NOTES TO FINANCIAL STATEMENTS NOTE 9. COMMITMENTS AND CONTINGENCIES (CONTINUED) In August 2015, the Authority formally entered into an agreement with the Georgia Department of Public Safety to fund the increase in law enforcement of commercial traffic within the highway interstate corridors that serve the Authority’s facilities. The Authority paid $5,472 and $7,198 to the Georgia Department of Public Safety during the years ended June 30, 2020 and 2019, respectively. During fiscal year ended June 30, 2013, the Authority entered into a compromise and settlement agreement with the U.S. Army Corps of Engineers, the State of South Carolina and several non- governmental environmental organizations relative to the project by the U.S. Army Corps of Engineers to deepen the Savannah River federal navigation channel. This project referred to as the Savannah Harbor Expansion Project (SHEP). The respective SHEP agreement, approved by the U.S. Federal District Court for the District of South Carolina, resulted in a commitment by the Authority in the amount of $35,530, of which the Authority had paid $12,051 through the year ended June 30, 2020, which includes the following provisions to be funded by the Authority subject to satisfaction of certain conditions based on all known and expected factors; and therefore, considered to be “probable” as defined by respective and authoritative financial Financial Reporting Guidance Contained Pronouncements): is commonly reporting standards (GASB No. 62, Codification of Accounting and in Pre-November 30, 1989 FASB and AICPA • GPA will establish a letter of credit or escrow account within six months of the commencement of inner harbor dredging in the amount of $2,000 to serve as a contingency fund should the operation of the dissolved oxygen (DO) injection systems not receive funding by the federal government. This letter of credit or escrow account will be maintained at a minimum of $2,000 for 50 years after completion of the SHEP. • GPA will contribute $3,000 for water quality monitoring in the Lower Savannah River Basin; $3,000 for monitoring and research of Shortnose and Atlantic Sturgeon; $15,000 for conservation, wetlands preservation, acquisitions of easements and/or upland buffers, and creation, restoration or enhancement of wetlands to benefit the Lower Savannah River watershed. • GPA will contribute $12,500 for environmental and conservation projects in the Savannah River Basin to the Savannah River Restoration Board whose membership is prescribed in the agreement. As of June 30, 2020, GPA has a commitment to the Effingham County Industrial Development Authority in the remaining amount of $5.5 million. 52
