comox valley airport commission 2010 accountability …
TRANSCRIPT
2010 ACCOUNTABILITY REPORT
2010 ACCOU
NTA
BILITY REPORT
COM
OX VA
LLEY AIRPO
RT COM
MISSIO
N
PRODUCTION NOTESThis book was produced in a sustainable manner:» Vegitable inks were used.» Printed on Enviro 100, 80 lb text/ 1oolb cover.» Enviro is 100% recycled paper.» Only 175 books were produced.» Only two colour paper copies were produced for proofing.» Files were sent electronically to the printer.» This accountability report serves more than one purpose.
COMOX VALLEY AIRPORT COMMISSION
The Comox Valley Airport is the fastest growing airport on Vancouver Island, and one of the fastest growing in Canada.
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2010 ACCOUNTABILITY REPORT 3
COMOX VALLEY AIRPORT COMMISSION
A Word From Our Chairman 5
A Word From Our CEO 7
CORPORATE PROFILE Introduction 8
The Comox Valley Airport Commission 9
The Comox Valley Airport 9
StrategicDirection 9
REVIEW & OUTLOOK Introduction 13
Operations 14
Customer Experience 16
Safety&Security 18
Social & Environmental Responsibility 20
Outreach, Accountability & Governance 22
CORPORATE GOVERNANCE BoardofDirectors 24
StandingBoardCommittees 25
Public and Stakeholder Accountability 26
CorporatePractices 27
FINANCIAL RESULTS Auditor’s Report 31
Consolidated Financial Statements 32
Notes to Consolidated Financial Statements 36
CONTACT 46
2009 ACCOUNTABILITY REPORT CONTENTS
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2010 ACCOUNTABILITY REPORT 5
COMOX VALLEY AIRPORT COMMISSION
CHAIRMAN OF THE BOARD MESSAGE
Airports around the world faced a challenging economic climate this past year, and ourswasnoexception.
Rather than succumb to the general atmosphere
of doom and gloom, however, we chose instead
to view this period as a unique opportunity for
reflection,strategicplanning,andgrowth.
Atboththeoperationsandboardlevels,the
Comox Valley Airport Commission has been hard
at work developing new structures and processes
that will ensure future decisions are made with
clarity of purpose, enhanced professionalism, and
a strong commitment to customer service. We’ve
updatedourcorporatebylawstobetteralignthe
Commissionwithacceptedbestpractices.
We’veimplementedenhancedfinancialreporting
ontheremunerationofourmanagementteam
in order to become more transparent and
accountable. And we’ve established a new
communicationsprotocolthatwillstreamline
thesharingofinformationbetweenthe
Commission, our community partners and our
nominatingentities.
Aswecontinuetogrowasanorganization,our
taskistoneverlosesightofourultimaterespon-
sibility to serve the people of the Comox Valley
and Vancouver Island. That’s why we’ve enacted
a Stakeholder Air Service Development
Committeethatwillensurefutureroute
development is built upon broad-based
community support.
While on the topic of community support, I’d
beremissnottoacknowledgethecontributions
ofournominatingentities,whichhaveonce
again been integral to the Commission’s
accomplishments over the past year.
Ofcourse,ourcontinuedsuccessisultimatelybuilt
uponthefirmfoundationofourgreatestasset–
ourstaff.Themenandwomenwhoworkatthe
ComoxValleyAirportcontinuallyensurethatevery
customerexperienceisapositiveone.They’rethe
reason YQQ has received the highest customer
satisfactionscoresofallparticipatingairports
for six years running, based on data compiled by
InterVISTASConsultingGroup.
WorthyofparticularrecognitionisIanHeselgrave,
ourManagerofOperations,whosteppedinas
actingCEOforninemonths.Hiscontributions,like
thoseofourentirestaff,aregreatlyappreciated.
As we move forward under the leadership and
directionofShirleydeSilva,ournewCEO,there
could be no team more capable of ensuring our
continuedsuccessthanthehardworkingstaffof
the Comox Valley Airport.
KEN DAWSON
CHAIRMAN OF THE BOARD
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COMOX VALLEY AIRPORT COMMISSION
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CHIEF EXECUTIVE OFFICER MESSAGE
Itisanexcitingtimeto be CEO in the Comox Valley Airport.
The past year was a challenging and highly
unusual one for the Comox Valley Airport and its
staff,madeevenmoresobythelingeringeffects
oftheglobalfinancialcrisis.
Nonetheless,thiswasalsoatimeofeconomic
rejuvenation.ByJune2009wehadbeguntosee
arecoveryinpassengertraffic;byJanuary2010,
passenger loads were already up 12 per cent
year-over-year. Indeed, CVAC emerged in 2010
wellpositionedtobenefitfromanewperiodof
opportunity and renewal.
Although the economic downturn prompted us to
put some of the projects we’d planned for 2009
onhold,wenonethelesseffectedsomeexciting
operationalchangesoverthepast12months.
Our new fuel facility went on-line in February
2010providinganefficientandcosteffective
servicetoairlines.Inaddition,weimprovedour
websitecapabilitiestoallowforamoreefficient
flowofinformationbetweenairportpersonnel,
andtoprovideeffectiveandimprovedcommuni-
cationwithournominatingentities,community
stakeholders and the public.
The Comox Valley Airport provides a gateway for
tourists, business travelers and goods, and we see
oureffortsaseconomicbuildingblocksforthe
entirecommunity.Assuch,weconstantlystrive
toremainoneofthemostcost-effectiveairports;
it’s one of the reasons we haven’t raised our
aeronauticalfeessince1996.
Whencombinedwithourreputationforoutstand-
ing customer service, the incredible support we
continuetoreceivefromthecommunity,andour
strategicpositionasthegatewaytoaburgeoning
VancouverIslandmarket,Iseebutoptimismfor
the year ahead.
I’dliketoacknowledgethecontributionsand
dedicationofourstaffandvolunteersoverthe
past year. Whether serving our customers and
making YQQ one of the most enjoyable airports
tovisit,orensuringseamlessoperationfrom
behindthescenes,ourstaffandvolunteershave
repeatedly demonstrated that they are without a
doubt our most precious resource.
Ilookforwardtocontinuingtoworkwith
directors,staff,andtheentireCVACteamaswe
foster partnerships that contribute to the viability
of the airport and the socio-economic growth of
the community.
SHIRLEY DE SILVA
CHIEF EXECUTIVE OFFICER
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COMOX VALLEY AIRPORT COMMISSION
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INTRODUCTION
The Comox Valley Airport Commission is the governing authorityfortheoperationof the Comox Valley Airport.
Comprised of nine directors, the Commission is
broadlyrepresentativeoftheComoxValley
community and is a federally incorporated,
non-profitentity.Itwasestablishedthrough
letterspatentin1996.
THE COMOX VALLEY AIRPORT COMMISSION(CVAC)
The Comox Valley Airport Commission (CVAC)
operatescivilianaviationfacilitiesattheComox
ValleyAirport.ThelanduponwhichCVACfacilities
sit is held under a 25-year lease from the
DepartmentofNationalDefence.
