FY25 GFOA Budget - Flipbook - Page 164
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APPENDIX
Legally authorized transfers are treated as transfers and are included in the results of
operations of Governmental Funds and, when applicable, Proprietary Funds. Transactions
between funds that are representative of cash overdrafts from pooled cash and investing
are reported as interfund receivables or payables. Short-term amounts owed between
funds are classified as "Due to/from other funds".
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, 2024. 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,
2024 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
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