Financial Statement for SFY 2021

10 525 North Tryon Street , Suite 1400 111 1 ¦ HAMILTON STEPHENS Charlotte , North Carolina 28202 Telephone 7043441117 a m STEELE + MARTIN , PLLC Facsimile 7043441483 U IIII - - - ATTORNEYS AT LAW Keith J Merritt Email kmerritt @ lawhssmcom 704 - 227 - 1056 December 1 , 2021 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 November 22 , 2021 , 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 , 2021 , and for the fiscal year then ended We act as outside counsel for the Authority on certain discreet matters We advise you that as of June 30 , 2021 , we were not aware of any pending or threatened legal matter against the Authority within the materiality limit stated in your letter As of the date of this letter the Authority has paid all outstanding invoices 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 Paragraph 5 of the Statement and the accompanying Commentary which is an integral part of the Statement 525 North Tryon St , Ste 1400 Charlotte , NC 28202 MAIN 7043441117 FAX 7043441483 WEB wwwlawhssmcom 4878 - 1794 - 6373 , v 1PageHamilton Stephens Steele + Martin , PLLC December 1 , 2021 Page 2 The information set forth herein is as of June 30 , 2021 , 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 4878 - 1794 - 6373 , v 1PageI I I JOHNSTON COUNTY I AIRPORT I I AUTHORITY Annual Financial Report For Vear Ended lune 30 , 2021PageJOHNSTON COUNTY AIRPORT AUTHORITY Smithfield , North Carolina Financial Section Year Ended June 30 , 2021 Board of Commissioners Ted G Godwin , Chair Chad M Stewart , Vice - Chair Fred J Smith , Jr Larry Wood Tony Braswell Patrick E Harris RS Butch Lawter , Jr Airport Authority Board Members Ken Starling , Chair John H Bullock , Jr , Vice - Chair Brucec Johnson , Secretary Treasurer Dwight Lowery Freddie Stancil Bentley Powell Tim StevensPagePage pageNumber5JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2021 Page s FINANCIAL SECTION INDEPENDENT AUDITORS REPORT 1 - 3 MANAGEMENT DISCUSSION AND ANALYSIS 4 - 7 BASIC FINANCIAL ST ATEJ 1ENTS 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 STA TEJ 1ENTS 12 - 24 REQUIRED SUPPLEMENTA RY INFORMATION Schedule of the Proportionate Share of the Net Pension Asset - Local Government Employees Retirement System A - 1 25 Schedule of Contributions - Local Government Employees Retirement System 26 A - 2 Schedules of Changes in Total OPEB Liability and Related Ratios 27 A - 3 SUPPLEMENTA L FINANCIAL DAT A Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP - 28 - 29 Operating Fund B - 1 Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP - Airport B - 2 Construction - Construction Fund 30 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 31 - 32 Report on Compliance With Requirements Applicable To Each Major State Program and Internal Control Over Compliance In Accordance With Applicable Sections of 0MB Uniform Guidance and the State Single Audit Implementation Act 33 - 34 Schedule of Findings and Questioned Costs 35 - 36 Corrective Action Plan 37 Summary Schedule of Prior Audit Findings 38 Schedule of Expenditures of Federal and State Awards 39 C - 1PagePage pageNumber6Independent Auditors Report Managements Discussion and Analysis Government - Wide Financial Statements Fund Financial Statements Notes to Financial StatementsPagePage pageNumber7Thompson , 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 CERTIF IED PUBLIC ACCOUNTANTS CONSULTANTS AND TAX ADVISORS Independent Auditors Report Board of County Commissioners and Authority Board Johnston County Airport Authority Smithfield , North Carolina Report on the Financial Statements We have audited the accompanying financial statements of the the business - type activities of the Johnston County Airport Authority , North Carolina , a component unit of the County of Johnston , North Carolina , as of and for the year ended June 30 , 2021 , and the related notes to the financial statements , which collectively comprise the Authoritys basic financial statements as listed in the table of contents Managements Responsibility for 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 Auditors Responsibility Our responsibility is to express opinions on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditors judgment , including the assessment of the risks of material misstatement of the financial statements , whether due to fraud or error In making those risk assessments , the auditor considers internal control relevant to the entitys preparation and fair presentation of the financial statements 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 entitys internal control Accordingly , we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management , as well as evaluating the overall financial statement presentation of the financial statements Members American Institute of CPAs - NC Association ofCPAs - AICPA Division of FirmsPagePage pageNumber8We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions