FY2016 CCDOA Financial Report as of 6302016.pdf - page 56

Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
(a) Reporting Entity
The Clark County Department of Aviation ("Department") is a department of Clark County ("County"), a
political subdivision of the State of Nevada ("State"). The Department, under the supervision of the
Board of County Commissioners ("Board") and the County Manager, is established to operate
McCarran International Airport ("Airport") and the four other general aviation facilities owned by the
County: North Las Vegas Airport, Henderson Executive Airport, Jean Sports Aviation Center, and
Overton-Perkins Field (collectively referred to as the "Airport System"). The Board is the governing body
of the County. The seven members are elected from County commission election districts to four-year
staggered terms. The Board appoints the Director of Aviation, who is charged with the day-to-day
operation of the Department.
Only the accounts of the Department are included in the reporting entity. The Airport System is owned
and operated as an enterprise fund of the County and is included as part of the County’s government-
wide financial statements and Comprehensive Annual Financial Report ("CAFR").
(b) Basis of Accounting
The accounting principles used are similar to those applicable to a private business enterprise where
the costs of providing services to the public are recovered through user fees. The Department is not
subsidized by any tax revenues of the County. All tabular dollar amounts are presented in thousands.
The financial statements of the Department, an enterprise fund, are presented applying the accrual
basis of accounting. Revenues are recorded when earned. The Department’s operating revenues are
derived from fees earned by airlines, concessionaires, tenants, and others. The fees are based on
usage fees established by the Department and approved by the Board or in accordance with the
Airline–Airport Use and Lease Agreement ("Lease") dated July 1, 2010. The initial term of the Lease is five
years with an option to extend for an additional two years upon mutual agreement between the
parties. On November 5, 2014, the Board approved amending the Agreement by extending its terms
through June 30, 2020. Expenses are recognized when incurred. Non-operating income consists of
interest income, gains and losses on derivative instruments, Passenger Facility Charge ("PFC") proceeds,
Jet A Fuel Tax revenues, and non-operating expenses primarily consisting of interest expense on
outstanding Department debt.
1...,46,47,48,49,50,51,52,53,54,55 57,58,59,60,61,62,63,64,65,66,...169
Powered by FlippingBook