The Commission’s board of directors is comprised
of nine directors, nominated as follows:
•Fivemembersarenominatedbylocalgovern-
ment (City of Courtenay, Town of Comox, Village
of Cumberland and Comox Valley Regional
District). At least one member must reside in
Courtenay;atleastonemustresideinComox;
•OnememberisnominatedbytheComoxValley
ChamberofCommerce;
•OnememberisnominatedbyComoxValley
EconomicDevelopmentSociety;
•TwomembersareappointedbytheBoard
THECOMOXVALLEYAIRPORT(YQQ)
The Comox Valley Airport (YQQ) is located in the
Town of Comox at 19 Wing (CFB) Comox. The
DepartmentofNationalDefence(DND)maintains
responsibilityfortheairfieldandassociated
systems,whichareprovidedforcivilaviationat
thediscretionofDNDinexchangeforlanding
fees. The Comox Valley Airport serves a
catchmentareaof343,600peopleoncentral
and northern Vancouver Island.
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“WehavebeenflyingintoComoxAirport for a number of years and are very impressed with the improvements made to this airport over the years. Keep up the good work!” –YQQcustomer
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COMOX VALLEY AIRPORT COMMISSION
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OUR VISION
“To be Vancouver Island’s preferred gateway.”
Wecontinuallystrivetomeettheevolvingneeds
ofthetravelingpublic,andtoofferastrategicand
cost-effectiveoptiontoourairlinepartners.
OUR MISSION
“To operate safe, secure andefficientcivilaviationfacilitiesandserviceswhichconsistently exceed the expectationsofourcustom-ersandcommunities.”
Wetakeveryseriouslyourresponsibilitiesasa
goodcorporatecitizenandacontributortothe
socio-economic growth of the region.
OUR CORE VALUES SAFETY
Thesafetyandsecurityofourcustomers,staff,fa-
cilities,andenvironmentareourprimaryconcern
in every aspect of doing business.
QUALITY
Motivatedbycustomerexpectations,weprovide
qualityfacilitiesandservicesinacustomer-sensi-
tiveandservice-drivenmanner.
ACCOUNTABILITY
We are accountable for everything that we do,
includingfinancialmanagement,andweshow
integrityinourbusinessrelations,utilizationof
resources,treatmentofourcustomersandstaff,
and in the general conduct of our business.
ECONOMIC DEVELOPMENT
We work to support the economic development
of the region.
STRATEGIC DIRECTION
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PURPOSE Tooperatesafe,secureandefficientcivilaviation
facilitiesandserviceswhichconsistentlyexceed
theexpectationsofourcustomersandcommun-
ities.
VISION To be Vancouver Island’s preferred gateway.
VISION, MISSION, VALUES
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The Comox Valley Airport serves nearly 350,000 people on central and northern Vancouver Island
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COMOX VALLEY AIRPORT COMMISSION
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INTRODUCTION
» 289,978passengerstraveledthrough YQQ in 2009.
Althoughthisfigurerepresentsa4.6percent
declinefromthepreviousyear,comparatively
speaking,YQQdidbetterthanmanyother
Canadian airports. The average decline across
North America in 2009 was 5.9 per cent.*
2009sawthebusiestJulyonrecordforYQQ
(morethan30,800passengers),andearly2010
numbers indicate passenger numbers are already
back on an upward trajectory.
The Comox Valley Airport Commission’s
projectionsfor2010forecastcontinuedgrowthin
consumerdemand,projectinganoverallincrease
inpassengertrafficoffourpercent.Sofarthis
year,wehaveexceededourexpectations.In
Januaryalone,passengerloadsatYQQwere
up 12 per cent year-over-year, and 7.3 per cent
throughthefirstquarterof2010.
*AirportsCouncilInternational,May2010
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COMOX VALLEY AIRPORT COMMISSION
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OPERATIONS
» In spite of the past year’s challenging economic climate, 2009-10 nonetheless represented a unique opportunity to re-evaluate priorities,examinecorporatepolicies, and grow as an organization.
Withinthiscontextofintrospectionandincreased
financialvigilance,theComoxValleyAirport
Commissioneffectedsomeexcitingand
noteworthyoperationaldevelopments.
2009-10HIGHLIGHTS •February2010sawthecompletionofthenew
aircraftfuelingfacility,inpartnershipwithShell
Canada Ltd. The new facility has become an
integralpartofoperationsandhasenabledthe
Commission to provide a more comprehensive
packageofessentialservicestoaircarriers.
•Morethan30,800passengerspassedthrough
ourpassengerterminalinJuly2009,makingit
theairport’sbusiestJulyonrecord.
•CVACwasawardedtheWestJetGroundSupport
Equipment Maintenance contract.
•CVACimplementedanAirsideVehicleOperating
Program(AVOP)forstaffandrampattendants
operatingvehiclesonleasedairsideareas.
•AfterseveralyearsofOlympicanticipation,
the Commission provided support to 19 Wing
ComoxinconjunctionwithOperationPodium
during the 2010 Olympic Games. For
approximately 10 weeks, CVAC helped
accommodatemilitaryaircraftandpersonnel
andworkedwiththeDepartmentofNational
Defence to ensure that the security posture
mettheneedsoftheoperation.
2010-11OUTLOOK •Implementationofnewtenantguidelines,
andthecompilationofrelevantprocessesand
protocols into an accessible tenants’ manual.
Thisinitiativewillimprovecommunication
between the CVAC and its tenants.
•ToupdatetheCommission’sStrategicBusiness
Plan in order to take advantage of changing
marketconditionsandenhanceCVAC’sroleasa
contributor to the socio-economic growth of its
partners and the community.
•AStrategicPlanningProcesswillgetunderway
toexaminetheCommission’sobjectivesforthe
nextfiveyearsandtoadaptourprioritiestoa
new economic context.
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COMOX VALLEY AIRPORT COMMISSION
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YQQ ACCUMULATED PASSENGER NUMBERS
300,000
2009
2010
YQQ ENPLANE AND DEPLANE PASSENGERS
250,000
200,000
400,000
150,000
300,000
100,000
200,000
50,000
100,000
0
0
JAN FEB
2000
MAR
2001
APR
2002
MAY
2003
JUN
2004
JUL
2005
AUG
2006
SEPT
2007
OCT
2008
NOV
2009
DEC
21,6
81
41,4
69
66,1
27
88,9
09
19,2
91
39,1
0872
,841
131,
940
148,
742
166,
799
184,
714
209,
668
238,
612
310,
450
304,
069
289,
978
61,0
73
82,8
35
106,
308
131,
345
162,
327
194,
953
221,
739
265,
753
245,
576
289,
978
112,
587
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COMOX VALLEY AIRPORT COMMISSION
CUSTOMER EXPERIENCE
» When it comes to providing excellent customer service, many talk the talk, but few walk the walk quite like the staffandmanagementofthe Comox Valley Airport.