Opinions In our opinion , based upon our audit , 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 , 2021 , and the respective changes in financial position and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America Other Matters 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 Liability and Contributions on pages 25 and 26 , respectively , and the Schedules of Changes in the Total OPEB Liability and Related Ratios , on page 27 , 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 Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Johnston County Airport Authoritys basic financial statements The budgetary schedules , and the 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 purposes of additional analysis and are not a required part of the basic financial statements The budgetary schedules and the Schedule of Expenditures of Federal and State Awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements Such 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 are fairly stated , in all material respects , in relation to the basic financial statements as a whole 2PagePage pageNumber9Other Reporting Requfred by Go , , ernment Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated December I , 2021 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 repo11 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 Whiteville , NC December I , 2021 3Page0Managements 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 , 2021 We encourage readers to read the information presented here in conjunction with the additional information that we have furnished in the Authoritys 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 28,111,483 net position Of this amount , 3,833,108 unrestricted net position may be used to meet the governments ongoing obligations to citizens and creditors • The Authoritys total net position increased by 6,314,903 Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Authoritys basic financial statements The Authoritys 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 readers 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 Authoritys government and provide both short and long - term information about the Authoritys financial status The financial statements are comprised of the following statements • The Statements of Net Position presents information on all of the Authoritys 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 Authoritys 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 4Page1Notes 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 fn addition to the basic financial statements and accompanying notes , this report includes supplementary information concerning the Authoritys 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 Authoritys financial position In the case of the Authority , assets and deferred outflows exceeded liabilities and deferred inflows of resources by 28,111,483 at the close of the most recent fiscal year By far the largest p01iion of Authoritys net assets 8636 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 Authoritys investment in its capital assets is rep01ied 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 2021 2020 2019 1,286,336 804,849 Current and Other Assets 5,661,639 24,278,375 22,398,254 19,228,754 Capital Assets 435,838 260,109 230,253 Deferred outflows 30,375,852 23,944,699 20,263,856 Total Assets and Deferred Outflows I , 786,545 1,509,742 1,357,461 Long - tenn Liabilities 544,909 Other Liabilities 337,184 281,101 140,640 93,468 125,948 Deferred inflows 1,764,510 Total Liabilities and Deferred Inflows 2,264,369 2,148,119 Net Position 22,398,254 19,197,837 Net investment in capital assets 24,278,375 601,674 698,491 Unrestricted 3,833,108 18 499 346 Total Net Position 28 111 483 21 796 580 • Assets increased during the year by 6,255,424 because ofa increase in capital assets from Fiscal Year 2020 to 2021 by approximately I , 880 , 121 combined with an increase in current assets of 4,375,303 • Liabilities increased during the year by 69,078 , primarily due to increases in OPEB and LGERS liabilities • Net position increased during the year by 6,314,903 to reflect the Authoritys excess of revenues over expenditures and increases in capital assets 5Page2Johnston County Airport Authoritys Changes in Net Position 2021 2020 2019 Operating Revenues 1,348,122 1,439,243 1,543,189 Operating Expenses 2,120,434 2,090,260 2,205,935 Net Income Loss from Operations 772,312 651,017 662,746 Nonoperating Revenue Expenses 22,729 445 87,975 Income Loss Before Contributions and Transfers 795,041 651,462 574,771 Capital Contributions 7,109,944 3,773,696 1,168,805 Contribution from Primary Government 175,000 66,668 Change in Net Position 6,314,903 3,297,234 660,702 Net Position , Beginning of Year 21,796,580 18,499,346 17,838,644 Net Position , End of Year 28,111,483 18 499 346 21,796,580 Operating Revenue In fiscal year 202 l , total operating