FY25 GFOA Budget - Flipbook - Page 162
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APPENDIX
modified accrual basis of accounting to maintain consistency month-to-month. This method
is helpful for monthly governmental fund financial statements because it allows for a
combination of cash basis and full accrual.
Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the government
does not consider revenues to be available if they are collected within 60 days of the end of
the current fiscal period.
Expenditures generally are recognized when a liability is incurred, as under accrual
accounting. However, debt service expenditures as well as expenditures related to
compensated absences, claims, and judgments are reported only when payment is due.
General capital asset acquisitions are reported as expenditures in governmental funds.
Proceeds of general long-term debt are reported as other financing sources.
Property taxes, sales taxes, franchise taxes, licenses, charges for service, amounts due from
other governments, and interest associated with the current fiscal period are all considered
to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period if applicable. Charges for sales and services and miscellaneous revenues are
generally recorded as revenue when received in cash because they are generally not
measurable until actually received.
Basis of Presentation
The accounts of the District are organized and operated on the basis of funds, each of which
is considered a separate accounting entity. The operations of each fund are accounted for
with a separate set of self-balancing accounts. The various funds are summarized by type
within the financial statements.
Fiduciary fund level financial statements are custodial in nature and are merely clearing
accounts for assets held by the District as an agent for individuals, private organizations, or
other governments. Fiduciary funds are excluded from government-wide financial
statements. The District reports the following fiduciary fund:
The Firefighters’ Pension Fund which accounts for assets held by the District in a trustee
capacity.
Proprietary fund level financial statements are used to account for activities, which are
similar to those found in the private-sector. The measurement focus is upon determination
of net income, financial position, and cash flows. The District reports no proprietary funds.
When applicable, on the proprietary fund financial statements, operating revenues are
those that flow directly from the operations of the activity, i.e., charges to customers or
users who purchase or use the goods or services of that activity. Operating expenses are
those that are incurred to provide those goods or services. Non-operating revenues and
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