In 2009, YQQ earned the highest customer
satisfactionscoresofallparticipatingairportsfor
the sixth straight year, based on data compiled
byInterVISTASConsultingGroup.Andwe’reonly
gettingbetter.
2009-10HIGHLIGHTS
•Exemplarycustomerservicescoresonits
benchmarkstudy,andthehighestratingof
participatingairportsforthesixthstraightyear.
•OurAmbassadorVolunteerProgram,comprised
of 50 red-vested volunteers that greet and assist
passengersandguests,continuedtoplayan
important role in the success of the airport.
•InJune2009,CVACwasrecognizedforachieving
success in the provincial government’s “10 by 10
Challenge,” a program dedicated to increasing
employmentofpersonswithdisabilitiesby10
per cent by 2010.
•Allourvolunteers,andmorethan60percent
ofourstaff,havecompletedTourismBC’s
WorldHost program, designed to prepare
customer service professionals to welcome
the world.
•OntheFlyCafé,locatedinsidetheComoxValley
Airport, came under new ownership and now
offersextendedhoursofoperation,arevitalized
look and a brand new menu to indulge
passengers and guests.
2010-11OUTLOOK
•Anumberofexcitingnewprojectswillenhance
the customer experience. Among them are a
drinkingfountain,ahighdefinitiontelevision,
andcoffeeserviceinthedeparturelounge,
as well as larger display screens for
flightinformation.
•TheComoxValleyAirportpassengerterminal
willcontinuetobeaforumforpublicartby
displayingworksbylocalartistsonarotational
basisincollaborationwiththeComoxValley
Arts Council.
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The Comox Valley Airport has earned the highest customerserviceratingofallparticipatingairportsfor six years straight.
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COMOX VALLEY AIRPORT COMMISSION
SAFETY & SECURITY
» Our mission statement begins with a promise to operate safe, secure and efficientfacilities;safetyandsecurity are at the heart of everything that we do.
That’swhywevoluntarilyinitiatedasite-wide
Safety Management System, in line with the latest
Transport Canada guidelines, that will improve
theidentificationandmitigationofpotentialrisks
withinthecontextofcontinuousimprovement.
2009-10HIGHLIGHTS
•CVACcontractedanindependentconsultant
toassistwiththecreationofasite-wideSafety
Management System that will provide a
non-punitiveapproachtoidentifyingand
resolvinganypotentialrisks.
•Coordinationofanemergencyplanningand
preparedness exercise in April 2009. This
emergencysimulationwascoordinated
in partnership with 19 Wing Comox, BC
Ambulance,St.Joseph’sHospital,andlocal
policeandfiredepartments.Thevalueofthis
exercisewasrecognizedbyWestJet,whichhas
askedstafftoreproduceascaled-downversion
for its own personnel.
•AirportstaffliaisedfrequentlywithTransport
Canadaofficialsregardingsecuritymattersto
ensure that YQQ is in full compliance with all
required regulatory measures.
•InpartnershipwiththeDepartmentofNational
Defence, we reviewed and redesigned the CVAC
Security Pass Program. Security passes are now
moreeffectivelytrackedandreviewed,and
airside security has been improved.
2010-11INITIATIVES
•SafetyManagementSystemtobeapprovedand
ineffectbytheendofthe2010-11fiscalyear.
•Continuedworktoreviewandimprove
closed-circuit television system in order to
enhance security site-wide.
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COMOX VALLEY AIRPORT COMMISSION
SOCIAL & ENVIRONMENTAL RESPONSIBILITY
» Like any socially conscious organization,we’reveryrespectfulofourrolewithinthe context of a healthy and productivesociety.
That means recycling wherever and whenever
possible in order to reduce our environmental
footprint.Itmeanstreatingouremployeeswith
respect and helping them to grow both as
individuals and as proud contributors to the
organization.Anditmeansgivingwhatwecan
tohelpbetterthelivesofothers.
2009-10HIGHLIGHTS
•CVACstaffcataloguedallchemicalscurrentlyin
useatYQQwithanaimtoreviewalternativeop-
tionsthatmaybesaferforouremployeesand/
orbetterfortheenvironment.
•Trainingandpracticesessionsinfuelspill
clean-up and avoidance.
•Retrofittingoftheairport’sstormwatersystem
inordertopreventorminimizeenvironmental
consequences from a fuel spill or other
contaminationevent.
•InJanuaryandFebruary2010,employees
collecteddonationsonbehalfofCVACfor
earthquakereliefinHaiti.Fundsraisedwere
donated to the Canadian Red Cross to provide
food, water, shelter, and medical care for
earthquake survivors.
•In2009-11,CVACdonated$3,560toavariety
oflocalcharitiesandcharitableinitiatives,
including Comox Valley United Way, Weekend
to End Breast Cancer and Cops for Cancer.
•Recognizingthatouremployeesaretheback-
boneofourorganization,wecontinuedtoinvest
in training sessions that help our employees
achievearealisticandhealthywork/lifebalance.
In 2009, sessions included Mental Health and
theRoleoftheSupervisor,ConfrontationWith
the Public, H1N1 Virus, and Healthy Living.
2010-11OUTLOOK
•Weplantoreviewcurrentrecyclingpractices
andtolookatwaysoftrackingoureffortsso
that they can be improved.
•AllfacetsofCVACoperationsarecontinually
examined with an aim to reduce our
environmental footprint.
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COMOX VALLEY AIRPORT COMMISSION
OUTREACH, ACCOUNTABILITY & GOVERNANCE
» The Comox Valley Airport Commission made great strides in 2009-10 to become more transparent and accountable.
We’vereceivedconstructivefeedbackfromour
nominatingentitiesregardingtheimportance
of the Comox Valley Airport within the
community, and our board of directors is
working to align our mission, vision and values
with those of our stakeholders.
2009-10HIGHLIGHTS
•Theboardofdirectorsapprovedtheestablish-
mentofaCommunicationsProtocolthatwill
improvetheflowofinformationbetweenthe
Commissionanditsnominatingentities.
•Termsofreferenceweredevelopedforanew
AirServicesDevelopmentCommittee,toinclude
communityrepresentationandparticipation.
Thiscommitteewillensurethatfutureroute
development is built upon broad-based com-
munity support.
•Enhancedpublicreportingwasimplementedon
theremunerationofmanagementpersonnel,
andreformstotheCVACFinancialConditions
andActivitiesPolicywereadoptedtoensure
greater openness with respect to contracts,
procurementandfinancialoversight.
•Theboardofdirectorsadoptedseveralbylaw
changesthatwillbetteraligntheCommission
withbestpracticesforeffectivegovernance.
•TheCommissionbecameamemberofthe
CanadianAssociationofCorporateSecretaries,
whichprovidesinformationanddirectiononmat-
ters of corporate accountability and governance.
•We’veimprovedthecapabilitiesofourweb
sitetoallowforimprovedin-houseinformation
flowandtoprovideeffectiveandtransparent
communicationwithournominatingentities,
stakeholders, and the public.