revenues were 1,348,122 , which equated to a decrease from 2020 of 9 l , 12 l or - 633 This decrease resulted from a significant decrease in fuel and oil sales of approximately 38,115 from fiscal year 2020 to 202 l Operating Expenses In fiscal year 202 l , total operating expenses were 2,120,434 which equated to an increase from 2020 of 30,174 or 144 There was a decrease in cost of sales , which decreased approximately 48,061 , or - 9 7 4 offset by an increase in repairs & maintenance , which increased approximately 26,240 , or 2042 Capital Asset and Debt Administration Capital assets At the end of 2021 , the Authority had a total net investment in capital assets of 24,278,375 net of accumulated depreciation This investment in capital assets includes land , land improvements , buildings , equipment and construction in progress The total increase in the Authoritys investment in capital assets for the current fiscal year was 839 percent Johnston County Airport Authoritys Capital Assets net of depreciation 2020 2019 2021 900,216 900,216 900,216 Land 9,457,669 9,873,177 Land Improvements 11,182,377 2,979,413 2,814,294 2,853,346 Clearing and Excavation 4,461,859 4,604,213 3,787,688 Buildings 53,104 138,816 30,011 Equipment 4,615,694 4,591,851 1,761,223 Construction in Process 24278 375 22,398,254 Total 19,228,754 The authority does not plan to Long - term debt At June 30 , 2021 , the Authority had no outstanding long - term debt incur any additional debt for planned renovation and expansion projects 6Page3Economic Factors and Next Years Budgets and Rates Economic Factors Significant economic indicators for the County are as follows Indicator Johnston Co North Carolina Population Increase 2001 - 2020 7100 2720 Projected Population Increase 2021 - 2040 4540 2030 Average Unemployment Rate 2020 630 730 Per Capita Income 2020 44,087 50,305 Median Household Income 2020 59,865 54,602 Next Years Budget For fiscal year 2022 , the Airport budgeted a slight decline in operating revenues as compared to fiscal year 2021 , due primarily to a decrease in budgeted aviation Jet - a - Fuel revenue The largest budgeted revenue item for fiscal year 2022 is FAA Grants at approximately 8,046,951 Total budgeted operating expenditures for fiscal year 2022 have also decreased compared to fiscal year 2021 Requests for Information This financial rep011 is designed to provide a general overview of the Johnston County Airport Authority · s finances for all those with an interest in the governments finances Questions concerning any of the information provided in this report or request or additional financial information should be addressed to the Office of the Finance Director , Johnston County Airport Authority , PO Box 1049 , Smithfield , NC 27577 7Page4BASIC FINANCIAL STATEMENTSPage5Exhibit 1 JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA STATEMENTS OF NET POSITION For the Year Ended June 30 , 2021 ASSETS June 30 , 2021 Current Assets Cash 5,005,888 Trade Accounts Receivable , Net 73,823 Grants Receivable 497,172 Sales Tax Receivable 21,601 Inventories 38,575 Prepaid Expenses 24,580 Total Current Assets 5,661,639 Non - current Assets Capital Assets , Net 24,278,375 Total Assets 29,940,014 DEFERRED OUTFLOWS OF RESOURCES 435,838 LIABILITIES Current Liabilities Trade Accounts Payable 322,104 Customer Prepayments 15,080 Total Current Liabilities 337,184 Noncurrent Liabilities OPEB Liability 1,598,516 Compensated Absences Payable 20,758 Net Pension Liability 167,271 Total Noncurrent Liabilities 1,786,545 Total Liabilities 2,123,729 DEFERRED INFLOWS OF RESOURCES 140,640 NET POSITION Net investment in capital assets 24,278,375 Unrestricted 3,833,108 Total Net Position 28,111,483 The notes to the financial statements are an integral part of this statement 8Page6Exhibit 2 JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA STATEMENTS OF REVENUES , EXPENSES , AND CHANGES IN FUND NET POSITION For the Year Ended June 30 , 2021 June 30 , 2021 Operating Revenues Fuel and Oil Sales 665,404 Aircraft Tiedowns 9,036 Vending 296 Hangar Leases and Rents 658,470 Miscellaneous 9,478 Service Fees 1,925 CARES Act Funding 3,513 Total Operating Revenues 1,348,122 Operating Expenses Salaries and Employee Benefits 624,046 Cost of Sales 443,278 Operating 435,583 Depreciation 617,527 Total Operating Expenses 2,120,434 Loss from Operations 772,312 Nonoperating Revenue Expenses Investment Earnings 229 Gain Loss on Disposal of Assets 22,958 Total Nonoperating Revenue Expenses 22,729 Income Loss Before Contributions and Transfers 795,041 Capital Contributions 7,109,944 Change in Net Position 6,314,903 Net Position - Beginning of Year 21,796,580 Net Position - End of Year 28,111,483 The notes to the financial statements are an integral part of this statement 9Page7Exhibit 3 JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA ST A TEMENTS OF CASH FLOWS June 30 , 2021 June 30 , 2021 Cash Flows from Operating