b'Capital Region Airport Commission NOTES TO FINANCIAL STATEMENTS June 30, 2025 and 2024 Note 15.RELATED PARTY TRANSACTIONS DuringtheyearsendedJune30,2025and2024,theCommissionenteredintovariousrecurring transactions with certain municipalities relating primarily to water and sewer fees, other utilities, roadway maintenance and advertising contracts. Note 16.DEFERRED COMPENSATION PLAN The Commission offers an approved deferred compensation plan pursuant to Section 457 of the Internal Revenue Code. All Commission employees are eligible to participate and may defer their gross income not to exceed a maximum of $23,500 for the year 2025; with participants age 50 and older allowed to defer a maximum of $31,000. The compensation deferred is not available to employees until termination, retirement, death or an unforeseeable emergency. All plan assets are held in a custodial account for the exclusive benefit of participants and beneficiaries under the Plan. Accordingly, the related assets andliabilitiesassociatedwiththeplanarenotreportedaspartoftheCommissionsfinancial information. Note 17.COMMITMENTS AND CONTINGENCIESIn the normal course of its operations, the Commission has commitments, contingent liabilities, lawsuits andclaims.Commissionmanagementdoesnotexpectthatanyamountitmayhavetopayin connection with any of these matters would have a material adverse effect on the financial position of the Commission. The Commission has a standby letter of credit in the amount of $750,000 with First Virginia Bank for the control of sedimentation and/or erosion.As of June 30, 2025, the Commission had construction commitments of approximately $44.8 million, of which approximately $15.5 million will be paid from federal and state grants, including PFC funds. Note 18.ADOPTION OF ACCOUNTING PRINCIPLE The Commission implemented GASB Statement No. 101, Compensated Absences. In addition to the value of unused vacation time owed to employees upon separation of employment, the Commission nowrecognizesanestimatedamountofsickleaveearnedasofyear-endthatwillbeusedby employees as time off in future years as part of the liability for compensated absences. The change in accounting principle resulted in the following restatement of net position:2024 2023Net position as of July 1, previously reported $588,620,309 $554,901,396Implementation of GASB Statement No. 101(179,595) 219,915Net position as of July 1, as restated $588,440,714 $555,121,31186'