b'Capital Region Airport Commission NOTES TO FINANCIAL STATEMENTS June 30, 2025 and 2024 Note 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Restricted Net Position The Commission reports restricted net position for net pension and OPEB benefits, certain required debt servicefunds,andfortheCFC,PFC,andstateentitlementprograms.Whenbothrestrictedand unrestricted assets are available for use, the Commission applies restricted assets first and then applies unrestricted assets as needed. Salaries and Wages Accrued salaries and wages include regular salaries and wages and accumulated vacation and sick leave.Vacation and sick leave are accumulated based on formulas applied to months of service during a calendar year.Vacation carryover beyond fiscal year end is limited to two times the annual vacation accrual with a maximum of 336 hours per employee.Sick leave accumulates indefinitely; however, the Commission is obligated to pay only 25% of the accumulated liability upon retirement or termination up to a maximum of $5,000 per employee.Vested vacation and sick leave unpaid at year end is included in accrued expenses and amounted to $1.830 million at June 30, 2025, and $1.465 thousand (restated for GASB 101 implementation) at June 30, 2024. The net increase for fiscal year 2025 amounted to $365 thousand.For fiscal year 2024, the net increase amounted to $271 thousand. Pensions For purposes of measuring the net pension liability (asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Commissions Retirement Plan and the additions to/deductions from the Commissions Retirement Plans fiduciary net position have been determined on the same basis as they were reported bytheVirginiaRetirementSystem(VRS).Forthispurpose,benefitpayments(includingrefundsof employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Other Postemployment Benefits (OPEB) For purposes of measuring the VRS related OPEB net asset, net liabilities, deferred outflows of resources anddeferredinflowsofresourcesrelatedtotheOPEB,andOPEBexpense,informationaboutthe fiduciary net position of the VRS GLI, HIC, LODA, and VLDP OPEB Plans and the additions to/deductions from the VRS OPEB Plans fiduciary net position have been determined on the same basis as they were reported by VRS. In addition, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Budgets OperatingandcapitalbudgetsareadoptedannuallybytheCommissionandareamendedas necessary during the fiscal year.The accrual basis of accounting is applied to the development of these budgets. Risk Management The Commission carries commercial insurance for risks of loss including property, workers compensation, theft, auto liability, general liability and construction insurance.The Commission also carries coverage for public officials and employers liability under the Virginia State Police Officials Self-Insurance Pool. There have been no significant reductions in insurance coverage in comparison to coverage in prior years and settled claims resulting from these risks have not exceeded commercial insurance coverage for each of the three past fiscal years. 26'