NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Agreement include the BWI Consolidated Rental Car Facility Revenue Bonds, Series 2002; BWI Passenger Facility Charge Revenue Bonds, Series 2012A, 2012B, 2014, and 2019; and the Calvert Street Parking Garage Project, Lease Revenue Bond, Series 2015. The State of Maryland prepares an Annual Comprehensive Financial Report (ACFR). The MDTA is an enterprise fund of the State of Maryland and is included in the basic financial statements of the ACFR of the State of Maryland. The State’s ACFR can be found at https://www.marylandtaxes.gov/reports/acfr.php. Basis of Accounting Presentation The MDTA is accounted for as a proprietary fund engaged in business-type activities. In accordance with Governmental Accounting Standards Board (GASB) Statement No. 34, “Basic Financial Statements, and Management’s Discussion and Analysis, for State and Local Governments,” as amended, and with accounting principles generally accepted in the United States of America, the financial statements are prepared on the accrual basis of accounting, which requires recognition of revenue when earned and expenses when incurred. The Statement of Net Position includes non-recourse financings as lease payment receivables, representing the non-recourse principal and interest due through the final maturities, net of restricted account balances associated with these non-recourse financings issued under separate trust agreements. Use of Estimates in Preparing Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates. Operating and Non-Operating Revenues and Expenses Operating revenues and expenses are revenues and expenses for transactions that constitute MDTA’s ongoing operations. Operating revenues for the MDTA are derived from toll revenues and related toll administrative revenue, travel plaza concessions, and intergovernmental revenues. Revenue is recognized on an accrual basis as earned. Prepaid electronic tolls are recorded as unearned revenue until utilized or expired. Operating expenses include collection fees, maintenance and repairs of facilities, administrative, pension and depreciation expenses. Non-operating revenues and expenses are (a) related to financing, (b) resources from the disposal or capital assets and inventory, and (c) investment income and expenses. Cash and Cash Equivalents Current cash and cash equivalents include cash on hand, cash deposited with financial institutions, and investments with maturities of ninety-days or less at the time of purchase. Noncurrent cash and cash equivalents are restricted as to use or are associated with accounts held in an agency capacity for non- recourse financings issued through separate trust agreements. Toll receivables represent the amounts due primarily from E-ZPass and video toll customers as well as out- of-state reciprocity from other E-ZPass states. The MDTA uses the allowance method to provide for doubtful accounts based on management’s evaluation of the collectability of receivables and past collection history. Toll receivables are written off when it is determined that amounts are uncollectible. Intergovernmental and Intergovernmental financing lease receivables Intergovernmental receivables represent amounts due for police services and rental income. Intergovernmental financing lease receivables represents amounts due from obligors on non-recourse debt issued by the MDTA. The MDTA determines intergovernmental and intergovernmental financial lease Receivables Toll receivables
50 | Maryland Transportation Authority | Notes to the Financial Statements ($ in thousands)
Made with FlippingBook - PDF hosting