FY2016 CCDOA Financial Report as of 6302016.pdf - page 60

Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
(j) Derivative Instruments
The Department is required to follow the guidelines of GASB Statement No. 53,
Accounting and
Financial Reporting for Derivative Instruments
("GASB 53"), for reporting its derivative instruments. GASB
53 addresses the recognition, measurement, and disclosure of information regarding derivative
instruments entered into by state or local governments. GASB 53 requires all derivatives be categorized
into two basic types: (1) hedging instruments and (2) investment instruments. In addition, GASB 53
required that all derivative instruments be reported on the Statements of Net Position at their mark-to-
market value.
With the implementation of GASB 72, the interest rate swaps now are stated at fair value. However, the
information required to restate the interest rate swaps at fair value as of June 30, 2015, was not
available; therefore, the interest rate swaps for FY 2015 are presented at their mark-to-market value.
The changes from mark-to-market value in FY 2015 to fair value in FY 2016 of derivative instruments
which, in accordance with GASBs 53 and 72, serve as valid hedges are recorded in the Statements of
Net Position as either deferred inflows of resources or deferred outflows of resources. Corresponding
changes to the fair value of derivative instruments which are no longer considered valid hedges are
recorded in the Statements of Revenues, Expenses, and Changes in Net Position. The fair value of the
Department’s swap portfolio recorded at fair value as of June 30, 2016, is $(107.6) million as compared
to the mark-to-market value of $(53.2) million as of June 30, 2015. Refer to Note 10, "Derivative
Instruments – Interest Rate Swaps," for further details on the fair values and classifications of the
Department’s derivative instruments.
(k) Federal Grants
Federal Aviation Administration ("FAA") grants are restricted for certain capital improvements and are
reported as capital contributions in accordance with Governmental Accounting Standards Board
("GASB") Statement No. 33,
Accounting and Financial Reporting for Non-exchange Transactions
, as
amended by GASB Statement No. 36,
Recipient Reporting for Certain Shared Nonexchange Revenues
1...,50,51,52,53,54,55,56,57,58,59 61,62,63,64,65,66,67,68,69,70,...169
Powered by FlippingBook