Title: Basis of Presentation
Accounting Policies: All federal grant operations of the Airports Authority are included in the scope of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit or Uniform Guidance). The Single Audit was performed in accordance with the provisions of the Office of Management and Budget (OMB) Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, that are defined and documented, was performed for the major federal grant programs identified below. The programs on the accompanying schedule of expenditures of federal awards (the Schedule) include 2024 cash and non-cash expenditures. The major federal programs tested in 2024 covered programs to ensure coverage of at least 20% of federally granted funds. The Airports Authority’s actual coverage was 99.58%.
De Minimis Rate Used: N
Rate Explanation: The Airports Authority has elected not to use the 10 percent de
minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule includes the federal award activity of the Airports Authority and is presented on the accrual basis of accounting.
The Schedule presents only a selected portion of the operations of the Airports Authority. Consequently, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Airports Authority.
Title: Reconciliation of Schedule to Audited Financial Statements
Accounting Policies: All federal grant operations of the Airports Authority are included in the scope of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit or Uniform Guidance). The Single Audit was performed in accordance with the provisions of the Office of Management and Budget (OMB) Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, that are defined and documented, was performed for the major federal grant programs identified below. The programs on the accompanying schedule of expenditures of federal awards (the Schedule) include 2024 cash and non-cash expenditures. The major federal programs tested in 2024 covered programs to ensure coverage of at least 20% of federally granted funds. The Airports Authority’s actual coverage was 99.58%.
De Minimis Rate Used: N
Rate Explanation: The Airports Authority has elected not to use the 10 percent de
minimis indirect cost rate allowed under the Uniform Guidance.
Reconciliation of the schedule of expenditures of federal awards to the audited financial statements as of December 31, 2024 is as follows:
Title: CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT
Accounting Policies: All federal grant operations of the Airports Authority are included in the scope of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit or Uniform Guidance). The Single Audit was performed in accordance with the provisions of the Office of Management and Budget (OMB) Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, that are defined and documented, was performed for the major federal grant programs identified below. The programs on the accompanying schedule of expenditures of federal awards (the Schedule) include 2024 cash and non-cash expenditures. The major federal programs tested in 2024 covered programs to ensure coverage of at least 20% of federally granted funds. The Airports Authority’s actual coverage was 99.58%.
De Minimis Rate Used: N
Rate Explanation: The Airports Authority has elected not to use the 10 percent de
minimis indirect cost rate allowed under the Uniform Guidance.
The U.S. federal government took legislative and regulatory action to mitigate the broad disruptive effects of the COVID-19 pandemic. The Airports Authority received funds pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), as enacted on March 27, 2020. The CARES Act included among its relief measures direct aid in the form of grants to airports as well as direct aid, loans, and loan guarantees for passenger and cargo airlines. The Airports Authority was allocated $229.1 million in total grant assistance under the CARES Act. The Airports Authority could draw on these funds on a reimbursement basis for any purpose for which Airports Authority revenues may be lawfully used in accordance with Federal Aviation Administration (FAA) rules and regulations. The Airports Authority received approximately $15.2 million in CARES Act funds in 2024, within the time period permitted by the CARES Act. This was the Airports Authority’s final draw of CARES Act funds. On March 11, 2021, the American Rescue Plan Act (ARP Act) was enacted, providing a $1.9 trillion coronavirus relief package that specifically designated $8 billion for U.S. airports, including $800 million for airport concessionaires, to help airports pay workers and service their debts and limit the spread of the COVID-19 virus. The Airports Authority was allocated $145.9 million in total grant assistance under the ARP Act. In 2024, the Airports Authority requested and received $35.5 million of ARP Act funds. This was the Airports Authority’s final draw of ARP Act funds.
Title: BIPARTISA INFRASTRUCTURE LAW (BIL) INCLUDING AIRPORT
IMPROVEMENT (AIG) AND AIRPORT TERMINAL PROJECT (ATP) GRANTS
Accounting Policies: All federal grant operations of the Airports Authority are included in the scope of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit or Uniform Guidance). The Single Audit was performed in accordance with the provisions of the Office of Management and Budget (OMB) Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, that are defined and documented, was performed for the major federal grant programs identified below. The programs on the accompanying schedule of expenditures of federal awards (the Schedule) include 2024 cash and non-cash expenditures. The major federal programs tested in 2024 covered programs to ensure coverage of at least 20% of federally granted funds. The Airports Authority’s actual coverage was 99.58%.
De Minimis Rate Used: N
Rate Explanation: The Airports Authority has elected not to use the 10 percent de
minimis indirect cost rate allowed under the Uniform Guidance.
The Department of Transportation (DOT) and FAA have announced the Airport Infrastructure Grant (AIG) and Airport Terminal Program (ATP) grant programs through the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL). These programs are a 5-year, $25 billion investment in the nation’s air transportation system, allocated annually from 2022 to 2026.
From ATP discretionary funding, the Airports Authority has received $145.6 million in total grant awards for the Tier-2 Concourse (East) project at Dulles International. In 2024, $26.9 million in federal ATP-eligible expenditures related to the Tier-2 Concourse (East) project were recognized. Project expenditures through 2024 total $40.0 million, leaving $105.6 million in awarded funds left to expend. The Tier-2 Concourse (East) project will construct a modern 14-gate, 400,000 square foot concourse (to be designated as Concourse E) with convenient access to the airport’s underground Aerotrain system.
Under the AIG program, the Airports Authority has been awarded $134.4 million total through 2024 for passenger facility charge-eligible projects, consisting of $66.7 at Reagan National and $67.7 million at Dulles International. Subsequent to year end, the FAA announced further AIG allocations of $22.8 million at Reagan National and $22.6 million at Dulles International, bringing the Airports Authority’s total AIG allocation to $179.8 million. These grants can be invested in runways, taxiways, safety, and sustainability projects, as well as terminal, airport-transit connections, and roadway projects.