Financial Statement for SFY 2022

10 JOHNSTON COUNTY AIRPORT AUTHORITY Smithfield , North Carolina Financial Statements For the Year Ended June 30 , 2022PageMarcia High Armstrong L Lamar Armstrong , III Board Certified Specialist i11 l , t1 11 ily Law Eason Armstrong Keeney American Academy of J lalrimonial Lawyers Daniel K Keeney The Armstrong Law Firm , PA L Lamar Armstrong , Jr J mcric , rn Boald of Trial Advocates T r i a l Att o rn eys January 5 , 2023 Thompson , Price , Scott , Adams & Co , P A PO Box 398 Whiteville , North Carolina 2847 2 Re Johnston County Airport Authority the Airport Dear Sir Madam The Airports 19 December 2022 letter asked us to provide information relevant to your examination of the Airports financial statements for its fiscal year ending 30 June 2022 As of June 30 , 2022 , L Lamar Armstrong , Jr of The Armstrong Law Firm , PA served as the Airports outside counsel co - counsel with Keith Merritt in the lawsuit entitled Blue Line Aviation , LLC v Johnston County Airport Authority , 21 CVS 4081 in Johnston County Blue Line litigation In this Blue Line litigation , Blue Line sought a declaratory judgment concerning the scope of its Hangar Lease with the Airport The Airport counterclaimed against Blue Line and obtained injunctive relief requiring Blue Line to adhere to the Airports rules and regulations for Johnston Regional Airport Blue Line amended its complaint to assert additional claims for the Airports alleged violation of Blue Lines First Amendment rights , substantive due process rights and for breach of the implied covenant of good faith and fair dealing in the Hangar Lease The Airport moved to dismiss the Amended Complaint , which motion was denied Thereafter , the parties have engaged in discovery and continue to engage in discovery The Airport anticipates filing a motion for summary judgment which the undersigned anticipates will likely end this lawsuit The Airport will continue to vigorously defend the lawsuit The Airport anticipates that it will ultimately prevail in this litigation but understands 602 South Third Street • Post Office Box 27 • Smithfield , NC 275 77 Telephone 9199341 575 • Facsimile 9 199341846 • wwwarmstronglawyerscomPageoutcomes cannot be guaranteed In the unlikely event it loses this lawsuit , the Airport may have to pay damages of some amount that is uncertain and unknown at this time As of the date of thi ~ letter the Airport has paid all of my firms outstanding invoices provided prior to 30 June 2022 In the Airports 19 December 2022 letter , it asked that we furnish you information concerning unasserted claims and assessments Since this letter did not specify any such unasserted contingent liabilities , we decline in accordance with the ABAs Statement of Policy Regarding Lawyers Responses to Auditors Requests for Information December 1975 referenced below to respond to such request and disclaim any obligation to do so If as we provide legal services for the Airport with respect to a matter recognized to involve an unasserted possible claim or assessment that may call for financial statement disclosure we conclude that the Airport must disclose or consider disclosure concerning such possible claim or assessment , we as a matter of professional responsibility to the Airport will advise the Airport and consult with the Airport about such disclosure and the applicable requirements of Statement of Financial Accounting Standards No 5 This response is limited by and in accordance with the ABA Statement of Policy Regarding Lawyers Responses to Auditors Requests for Information December 1975 Without limiting the generality of the above , the limitations set forth in the Statement on the scope and use of this response Paragraphs 2 and 7 are specifically incorporated herein by reference , and any reference herein to unasserted claims is qualified in its entirety by Paragraph 5 of the Statement and the accompanying Commentary which is an integral part of the Statement The information and opinions addressed in this letter are specifically addressed to 30 June 2022 and to the best of our knowledge and understanding remain accurate as of the date of this letter We disclaim any obligation to advise you as to changes which hereafter may be brought to our attention This letter is solely for your information in connection with your above - referenced examination of the financial statements of the Airport and is not 2 602 South Third Street • Post Office Box 27 • Smithfield , NC 27577 Telephone 9199341575 • Facsimile 9199341846 • wwwarmstronglawyerscomPageto be quoted in whole or in part or otherwise referred to in any financial statements of the Airport or any other documents or is it to be filed with or furnished to any governmental agency or other person , without our prior written consent Best Regards , Isl L Lamar Armstrong , Jr L Lamar Armstrong , Jr LLAla cc J Chad McLamb , Finance Director J ohnston County Phillip Lanier , Johnston County Airport Director 3 602 South Third Street • Post Office Box 27 • Smithfield , NC 27577 Telephone 9199341 575 • Facsimile 9 199341 846 • wwwarmstronglawyerscomPagePage pageNumber5525 North Tryon Street , Suite 1400 111 1 ¦ HAMILTON STEPHENS Charlotte , North Carolina 28202 a m STEELE + MARTIN , PLLC Telephone 7043441117 Facsimile 7043441483 Ell lal - - - ATTORNEYS AT LAW Keith J Merritt Email kmerritt @ lawhssmcom 704 - 227 - 1056 January 5 , 2023 Thompson , Price , Scott , Adams & Co , PA PO Box 398 Whiteville , North Carolina 28472 Re The Johnston County Airport Authority the “ Authority ” Dear Sir Madam By letter dated December 19 , 2022 , the Authority has requested that we furnish you certain information in connection with your examination of the financial statements of the Authority as of June 30 , 2022 , and for the fiscal year then ended We act as outside counsel for the Authority on certain discreet matters As of June 30 , 2022 , the Authority was a party in the following litigation where our firm has provided representation 1 Blue Line Aviation , LLC v Johnston County Airport Authority , 21 CVS 4081 , Johnston County Superior Court Blue Line Aviation , LLC “ Blue Line ” filed this action seeking a declaratory judgment as to the are subject to a Hangar Lease agreement it entered into with the Authority The Authority filed counterclaims against Blue Line and obtained injunctive relief requiring Blue Line to adhere to the Authority’s rules and regulations for Johnston Regional Airport Blue Line amended its complaint to assert additional claims for violation of Blue Line’s First Amendment rights , substantive due process rights and for breach of the implied covenant of good faith and fair dealing in the Hangar Lease agreement The Authority moved to dismiss the Amended Complaint but that motion was denied by the court The parties are currently engaged in discovery with the anticipation of motions for summary judgment The Authority has and will continue to vigorously defend the lawsuit The Authority anticipates that it will ultimately prevail in this litigation but there is never a certainty as to outcome In the event of an unfavorable outcome it is possible that the Authority may have to pay damages of some amount that is