BFPD FY26 GFOA Budget - Flipbook - Page 174
| APPENDIX
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Property Taxes
Property taxes become an enforceable lien on property as of January 1. Taxes are levied each
year and are payable in two installments, due in March and August of the following year. Cook
County and DuPage County bill and collect all property taxes and remit them to the District. The
District recognizes property taxes in the year in which they attach as an enforceable lien and are
available.
Policies for Investments
It is the policy of the District to invest public funds in a manner to conform to all state and local
statutes governing the investment of public funds; ensure prudent money management; provide
for daily cash flow requirements; and meet the objectives, in priority order, of safety, liquidity,
return on investment, and public trust.
The District’s general credit risk policy is to apply the prudent person rule: Investments shall be
made with the exercise of judgment and care, under circumstances then prevailing, which
individuals of prudence, discretion, and intelligence exercise in the management of their own
affairs, not for speculation, but for investment, considering the probable safety of their capital, as
well as the probable income to be derived.
Fair Value Measurements
Investments are generally reported at fair value. Short-term investments are reported at cost,
which approximates fair value. For investments, the District and Firefighters’ Pension Fund
categorize fair value measurements within the fair value hierarchy established by generally
accepted accounting principles.
The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1
inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other
observable inputs; Level 3 inputs are significant unobservable inputs.
The District does not maintain investments.
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