comprehensive annual financial report - Orlando International Airport

GREATER ORLANDO AVIATION AUTHORITY
NOTES TO FINANCIAL STATEMENTS
Years Ended September 30, 2009 and 2008
5. CASH DEPOSITS AND INVESTMENTS (continued)
On December 21, 2007, Standard and Poor's Ratings Services assigned its "AAAm" principal stability fund rating to
LGIP. Fund B is not rated by any nationally recognized statistical rating agency. Additional information regarding
the LGIP and Fund B may be obtained from the SBA.
Custodial Credit Risk: For an investment, custodial risk is the risk that, in the event of the failure of the
counterparty, the Authority will not be able to recover the value of its investments or collateral securities that are in
the possession of an outside party. All of the Authority’s investments are either held in the name of the Authority or
held in trust under the Authority’s name.
Concentration of Credit Risk: At September 30, 2009, the Authority held investments exceeding 5% of the total
investment portfolio with two issuers; Federal Home Loan Bank (5.75%) and Federal Home Loan Mortgage
Corporation (6.80%). At September 30, 2008, the Authority held investments exceeding 5% of the total investment
portfolio with three issuers; Federal Home Loan Bank (34.0%), Federal Home Loan Mortgage Corporation (15.5%),
and Federal National Mortgage Association (10.2%). Each of the investments are rated either AAA by S&P or Aaa
by Moody’s rating agency. Standard practice limits the maximum investment in any one issuer of commercial paper
to $5 million dollars.
6. ACCOUNTS AND GRANTS RECEIVABLE
At September 30, 2009 and 2008, accounts and grants receivable, net of allowance for doubtful accounts, consist of
the following (in thousands):
2009 2008
Current Unrestricted Assets
Accounts receivable $ 10,910 $ 14,707
Allowance for doubtful accounts (387) (128)
Grants receivable 105 148
Net Current Unrestricted Accounts and Grants Receivable $ 10,628 $ 14,727
Current Restricted Assets
Accounts receivable $ 10,073 $ 6,628
Grants receivable 11,723 35,227
Net Current Restricted Accounts and Grants Receivable $ 21,796 $ 41,855
7. GRANT RECOGNITION
A Letter of Intent (LOI) is a provision under Section 47110(e) of Title 49, United States Code to obligate funds for
future budget authority to issue grants to pay the Authority for the FAA’s shares of allowable costs. The amounts
listed below are estimates and are not obligations of the United States or administrative commitments. The LOI can
be amended to adjust the payment schedule or the maximum obligation.
Under GASB Statement No. 33, Accounting and Reporting for Nonexchange Transactions, the Authority recognizes
revenues from the LOI when all eligibility requirements are met. Since there are time and reimbursement
requirements associated with the LOI, the balance to be collected is recognized as revenue in the year the grant is
awarded. As of September 30, 2009, the Authority has been awarded all grants within the LOI obligations.
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