uncertain and unknown at this time 2 The Authority is also a party in an administrative proceeding filed by Blue Line with the Federal Aviation Administration “ FAA ” This is purely an administrative proceeding in which damages are not assessed This proceeding is disclosed for the purpose of full reporting 525 North Tryon St , Ste 1400 Charlotte , NC 28202 MAIN 7043441117 FAX 7043441483 WEB wwwlawhssmcom 4857 - 3750 - 0232 , v 1PagePage pageNumber6Hamilton Stephens Steele + Martin , PLLC January 5 , 2023 Page 2 3 The Authority was the subject of an administrative complaint that was filed by AWA with the FAA This proceeding was resolved in favor of the Authority and has concluded This proceeding is disclosed for the purpose of full reporting As of the date of this letter the Authority has paid all outstanding invoices through June 30 , 2022 Since June 30 , 2022 , the Authority has also been sued in the following matters 1 Blue Line Aviation , Inc v WK Dickson & Co , Inc , et al , 22 CVS 13034 , Wake County Superior Court This action relates to an incident of flooding that occurred during the construction of Blue Line’s facility at Johnston Regional Airport Claims asserted against the Authority include trespass , nuisance , inverse condemnation and breach of lease The Authority recently filed its Answer in this matter and will vigorously defend the case The Answer includes motions to change the venue of the case to Johnston County It is anticipated that the Authority will prevail in the claims asserted against it but in the event of an adverse outcome it is anticipated that liability will be less than 100,000 2 Charles R Walters , Jr v Johnston County Airport Authority , 22 CVS 3427 , Johnston County Superior Court The Authority was sued by Charles Walters , Jr , in an action for the disclosure of documents under the public records act This action was concluded by Walters taking a voluntary dismissal without prejudice In the Authority’s request letter to us , referred to above , the Authority requested that we furnish you certain information concerning unasserted claims and assessments In accordance with the ABA’s Statement of Policy Regarding Lawyers ’ Responses to Auditors ’ Requests for Information December 1975 , referred to below , since this letter did not specify any such unasserted contingent liabilities , we decline to respond to such request and disclaim any obligation to do so However , whenever , in the course of performing legal services for the Authority with respect to a matter recognized to involve an unasserted possible claim or assessment that may call for financial statement disclosure , we have formed a professional conclusion that the Authority must disclose or consider disclosure concerning such possible claim or assessment , we , as a matter of professional responsibility to the Authority , will advise the Authority and consult with the Authority concerning such disclosure and the applicable requirements of Statement of Financial Accounting Standards No 5 This response is limited by , and in accordance with , the ABA Statement of Policy Regarding Lawyers ’ Responses to Auditors ’ Requests for Information December 1975 Without limiting the generality of the foregoing , the limitations set forth in the Statement on the scope and use of this response Paragraphs 2 and 7 are specifically incorporated herein by reference , and any reference herein to “ unasserted claims ” is qualified in its entirety by 525 N Tryon St , Ste 1400 Charlotte , NC 28202 MAIN 7043441117 FAX 7043441483 WEB wwwlawhssmcom 4857 - 3750 - 0232 , v 1PagePage pageNumber7Hamilton Stephens Steele + Martin , PLLC January 5 , 2023 Page 3 Paragraph 5 of the Statement and the accompanying Commentary which is an integral part of the Statement The information set forth herein is as of June 30 , 2022 and the date of this letter , and we disclaim any undertaking to advise you as to changes which thereafter may be brought to our attention This letter is solely for your information in connection with your above - referenced examination of the financial statements of the Authority and is not to be quoted in whole or in part or otherwise referred to in any financial statements of the Authority or any other documents or is it to be filed with or furnished to any governmental agency or other person , without our prior written consent Very truly yours , s Keith J Merritt Keith J Merritt cc J Chad McLamb , Finance Director Johnston County Phillip Lanier , Johnston County Airport Director 525 N Tryon St , Ste 1400 Charlotte , NC 28202 MAIN 7043441117 FAX 7043441483 WEB wwwlawhssmcom 4857 - 3750 - 0232 , v 1PagePage pageNumber8JOHNSTON COUNTY AIRPORT AUTHORITY Smithfield , North Carolina Year Ended June 30 , 2022 Board of Commissioners RS Butch Lawter , Jr , Chairman Patrick E Harris , Vice - Chairman Tony Braswell Ted G Godwin Fred J Smith , Jr Richard D Braswell April Stephens Airport Authority Board Members Ken Starling , Chairman John H Bullock , Jr , Vice - Chairman Bruce Johnson , Secretary Treasurer Edwin Aldridge , Jr Freddie Stancil Bentley Powell Tim StevensPagePage pageNumber9JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2022 Page s FINANCIAL SECTION INDEPENDENT AUDITORS ’ REPORT 1 - 3 MANAGEMENT DISCUSSION AND ANALYSIS 4 - 7 BASIC FINANCIAL STATEMENTS 1 Statements of Net Position 8 2 Statements of Revenues , Expenses and Changes in Fund Net Position 9 3 - 4 Statements of Cash Flows 10 - 11 NOTES TO THE FINANCIAL STATEMENTS 12 - 25 REQUIRED SUPPLEMENTARY INFORMATION Schedule of the Proportionate Share of the Net Pension Asset - Local Government A - 1 Employees Retirement System 26 A - 2 Schedule of Contributions - Local Government Employees Retirement System 27 A - 3 Schedules of Changes in Total OPEB Liability and Related Ratios 28 SUPPLEMENTAL FINANCIAL DATA Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP - B - 1 Operating Fund 29 - 30 Schedule of Revenues and Expenditures – Budget and Actual Non - GAAP – Airport B - 2 Construction – Construction Fund 31 COMPLIANCE SECTION Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 32 - 33 Report on Compliance With Requirements Applicable To Each Major State Program and Internal Control Over Compliance In Accordance With Applicable Sections of OMB Uniform Guidance and the State Single Audit Implementation Act 34 - 36 Schedule of Findings and Questioned Costs 37 Corrective Action Plan 38 Summary Schedule of Prior Audit Findings 39 C - 1 Schedule of Expenditures of Federal and State Awards 40Page0FINANCIAL SECTIONPage1Thompson , Price , Scott , Adams & Co , PA PO Box 398 1626 S Madison Street Whiteville , NC 28472 Telephone 910 642 - 2109 Fax 910 642 - 5958 Alan W Thompson , CPA R Bryon Scott , CPA Gregory S Adams , CPA CERTIFIED PUBLIC ACCOUNTANTS CONSULTANTS AND TAX ADVISORS Independent Auditors Report Board of County Commissioners and Authority Board Johnston County Airport Authority Smithfield , North Carolina Opinions We have audited the accompanying financial statements of the business - type activities of the Johnston County Airport Authority , a component unit of the Johnston County , North Carolina , as of and for the year ended June 30 , 2022 , and the related notes