2010-11OUTLOOK
•Ongoingdevelopmentandimplementationof
theCommunicationsProtocol.
•Continueddevelopmentofacommunications
strategy, and updates to our Airport Economic
Impact data.
•ContinueddevelopmentofourAirServices
DevelopmentStrategyincollaborationwith
community stakeholders.
•Developmentofastrategicmarketingplan,as
well as a branding exercise and an update of
marketingcollateral.
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BOARD OF DIRECTORS
Ken DawsonBoard Chair
Shirley de SilvaChiefExecutiveOfficer
JayOddleifsonDirector
ChristineGibsonDirector
Russell IrvineSecretary
Linda OpricaDirector
Daryl McLoughlinVice Chair
ScottTorryDirector
Darlene NeumanTreasurer
Brad MintonDirector
BOARD MEMBERS APPOINTEDIN2009-10:
Brad Minton, appointedJuly2009
Chris Gibson, appointed February 2010
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CVAC ADMINISTRATION TEAM
STANDING BOARD COMMITTEES
The Commission’s board of directors has four
StandingCommitteestaskedwithgeneralover-
sightinspecificareas.Thesecommittees,and
their chairs, are:
ExecutiveCommittee KenDawson
AuditCommittee DarleneNeuman
GovernanceCommittee RussellIrvine
FinanceCommittee DarleneNeuman
Ian HeselgraveOperationsManager
Alex RobertsonDeputyOperationsManager
Ash MohtadiAirside Manager
Kathy PennerMarketing&CustomerServiceManager
JoanneJacobsonFinancial Administrator
Lisa WilhelmAdministrativeAssistant
CORPORATE SERVICE PROVIDERS
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PUBLIC AND STAKEHOLDER ACCOUNTABILITY
» CVAC strives to achieve the highest level of accountability to its stakeholders and the public at large.
The processes involved in achieving this level of
accountability include:
•AnnualPublicMeeting;
•Apubliclyavailableaccountabilityreport
includingauditedfinancialstatements;
•Disclosureofpublicinformation,requiredof
Canadianairportauthorities,throughtheCVAC
website;
•Anannualmeetingwithallnominatingentities;
•CompliancewiththeDNDlease;
•Regulatorycompliance;
•MeetingswithComoxValleycivicandbusiness
stakeholders;
•Accessibilitycomplianceforfederallyregulated
transportation;
•Regularmeetingswithairportoperators
andtenants;
•Meetingswithnominatingentitiesand
communityorganizations.
Code of Conduct and Conflict of Interest Policy
During2009,thedirectorsandofficerscomplied
withallConflictofInterestrequirements.All
directorssignanattestationonanannualbasis
indicatingknowledgeofandcompliancewiththis
policy. Please note that CVAC board members
arenotprovidedannualcompensationfor
attendingboardmeetingsandeventsonbehalf
of the airport.
Director BoardMeetings Executive Audit Finance Governance (Total of 12) (Total of 3) (Total of 3) (Total of 3) (Total of 5)
KenDawson 11 3 3** 3** 4**
Daryl McLoughlin 9 2 2 3 -
Russell irvine 12 3 - 1** 5
Darlene Neuman 12 3 3 3 -
JayOddleifson 12 - 3 3 -
ScottTorry 11 - 2of2* 3 -
Linda Oprica 12 - - 1** 5
Terry Law 2 of 2* - - - -
JudithRound 2of2* - - - -
Brad Minton 6 of 7* - - - 5
Chris Gibson 2 of 2* - 1 of 1* - -
*MemberofBoard/Committeeforpartoftheyear**Directorsattendedmeetingsasex-officiomember
April 1st, 2009 - March 31st, 2010 Director Attendance at Board / Committee Meetings
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CORPORATE PRACTICES
» The Comox Valley Airport Commissioniscommitted toimplementingpoliciesandprocedures that are aligned withbestpracticesforeffect-ive corporate governance.
In 2007, several changes to the Commission’s bylawswereinstitutedfollowingabroad reviewofexistinggovernancepractices.Anindependent consultant, Mr. Laurie Brown, reviewed these changes in 2009. The Board has adoptedMr.Brown’srecommendations,anddocumentationhasbeensubmittedtoIndustryCanadaforapproval.Inaddition,theBoardhasapprovedtheestablishmentofaCommunicationsProtocolthatwillimprovetheflowofinformationbetweenCVACanditsnominatingentities,andhasimplemented an annual process for assessing the effectivenessoftheboardasawhole.
Current Corporate Governance Practices of the Commission
1. The Board is responsible for the stewardship oftheCommissionwiththeaimoffulfilling the stated purposes as set forth in the LettersPatent.
2. The Board has adopted a strategic planning pro-cess that includes a land-use plan, a long-term Airport Master Plan, and a Strategic Plan. The boardreviewscriticalelementsoftheseplansannuallyinconjunctionwiththeestablishmentof annual goals and budget.
3. The Commission has a number of systems
inplacetoidentify,manage,andmitigate risk, including:
•Anorganizationalstructurewithdedi-cated safety, security, and emergency planningandresponsepersonnel;
•Corporatepoliciesandplanscoveringkey governance, strategic, and financialissues;
•Risktransferthroughcontract;
•Incidentreportingandresponseprocedures;
•AnAirportSafetyCommitteeand anOccupationalSafetyandHealthCommittee;
•Comprehensiveinsurancecoverage
4.TheBoardappointstheChiefExecutiveOfficerand regularly monitors succession-planning, including the appointment, training, and evaluationofseniormanagement.
5.TheCommissionhasacommunicationspolicythatoutlinesprocessesforcommunicatingwithindustrystakeholders,nominatingentities,employees, and the public.
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CORPORATE PRACTICES CONT..
6. The Commission has in place a comprehensive informationmanagementandreportingsystemthatincludesregularreportingtotheBoardonkeyfinancialandoperationalresults.
7. The Board is comprised exclusively of unrelated, non-management directors. Each director must sign the Commission’s Code of Conduct and ConflictofInterestPolicyonanannualbasisand follow the procedures prescribed therein. Whenapotentialconflictofinterestarises,thedirectordoesnotparticipateinanyboardactivitiesrelatedtotheareaofconflict.
8.BoardnominationsaremadebythenominatingentitiesinaccordancewiththeCommission’sbylaws. The Commission’s Governance and NominatingCommitteeisresponsiblefor providingalistofqualifiednomineestotheBoard for appointment.
9.TheBoardemploysaself-evaluationprocess to review the performance of directors and boardcommittees.
10. Each new director receives a comprehensive orientation,whichincludesmeetingswiththeChairman and CEO, a facility tour, a Policies andProceduresManual,andinformationregardingboardandcorporateoperations.Ongoingeducationonrelevanttopicsis provided to all board members.
