HomeMy WebLinkAbout01-21-2021M I N U T E S
Barkley Regional Airport Authority
FINANCE COMMITTEE
Meeting - Thursday, 01/21/21, 3:30pm Via Zoom Meeting ID 819 0024 8305 Finance Committee (FC) Chairman Durbin welcomed everyone and recognized that a quorum was present. Committee Members present were Board Chairman Jay Matheny, Marshall Davis, John Durbin, Chairman, Ashley Johnson, and new member Emerson Goodman. Staff present was Dennis Rouleau, Executive Director (ED), and Carol Creason, Accountant.
Review of bank accounts/reports and statements from Board Consent Agenda Items as of December 31, 2020
The bank statements for the Advocates, the ICS Sweep, the Operating and PFC (passenger facility charges) sweep accounts were reviewed in detail with time spent on checks clearing the operating account and how the ICS sweep protects BRAA by spreading our deposits among multiple banks to maximum FDIC coverage. Questions were asked and answered on numerous individual disbursements. A general discussion was how on the Advocates account and that the Advocates committee has been replenished back to three members. Discussions were had on the PFC account and how it is funded and what it can be used for. ED Rouleau noted that a $1 million request has been made to the local PACRO to help with the new terminal funding. The December Journal Entries were review with questions answered as to why they were necessary (primarily to provide accrual based financials). The monthly check register was reviewed as well as the primary operating account bank reconciliation. The November credit card statement transactions were reviewed with questions answered about limits and usage.
Review of December Financial statements/Engineering Contract/Technology Contract
ED Rouleau and Chairman Durbin explained the favorable and unfavorable variances to budget for December and for the six months ending December 31st. We continue to have favorable monthly net income results ($8,367 for December despite the one-time year-end bonus of $15,000 paid to staff). YTD net income results were favorable by $118,781, with $53,976 from the income side and $64,805 from the expense control side. The higher-than-expected facility rent of $23,764 over budget was the largest income variance while the three expense categories of advertising/marketing (favorable by $17,366), non-AIP engineering (by $20,000) and technology (by $15,000) made the lions’ share of favorable variances. The largest negative variance was salaries and related expense over budget by $14,940 which was almost exactly equal to the $15,000 bonus paid. The bonuses were well earned based on the overall positive variances to budget.
A general discussion was had on the engineering and technology budgets, none of which was spent in the first six months of the fiscal year. A new engineering firm has been hired and they will get started on some non-AIP projects with a not to exceed $20,000 to be incurred by the end of June. The technology upgrades were discussed, and ED Rouleau is likely to acquire the hardware directly via a state program that offers discounts and then bid out the actual services for technology to keep the systems safe and operating efficiently.
The December Balance Sheet was reviewed. It was noted that a new line item under Fixed Assets now includes the total costs incurred to date on the new terminal’s construction in progress which stands at $2,101,203.
Other items and adjournment
A suggestion was made by Chairman Matheny to see if our farmland is eligible for any COVID relief. We discussed the new terminal funding and that we a state senator (Carroll) request a second $5 million in aid from the state of Kentucky in the next budget. Discussed the potential of a Senate bill that could use
50% of the State Jet Fuel Tax for commercial service airports. The formula as proposed has the potential of providing around $650,000 for BRAA per year. Also discussed the possible use of a fund-raising firm
for the local share balance needed and how the cost of the fund-raising firm could be paid for.
The next Board meeting is January 25th, and the next full FC meeting is set for April 15th at 3:30 unless a
called interim meeting is required for discussion of the next contract for outside auditors, budget reasons or any other reason.
Meeting adjourned at 4:45PM