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From page 132... ... 132 CHAPTER 11 FINANCIAL 11.1 Introduction 11.2 Financial and Accounting Principles 11.3 Financial Departments 11.4 Funding 11.5 Financial Statements 11.6 Performance Measures 11.7 Budgets 11.8 Wrap-Up 11.9 Templates 11.1 INTRODUCTION The ﬁduciary responsibilities of general aviation airport managers and policymakers should never be taken lightly. Stakeholders expect that these responsibilities will be pursued with utmost diligence. Read the entire page →
From page 133... ... Financial 133 Planning is bringing the future into the present so that you can do something about it now. – Alan Lakein Only those portions of this chapter relevant to achieving the goals established for the airport need to be consulted. Read the entire page →
From page 134... ... 134 Guidebook for Developing General Aviation Airport Business Plans One of the key components of eﬀective ﬁnancial and accounting systems is the development of a detailed Chart of Accounts, which is typically divided into eight primary categories: (1) assets; (2) Read the entire page →
From page 135... ... Financial 135 AIRSIDE The airside department tracks the ﬁnancial transactions associated with the airside infrastructure and improvements, such as runways, taxiways, ramps, lighting, striping, and utilities. This includes staﬀ payroll and the expenses associated with operating and maintaining airside infrastructure and improvements as well as associated vehicles, equipment, and tools. Read the entire page →
From page 136... ... 136 Guidebook for Developing General Aviation Airport Business Plans NON-AVIATION REAL ESTATE The non-aviation real estate department tracks the ﬁnancial transactions associated with the (1) leasing of airport land for the development of lessee-owned improvements and facilities and (2) Read the entire page →
From page 137... ... Financial 137 NON-OPERATING SOURCES OF FUNDS According to the survey of general aviation airports conducted for the development of this Guidebook, airports with a business plan were able to identify and secure, on average, $1,877,600 (in 2010) of non-operating sources of funds, primarily grants. Read the entire page →
From page 138... ... 138 Guidebook for Developing General Aviation Airport Business Plans INVESTMENT INCOME Investment income is associated with interest or gains directly tied to the investment of airport funds. DONATIONS While less common, private donations may also be a source of funding. Read the entire page →
From page 139... ... Financial 139 A public agency uses a diﬀerent set of ﬁnancial statements than private-sector entities. Stakeholders should be able to review an airport's ﬁnancial statements and determine if airport managers and policymakers are being good stewards of the airport's assets, taking the FAA requirement to be as ﬁnancially self-sustaining as possible seriously, and meeting the ﬁduciary responsibilities expected of public servants. Read the entire page →
From page 140... ... 140 Guidebook for Developing General Aviation Airport Business Plans STATEMENT OF FINANCIAL ACTIVITIES A Statement of Financial Activities identiﬁes the airport's operating revenues, operating cost of goods sold, operating expenses, non-operating sources of funds, and non-operating uses of funds over a speciﬁc period of time. In combination, this results in a net change -- surplus or deﬁcit -- to the airport's net assets. Read the entire page →
From page 141... ... Financial 141 When presenting ﬁnancial statements to stakeholders, a section should be dedicated to management's discussion and analysis (MD&A) , and ﬁnancial statement notes should be provided to explain the unique nuances associated with each statement or particular line items that may not be readily apparent. Read the entire page →
From page 142... ... 142 Guidebook for Developing General Aviation Airport Business Plans Financial Operational Combined (Financial and Operational) 11.6 PERFORMANCE MEASURES Many measures can be used to determine how an airport is performing. Read the entire page →
From page 143... ... Financial 143 A good plan is like a road map: It shows the ﬁnal destination and usually the best way to get there. Read the entire page →
From page 144... ... 144 Guidebook for Developing General Aviation Airport Business Plans Consistent with best practices, key steps when developing and implementing a budget follow (see Figure 11-5) : • Analyze historical results and compare previous year to prior year (actual to budgeted) Read the entire page →
From page 145... ... Financial 145 FINANCIAL BUDGET The Financial Budget aligns with the Statement of Net Assets and Statement of Cash Flows. This budget identiﬁes all planned sources and uses of cash and anticipated capital investment and expenditures identiﬁed during the business planning process. Read the entire page →
