 acres of property
surrounding the Airport. A Board of Commissioners consisting of six members, four appointed by the City of
Newport News, Virginia (“City”) and two by the City of Hampton, Virginia, exercises oversight responsibility.
Professional management conducts the day-to-day operations of the Commission.
The Commission is considered a component unit of the City in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”). The criteria for including the Commission within the
City’s reporting entity is financial accountability, which is defined as appointment of a voting majority of the
component unit’s board and either the ability to impose the primary government’s will or the possibility that the
component unit will provide a financial benefit to, or impose a financial burden on, the primary government. The
City appoints four of the Commission’s six board members.
New Accounting Pronouncement – As of July 1, 2022, the Commission adopted the provisions of Governmental
Accounting Standards Board (“GASB”) 96, Subscription-Based Information Technology Arrangements, which
created accounting standards for subscription-based information technology arrangements. The new guidance
requires governments to recognize a right-of-use subscription asset and a corresponding subscription liability at
the subscription’s start date. The subscription asset is recognized as amortization expense over the
subscription term.
Note 2—Summary of significant accounting policies
Measurement Focus and Basis of Accounting – The Commission’s financial statements are presented as a
business-type activity using the economic resources measurement focus and the accrual basis of accounting in
accordance with U.S. GAAP as prescribed by GASB. Under the accrual basis of accounting, revenues are
recorded when earned, and expenses are recorded when incurred. Business-type activities are those that are
financed in whole or in part by fees charged to external parties for goods or services. Current assets include cash
and amounts convertible to cash during the next normal operating cycle, or one year. Current liabilities include
those obligations to be liquidated with current assets. The Commission generally uses restricted assets first for
expenses incurred for which both restricted and unrestricted assets are available. The Commission may defer
the use of restricted assets based on a review of the specific transaction.
Operating Income – The Commission’s main sources of operating income are from operation of the Airport, parking
facilities, concessions.
Cash and Cash Equivalents – The Commission includes all cash accounts not subject to withdrawal restrictions
or penalties and all highly liquid debt instruments with an original purchased maturity of three months or less as
cash and cash equivalents in the accompanying statement of net position and statement of cash flows.
Capital Assets – Capital assets are stated at cost or acquisition value if acquired without cost. Capital acquisitions
and improvements exceeding $5,000 are capitalized at cost. Depreciation is computed on the straight-line basis
over the estimated useful lives of the assets as follows:
Airfield
5 – 33 years
Terminal
3 – 33 years
Other
3 – 30 years
Trailer park and rental units
3 – 33 years
Right-of-use asset – IT Subscription
1 – 3 years
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