Activities Cash Received from Customers 1,308,058 Cash Paid for Goods and Services 1,063,209 Cash Paid to Employees 475,800 Net Cash Provided By Used in Operating Activities 230,95 I Cash Flows from Noncapital Financing Activities Operating Transfer from Primary Government Net Cash Provided By Used in Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities Acquisition of Capital Assets 2,520,603 Capital Contributions 7,071,598 Net Cash Provided by Used in Capital and Related Financing Activities 4,550,995 Cash Flows from Investing Activities Investments Earnings 229 Net Increase Decrease in Cash 4,320,273 Cash - Beginning of Year 685,615 Cash - End of Year 5,005,888 The notes to the financial statements are an integral part of this statement IOPage8Exhibit 4 JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA STATEMENTS OF CASH FLOWS June 30 , 2021 June 30 , 2021 Reconciliation of Operating Loss to Net Cash Provided By Used in Operating Activities Operating Loss 772,312 Adjustment to Reconcile Operating Loss to Net Cash Provided By Used in Operating Activities Depreciation 617,527 Changes in Assets , Deferred Outflows of Resources , and Liabilities Trade Accounts Receivable 29,931 Sales Tax Receivable 15,272 Inventories 19 Prepaid Expenses 2,009 Trade Accounts Payable 182,320 Customer Prepayments 25,405 Deferred outflows ofresources for pensions 11,076 Increase in deferred outflows ofresources - OPEB 164,653 Deferred inflows of resources for pensions 155 Increase in deferred inflows ofresources - OPEB 47,327 Net Pension Asset Liability 40,606 Decrease in net OPEB liability 236,906 Compensated Absences Payable 709 Total Adjustments 541,361 Net Cash Provided By Used in Operating Activities { 230,951 Supplemental Schedules ofNoncash Investing Activities Gain Loss on Sale of Assets 22,958 The notes to the financial statements are an integral part of this statement 11Page9JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2021 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 Countys governing body appoints the Authoritys 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 have 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 Authoritys 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 boards 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 The budget and the budget message shall be submitted to the governing board The public hearing on the June 1 - budget shall be scheduled at this time The budget ordinance shall be adopted by the governing board July I - 12Page0JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2021 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 , 2021 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 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 Description Lives 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 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 two items that meets the criterion OPEB related deferrals and pension related deferrals 13Page1JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2021 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 Authoritys 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 represent 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 ofrevenues and expenses during the reporting period Actual results could differ from those estimates Note 2 - Stewardship , Compliance , and Accountability Noncompliance with North Carolina General Statutes No issues 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 , 2021 , the Authoritys deposits had a carrying amount of 5,005,643 and a bank balance of 5,288,325 Each bank covers deposits by the federal depository insurance up to 250,000 , for a total of 500,000 of federal coverage The amount in excess of the insured limits prescribed by the Federal Deposit Insurance Corporation was 4,788,583 which was covered by collateral held under the Pooling method At June 30 , 2021 , the Authority had 245 cash on hand Note 4 - Inventories Inventories are valued on the first - in first - out FIFO basis and consisted of the following Fuel 38,575 14Page2JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2021 Note 5 - Capital assets Capital asset activity for the year ended June 30 , 2021 was as follows Beginning Decreases & Ending Increases Balances Adjustments Balances Capital assets not being depreciated Land and Easement 900,216 900,216 Construction in progress 4,591,852 2,392,765 { 2,368,923 4,615,694 Total capital assets not being depreciated 5,492,068 2,392,765 2,368,923 } 5,515,910 Capital assets being depreciated Terminal building 25,000 5,224,058 5,249,058 Runway , ramps and hangars 17,749,971 2,154,008 19,903,979 Aircraft parking ramp 546,911 546,911 Vehicles 74,025 74,025 Clearing and Excavation 2,928,907 214,916 3,143,823 Lighting and Equipment 1,974,778 127,837 2 , I 02,615 Total capital assets being depreciate 28,523,650 2,496,761 25,000 30,995,411 Less accumulated depreciation for Terminal