Audit 308804

Title: General Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Minneapolis/St. Paul Metropolitan Airports Commission (the “Commission”) under programs of the federal government for the year ended December 31, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Commission. The schedule of passenger facility charges revenue and expenditures is prepared on the cash basis of accounting; however, the Commission’s financial statements are prepared on the accrual basis of accounting, and such transactions are recorded in the financial statements when the revenue recognition requirements are satisfied or expenses are incurred. The information in this schedule is presented in accordance with the requirements of the Passenger Facility Charge Audit Guide for Public Agencies issued by the Federal Aviation Administration in September 2000. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. The passenger facility charge cash and accounts receivable are included in restricted cash and accounts receivable in the Commission’s financial statements. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AUdit Requirements for Federal Awards, wherein certain types of expenditures are not allowable. The Commission has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. The Aviation Safety and Capacity Expansion Act of 1990 (Public Law 101 508, Title II, Subtitle B) authorized domestic airports to impose a passenger facility charge (PFC) on enplaning passengers. PFCs may be used for airport projects that meet at least one of the following criteria: •Preserve or enhance safety, security, or capacity of the national air transportation system •Reduce noise or mitigate noise impacts resulting from an airport •Furnish opportunities for enhance competition between or among carriers Since 1993, the Federal Aviation Administration (FAA) has approved 15 PFC applications and amendments submitted by Minneapolis/St. Paul Metropolitan Airports Commission. The Commission is currently authorized to collect PFCs in the amount of $4.50 per enplaned passenger up to a total for approved collections of approximately $2 billion. Project expenditures may include amounts for the payment of principal, interest, and other financing costs on bonds for which the proceeds are used to pay PFC eligible costs on approved projects. During the year ended December 31, 2023, the Commission received approximately $67 million of PFC revenue and $3.3 million of interest earnings. The Commission expended approximately $23 million on approved projects and debt repayments.