11. A Role Statement has been developed for the board of directors, and terms of reference havebeendevelopedforCorporateOfficers,including the CEO. A Policies and Procedures Manual,approvedbytheBoard,definestheboardandmanagementauthorities.TheBoard approves the Commission’s corporate
objectivesonanannualbasisandassessestheCEOagainsttheseobjectives.
12.Theboardhasfourstandingcommittees;eachcommitteechairreportsdirectlytotheboardonthecommittee’sactivities.Theboardmeetsincameraasrequiredateachmeeting.TheBoardChairandtheNominatingandGov-ernanceCommitteeensurethattheBoard’sindependence is respected and preserved.
13.TheCommission’sGovernanceandNominatingCommitteeisresponsibleforthemonitoringofcorporate governance issues.
14.AllmembersoftheCommission’sAudit Committeearedirectorswhoarefinanciallyliterate.TheCommittee’sresponsibilitiesinclude:
•Oversightofcorporate-levelfinancialpoliciesandissuesthataffecttheoveralloperation,planning,andmanagementoftheCommission;
•Reviewoffinancialmanagementpolicies and issues including annual budgets, banking arrangements, accountingsystemsandprocedures,internalfinancialcontrols,significant changestorelevantlegislation,insur-ancepolicies,statutoryremittances,regularfinancialstatusreports,andoversightofinformationtechnologysystems;
•Monitoringofexternalandinternalauditprograms,andpreparationofannualfinancialstatements.
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Passenger numbers at YQQ were up 7.3 per centthroughthefirstquarter of 2010.
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To the Directors of Comox Valley Airport Commission:
Wehaveauditedthestatementoffinancialpos-
itionofComoxValleyAirportCommissionasat
March31,2010andthestatementsofoperations
andchangesinnetassetsandcashflowsforthe
yearthenended.Thesefinancialstatementsare
the responsibility of the Commission’s manage-
ment. Our responsibility is to express an opinion
onthesefinancialstatementsbasedonouraudit.
We conducted our audit in accordance with
Canadiangenerallyacceptedauditingstandards.
Those standards require that we plan and perform
an audit to obtain reasonable assurance whether
thefinancialstatementsarefreeofmaterial
misstatement. An audit includes examining, on a
testbasis,evidencesupportingtheamountsand
disclosuresinthefinancialstatements.Anaudit
alsoincludesassessingtheaccountingprinciples
usedandsignificantestimatesmadeby
management,aswellasevaluatingtheoverall
financialstatementpresentation.
Inouropinion,thesefinancialstatementspresent
fairly,inallmaterialrespects,thefinancialpos-
itionoftheCommissionasatMarch31,2010and
theresultsofitsoperationsanditscashflowsfor
the year then ended in accordance with Canadian
generallyacceptedaccountingprinciples.
MEYERS NORRIS PENNY LLP
Courtenay,BritishColumbiaMay21,2010
AUDITORS’ REPORT
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as at March 31, 2010 Operating Fund Capital Assets Fund 2010 2009
ASSETS TOTAL TOTAL
Current Cash 354,064 512,175 866,239 646,176 Accountsreceivable 286,472 56,869 343,341 239,395 Prepaidexpenses 14,644 10,000 24,644 32,579 655,180 579,044 1,234,224 918,150
InterfundAccounts 5,238,211 (5,238,211) - -
Property, plant &equipment(Note3) - 16,899,279 16,899,27917,527,782 5,893,391 12,240,112 18,133,503 18,445,932
LIABILITIES
Current Deferred revenue (Note4) 3,960 - 3,960 40,614 Tradeaccounts 193,256 11,057 204,313 269,290 Wages&deductions 26,076 - 26,076 27,861 Currentportionof long-term debt (Note5) - 361,390 361,390 344,520 223,292 372,447 595,739 682,285
Longtermdebt(Note5) - 4,646,120 4,646,120 5,007,437
223,292 5,018,567 5,241,859 5,689,722
NET ASSETS
Invested in property, plantandequipment - 7,221,545 7,221,545 7,703,188 Unrestricted 5,670,099 - 5,670,099 5,053,022
5,670,099 7,221,545 12,891,64412,756,210 5,893,391 12,240,112 18,133,503 18,445,932
Approved by the Directors
Ken Dawson Darlene NewmanChair Chair-AuditCommittee
STATEMENT OF FINANCIAL POSITION(restated - note 12)
Theaccompanyingnotesareanintegralpartofthesefinancialstatements.
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STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS
for the year ended March 31, 2010 Operating Fund Capital Assets Fund 2010 2009
REVENUE TOTAL TOTAL
Advertising 97,594 - 97,584 105,571Airport Improvement fees (Note 6) - 729,695 729,695 719,169Concessions-car 249,910 - 249,910 261,493Concessions - other 90,359 - 90,359 96,596Concessions-parking 573,023 - 573,023 554,440Fuelcommissions 33,942 - 33,942 -Interest - - - 7,127Miscellaneous 12,470 - 12,470 3,691Officerentals 175,073 - 175,073 180,689Terminalfees 1,540,281 - 1,540,281 1,485,424 2,772,652 729,695 3,502,347 3,414,200
EXPENSES
Airport improvement fee expense - 52,501 52,501 51,532Amortization - 909,853 909,853 902,199Baddebts 7,017 - 7,017 4,151Boardexpenses 9,114 - 9,114 7,859Customs 80,675 - 80,675 36,207Fuel facility expenses 16,923 - 16,923 -Insurance 42,336 - 42,336 41,565Interestandbankcharges 7,240 248,984 256,224 271,453Marketing 107,812 - 107,812 144,990Office 79,884 - 79,884 71,113Parkingadministration 74,208 - 74,208 71,316Professionalfees 132,744 - 132,744 97,380Propertytaxes 80,924 - 80,924 87,226Rent 42,278 - 42,278 39,277Repairs and maintenance 211,570 - 211,570 229,257Sub-contracts 980 - 980 2,190Utilities 94,231 - 94,231 98,986Volunteer expense 6,909 - 6,909 11,750Wagesandbenefits 1,160,730 - 1,160,730 950,157 2,155,575 1,211,338 3,366,913 3,118,608
EXCESS(DEFICIENCY)OFREVENUE OVER EXPENSES 617,077 (481,643) 135,434 295,592
NETASSETS-BEGINNING OF YEAR, ORIGINAL 5,100,960 7,703,188 12,804,14812,460,618LESS: PRIOR PERIOD ADJUSTMENT(NOTE12) (47,938) (47,938)
NETASSETS-BEGINNING OF YEAR, RESTATED 5,053,022 7,703,188 12,756,21012,460,618
NETASSETS-ENDOFYEAR 5,670,099 7,221,545 12,891,644 12,756,210
(restated - note 12)
Theaccompanyingnotesareanintegralpartofthesefinancialstatements.