From page 146... ... 146 Guidebook for Developing General Aviation Airport Business Plans BUDGET TEMPLATES The Budget Templates (Budget-Statement of Net Assets, Budget-Statement of Financial Activities-Airport, BudgetStatement of Financial Activities-Airport Operated FBO, and Budget-Statement of Cash Flows) are designed to help the planning team develop budgets. Read the entire page →
From page 147... ... Financial 147 TEMPLATE 11-1: CAPITAL ASSET LIST CHAPTER 11: FINANCIAL This template will help the planning team identify the airport's capital assets, the purchase date, the description, the associated general ledger account number, the purchase cost, and the estimated replacement date. Item Name Item # PurchaseDate Description GL Account # Purchase Cost Estimated Replacement Date ADMINISTRATION DEPARTMENT Office Furniture -$ Office Equipment -$ Vehicles -$ -$ -$ -$ -$ -$ -$ -$ Subtotal -$ AIRSIDE DEPARTMENT Land -$ Runways -$ Taxiways -$ Vehicles -$ Equipment -$ -$ -$ -$ -$ Subtotal -$ LANDSIDE DEPARTMENT Land -$ Roadways -$ Vehicle Parking -$ Vehicles -$ Equipment -$ -$ -$ -$ Subtotal -$ AVIATION REAL ESTATE DEPARTMENT Land -$ Terminal -$ Office Buildings -$ Shop Buildings -$ Hangars -$ Vehicle Parking -$ Ramp -$ Taxilanes -$ Vehicles -$ Equipment -$ -$ -$ Subtotal -$ NON-AVIATION REAL ESTATE DEPARTMENT Land -$ Buildings -$ Vehicle Parking -$ Vehicles -$ Equipment -$ -$ -$ -$ Subtotal -$ AVIATION PRODUCTS AND SERVICES DEPARTMENT Fuel Storage Facility -$ Office Equipment -$ Office Furniture -$ Terminal Furniture -$ Vehicles -$ Equipment -$ Refueling Vehicles -$ Ground Support Equipment -$ -$ -$ -$ Subtotal -$ TOTAL -$ CAPITAL ASSET LIST Name of Airport Date Read the entire page →
From page 148... ... 148 Guidebook for Developing General Aviation Airport Business Plans TEMPLATE 11-2: STATEMENT OF NET ASSETS CHAPTER 11: FINANCIAL The Financial Statement Templates are designed to help the planning team develop the airport's ﬁnancial statements. The Statement of Net Assets identiﬁes the airport's assets and liabilities, with the diﬀerence between the two being reported as net assets. Read the entire page →
From page 149... ... Financial 149 TEMPLATE 11-3: STATEMENT OF FINANCIAL ACTIVITIES (AIRPORT) CHAPTER 11: FINANCIAL The Financial Statement Templates are designed to help the planning team develop the airport's ﬁnancial statements. Read the entire page →
From page 150... ... 150 Guidebook for Developing General Aviation Airport Business Plans TEMPLATE 11-4: STATEMENT OF FINANCIAL ACTIVITIES (AIRPORT OPERATED FBO) CHAPTER 11: FINANCIAL The Financial Statement Templates are designed to help the planning team develop the airport's ﬁnancial statements. Read the entire page →
From page 151... ... Financial 151 TEMPLATE 11-5: STATEMENT OF CASH FLOWS CHAPTER 11: FINANCIAL The Financial Statement Templates are designed to help the planning team develop the airport's ﬁnancial statements. The Statement of Cash Flows identiﬁes the airport's cash and cash equivalent activities -- positive and negative -- associated with operating activities, non-capital ﬁnancial activities, capital ﬁnancing activities, and investing activities over a speciﬁc period of time. Read the entire page →
From page 152... ... 152 Guidebook for Developing General Aviation Airport Business Plans TEMPLATE 11-6: BUDGET-STATEMENT OF NET ASSETS CHAPTER 11: FINANCIAL The Budget Templates are designed to help the planning team develop the airport's budgets. The BudgetStatement of Net Assets identiﬁes the airport's budgeted and actual assets and liabilities, with the diﬀerence between the two being reported as net assets. Read the entire page →
From page 153... ... Financial 153 TEMPLATE 11-7: BUDGET-STATEMENT OF FINANCIAL ACTIVITIES (AIRPORT) CHAPTER 11: FINANCIAL The Budget Templates are designed to help the planning team develop the airport's budgets. Read the entire page →
From page 154... ... 154 Guidebook for Developing General Aviation Airport Business Plans TEMPLATE 11-8: BUDGET-STATEMENT OF FINANCIAL ACTIVITIES (AIRPORT OPERATED FBO) CHAPTER 11: FINANCIAL The Budget Templates are designed to help the planning team develop the airport's budgets. Read the entire page →
From page 155... ... Financial 155 TEMPLATE 11-9: BUDGET-STATEMENT OF CASH FLOWS CHAPTER 11: FINANCIAL The Budget Templates are designed to help the planning team develop the airport's ﬁnancial budgets. The BudgetStatement of Cash Flows identiﬁes the airport's budgeted and actual cash and cash equivalent activities -- positive and negative -- associated with operating activities, non-capital ﬁnancial activities, capital ﬁnancing activities, and investing activities over a speciﬁc period of time. Read the entire page →

From page 132...

... 132 CHAPTER 11 FINANCIAL 11.1 Introduction 11.2 Financial and Accounting Principles 11.3 Financial Departments 11.4 Funding 11.5 Financial Statements 11.6 Performance Measures 11.7 Budgets 11.8 Wrap-Up 11.9 Templates 11.1 INTRODUCTION The ﬁduciary responsibilities of general aviation airport managers and policymakers should never be taken lightly. Stakeholders expect that these responsibilities will be pursued with utmost diligence.