building 1,143,263 2,041 110,561 1,251,783 Runway , ramps and hangars 8,292,302 429,300 8,721,602 Aircraft parking ramp 48,494 8,833 57,327 Vehicles 74,025 74,025 Clearing and Excavation 114,613 49,797 164,410 19,032 Lighting and Equipment 1,944,767 1,963,799 Total accumulated depreciated 11,617,464 617,523 2,041 12,232,946 Total capital assets being depreciated , net 1,879,238 22,959 18,762,465 16,906,186 Total capital assets , net 22,398,254 4,272,003 2,391,882 24,278,375 Construction Commitments The Authority has active construction projects as of June 30 , 2021 At year - end , the governments commitments with contractors are as follows Spent to Remaining Project Commitment Date Blue Line FBO Site Development 1,958,509 Corporate Hangars 57,836 12,161 527,254 Drainage Improvements 90,746 Apron Expansion 3,476,033 266,634 Airport Master Plan 347,157 14,843 137,505 593,163 New Fuel Fam1 Midfield Development 214,916 37712 Perimeter Fencing 77,678 AW OS Critical Area Clearing 46,881 159,736 Self Serve Fuel Tank 6,657 27,343 4,730,525 Legislative Funding Project 419,475 Total 6833,393 6 369,371 15Page3JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2021 Note 6 - 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 States 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 members average final compensation times the members years of creditable service A members average final compensation is calculated as the average of a members 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 Survivors Alternate Benefit for life or a return of the members 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 Authoritys contractually required contribution rate for the year ended June 30 , 2021 , was 1020 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 28,072 for the year ended June 30 , 2021 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 individuals right to employer contributions or any other benefit provided by LGERS 16Page4JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STA TEMENTS For the Year Ended June 30 , 2021 Pension Liabilities , Pension Expense , and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30 , 2021 , the Authority reported a liability of 167,271 for its proportionate share of the net pension liability The net pension liability was measured as of June 30 , 2020 The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31 , 2019 The total pension liability was then rolled forward to the measurement date of June 30 , 2020 utilizing update procedures incorporating the actuarial assumptions The Authoritys proportion of the net pension asset was based on a projection of the Authoritys long - term share of future payroll covered by the pension plan , relative to the projected future payroll covered by the pension plan of all participating LGERS employers , actuarially detennined At June 30 , 2020 measurement date , the Authoritys proportion was 00468 , which was an decrease of04591 from its proportion measured as ofJune 30 , 2019 For the year ended June 30 , 2021 , the Authority recognized pension expense of 57,448 At June 30 , 2021 , the Authority reported deferred outflows ofresources and defeJTed inflows ofresources related to pensions from the following sources Deferred DefeJTed Outflows of Inflows of Resources Resources Differences between expected and actual experience 21,123 Changes of assumptions 12,448 Net difference between projected and actual earnings on pension plan investments 23,539 Changes in prop01tion and differences between Authority Contributions and proportionate share of contributions 169 363 Authority contributions subsequent to the measurement date 28,072 85,351 363 Total 28,072 rep01ted as deferred outflows of resources related to pensions resulting from Authority contributions subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year ended June 30 , 2022 Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows Year Ended June 2022 15,976 2023 21,364 2024 12,610 2025 6,966 2026 Thereafter Actuarial Assumptions The total pension liability in the December 31 , 2019 actuarial valuation was determined using the following actuarial assumptions , applied to all periods included in the measurement Inflation 30 Percent Salary Increases 3 50 to 8 10 percent , including inflation and productivity factor Investment Rate of 700 percent , net of pension plan investment expense , including inflation 17Page5JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2021 The plan currently uses mortality tables that vary by age , gender , employee group ie general , law enforcement officer and health status ie disabled and healthy The current mortality rates are based on published tables and based on studies that cover significant portions of the US population The healthy mortality rates also contain a provision to reflect future mortality improvements The actuarial assumptions used in the December 31 , 2019 valuation were based