b"Capital Region Airport Commission NOTES TO FINANCIAL STATEMENTS June 30, 2025 and 2024 Note 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity The Capital Region Airport Commission (Commission) is a political subdivision of the Commonwealth of Virginia. Commissioners are appointed by participating subdivisions, which currently include the City ofRichmond,VirginiaandtheCountiesofChesterfield,HanoverandHenrico,Virginia.The Commissioners are responsible for addressing broad policy matters and approving the operating and capital budgets.The financial statements of the Commission are presented in the fund of a single enterprisefund;whichincludesallbusinessactivitiesoftheRichmondInternationalAirport(the Airport), which the Commission oversees.The Commission, as the owner and operator of the Airport, maintains and enhances facilities to better serve the air transportation needs of Central Virginia.Major functionalareasincludeExecutive,Finance,Marketing&AirServiceDevelopment,Planning& Engineering, Public Safety and Real Estate.The Airport is currently served by nine major airlines and ten regional airlines. In December 2022, the Commission created the Capital Region Airport Commission Foundation for the purpose of raising funds to support the Commission. The Foundation is a 501(c)(3) corporation with a December year-end and is considered a blended component unit. Blended component units, although legally separate entities, are, in substance, part of the government's operations, and so data from these units are combined with data of the primary government. The Foundations calendar year 2024 activity included donations of $3,900 and an ending cash balance of $8,891, which are not reflected in the Commissions financial statements. Inclusion of the Foundations financial activity will be assessed going forward. The financial statements presented for the Commission are prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) applicable to governmental units as prescribed by the Governmental Accounting Standards Board (GASB).SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The financial statements are presented on the accrual basis of accounting, recognizing revenue when it is earned and expenses when they are incurred. Estimates ThepreparationoffinancialstatementsinconformitywithGAAPrequiresmanagementtomake estimates and assumptions that affect the reported amounts of assets, deferred outflows, liabilities, deferredinflowsanddisclosuresofcommitmentsandcontingenciesatthedateofthefinancial statements and the reported amounts of revenues and expenses during the reporting period.Actual results could differ from those estimates.Cash and Cash Equivalents The Commission considers all highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents. Investments Investments, principally money market accounts, and certificates of deposit, are carried at amortized cost. Federal and municipal obligations and money market funds are reported at fair value.Fair values of investments are based on quoted market prices at year end.All investment income, including changes in the fair value of investments, is reported in the Statements of Revenues, Expenses, and Changes in Net Position. 23"