to the financial statements which collectively comprise the Authoritys basic financial statements as listed in the table of contents In our opinion , the financial statements referred to above present fairly , in all material respects , the respective financial position of the business - type activities of the Johnston County Airport Authority as of June 30 , 2022 , and the respective changes in financial position and cash flows , where applicable , thereof and the respective budgetary comparison for the year then ended in accordance with accounting principles generally accepted in the United States of America Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America GAAS and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report We are required to be independent of the Johnston County Airport Authority and to meet our ethical responsibilities , in accordance with the relevant ethical requirements relating to our audit We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions Responsibilities of Management for the Audit of the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America ; this includes the design , implementation , and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement , whether due to fraud or error In preparing the financial statements , management is required to evaluate whether there are conditions or events considered in the aggregate , that raises substantial doubt about the Authoritys ability to continue as a going concern for the twelve months beyond the financial statement date , including any current known information that may raise substantial doubt shortly thereafter Members 1 American Institute of CPAs - NC Association of CPAs - AICPA Division of FirmsPage2Auditors Responsibilities for the Audit of Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatements , whether due to fraud or error , and to issue an auditors report that includes our opinions Reasonable assurance is a high level of assurance but is not absolute assurance and therefore not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect material misstatement when it exists The risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error , as fraud may involve collusion , forgery , intentional ommissions , misrepresentations , or the override of internal control Misstatements are considered material if there is a substantial likelihood that , individually or in the aggregate , they would influence the judgement made by a reasonable user based on the financial statements In performing and audit in accordance with GAAS and Government Auditing Standards we • exercised professional judgement and maintained professional skeptism throughout the audit • identify and assess the risks of material misstatements of the financial statements , whether due to fraud our error , and design and perform audit procedures responsible to those risks Such procedures include examining , on a test basis , evidence regarding the amounts and disclosures in the financial statements • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances , but not for the purpose of expressing an opinion on the effectiveness of the Johnston County Airport Authoritys internal control Accordingly , no such opinion is expressed • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management , as well as evaluate the overall presentation of the financial statements • conclude whether , in our judgment , there are conditions or events , considered in the aggregate , that raise substantial doubt about the Johnston County Airport Authoritys ability to continue as a going concern for a reasonable period of time We are required to communicate with those charged with governance regarding among other matters , the planned scope and timing of the audit , significant audit findings , and certain internal control - related matters that we identify during the audit Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Managements Discussion and Analysis on pages 4 through 7 , the Local Government Employees Retirement Systems Schedules of the Proportionate Share of the Net Pension Asset and Contributions on pages 26 and 27 , respectively , be presented to supplement the basic financial statements Such information , although not a required part of the basic financial statements , is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational , economic , or historical context We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America , which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managements responses to our inquiries , the basic financial statements , and other knowledge we obtained during our audit of the basic financial statements We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance 2Page3Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of Johnston County Airport Authority , North Carolina The budgetary schedules , and the accompanying Schedule of Expenditures of Federal and State Awards , as required by Title 2 US Code of Federal Regulations CFR Part 200 , Uniform Administrative Requirements , Cost Principles , and Audit Requirements for Federal Awards , and the State Single Audit Implementation Act , are presented for purpose of additional analysis and are not a required part of the basic financial statements Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures , including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves , and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us In our opinion , based on our audit , the procedures performed as described above , the budgetary schedules , and the Schedule of Expenditures of Federal and State Awards are fairly stated , in all material respects , in relation to the basic financial statements as a whole Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated January 5 , 2023 on our consideration of the Johnston County Airport Authoritys internal control over financial reporting and on our tests of its compliance with certain provisions of laws , regulations , contracts , and grants agreements , and other matters The purpose of the report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing , and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Johnston County Airport Authoritys internal control over financial reporting and compliance ~ 0 • • • • ~ ~ - ~ • c p ____________________________________________ Thompson , Price , Scott , Adams & Co , PA Whiteville , NC January 5 , 2023 3Page4Management’s Discussion and Analysis Johnston County Airport Authority , the Authority , a component unit of Johnston County , is a corporate body which operates the airport in Johnston County , North Carolina This is a narrative overview and analysis of the financial activities of the Authority for the fiscal year ended June 30 , 2022 We encourage readers to read the information presented here in conjunction with the additional information that we have furnished in the Authority’s financial statements , which follows this narrative Financial Highlights The assets and deferred outflows of Johnston County Airport Authority exceeded its liabilities and deferred inflows of ? resources at the close of the most recent fiscal year by 28,017,061 net position Of this amount , 1,695,739 unrestricted net position may be used to meet the government’s ongoing obligations to citizens and creditors The Authority’s total net position decreased by 94,422 ? Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Authority’s basic financial statements The Authority’s basic financial statements are comprised of two components 1 basic financial statements and 2 notes to the financial statements This report also contains other supplementary information that will enhance the reader’s understanding of the financial condition of the Authority Basic Financial Statements Financial Statements – These statements focus on the activities of the individual parts of the Authority’s government and provide both short and long - term information about the Authority’s financial status The financial statements are comprised of the following statements The Statements of Net Position presents information on all of the Authority’s assets , liabilities , and deferred inflows ? of resources with the difference between the two reported as net position Over time , increases and decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating The Statements of Revenue , Expenses and Changes in Fund Net Position presents information showing how the ? Authority’s net position changed during the most recent fiscal year All changes in net position are reported as soon as the underlying event giving rise to the change occurs , regardless of the timing of related cash flows Thus , revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods eg , earned but unused vacation leave 4Page5Notes to the Financial Statements – The notes are the next section of the financial statements The notes to the financial statements explain in detail some of the data contained in those statements Supplemental Financial Data In addition to the basic financial statements and accompanying notes , this report includes supplementary information concerning the Authority’s individual budgetary information These schedules are required to be presented by the North Carolina Local Government Commission Financial Statement Analysis As noted earlier , net assets may serve over time as a useful indicator of the Authority’s financial position In the case of the Authority , assets and deferred outflows exceeded liabilities and deferred inflows of resources by 28,017,061 at the close of the most recent fiscal year By far the largest portion of Authority’s net assets 9395 reflects its net investment in capital assets eg , land , buildings , machinery , and equipment The Authority uses these capital assets to provide services to citizens ; consequently , these assets are not available for future spending Although the Authority’s investment in its capital assets is reported net of related debt , it should be noted that the resources needed to repay this debt must be provided from other sources , since the capital assets themselves cannot be used to liquidate these liabilities Johnston County Airport Authoritys Net Position 2022 2021 2020 Current and Other Assets 12,278,065 5,661,639 1,286,336 Capital Assets 26,321,322 24,278,375 22,398,254 Deferred outflows 340,753 435,838 260,109 Total Assets and Deferred Outflows 38,940,140 30,375,852 23,944,699 Long - term Liabilities 1,755,929 1,786,545 1,509,742 Other Liabilities 7,496,413 337,184 544,909 Deferred inflows 1,670,737 140,640 93,468 Total Liabilities and Deferred Inflows 10,923,079 2,264,369 2,148,119 Net Position Net investment in capital assets 26,321,322 24,278,375 22,398,254 Unrestricted 1,695,739 3,833,108 601,674 Total Net Position 28,017,061 28,111,483 21,796,580 Assets increased during the year by 8,659,373 because of an increase in capital assets from Fiscal Year 2021 to 2022 ? by 2,042,947 combined with an increase in current assets of 6,616,426 Liabilities increased during the year by 7,128,613 , primarily due to increases in unearned revenues unspent grants ? Net position decreased during the year by 94,422 , primarily due to the timing issue associated with several grants ? were not received as of fiscal year end , 5Page6Johnston County Airport Authoritys Changes in Net Position 2022 2021 2020 Operating Revenues 2,187,828 1,344,609 1,439,243 Operating Expenses 3,149,469 2,120,434 2,090,260 Net Income Loss from Operations 961,641 775,825 651,017 Nonoperating Revenue Expenses 222,854 19,216 445 Income Loss Before Contributions and Transfers 738,787 795,041 651,462 Capital Contributions 444,365 7,109,944 3,773,696 Contribution from Primary Government 200,000 - 1 75,000 Change in Net Position 94,422 6,314,903 3,297,234 Net Position , Beginning of Year 28,111,483 21,796,580 18,499,346 Net Position , End of Year 28,017,061 28,111,483 21,796,580 Operating Revenue In fiscal year 2022 , total operating revenues were 2,187,828 , which equated to an increase from 2021 of 843,219 or 6271 This increase primarily resulted from a significant increase in fuel and oil sales of 718,825 from fiscal year 2021 to 2022 Operating Expenses In fiscal year 2022 , total operating expenses were 3,149,469 which equated to an increase from 2021 of 1,029,035 or 4853 There was an increase in cost of sales due primarily to increased fuel costs , which increased 647,921 , or 14548 , combined with an increase in general operating expenses of 249,471 , or 5755 Capital Asset and Debt Administration Capital assets At the end of 2022 , the Authority had a total net investment in capital assets of 26,321,322 net of accumulated depreciation This investment in capital assets includes land , land improvements , buildings , equipment and construction in progress The total increase in the Authority’s investment in capital assets for the current fiscal year was 841 Johnston County Airport Authoritys Capital Assets net of depreciation 2022 2021 2020 Land 9 00,216 9 00,216 9 00,216 Land Improvements 1 0,738,807 1 1,182,377 9 , 457,669 Clearing and Excavation 2 , 918,869 2 , 979,413 2 , 814,294 Buildings 4 , 342,464 4 , 461,860 4 , 604,213 Equipment 1 95,371 1 38,816 3 0,011 Construction in Process 7 , 225,595 4 , 615,693 4 , 591,851 Total 2 6,321,322 2 4,278,375 2 2,398,254 Long - term debt At June 30 , 2022 , the Authority had no outstanding long - term debt The authority does not plan to incur any additional debt for planned renovation and expansion projects 6Page7Economic Factors and Next Year’s Budgets and Rates Economic Factors Significant economic indicators for the County are as follows Indicator Johnston County North Carolina Population Increase 2002 - 2022 721 256 Projected Population Increase 2022 - 2041 401 203 Average Unemployment Rate 2021 42 48 Per Capita Income 2021 48,950 56,173 Median Household Income 2021 61,806 56,642 Next Year’s Budget For fiscal year 2023 , the Airport budgeted a 39 increase in operating revenues as compared to fiscal year 2022 , due primarily to an increase in budgeted aviation Jet - a - Fuel revenue The largest budgeted revenue item for fiscal year 2023 is anticipated FAA Grants at approximately 19,957,500 Total budgeted operating expenditures for fiscal year 2023 have also increased compared to fiscal year 2022 due primarily to the expected increase in the cost of aviation Jet - a - Fuel and an increase in budgeted salaries