on the results of an actuarial experience study for the period January 1 , 2010 through December 31 , 2014 Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not included in the measurement The projected long - term investment returns and inflation assumptions are developed through review of current and historical capital markets data , sell - side investment research , consultant whitepapers , and historical performance of investment strategies Fixed income return projections reflect current yields across the US Treasury yield curve and market expectations of forward yields projected and interpolated for multiple tenors and over multiple year horizons Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections Other asset categories and strategies return projections reflect the foregoing and historical data analysis These projections are combined to produce the long - term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30 , 2020 are summarized in the following table Long - Term Expected Real Rate of Asset Class Target Allocation Return 14 Fixed Income 29 Global Equity 42 53 8 43 Real Estate Alternatives 8 89 7 60 Credit Inflation Protection 6 40 The information above is based on 30 year expectations developed with the consulting actuary for the 2019 asset , liability , and investment policy study for the North Carolina Retirement Systems , including LGERS The long - term nominal rates of return underlying the real rates of return are arithmetic annualized figures The real rates of return are calculated from nominal rates by multiplicatively subtracting a long - term inflation assumption of 3 05 All rates ofreturn and inflation are annualized Discount rate The discount rate used to measure the total pension liability was 700 The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the cmTent contribution rate and that contributions from employers will be made at statutorily required rates , actuarially determined Based on these assumptions , the pension plans fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members Therefore , the long - term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability 18Page6JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2021 Sensitivity of the Countys proportionate share of the net pension asset to changes in the discount rate The following presents the Countys proportionate share of the net pension asset calculated using the discount rate of 7 00 percent , as well as what the Countys proportionate share of the net pension asset or net pension liability would be if it were calculated using a discount rate that is I - percentage - point lower 600 percent or I - percentage - point higher 800 percent than the current rate 1 1 Decrease Current Discount Increase 600 Rate 700 800 Authoritys proportionate share of the net pension liability asset 339,375 167,271 24,241 Pension plan fiduciary net position Detailed information about the pension plans fiduciary net position is available in the separately issued Annual Comprehensive Financial Report ACFR for the State of North Carolina Supplemental Retirement Income Plan The Authority also participates in a supplemental retirement plan which employees , who are eligible to participate in the Local Governmental Employees Retirement System , are eligible to participate in this pension plan In a defined contribution plan , benefits depend solely on amount contributed to the plan plus investment earnings The Authoritys plan authorizes the Authority to contribute each month a match amount up to 5 of each eligible participants salary and all amounts contributed are vested immediately Also , the employees may make voluntary contributions to the Plan The Authoritys contributions for June 30 , 2020 were calculated using a covered payroll amount of 241,674 Total contributions for the year were 19,838 , which consisted of 12,084 from the Authority The Authoritys required contributions represented 500 of the covered payroll amount Other Postemployment Benefits Healthcare Benefits Plan Description Under the terms of a County resolution , the County administers a single - employer defined benefit Healthcare Benefits Plan the HCB Plan Any participant hired prior to January 1 , 2011 who commences retirement and meets the following conditions shall receive an annual retirement medical allowance A participant must 1 have ten years of service with the County if hired or elected prior to January 1 , 2007 ; 2 have twenty years of service with the County if hired or elected on or after January 1 , 2007 but prior to January 1 , 2011 ; and 3 Be eligible and approved to receive retirement benefits in accordance with the regulations of the Local Governmental Employees Retirement System The County Commissioners may amend the benefit provisions A separate report was not issued for the plan Benefits provided The HCB Plan provides healthcare benefits for retirees The County contributes all or most of