FY25 GFOA Budget - Flipbook - Page 160
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APPENDIX
FINANCIAL POLICIES
The District is incorporated in Bartlett, Illinois. The District operates under a BoardManager 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 governmentwide 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
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