Requests for Information This financial report is designed to provide a general overview of the Johnston County Airport Authority’s finances for all those with an interest in the government’s finances Questions concerning any of the information provided in this report or request for additional financial information should be addressed to the Office of the Finance Director , Johnston County Airport Authority , PO Box 1049 , Smithfield , NC 27577 7Page8BASIC FINANCIAL STATEMENTSPage9Exhibit 1 JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA STATEMENTS OF NET POSITION June 30 , 2022 ASSETS June 30 , 2022 Current Assets Cash and Cash Equivalents 3 , 136,995 Trade Accounts Receivable , Net 1 01,520 Grants Receivable 4 6,684 Sales Tax Receivable 1 9,502 Lease Receivable 4 17,539 Interest Receivable 1 , 081 Inventories 7 5,780 Prepaid Expenses 2 7,971 Total Current Assets 3 , 827,072 Non - current Assets Restricted Cash and Cash Equivalents 7 , 369,427 Lease Receivable , Non - Current 1 , 081,566 Capital Assets , Net 2 6,321,322 Total Non - Current Assets 3 4,772,315 Total Assets 3 8,599,387 DEFERRED OUTFLOWS OF RESOURCES 3 40,753 LIABILITIES Current Liabilities Trade Accounts Payable 1 26,986 Customer Prepayments 9 , 124 Unearned Revenues 7 , 360,303 Total Current Liabilities 7 , 496,413 Noncurrent Liabilities OPEB Liability 1 , 656,097 Compensated Absences Payable 2 9,227 Net Pension Liability 7 0,605 Total Noncurrent Liabilities 1 , 755,929 Total Liabilities 9 , 252,342 DEFERRED INFLOWS OF RESOURCES 1 , 670,737 NET POSITION Net investment in capital assets 2 6,321,322 Unrestricted 1 , 695,739 Total Net Position 2 8,017,061 The notes to the financial statements are an integral part of this statement 8Page0Exhibit 2 JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA STATEMENTS OF REVENUES , EXPENSES , AND CHANGES IN FUND NET POSITION For the Year Ended June 30 , 2022 June 30 , 2022 Operating Revenues Fuel and Oil Sales 1 , 384,232 Aircraft Tiedowns 9 , 138 Vending 5 02 Hangar Leases and Rents 6 86,687 Miscellaneous 1 04,889 Service Fees 2 , 380 Total Operating Revenues 2 , 187,828 Operating Expenses Salaries and Employee Benefits 7 10,254 Cost of Sales 1 , 093,290 Operating 6 82,963 Depreciation 6 62,962 Total Operating Expenses 3 , 149,469 Loss from Operations 961,641 Nonoperating Revenue Expenses CARES Act Funding 8 2,000 NC SCIF Funding 1 39,697 Investment Earnings 1 , 157 Total Nonoperating Revenue Expenses 2 22,854 Income Loss Before Contributions and Transfers 738,787 Capital Contributions 4 44,365 Contribution from Primary Government 2 00,000 Change in Net Position 94,422 Net Position - Beginning of Year 2 8,111,483 Net Position - End of Year 2 8,017,061 The notes to the financial statements are an integral part of this statement 9Page1Exhibit 3 JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA STATEMENTS OF CASH FLOWS For the Year Ended June 30 , 2022 June 30 , 2022 Cash Flows from Operating Activities Cash Received from Customers 6 57,169 Cash Paid for Goods and Services 523,585 Cash Paid to Employees 604,072 Unearned Revenues 7 , 360,303 Net Cash Provided By Used in Operating Activities 6 , 889,815 Cash Flows from Noncapital Financing Activities Operating Transfer from Primary Government 2 00,000 Net Cash Provided By Used in Noncapital Financing Activities 2 00,000 Cash Flows from Capital and Related Financing Activities Acquisition of Capital Assets 2,705,909 Grant Fundings 2 21,697 Capital Contributions 8 94,855 Net Cash Provided by Used in Capital and Related Financing Activities 1,589,357 Cash Flows from Investing Activities Investments Earnings 7 6 Net Increase Decrease in Cash 5 , 500,534 Cash - Beginning of Year 5 , 005,888 Cash - End of Year 1 0,506,422 The notes to the financial statements are an integral part of this statement 10Page2Exhibit 4 JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA STATEMENTS OF CASH FLOWS For the Year Ended June 30 , 2022 June 30 , 2022 Reconciliation of Operating Loss to Net Cash Provided By Used in Operating Activities Operating Income Loss 961,641 Adjustment to Reconcile Operating Loss to Net Cash Provided By Used in Operating Activities Depreciation 6 62,962 Increase decrease in trade accounts receivable 27,697 Increase decrease in sales tax receivable 2 , 099 Increase decrease in lease receivable 1,499,105 Increase decrease in inventories 37,205 Increase decrease in prepaid expenses 3,391 Increase decrease in deferred outflows of resources for pensions 20,664 Increase decrease in deferred outflows of resources for OPEB 1 15,748 Increase decrease in trade accounts payable 195,118 Increase decrease in customer prepayments 5,956 Increase decrease in unearned Revenues 7 , 360,303 Increase decrease in deferred inflows of resources for pensions 1 02,742 Increase decrease in deferred inflows of resources for OPEB 61,028 Increase decrease in deferred inflows of resources for leases 1 , 488,382 Increase decrease in net pension liability 96,666 Increase decrease in net OPEB liability 5 7,581 Increase decrease in compensated absences 8 , 469 Total Adjustments 7 , 851,456 Net Cash Provided By Used in Operating Activities 6 , 889,815 The notes to the financial statements are an integral part of this statement 11Page3JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2022 Note 1 – Summary of significant accounting policies The accounting policies of the Johnston County Airport Authority , North Carolina the “ Authority ” conform to accounting principles generally accepted in the United States of America as applicable to governmental units The following is a summary of the more significant accounting policies Reporting entity - The Authority , a component unit of Johnston County , is a corporate body which operates the airport in Johnston County , North Carolina The County’s governing body appoints the Authority’s board members Government - wide financial statements - The government - wide financial statements ie , the statement of net position and the statement of changes in net position report information on all of the activities of the Authority For the most part , the effect of inter - fund activity has been removed from these statements The Authority does not have any governmental activities , which rely to a significant extent on property taxes and intergovernmental revenue sources Likewise , the Authority does not have any component units The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues Direct expenses are those that are clearly identifiable with a specific function or segment Program revenues include 1 charges to customers or applicants who purchase , use , or directly benefit from goods , services , or privileges provided by a given function or segment and 2 grants and contributions that are restricted to meeting the operations or capital requirements of a particular function or segment Measurement focus , basis of accounting , and financial statement presentation - The government - wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting Revenues are recorded when earned and expenses are recorded when a liability is incurred , regardless of the timing or related cash flows Intergovernmental appropriations are recognized as revenues