BFPD FY26 GFOA Budget - Flipbook - Page 170
| APPENDIX
Interfund Transactions—In general, transfers are used to (1) move revenues from the fund that
collects the money to the fund that expends the money, (2) move receipts restricted or earmarked
for debt service from the funds collecting the receipts to the debt service fund as debt service
payments become due, and (3) use unrestricted revenues collected in a fund to provide operating
advances to other funds in accordance with budgetary authorizations.
Receivables
Receivables consist of all revenues earned at year-end that are not yet received as of December
31, 2025. Major receivable balances for governmental activities include property taxes and
ambulance fees. The District carries its receivables at cost less than allowance for doubtful
accounts. On a periodic basis, the District evaluates its receivables and establishes the amount of
its allowance for doubtful accounts based on a history of past write-offs and collections. The
allowance for doubtful accounts amounts to $0 for property taxes receivable and $0 for
ambulance fees receivable.
Prepaid Items and Prepaid Expenditures
Payments made to vendors for services that will benefit periods beyond December 31, 2025 are
recorded as prepaid items/expenditures using the consumption method of recognition.
Deferred Revenue/Unearned Revenue
When applicable, the District reports unearned revenues on its Statement of Net Position and
deferred revenues on its Governmental Funds Balance Sheet. For governmental fund financial
statements, deferred revenues occur when a potential revenue does not meet both the
“measurable” and “available” criteria for recognition in the current period or when resources are
received by the District before it has a legal claim to them. In subsequent periods, when both
revenue recognition criteria are met, or when the District has a legal claim to the resources, the
liability for deferred revenue is removed from the Governmental Funds Balance Sheet and
revenue is recognized accordingly.
Compensated Absences
Accumulated vacation and sick leave, that is expected to be liquidated with expendable available
financial resources, is reported as an expenditure and a fund liability of the governmental fund
that will pay it. Accumulated vacation and sick leave of proprietary funds, when applicable, is
recorded as an expense and liability of those funds as the benefits accrue to employees. A
liability for these amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations or retirements.
Full-time District employees are entitled to paid vacation time in varying amounts based on years
of service. Unused vacation time is typically not carried over to the next fiscal year with the
exception of Administrative staff.
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