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    LOUIS ARMSTRONG NEW ORLEANS INTERNATIONAL AIRPORT

    (A Proprietary Component Unit of the City of New Orleans)

    Financial Statements and Supplemental Schedules

    December 31, 2009 and 2008

    (With Independent Auditors' Report Thereon)

    ^derprovisions of state (aw, this report is a pi .. document. A copy of the report has been submitted to the entity and otherappropr/ate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court.

    Release Date ( > ' ) I O

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    M Postlethwaite &Netterville A Profossiono! Accounling Corporalion

    www, pncpa.com

    http://pncpa.com

  • LOUIS ARMSTRONG NEW ORLEANS INTERNATIONAL AIRPORT (A Proprietary Coinponent Unit of the Cit>' of New Orleans)

    Table of Contents

    Independent Auditors' Report

    Management's Discussion and Analysis

    Financial Statements:

    Balance Sheets as of December 31, 2009 and 2008

    Statements of Revenues, Expenses, and Changes in Net Assets for the years ended December 3 !, 2009 and 2008

    Statements of Cash Flows for the years ended December 31, 2009 and 2008

    Notes to Financial Statements

    Supplemental Schedules:

    Schedule 1 -Supplemental Schedule of Investments for the year ended December 31, 2009

    Schedule 2 - Supplemental Schedule of Operating Revenues and Expenses by Area of Activity for the year ended December 31, 2009

    Schedule 3 - Supplemental Schedule of Historical Debt Service Coverage Ratio as Required Under the General Revenue Bond Trust Indenture dated February 1, 2009 for the year ended December 31, 2009

    Page

    1-2

    3 - 1 6

    17-18

    19

    2 0 - 2 1

    2 2 - 4 2

    4 3 - 4 4

    45

    46

  • Postlethwaite &Netterville

    A PtcifoiiioiKil Arcounltng Corfjornlian Aiir.r^cl^d OlricM in Principal Ciliei of ihn Ui>ited Slnf(

    vAvw.pncpa.com

    Iiiilcpendent Auditors' Report

    New Orleans Aviation Board and the Cit>' Council of die City of New Orleans, Louisiana:

    We have audited the accompanying fmancial statements of the Louis Armstrong New Orleans International Airport (the Airport), a proprietaiy component unit of the City of Nev/ Orleans, as of December 31, 2009 and 2008 for the years then ended, as listed in the foregoing table of contents. These fmancial statements are the responsibility of the Airpoit's management. Our responsibility is to express an opinion on these financial statements based on our audits.

    We conducted our audits in accordance with auditing standards genei'ally accepted in the United Slates of America and the standards applicable to financial audits contained in Government Auditing Standwds^ issued by the Comptroller General of the United States. Those standards require that we plan and perform tlie audit to obtain reasonable assurance about v/hethei' the financial statements are free of material misstatement. We were not engaged to peiform an audit of the Airport's internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Airport's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

    In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Louis Armstrong New Orleans Inteniational Airport as of December 31, 2009, and the changes in its financial position and its cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.

    In accordance with Government Auditing Sicmdanh, we have also issued our report dated June 29, 2010, on our consideration of the Airport's internal control over financial reporting and oui- tests of its compliance with certain provisions of laws, regulations, and contracts and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integi'al part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

    The Management Discussion and Analysis is not a required part of die basic financial statements, but is supplementaiy information required by U.S. generally accepted accounting principles. We have applied certain limited procedures, v/hich consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementaiy information. However, we did not audit the infoiTuation and express no opinion on it.

    30th Floor - Energy Centre 1100 Poydras Street - f ew Orleans, LA 70163-3000 Tel: 504.569.2978 One Galleria Blvd., Suite 2100 Metairie, LA 70001 Tel: 504.837.5990 fax: 504.834.3609

  • Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. Supplemental schedules listed in the foregoing table of contents are presented for purposes of additional analysis and are not a required part of the basic fmancial statements. The supplemental schedules 1 and 2 have been subjected to the auditing procedures applied in the audits of tlie basic financial statements and, in our opinion, are fairly stated in all material respects, in relation to the basic fmancial statements taken as a whole. Schedule 3 has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and, accordingly, we express no opinion on it.

    Metairie, Louisiana June 29, 2010

  • LOUIS ARMSTRONG NEW ORLEANS INTERNATIONAL AIRPORT

    (A Component Unit of the City of New Orleans)

    Management's Discussion and Analysis

    December 31, 2009 and 2008

    (Unaudited)

    This narrative discussion and analysis is intended to seiA'e as an introduction to the Louis Armstrong New Orleans hiternational Airport's basic financial statements for the fiscal years ended December 3 I, 2009 and 2008, with selected comparative information for the fiscal year ended December 31, 2007. The information presented here should be read in conjunction with the financial statements, footnotes, and supplementary infonnation found in this report.

    Ovei-view of the Financial Statements

    The Louis Annstrong New Orleans hiternational Airport (tlie Aiipoit) is structured as an enterprise fund. The financial statements arc prepared on the accrual basis of accounting. Therefore, revenues are recognized when earned and expenses are recognized when incurred. Capital assets are capitalized and depreciated, except for land, over their useful lives. See the notes to the financial statements for a summary of the Aiipoit's significant accounting policies.

    Following this Management Discussion and Analysis (MD&A) are the basic fmancial statements and supplemental schedules of the Airport. This infonnation taken collectively is designed to provide readers with an understanding of the Airport's finances.

    The balance sheets present information on all of the Airport's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of the Airport's financial position.

    The statements of revenues, expenses, and changes in net assets present infonnation showing how the Airport's net assets changed during the fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in tliese statements for some items that will result in cash flows in future fiscal periods.

    The principal operating revenues of the Airport are from sources such as airlines, concessions, rental cars, and parking, hivestment income, passenger facility charges, customer facility charges, federal grants, and other revenues not related to the operations of the Airport are nonoperating revenues. Operating expenses include the cost of airpoit and related facilities maintenance, administrative expenses, and depreciation on capital assets. Interest expense and financing costs are nonoperating expenses.

    The statements of cash flows relate to the flows of cash and cash equivalents. Consequently, only transactions that affect the Airport's cash accounts are recorded in these statements. A reconciliation is a part of these statements to assist in the understanding of the difference bet^veen cash flows from operating activities and operating loss.

    Financial Highlights

    On August 29, 2005, parts of the Louisiana and Mississippi Gulf Coast area were devastated by Hurricane Katrina. The City of New Orleans was particularly impacted as well as the Airport. The impacts resulting from Katrina had a devastating effect on the Airport's aviation activity and were the primary cause for activity levels at the Airport to substantially decrease in 2005 and 2006. Immediately following Katrina, commercial air service at the Airport was suspen

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