in the year for which they are appropriated by the other government Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met Operating revenues , such as charges for services , result from exchange transactions associated with the principal activity of the Authority Exchange transactions are those in which each party receives and gives up essentially equal values Budgetary data - The Authority’s budget is adopted as required by the North Carolina General Statutes An annual budget is adopted and all annual appropriations lapse at the fiscal - year end The budget is prepared using the modified accrual basis of accounting Expenditures may not legally exceed appropriations at the departmental level The Authoritys Manager is authorized to transfer appropriations , without the governing board’s approval , within a department up to 5,000 ; however , any revisions that alter total expenditures of any department or exceed 5,000 must be approved by the governing board During the year several amendments to the original budget were necessary , the effects of which were not material A budget calendar is included in the North Carolina General Statutes which prescribes the last day on which certain steps of that budget procedure are to be performed The following schedule lists the tasks to be performed and the date by which each is required to be completed June 1 - The budget and the budget message shall be submitted to the governing board The public hearing on the budget shall be scheduled at this time July 1 - The budget ordinance shall be adopted by the governing board 12Page4JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2022 Deposits - All deposits of the Authority are made in board - designated official depositories and are secured as required by State law GS 159 - 31 The Authority may designate , as an official depository , any bank or savings association whose principal office is located in North Carolina The Authority may also establish time deposits in the form of NOW accounts , SuperNOW accounts , money market accounts , and certificates of deposit Investments - State law GS 159 - 30 c authorizes the Authority to invest in obligations of the United States or obligations fully guaranteed as to principal and interest by the United States ; obligations of the State of North Carolina ; bonds and notes of any North Carolina local government or public authority ; obligations of certain nonguaranteed federal agencies ; certain high quality issues of commercial paper and bankers ’ acceptances ; and the North Carolina Capital Management Trust Government Portfolio “ NCCMT ” , an SEC - registered 2a - 7 money market mutual fund The Authority did not have any investments at June 30 , 2022 Cash and cash equivalents – All cash is essentially demand deposits For purposes of reporting cash flows , cash includes cash on hand and deposits in banks Trade accounts receivable – The Authority operates an airport facility and provides credit in the normal course of business to customers primarily in Johnston County , North Carolina The Authority performs ongoing credit evaluations of its customers and maintains the credit risk of specific customers , historical trends , and other various information Credit losses when realized have not been significant Allowance for uncollectible accounts – No provision has been provided for doubtful accounts since they are expected to be collected Lease receivable – The Authority’s lease receivables are measured at the present value of lease payments expected to be received during the lease term Under the lease agreement , the Authority may receive variable lease payments that are dependent upon the lessee’s revenue The variable payments are recorded as an inflow of resources in the period the payment is received A deferred inflow of resources is recorded for the lease The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable The deferred inflow of resources is amortized on a straight - line basis over the term of the lease Capital assets – Capital assets are defined by the Authority as assets with an initial , individual cost of more than 5,000 and an estimated useful life in excess of two years Purchased or constructed capital assets are reported at cost or estimated historical cost Donated capital assets are recorded at their estimated fair value at the date of donation The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets ’ lives are not capitalized Capital assets of the Authority are depreciated using the straight - line method over the following useful lives Estimated Useful Lives Description Terminal building 50 Years Clearing and excavation 75 Years Runways , ramps and hangars 60 Years Aircraft parking ramp 60 Years Lighting 25 Years Fuel tanks and pumps 25 Years Equipment 10 Years 13Page5JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2022 Deferred outflows inflows of resources - In addition to assets , the statement of financial position will sometimes report a separate section for deferred outflows of resources This separate financial statement element , Deferred Outflows of Resources , represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then The Authority has two items that meet this criterion OPEB related deferrals and pension related deferrals In addition to liabilities , the statement of financial position will sometimes report a separate section for deferred inflows of resources The separate financial statement element , Deferred Inflows of Resources , represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then The Authority has three items that meets the criterion OPEB related deferrals , pension related deferrals and lease receivables Long - term obligations – Long - term debt and other long - term obligations are reported as liabilities in the statement of net position Compensated absences – The vacation policy of the Authority provides for the accumulation of up to thirty 30 days earned vacation leave with such leave being fully vested when earned An expense and a liability for compensated absences and the salary – related payments are recorded as the leave is earned The Authority’s sick leave policy provides for an unlimited accumulation of earned sick leave Sick leave does not vest , but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit purposes The Authority had no obligation for the accumulated sick leave until it is actually taken ; therefore , no accrual for sick leave has been made Net Position – Net position in the financial statements are classified as net investment in capital assets , restricted , and unrestricted Restricted net position represents constraints on resources that are either externally imposed by creditors , grantors , contributors , or law or regulation of other governments or imposed by law through state statute Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period Actual results could differ from those estimates Note 2 - Stewardship , Compliance , and Accountability None noted Note 3 - Deposits and investments Deposits - All of the Authoritys deposits are either insured or collateralized by using one of two methods Under the Dedicated Method , all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the Authoritys