BFPD FY26 GFOA Budget - Flipbook - Page 166
| APPENDIX
FINANCIAL POLICIES
The District is incorporated in Bartlett, Illinois. The District operates under a Board-Manager
form of government encompassing areas in Cook County and DuPage County. The mission of
the District is to protect the lives and property within the community in a fiscally sound and
responsive manner through fire prevention, public education, fire suppression, emergency
medical services, and public safety.
The financial statements of the District have been prepared in conformity with Generally
Accepted Accounting Principles as applied to local governments. The Governmental Accounting
Standards Board is the accepted standard-setting body for establishing governmental accounting
and financial reporting principles. The more significant of the District’s accounting policies are
described below:
Financial Reporting Entity
The accompanying financial statements present the District’s primary government and any
component units over which the District exercises significant influence. Significant influence or
accountability is based primarily on operational or financial relationships with the District (as
distinct from legal relationships). Management has considered all potential component units and
has determined that there are no entities outside of the primary government that should be
blended into or discretely presented with the District’s financial statements.
Government-Wide Financial Statements
The government-wide financial statements include the statement of net position and the
statement of activities. Government-wide statements report information on all of the activities of
the District as a whole (except for fiduciary activities) and distinguish between the governmental
and business-type activities of the District. Governmental activities, which are normally
supported by taxes and governmental revenues, are reported separately from business-type
activities, which rely to a significant extent on fees and charges for support.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are payments in lieu of taxes where the
amounts are reasonably equivalent in value to the interfund services provided and other charges
between the government’s public safety function and various other functions of the government.
Elimination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
The statement of activities demonstrates the degree to which the direct expenses of a given
function are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function. Program revenues include: 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function
and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included
among program revenues are reported as general revenues.
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