b'Capital Region Airport Commission NOTES TO FINANCIAL STATEMENTS June 30, 2025 and 2024 Note 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue Recognition Revenue is recognized when earned. Parking revenue is recognized when the customer vehicle exits the parking facility. Landing and apron fees are recognized as revenue when the Airport facilities are utilized. Concession revenue is recognized based on reported concessionaire revenue. Rental revenue is recognized over the life of the respective leases. All other revenue is recognized when earned.Revenue and Expense Classifications Revenuesfromairlines,concessions,rentalcarsandparkingarereportedasoperatingrevenues. Transactions, which are financing or investing related and customer and passenger facility charges, are reported as nonoperating revenues. All expenses related to operating the Commission are reported as operating expenses.Interest expense and financing costs are reported as nonoperating expenses. Customer Facility Charges AsofDecember1,2000,theCommissionenteredintoaRentalCarCustomerFacilityCharge Agreement with the on-site airport rental car companies.In accordance with the bond indenture for the rental car garage facility, the Commission determines the amount of the Customer Facility Charge (CFC) for each rental vehicle transaction day to be collected by the rental car companies.The amount collected is remitted directly to the Commission for deposit in trust accounts restricted for use in connection with the rental car garage facility.Beginning February 1, 2001, the CFC was set at $2 per day.The rate fluctuated downward over the years to a low of $.40 on May 1, 2014, but increased to $3.00 during fiscal year 2015. On June 1, 2016 the rate was changed to $2.00. Collections during fiscal year 2025 were $2.7 million (2024 - $2.8 million). Passenger Facility Charges The Federal Aviation Administration (the FAA) authorized the Commission Passenger Facility Charges (PFC) rate of $4.50 per qualifying enplaned passenger, effective January 1, 2005, with the net receipts restricted to use on FAA approved projects.The Commission has been authorized to collect PFC plus interest thereon in the aggregate amount of $224.1 million. Collections during fiscal year 2025 were $10.6 million (2024 - $10.0 million) and aggregate collections and interest thereon from inception through June 30, 2025 were $194.1 million. Net position related to PFC is restricted for projects that are approved by the FAA. Federal and State Grants The Commission receives grants for airport projects funded through the Airport Improvement Program (AIP) of the FAA and Federal Emergency Management Agency (FEMA) with certain matching funds andotherfundsprovidedbytheCommonwealthofVirginia.Capitalgrantsarereportedinthe statements of revenues, expenses and changes in net position as capital grants and contributions. State Entitlement Funds The Commission receives annual entitlement fund allocations from the Virginia Department of Aviation which are required to be maintained in a separate, interest-bearing account. The use of the funds is restricted for purposes established by the Virginia Aviation Board. In addition, the Commission is allowed to apply for PFC Funds that are reimbursements of State Entitlement Funds. Once the application is approved, the funds collected are considered State Entitlement Funds and are restricted for purposes established by the Virginia Aviation Board. 25'