Institutional Federal Compliance Report 2021

130 • Notes to Basic Financial Statements _________________________________________________________________________ Note 15 Joint Ventures

A joint venture is an entity that results from a con- tractual arrangement and that is owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control, in which the participants retain an ongoing financial interest or an ongoing financial responsibility. The only mate- rial joint venture in which the State has an interest is the Port Authority of New York and New Jersey (Port Authority). The Port Authority is a municipal corporate instru- mentality of the States of New York and New Jersey created by compact between the two states in 1921 with the consent of the Congress of the United States. The Port Authority is authorized and directed to plan, develop, and operate terminals and other facilities of transportation and commerce, and to advance projects in the general fields of transportation, economic devel- opment, and world trade that contribute to promoting and protecting the commerce and economy of the Port District, defined in the compact, which comprises an area of about 1,500 square miles in both states, centering around New York Harbor. The Governor of each state appoints six of the twelve members of the governing Board of Commis- sioners, subject to confirmation by the respective state senate. Governors have from time to time exercised their statutory power to veto the actions of the com- missioners from their states. The commissioners serve six-year overlapping terms as public officials without compensation. They establish Port Authority policy, appoint an Executive Director to implement it, and appoint a General Counsel to act as legal advisor to the Board and to the Executive Director. The compact envisions the Port Authority as being financially self-sustaining and, as such, it must obtain the funds necessary for the construction or acquisition of facilities upon the basis of its own credit. The Port

Authority does not have the power to pledge the credit of either state or any municipality, or the authority to levy taxes or assessments. The liabilities of the Port Authority include $22.1 billion of consolidated bonds. Consolidated bonds and notes are equally and ratably secured by a pledge of the net revenues of all existing facilities and any additional facilities, which may be financed in whole or in part through the medium of consolidated bonds and notes. The Port Authority’s Comprehensive Annual Financial Report is available from the Port Authority website at www.panynj.gov . Consolidated financial statements of the Port Authority for the fiscal year ended December 31, 2018 disclosed the following (amounts in millions): Financial Position Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 47,344 Total deferred outflows of resources . . . . . . . . . 524 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . (31,763) Total deferred inflows of resources . . . . . . . . . . (227) Net position . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,878 Operating Results Operating revenues . . . . . . . . . . . . . . . . . . . . . . $ 5,344 Operating expenses . . . . . . . . . . . . . . . . . . . . . (3,242) Depreciation and amortization . . . . . . . . . . . . . (1,371) Income from operations . . . . . . . . . . . . . . . 731 Passenger facility charges . . . . . . . . . . . . . . . . 286 Financial income (expense), net . . . . . . . . . . . . (784) Contribution in aid of construction and grants . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 Increase in net position . . . . . . . . . . . . . . . $ 508 Changes in Net Position Balance at January 1, 2018, as restated . . . . . . $ 15,370 Increase in net position . . . . . . . . . . . . . . . . . . . 508 Balance at December 31, 2018 . . . . . . . . $ 15,878