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STATEMENT OF CASH FLOWS
for the year ended March 31, 2010 Operating Fund Capital Assets Fund 2010 2009
TOTAL TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES
Excess(deficiency)ofrevenueoverexpenses: 617,077 (481,643) 135,434 295,592Adjustment for non-cash items: Amortization - 909,853 909,853 902,199 617,077 428,210 1,045,287 1,197,791
Changes in non-cash working capital Net change in amounts receivable andpayable (118,687) (88,675) (207,362) 83,909 Change in prepaid expenses 7,935 - 7,935 (10,714) 506,325 339,535 845,860 1,270,986
CASH FLOWS FROM FINANCING ACTIVITIES Interfundadvances (548,481) 548,481 - - Advances of long-term debt - - - - Repayment of long-termdebt - (344,447) (344,447) (628,345) (548,481) 204,034 (344,447) (628,345)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plantandequipment - (281,350) (281,350) (390,280)
CHANGE IN CASH DURING THE YEAR (42,156) 262,219 220,063 252,361
CASH BEGINNING OF YEAR 396,220 249,956 646,176 393,815
CASH END OF YEAR 354,064 512,175 866,239 646,176
SUPPLEMENTARY CASH FLOW INFORMATION InterestPaid - 248,984 248,984 267,958 Interestreceived - - - 8,751
(restated - note 12)
Theaccompanyingnotesareanintegralpartofthesefinancialstatements.
36 2010 ACCOUNTABILITY REPORT
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1. INCORPORATION AND OPERATIONS
Comox Valley Airport Commission (“Commission”)
wasgrantedletterspatentundertheCanada
CorporationsActonFebruary12,1996.The
Commission has operated the civilian air terminal
locatedonDepartmentofNationalDefence
grounds adjacent to CFB Comox since
June1,1996.
All earnings of the Commission are retained
andreinvestedincivilianairportoperationsand
development.
The Commission is exempt from federal and
provincial income and capital taxes.
2. SIGNIFICANT ACCOUNTING POLICIES
Thefinancialstatementshavebeenpreparedin
accordance with Canadian generally accepted
accountingprinciplesusingthenot-for-profit
organizationreportingstandardsandincludethe
followingsignificantaccountingpolicies:
FUND ACCOUNTING
The Commission follows the restricted fund
methodofaccountingforcontributions.
TheOperatingFundaccountsforthe
Commission’soperatingactivities.
TheCapitalFundreportstheassets,liabilities,
revenues, and expenses related to the Commis-
sion’s property, plant and equipment purchases,
expansion projects and debt repayment.
PROPERTY, PLANT AND EQUIPMENT
Property,plantandequipmentareinitially
recordedatcost.Amortizationisprovidedusing
the straight-line method at rates intended to
amortizethecostofassetsovertheirestimated
useful lives.
Airside over life of lease
18yearsremain
Air terminal building over life of lease
18yearsremain
Building on lot D straight-line
30 years
Computer equipment straight-line
3 years
Conveyance equipment straight-line
20 years
Equipment straight-line
10 years
Fuel Facility over life of lease
18yearsremain
Furnitureandfixtures straight-line
10 years
Groundside over life of lease
18yearsremain
Intheyearofacquisition,amortizationistakenat
one-half of the above rates.
NOTES TO THE FINANCIAL STATEMENTSFor the year ended March 31, 2010
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NOTES TO THE FINANCIAL STATEMENTS
REVENUE RECOGNITION
Restrictedcontributionsarerecognizedas
revenue of the Capital Fund in the year
received or receivable if the amount to be
receivedcanbereasonablyestimatedand
collectionisreasonablyassured.
Unrestrictedcontributionsarerecognizedas
revenueoftheOperatingFundintheyear
received or receivable if the amount to be
receivedcanbereasonablyestimatedand
collectionisreasonablyassured.Revenuesare
receivable when services are performed, the
facilitiesareutilizedortheamountsareearned
pursuant to the related agreements.
Terminalfeesarerecognizedaseachpassenger
enplanes and deplanes.
Airportimprovementfeerevenueisrecognizedas
each passenger enplanes.
Carconcessionrevenueisrecognizedmonthly
based on a percentage of gross monthly revenue
from car rental agencies.
Parkingconcessionrevenueisrecognizedasthe
lot is used.
Officerentalrevenueisrecognizedmonthlyper
rental agreements.
Otherconcessionrevenueisrecognizedmonthly
based on a percentage of gross revenue from
other concessions.
Advertisingrevenueisrecognizedmonthlyasit
is earned.
Fuelcommissionsrevenueisrecognizeddaily
based on a percentage of volume used at the
fuel facility.
MEASUREMENT UNCERTAINTY
(USEOFESTIMATES)
Thepreparationoffinancialstatementsin
conformity with Canadian generally accepted
accountingprinciplesrequiresmanagementto
makeestimatesandassumptionsthataffectthe
reportedamountsofassetsandliabilitiesand
disclosureofcontingentassetsandliabilitiesatthe
dateofthefinancialstatements,andthereported
amounts of revenues and expenses during the
reportingperiod.Actualresultscoulddifferfrom
thoseestimates.Accountsreceivablearestated
afterevaluationastotheircollectibilityandan
appropriateallowancefordoubtfulaccountsis
provided where considered necessary. Accounts
payableincludesestimatesofamountsowingat
year end for items such as property taxes, where
invoiceshavenotbeenreceived.Amortizationis
basedontheestimatedusefullivesofproperty,
plant and equipment, except for airside, air
terminal building and groundside, which are
amortizedoverthetermoftheexisting
DepartmentofNationalDefencelease.
Theseestimatesandassumptionsarereviewed
periodically and, as adjustments become
necessary, they are reported in earnings in the
periods in which they become known.
For the year ended March 31, 2010
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NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL INSTRUMENTS
HELD FOR TRADING:
Anyfinancialinstrumentwhosefairvaluecanbe
reliably measured may be designated as held for
tradingoninitialrecognitionoradoptionofCICA
3855FinancialInstruments–Recognitionand
Measurement, even if that instrument would not
otherwisesatisfythedefinitionofheldfortrading.
TheCommissionhasclassifiedcashasheldfor
trading.Theseinstrumentsareinitiallyrecognized
at their fair value, determined by published price
quotationsinanactivemarket.Transactionsto
purchase or sell these items are recorded on the
tradedate,andtransactioncostsareimmediately
recognizedinexcessofrevenuesoverexpenses.
Heldfortradingfinancialinstrumentsare
subsequently measured at their fair value, without
anydeductionfortransactionscostsincurredon
sale or other disposal. Net gains and losses arising
fromchangesinfairvaluearerecognized
immediately in excess of revenues over expenses.
LOANS AND RECEIVABLES:
TheCommissionhasclassifiedaccountsreceivable
asloansandreceivables.Theseassetsareinitially
recognizedattheirfairvalue.Fairvalueis
approximatedbytheinstrument’sinitialcost
inatransactionbetweenunrelatedparties.
Transactionstopurchaseorselltheseitemsare
recordedonthesettlementdate,andtransaction
costsareimmediatelyrecognizedinexcessof
revenues over expenses. Total interest income,
calculatedusingtheeffectiveinterestratemethod,
isrecognizedinexcessofrevenuesoverexpenses.