agent in the Authoritys name Under the Pooling Method , which is a collateral pool , all uninsured deposits are collateralized with securities held by the State Treasurers agent in the name of the State Treasurer Since the State Treasurer is acting in a fiduciary capacity for the Authority , these deposits are considered to be held by the Authoritys agent in the Authoritys name The amount of the pledged collateral is based on an approved averaging method for noninterest - bearing deposits and the actual current balance for interest - bearing deposits Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits The State Treasurer does not confirm this information with the Authority or the escrow agent Because of the inability to measure the exact amount of collateral pledged for the Authority under the Pooling method , the potential exists for under collateralization , and this risk may increase in periods of high cash flows However , the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method The Authority has no policy regarding custodial credit risk for deposits At June 30 , 2022 , the Authoritys deposits had a carrying amount of 10,506,177 and a bank balance of 10,551,936 Of the Authority’s bank balance , 250,000 was covered by FDIC and the excess deposits were collateralized under the pooling method At June 30 , 2022 , the Authority had 245 cash on hand 14Page6JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2022 Note 4 - Inventories Inventories are valued on the first - in first - out FIFO basis and consisted of the following Fuel 7 5,780 Note 5 - Lease receivables For the year ended 6 30 2022 , the financial statements include the adoption of GASB Statement No 87 , Leases The primary objective of this statement is to enhance the relevance and consistency of information about Authoritys leasing activities This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset Under this Statement , a lessee is required to recognize a lease liability and an intangible right - to - use lease asset , and a lessor is required to recognize a lease receivable and a deferred inflow of resources For additional information , refer to the disclosures below The Authority has entered into a 18 month lease as Lessor for the use of Corporate Hangar 10 An initial lease receivable was recorded in the amount of 26,902 As of 06 30 2022 , the value of the lease receivable is 8,987 The lessee is required to make monthly fixed payments of 1,500 The lease has an implicit interest rate of 05140 The value of the deferred inflow of resources as of 06 30 2022 was 8,967 , and the Authority recognized lease revenue of 17,935 during the fiscal year The Authority has entered into a 18 month lease as Lessor for the use of Corporate Hangar 8 An initial lease receivable was recorded in the amount of 35,869 As of 06 30 2022 , the value of the lease receivable is 11,982 The lessee is required to make monthly fixed payments of 2,000 The lease has an implicit interest rate of 05140 The value of the deferred inflow of resources as of 06 30 2022 was 11,956 , and the Authority recognized lease revenue of 23,913 during the fiscal year The Authority has entered into a 30 month lease as Lessor for the use of hangar space An initial lease receivable was recorded in the amount of 130,937 As of 06 30 2022 , the value of the lease receivable is 79,265 The lessee is required to make monthly fixed payments of 4,300 The lease has an implicit interest rate of 07270 The value of the deferred inflow of resources as of 06 30 2022 was 78,562 , and the Authority recognized lease revenue of 52,375 during the fiscal year The lessee has 2 extension option s , each for 60 months The Authority has entered into a 42 month lease as Lessor for the use of Corporate Hangar 11 An initial lease receivable was recorded in the amount of 62,049 As of 06 30 2022 , the value of the lease receivable is 44,485 The lessee is required to make monthly fixed payments of 1,500 The lease has an implicit interest rate of 08930 The value of the deferred inflow of resources as of 06 30 2022 was 44,321 , and the Authority recognized lease revenue of 17,728 during the fiscal year The lessee had a termination period of 3 months as of the lease commencement The Authority has entered into a 15 month lease as Lessor for the use of Corporate Hangar 1 An initial lease receivable was recorded in the amount of 8,981 As of 06 30 2022 , the value of the lease receivable is 1,649 The lessee is required to make monthly fixed payments of 800 The lease has an implicit interest rate of 03870 The value of the deferred inflow of resources as of 06 30 2022 was 1,796 , and the Authority recognized lease revenue of 7,185 during the fiscal year The lessee has 1 extension option s , each for 12 months 15Page7JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2022 The Authority has entered into a 126 month lease as Lessor for the use of a multi - media conference facility An initial lease receivable was recorded in the amount of 64,631 As of 06 30 2022 , the value of the lease receivable is 63,177 The lessee is required to make monthly fixed payments of 75 The lease has an implicit interest rate of 16810 The value of the deferred inflow of resources as of 06 30 2022 was 58,475 , and the Authority recognized lease revenue of 6,155 during the fiscal year The Authority has entered into a 51 month lease as Lessor for the use of hangar and ground space An initial lease receivable was recorded in the amount of 1,201,102 As of 06 30 2022 , the value of the lease receivable is 922,210 The lessee is required to make monthly fixed payments of 24,000 The lease has an implicit interest rate of 08930 The value of the deferred inflow of resources as of 06 30 2022 was 918,490 , and the Authority recognized lease revenue of 282,612 during the fiscal year The lessee has 1 extension option s , each for 120 months The lessee had a termination period of 6 months as of the lease commencement The Authority has entered into a 36 month lease as Lessor for the use of Corporate Hangar 6 An initial lease receivable was recorded in the amount of 38,773 As of 06 30 2022 , the value of the lease receivable is 33,448 The lessee is required to make monthly fixed payments of 1,100 The lease has an implicit interest rate of 14540 The value of the deferred inflow of resources as of 06 30 2022 was 33,388 , and the Authority recognized lease revenue of 5,385 during the fiscal year On 07 01 2021 , Johnston County - Authority Fund entered into a 72 month lease as Lessor for the use of Johnston County Economic Development Office Space An initial lease receivable was recorded in the amount of 104,206 As of 06 30 2022 , the value of the lease receivable is 87,274 The lessee is required to make monthly fixed payments of 1,500 The lease has an interest rate of 12170 The Buildings estimated useful life was 0 months as of the contract commencement The value of the deferred inflow of resources as of 06 30 2022 was 86,838 , and Johnston County - Authority Fund recognized lease revenue of 17,368 during the fiscal year The lessee has 1 extension option s , each for 60 months The Authority has entered into a 300 month lease as Lessor for the use of hangar space An