BFPD FY26 GFOA Budget - Flipbook - Page 171
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District employees are entitled to paid sick time in varying amounts based on years of service.
Sick hours accumulated per employee can be sold back to the District. The District’s
compensated absences liability at December 31, 2025 comprises of sick time buy back amounts.
Capital Assets
Capital assets, which include land, buildings and improvements, equipment, and when
applicable, infrastructure assets (e.g., roads and bridges), are reported in the applicable
government or business-type activities columns in the government-wide statements. Capital
assets are defined as assets with a cost of $1,000 or more. Capital assets are recorded at historical
cost if purchased or constructed, or at estimated historical cost if actual historical cost is not
available. Donated capital assets, donated works of art and similar items, and capital assets
received in a service arrangement are reported at acquisition value rather than fair value. The
costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend the asset’s life are not capitalized.
All reported capital assets are depreciated. Improvements are depreciated over the remaining
useful lives of the related capital assets. Depreciation on all assets is computed using the straightline method over the following estimated lives: Buildings and Improvements 3 - 40 Years
Machinery and Equipment 3 - 40 Years
GASB Statement 34 requires the reporting and depreciation of the new infrastructure
expenditures effective with the beginning of the implementation year.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position includes a separate section for deferred
outflows of resources. This separate financial statement element represents a consumption of net
position that applies to a future period(s) and will not be recognized as an outflow of resources,
or expenses/expenditures, until then. The District has deferred changes in proportion dealing
with pensions and contributions made after the measurement date. The District currently does not
have deferred charges on refunding debt. These represent a consumption of net position that
applies to future periods and is not recognized as an outflow of resources until then.
In addition to liabilities, the statement of net position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element represents an acquisition
of net position that applies to a future period(s) and will not be recognized as an inflow of
resources, or revenues, until that time. A deferred inflow of resources dealing with pension is
reported for the differences between expected and actual experience, the net difference between
projected and actual earnings on pension investments, and changes of assumptions.
Long-Term Liabilities
Long-term debt is recognized as a liability of a governmental fund when due. For other longterm obligations, only that portion expected to be financed from expendable available financial
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