Loans and receivables are subsequently measured
attheiramortizedcost,usingtheeffectiveinterest
method.Underthismethod,estimatedfuture
cash receipts are exactly discounted over the
asset’s expected life, or other appropriate period,
toitsnetcarryingvalue.Amortizedcostisthe
amountatwhichthefinancialassetismeasuredat
initialrecognitionlessprincipalrepayments,plus
orminusthecumulativeamortizationusingthe
effectiveinterestmethodofanydifference
betweenthatinitialamountandthematurity
amount,andlessanyreductionforimpairmentor
uncollectability. Carrying value of these assets
approximatesamortizedcostduetotheir
short-term nature. Net gains and losses arising
fromchangesinfairvaluearerecognizedinexcess
ofrevenuesoverexpensesuponderecognition
or impairment.
OTHER FINANCIAL LIABILITIES:
TheCommissionhasclassifiedtradeaccounts,
wagesanddeductionsandlong-termdebtas
otherfinancialliabilities.Theseliabilitiesare
initiallyrecognizedattheirfairvalue.Fairvalue
isapproximatedbytheinstrument’sinitialcost.
Transactionstopurchaseorselltheseitemsare
recordedonthetradedate,andtransactioncosts
areimmediatelyrecognizedinexcessofrevenues
over expenses.
Otherfinancialliabilitiesaresubsequently
measuredatamortizedcostusingtheeffective
interestmethod.Underthismethod,estimated
future cash payments are exactly discounted over
the liability’s expected life, or other appropriate
period,toitsnetcarryvalue.Amortizedcostisthe
amountatwhichthefinancialliabilityismeasured
atinitialrecognitionlessprincipalrepayments,and
plusorminusthecumulativeamortizationusing
theeffectiveinterestmethodofanydifference
For the year ended March 31, 2010
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NOTES TO THE FINANCIAL STATEMENTS
betweenthatinitialamountandthematurity
amount. Carrying value of trade accounts, wages
anddeductionsapproximatesamortizedcostdue
to their short-term nature. Carrying value of
long-termdebtapproximatesamortizedcost.
Net gains and losses arising from changes in fair
valuearerecognizedinexcessofrevenuesover
expensesuponderecognitionorimpairment.
FINANCIAL ASSET IMPAIRMENT:
The Commission assesses impairment of all its
financialassets,exceptthoseclassifiedasheld
for trading. Management considers whether the
issuerishavingsignificantfinancialdifficultyor
whether there has been a breach in contract, such
as a default or delinquency in interest or principal
paymentsindeterminingwhetherobjective
evidence of impairment exists. Impairment is
measuredasthedifferencebetweentheasset’s
carrying value and its fair value. Any impairment,
which is not considered temporary, is included in
excess of revenues over expenses.
3. PROPERTY AND EQUIPMENT
2010 2009 ACCUMULATED NET BOOK NET BOOK COST AMORTIZATION VALUE VALUE
LAND 647,605 647,605 632,835
AIRSIDE 8,818,168 1,882,947 6,935,221 7,311,616
AIRTERMINALBUILDING 7,691,246 1,868,701 5,822,545 6,140,606
COMPUTEREQUIPMENT 69,342 57,040 12,302 14,947
BUILDINGONLOTD 288,860 17,532 271,328 255,651
CONVEYANCEEQUIPMENT 1,187,636 287,440 900,196 959,577
EQUIPMENT 310,292 120,422 189,870 191,177
FUELFACILITY 125,883 3,313 122,570 12,765
FURNITUREANDFIXTURES 250,784 138,836 111,948 128,050
GROUNDSIDE 1,936,855 421,839 1,515,016 1,597,542
WORK IN PROGRESS
INTERNATIONAL TERMINAL 209,522 209,522 207,772
OPERATIONSBUILDING 161,156 161,156 75,244
21,697,349 4,798,070 16,899,279 17,527,782
For the year ended March 31, 2010
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NOTES TO THE FINANCIAL STATEMENTS
4.DEFERREDREVENUE
2010 2009 DEFERREDREVENUE-BEGINNINGOFYEAR 40,614 24,420RECOGNIZEDASREVENUEDURINGTHEYEAR (177,460) (228,695)ADDITIONSDURINGTHEYEAR 140,806 244,889
3,960 40,614
Deferred revenue consists primarily of prepaid parking passes (2009 amounts included prepaid rent, prepaidparkingpassesandprepaidadvertising).
5.LONG-TERMDEBT
2010 2009 RoyalBankofCanadamortgage;dueFebruary28,2013, repayableat$49,448permonthincludingprincipaland interestatafixedrateof4.79%,securedbygeneralsecurity agreement on all property of the Commission, a mortgage of leaseintheamountof$7,000,000betweentheMinisterof NationalDefenceandtheCommissionandacertificate of all-risk insurance covering the airport terminal building. 5,007,510 5,351,957 LESS:CURRENTPORTION 361,390 344,520
4,646,120 5,007,437
Principalrepaymentsonlong-termdebtineachofthenextfiveyearsareestimatedasfollows,basedontheassumptionthatthemortgagewillberenewedwithsimilarterms:
2011 361,390
2012 379,085
2013 397,648
2014 417,119
2015 437,543
For the year ended March 31, 2010
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6. RESTRICTED CONTRIBUTIONS
2010 2009 AIFrevenuecollected 4,568,733 3,938,038AIFinterestearned 24,002 24,002AIFadministrationfees (332,620) (280,119)AIFcapitalexpenditures (20,761,225) (20,520,784)Financingcosts (1,487,432) (1,238,448)
(17,988,542) (18,077,311)
TheCommissioncollectsanairportimprovementfee(AIF)of$5peroutgoingpassengertofundthecost of major capital expenditures. These fees are collected by the air carriers under an agreement betweentheCommission,theAirTransportAssociationofCanada(ATAC)andtheaircarriersservingtheairport,entitlingtheaircarrierstowithholda7%administrationfee.ByagreementwithATAC,AIFrevenuesarerestrictedtopayforthecapitalandrelatedfinancingcostsofmajorairport infrastructure development.
7. COMMITMENTS
TheCommissioniscommittedunderaleaseagreementforlandwithtotalleasepaymentsof$716,787,assumingthereisnochangeinthepaymentamountoverthetermofthelease.
2011 39,277
2012 39,277
2013 39,277
2014 39,277
2015 39,277
EffectiveJune30,2003theCommissionenteredintoa25yearleasewiththeDepartmentofNationalDefenceforthelandwheretheairportissituated.Leasepaymentshavebeensetfortheinitialfiveyearperiod.TheannualpaymentcouldchangeinJuly2010,butisnotexpectedtodecline.
NOTES TO THE FINANCIAL STATEMENTSFor the year ended March 31, 2010
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8.FINANCIALINSTRUMENTS
Allsignificantfinancialassets,financialliabilities
and equity instruments of the Commission are
eitherrecognizedordisclosedinthefinancial
statementstogetherwithotherinformation
relevant for making a reasonable assessment of
futurecashflows,interestrateriskandcreditrisk.
