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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024
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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 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/amortization 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
Parking
5 – 30 years
Equipment
3 – 20 years
Trailer Park
15 – 20 years
Rental Units
3 – 33 years
Right-of-use asset – IT Subscription
Contract Term
Maintenance and repairs, including replacement of minor items of physical properties that do not improve or
extend the life of the respective assets, are expensed currently.
Capital assets also include certain right-of-use (“ROU”) Information Technology (“IT”) subscription assets. These
ROU assets arise in association with agreements where the Commission enters into an IT subscription. The ROU
IT subscription assets are initially measured at an amount equal to the initial measurement of the subscription
liability plus any subscription payments made at the start of the subscription term, if applicable. The ROU
subscription assets are amortized on a straight-line basis over the subscription term.
Allowance for Doubtful Accounts – The Commission evaluates its accounts receivable individually. A change to
income to absorb possible credit losses is provided when, in the opinion of management, it is appropriate.
Compensated Absences – All employees of the Commission are entitled to vacation in accordance with
Commission policy. At termination or retirement, employees are paid for any unused leave up to 240 hours. The
Commission has accrued $176,000 for compensated absences as of June 30, 2024. These liabilities are recorded
in accrued liabilities on the statement of net position.
All employees of the Commission are also entitled to sick leave in accordance with Commission policy. At
retirement, employees are paid for unused leave. The Commission has accrued $100,000 for sick leave as of
June 30, 2024. These liabilities are recorded in accrued liabilities on the statement of net position.
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