initial lease receivable was recorded in the amount of 251,455 As of 06 30 2022 , the value of the lease receivable is 246,629 The lessee is required to make monthly fixed payments of 1,107 The lease has an implicit interest rate of 23500 The value of the deferred inflow of resources as of 06 30 2022 was 245,588 , and the Authority recognized lease revenue of 5,867 during the fiscal year The lessee has 1 extension option s , each for 120 months Business - Type Activities Principal Payments Interest Payments Total Payments 2023 417,539 1 5,943 4 33,482 2024 372,049 1 2,209 3 84,258 2025 334,395 8 , 790 3 43,185 2026 104,186 6 , 298 1 10,484 2027 32,812 5 , 672 3 8,484 2028 - 2032 75,815 2 3,004 9 8,819 2033 - 2037 50,191 1 6,230 6 6,421 2038 - 2042 56,442 9 , 978 6 6,420 2043 - 2047 55,676 2 , 994 5 8,670 Total 1,499,105 1 01,118 1 , 600,223 In fiscal year 2022 , the Authority recognized 436,523 of lease revenue and 16,729 of interest revenue under these leases 16Page8JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2022 Note 6 - Capital assets Capital asset activity for the year ended June 30 , 2022 was as follows Beginning Decreases & Ending Balances Increases Adjustments Balances Capital assets not being depreciated Land and Easement 9 00,216 - - 9 00,216 Construction in progress 4 , 615,694 2 , 682,983 73,082 7 , 225,595 Total capital assets not being depreciated 5 , 515,910 2 , 682,983 73,082 8 , 125,811 Capital assets being depreciated Terminal building 5 , 224,058 - - 5 , 224,058 Runway , ramps and hangars 1 9,903,979 - - 1 9,903,979 Aircraft parking ramp 5 46,911 - - 5 46,911 Vehicles 7 4,025 - - 7 4,025 Clearing and Excavation 3 , 143,823 - - 3 , 143,823 Lighting and Equipment 2 , 102,615 9 6,008 80,356 2 , 118,267 Total capital assets being depreciated 3 0,995,411 9 6,008 80,356 3 1,011,063 Less accumulated depreciation for Terminal building 1 , 251,783 1 10,560 - 1 , 362,343 Runway , ramps and hangars 8 , 721,602 4 43,570 - 9 , 165,172 Aircraft parking ramp 5 7,327 8 , 835 - 6 6,162 Vehicles 7 4,025 - - 7 4,025 Clearing and Excavation 1 64,410 6 0,544 - 2 24,954 Lighting and Equipment 1 , 963,799 3 9,453 80,356 1 , 922,896 Total accumulated depreciated 12,232,946 6 62,962 80,356 1 2,815,552 Total capital assets being depreciated , net 1 8,762,465 566,954 - 1 8,195,511 Total capital assets , net 2 4,278,375 2 , 116,029 73,082 2 6,321,322 Construction Commitments The Authority has active construction projects as of June 30 , 2022 At year - end , the Authoritys commitments with contractors are as follows Spent to Remaining Project Date Commitment Corporate Hangars Design 58,354 11,643 Drainage Improvements 116,198 501,802 Apron Expansion 3,740,506 2,161 Airport Master Plan 397,521 - New Fuel Farm 264,432 466,236 Runway Approach Clearing 77,794 125,475 Perimeter Fencing 82,507 - AWOS Critical Area Clearing 74,402 132,215 Self Serve Fuel Tank 6,657 27,343 Legislative Funding Project 2,330,739 2,819,261 Total 7,149,110 4,086,136 17Page9JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2022 Note 7 – Pension Plan and Postemployment Obligations A Local Government Employees ’ Retirement System Plan Description The Authority is a participating employer in the statewide Local Governmental Employees ’ Retirement System LGERS , a cost - sharing multiple - employer defined benefit pension plan administered by the State of North Carolina LGERS membership is comprised of general employees and local law enforcement officers LEOs of participating local governmental entities Article 3 of GS Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly Management of the plan is vested in the LGERS Board of Trustees , which consists of 13 members – nine appointed by the Governor , one appointed by the state Senate , one appointed by the state House of Representatives , and the State Treasurer and State Superintendent , who serve as ex - officio members The Local Governmental Employees ’ Retirement System is included in the Annual Comprehensive Financial Report ACFR for the State of North Carolina The State’s ACFR includes financial statements and required supplementary information for LGERS That report may be obtained by writing to the Office of the State Controller , 1410 Mail Service Center , Raleigh , North Carolina 27699 - 1410 , by calling 919 981 - 5454 , or at wwwoscncgov Benefits Provided LGERS provides retirement and survivor benefits Retirement benefits are determined as 185 of the member’s average final compensation times the member’s years of creditable service A member’s average final compensation is calculated as the average of a member’s four highest consecutive years of compensation Plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service , at age 60 with 25 years of creditable service , or at any age with 30 years of creditable service Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service age 55 for firefighters Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable service regardless of age 15 years of creditable service for firefighters and rescue squad members who are killed in the line of duty or have completed five years of service and have reached age 60 Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions The plan does not provide for automatic postretirement benefit increases Increases are contingent upon actuarial gains of the plan Contributions Contribution provisions are established by General Statute 128 - 30 and may be amended only by the North Carolina General Assembly Authority employees are required to contribute 6 of their compensation Employer contributions are actuarially determined and set annually by the LGERS Board of Trustees The Authority’s contractually required contribution rate for the year ended June 30 , 2022 , was 1139 for general employees , actuarially determined as an amount that , when combined with employee contributions , is expected to finance the costs of benefits earned by employees during the year Contributions to the pension plan from the Authority were 39,083 for the year ended June 30 , 2022 Refunds of Contributions – Authority employees who have terminated service as a contributing member of LGERS , may file an application for a refund of their contributions By state law , refunds to members with at least five years of service include 4 interest State law requires a 60 day waiting period after service termination before the refund may be paid The acceptance of a refund payment cancels the individual’s right to employer contributions or any other benefit provided by LGERS 18Page0JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2022 Pension Liabilities , Pension Expense , and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30 , 2022 , the Authority reported a liability of 70,605 for its proportionate share of the net pension liability The net pension liability was measured as of June 30 , 2021 The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31 , 2020 The total pension liability was then rolled forward to the measurement date of June 30 , 2021 utilizing update procedures incorporating the actuarial assumptions The Authority’s proportion of the net pension asset was based on a projection of the Authority’s long - term share of fut