CREDIT CONCENTRATION
Financialinstrumentsthatpotentiallysubject
theCommissiontoconcentrationsofcreditrisk
consist primarily of trade accounts receivable.
Themaximumcreditriskexposureis$343,341
(2009–$239,395).
AsatMarch31,2010fivecustomersaccounted
for87%(2009fivecustomersaccountedfor77%)
ofaccountsreceivableintheoperatingfund,and
threecustomersaccountedfor85%(2009-three
customersaccountedfor76%)ofaccounts
receivable in the capital fund. However, the
Commission believes that there is minimal risk
associatedwiththecollectionoftheseamounts.
The Commission manages its credit risk by
performing regular credit assessments of
its customers and provides allowances for
potentiallyuncollectibleaccountsreceivable.
The Commission does not generally require
collateral or other security from customers on
trade accounts receivable. Trade accounts
receivableintheamountof$9,267(2009-
$30,534)arepastdue,ofwhichanallowancefor
doubtfulaccountsreceivableintheamountof
$3,030(2009-$237)hasbeenrecorded.
INTEREST RATE RISK
Interest rate risk is the risk that the value of a
financialinstrumentmightbeadverselyaffected
by a change in the interest rates. Changes in
marketinterestratesmayhaveaneffectonthe
cashflowsassociatedwithsomefinancialassets
andliabilities,knownascashflowrisk,andonthe
fairvalueofotherfinancialassetsorliabilities,
knownaspricerisk.Inseekingtominimizethe
risksfrominterestratefluctuations,the
Commission manages exposure through its
normaloperatingandfinancingactivities.
The Commission is exposed to interest rate risk
with respect to long-term debt in the form of a
mortgagewithafixedrateof4.79%,maturingat
theendofthreeyears(2008-fouryears).
LIQUIDITY RISK
Liquidity risk is the risk that the Commission
willencounterdifficultyinmeetingobligations
associatedwithfinancialliabilities.The
Commissionentersintotransactionstopurchase
goodsandservicesoncredit;borrowfundsfrom
financialinstitutionsorothercreditors;andlease
premises, for which repayment is required at
various maturity dates. Liquidity risk is measured
by reviewing the Commission’s future net cash
flowsforthepossibilityofanegativenet
cashflow.
OTHER PRICE RISK
Other price risk is the risk that the fair value or
futurecashflowsofafinancialinstrumentwill
fluctuatebecauseofchangesinmarketprices
(other than those arising from interest rate risk
or foreign currency risk), whether those changes
arecausedbyfactorsspecifictotheindividual
financialinstrumentoritsissuer,orfactors
affectingallsimilarfinancialinstrumentstradedin
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the market. The Commission does not enter into
transactionsforwhichthemarketpricefluctuates
and therefore feels that their risk is limited.
FOREIGN CURRENCY RISK
Foreign currency risk is the risk that the fair value
offuturecashflowofafinancialinstrumentwill
fluctuatebecauseofchangesinforeignexchange
rates. The Commission did not enter into any
foreigncurrencytransactionsduringtheyear,soit
is not exposed to foreign currency risk.
FINANCIAL ASSET IMPAIRMENT
At each year-end date, the Commission is
required to evaluate and record any other-than-
temporaryimpairmentofitsfinancialassets,
otherthanthoseclassifiedasheldfortrading.
Accordingly, the Commission has compared the
carryingvalueofeachofthesefinancialassetsto
its fair value as at March 31, 2010. A provision
fordoubtfulaccountswastheonlyprovisionfor
impairment that was recorded in the current year,
asthefairvalueofallotherfinancialassetstested
exceeded their carrying value.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying amount of cash, accounts
receivable, trade accounts, wages and
deductionsandcurrentportionoflongtermdebt
approximates their fair value due to the short-
termmaturitiesoftheseitems.
Thefairvalueoflong-termdebtis$5,390,624
(2009-$5,883,096),estimatedusingdiscounted
cashflowanalysisandinterestratesprevailing
atyear-end.Theseestimatesaresignificantly
affectedbyassumptionsincludingtheamount
andtimingofestimatedfuturecashflowsand
discountrates,allofwhichreflectvarying
degrees of risk.
9. CAPITAL MANAGEMENT
TheCommissionsetstheamountofcapitalinproportiontoriskandmanagesthecapitalstructureandmakesadjustmentstoitinlightofchangestoeconomicconditionsandtheriskcharacteristicsofthe underlying assets.
The Commission manages the following as capital:
2010 2009
Netassetsinvestedinproperty,plantandequipment 7,221,545 7,703,188Unrestricted net assets 5,670,099 5,053,022
The Commission is not subject to any external capital requirements.
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10. RELATED PARTY TRANSACTIONS
Included in repairs & maintenance expenses for
thecurrentyearis$9,307(2009-$23,302)paidto
a company that is controlled by one of the board
members.Thesetransactionswereconductedin
thenormalcourseofoperationsandmeasuredat
the exchange amount.
11. MANAGEMENT COMPENSATION
Included in wages and salaries expense for the
current year are gross wages paid to Chief Execu-
tiveOfficers,ActingExecutiveOfficer,Operations
Manager,DeputyOperationsManager,Airside
Manager,MarketingandCustomerService
Manager, and Financial Administrator totalling
$385,539(2009-$431,152).
12. CORRECTION OF AN ERROR
In 2009 the Commission incurred an expense
for which no accrual was made in 2009. The
retrospectivecorrectionofthiserrorincreased
prioryearmarketingexpensesby$47,938,in-
creasedprioryearaccountsreceivableby$2,397,
increased prior year accrued accounts payable by
$50,335,decreasedprioryearexcessofrevenue
overexpensesby$47,938,anddecreasedprior
yearnetassetsby$47,938.
13. COMPARATIVE FIGURES
Certaincomparativefigureshavebeenreclassified
toconformwithcurrentyearpresentation.
For the year ended March 31, 2010
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TACT
CONTACT
Our primary method ofcommunicationwith the public is through our web site at:
www.comoxairport.com
Comox Valley Airport Commission
#118-1250KnightRd
Comox,BCV9M4H2
Phone: 250.890.0829
Email: [email protected]
The following documents are available on
our web site:
•CurrentMasterPlan
•Currentbusinessandstrategicplans
•Recentannualfinancialstatements
•Auditor’sreport.
»
CON
TACT
“Comox Airport has to be the best in Canada. Friendly, clean, relaxing. Be proud of your facility!” -YQQ customer
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2010 ACCOUNTABILITY REPORT
2010 ACCOU
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PRODUCTION NOTESThis book was produced in a sustainable manner:» Vegitable inks were used.» Printed on Enviro 100, 80 lb text/ 1oolb cover.» Enviro is 100% recycled paper.» Only 175 books were produced.» Only two colour paper copies were produced for proofing.» Files were sent electronically to the printer.» This accountability report serves more than one purpose.
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