the funding rate set by the County , depending on the medical plan elected Insurance coverage will only be extended to retirees until they reach age 65 or until they are eligible to receive Medicare benefits , whichever occurs first Once the retiree is eligible for Medicare , the retiree must pay the premiums for Medicare Part A and Medicare Part B to continue coverage through the Countys health plan Once the retiree is eligible for Medicare , the Countys health plan becomes secondary to Medicare Also , the Countys retirees can purchase coverage for their dependents at the Countys group rates if enrolled in dependent coverage at the time of retirement 19Page7JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL ST A TEMENTS For the Year Ended June 30 , 2021 Plan Membership At June 30 , 2020 , the HCB Plan membership consisted of the following 2020 Inactive plan members or beneficiaries cimently receiving benefit payments Inactive plan members entitled to but not yet receiving benefit payments Active plan members 6 7 Total OPEB Liability The Authoritys total OPEB liability of 1,598,608 was measured as of June 30 , 2020 and was determined by an actuarial valuation as of that date Actuarial assumptions and other inputs The total OPEB liability in the June 30 , 2020 actuarial valuation was determined using the following actuarial assumptions and other inputs , applied to all periods included in the measurement unless otherwise specified Inflation 250 350 Wage inflation Salary increases , including wage 350 - 775 221 Discount rate Health Care Cost Trends Pre - Medicare 700 for 2020 decreasing to an ultimate rate of 450 by 2030 525 for 2020 decreasing to an ultimate rate of 475 by 2024 Medicare The discount rate used to measure the TOL was based on the June average of the Bond Buyer General Obligation 20 - year Municipal Bond Index Changes in the Total OPEB Liability Total OPEB Balances at June 30 , 2020 1,361,672 Changes for the Year 27,159 Service Cost Interest 47,222 108,858 Differences between Expected and Actual experience Changes of assummptions 297,976 Benefit Payments 26,563 236,936 Net Changes Balances at June 30 , 2021 I 598 608 Changes of assumptions Since the Prior Measurement Date , the Discount Rate has changed from 350 to 221 due to a change in the Municipal Bond Rate 20Page8JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30 , 2021 Mortality rates were based on the RP - 2014 mortality tables , with adjustments for LGERS experience and generational mortality improvements using Scale MP - 2015 The demographic actuarial assumptions for retirement , disability incidence , withdrawal , and salary increases used in the June 30 , 2020 valuation were based on the results of an actuarial experience study for the period January 1 , 2010 - December 31 , 2014 , adopted by the LGERS Board The remaining actuarial assumptions eg initial per capita costs , health care cost trends , rate of plan participation , rates of plan election , etc used in the June 30 , 2020 valuation were based on a review of recent plan experience done concurrently with the June 30 , 2020 valuation Discount Rate The discount rate used to measure the total OPEB liability at June 30 , 2021 was 221 Sensitivity of the new OPEB liability to changes in the discount rate The following presents the net OPEB liability of the County at June 30 , 2021 , as well as what the Countys net OPEB liability would be if it were calculated using a discount rate that is I - percentage - point lower 121 or I - percentage - point higher 3 21 than the current discount rate 1 Decrease Discount Rate 1 Increase 121 221 321 Total OPEB Liability 1,951,810 1,598,576 1,328,165 Sensitivity of the net OPEB liability to changes in the healtchare cost trend rates The following presents the net OPEB liability of the County , as well as what the Countys net OPEB liability would be if it were to calculate healthcare cost trend rates that are I - percentage - point lower or I - percentage - point higher than the current healthcare cost trend rate 1 Decrease Discount Rate 1 Increase Total OPEB Liability 1,311,262 1,598,576 1,977,630 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30 , 2021 , the County recognized OPEB expense of 130,996 At June 30 , 2021 , the County reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual 65,160 80,931 experience Changes of assumptions 273,910 59,346 Net Difference between projected and actual earnings on plan investments Authority contributions subsequent to the 11,417 measurement date Total 350 487 140 277 21Page9JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL ST A TEMENTS For the Year Ended June 30 , 2021 11,417 reported as deferred outflows of resources related to OPEB resulting from County contributions subsequent to the measurement date will be recognized as a decrease in the net OPEB liability in the year ended June 30 , 2021 Other amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows