NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the Year Ended June 30, 2021
NOTE 8—CONTINGENCIES
Litigation
There may be various claims and suits pending against the Authority, which arise in the normal course of
the Authority’s activities. In the opinion of Authority management, any potential claims against the
Authority, which are not covered by insurance, are immaterial and would not affect the financial position
of the Authority.
Federal Grants
The Authority participates in a number of federally assisted grant programs. These programs are subject to
financial and compliance audits by the grantors or their representatives. The amounts, if any, of expenses
which may be disallowed by the granting agency cannot be determined at this time, although the Authority
expects such amounts, if any, to be immaterial.
NOTE 9—RISK MANAGEMENT
The Authority is exposed to various risks of losses related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters.
Property and Liability Insurance
The Authority obtained commercial insurance coverage to manage risks related to property and liability.
The coverage has not been significantly reduced from the prior year and settled claims have not exceeded
coverage in any of the past three years.
NOTE 10—IMPLEMENTATION OF FUTURE ACCOUNTING STANDARDS
The Government Accounting Standards Board (GASB) has issued Statement No. 87, Zeases, which the
Authority is required to implement in the fiscal year ending June 30, 2022. Management believes that this
pronouncement will have a potentially significant impact on the Authority’s financial statements, wherein
the Authority will be required to recognize a lease receivable and a deferred inflow of resources at the
commencement of the Jease term for all of its subleased land agreements.
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