Year Ended June 30 2022 72,485 2023 71,171 2024 55,137 2025 2026 Thereafter Note 7 - Other Employment Benefit The Authority has elected to provide death benefits to employees through the Death Benefit Plan for members of the Local Governmental Employees Retirement System the Death Benefit Plan , a multiple - employer , State - administered , cost - sharing plan funded on a one - year term cost basis The beneficiaries of those employees who die in active service after one year of contributing membership in the System , or who die within 180 days after retirement or termination of service and have at least one year of contributing membership service in the System at the time of death are eligible for death benefits Lump sum death benefit payments to beneficiaries are equal to the employees 12 highest months salary in a row during the 24 months prior to the employees death , but the benefit may not exceed 50,000 or be less than 25,000 All death benefit payments are made from the Death Benefit Plan The Authority has no liability beyond the payment of monthly contributions The contributions to the Death Benefit Plan cannot be separated between the post - employment benefit amount and the other benefit amount The Authority considers these contributions to be immaterial Note 8 - Risk Management The Authority is exposed to various risks of loss related to torts ; theft of damage to , and destruction of assets ; errors and omissions ; injuries to employees ; and natural disasters The Authority maintains general liability coverage of ] million per occurrence and property coverage up to the total insurance values of the property policy In accordance with GS 159 - 29 , the Authoritys employees that have access to 100 or more at any given time of the Authoritys funds are performance bonded through a commercial surety bond The finance officer is bonded for 50,000 Note 9 - Claims , Judgments and Contingent Liabilities At June 30 , 2021 , the Authority was not a defendant against any lawsuits 22Page0JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL ST A TEMENTS For the Year Ended June 30 , 2021 Note 10 - Long Term Debt Obligations Changes in Long - Term Liabilities The following is a summary of changes in the Airport Authoritys long - term obligations for the fiscal year ended June 30 , 2021 Balance Current Portion Balance 6 30 20 Additions Retirements 6 30 21 of Balance Total OPEB Liability 236,906 1,598,516 1,361,610 Compensated Absencei 21,467 709 20,758 Net Pension Liability 40,606 167,271 126 665 Total 1,509 742 277 512 709 1 786 545 Note 11 - Rental income under operating lease The Authority is a lessor of 97 airport hangars and ground space The noncancelable lease terms range from three to five years and are renewable at the end of the lease term The Authority retains title to the lease property The lessee pays insurance , taxes and assessments 7 of the existing hangars are being tom down to make room for a new Blue Line Facility The following is a schedule by year of future rental income to be received under noncancelable operating leases in effect as of Year Ending Amount June 30 2022 484,940 2023 96,700 2024 59,700 2025 59,700 2026 59,700 760,740 i Note 12 - Related Organization The five - member board of the Johnston County Airport Authority is appointed by the board of Johnston County The County is accountable for the Airport Authority because it appoints the governing board ; however , the County is not financially accountable for the Airport Authority The Airport Authority is disclosed as a related organization in the notes to the financial statements for Johnston County , as well as presented as a component unit of the County Complete financial statements for the County can be obtained from the Countys office at 207 East Johnston Street , Smithfield , NC 27577 23Page1JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA NOTES TO THE FINANCIAL ST A TEMENTS For the Year Ended June 30 , 2021 Note 13 - Summary Disclosure of Significant Contingencies The authority has received proceeds from several Federal and State grants Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements Such audits could result in the refund of grant monies to the grantor agencies Management believes that any required refunds will be immaterial No provision has been made in the accompanying financial statements for the refund of grant monies Note 14 - Subsequent Events Management has evaluated subsequent events through December I , 2021 , the date on which the financial statements were available to be issued 24Page2REQUIRED SUPPLEMENTARY INFORMATIONPage3Exhibit A - 1 JOHNSTON COUNTY AIRPORT AUTHORITY , NORTH CAROLINA PROPORTIONATE SHARE OF NET PENSION LIABILITY ASSET REQUIRED SUPPLEMENT ARY INFORMATION LAST EIGHT FISCAL YEARS Local Government Employees Retirement System 2021 2020 2019 2018 Authoritys proportion of the net pension liability asset 000468 046382