2024 Financial Statements - Laserfiche WebLink

Home

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The .government wide. financial statements are reported using the economic resources measurement focus l and the accrual basis of accounting. Revenues are. recorded when earned and expenses are recorded when a liability is incurred. regardless of the tithing. of related cash flows. Property taxes and special assessments are recognized as revenues -in the fiscal :year for which they are certified for. levy. Grants and similar items are.recognized as revenue When .all eligibility requirements imposed by the: provider have been met. As a general rule,.the effect of interfiind activity has been eliminated froth the government -wide financial statements. However. charges between the City's enterprise funds and other functions are not eliminated, as..that would distort the direct costs and. program revenues. reported .iJT those functions, Depreciation expense is included in the direct expenses of each function. l.nterest on, lonX term debt is considered an indirect.etpense.'and is reported separately on the Statenienrof Activities. D. Fund Financial Statement Presentation. Separate-flind finakial*statements are provided for governmental and prgprietary funds. INajor individual governmental and enterprise funds.are reported as separate columns.iti the fund, financial statements.. Governmental fund financial statements are reported using the current *financial resources measurement focus and the modified accrual basis of accounting. Under this basis of accounting, transactions are recorded in the following. manner: 1. Rdvenue Recognition — Revenue is recognized when it -becomes measurable and available. "MeastuAble" means the `amount. of the transaction -can be. determined and `'available" means collectible within th-e current period or soon enough thereafter to be used to pay I iabilities of the. eiirrent period: For this: purpose, the City considers.. revenues to be available .if collected within GO days after yearend, :Only the portion of special assessments receivable due within the. cut -rent fiscal period is. considered to .be susceptible to accrual :as- revenue: of the current period. Grants and similar items are recognized when all eligibility requirements imposed by the provider -have. been met. Debt -proceeds are reported, as other financing sources. Major reVentie that is susceptible to accrual includes :property taxes. special assessments, intergovernmental revenue. charges for services, fines and forfeitures, .facility rentals, and interest earned on investments. Major revenue. that is not susceptible to. accrual includes licenses and permits, and miscellaneous revende..Such revenue is recorded only when received because it is nO( measurable until, collected. 2. Recording of Expenditures — Expenditures are generally recorded when a liability.is-iticurred, except for principal ,and interest on long=term debt and other long-term obligations, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions: are reported. as capital buttay expenditures in the governmental funds. Proprietary fund financial statements are repotted using .the economic resources measurement focus and the accrual basis of accounting; similar to. the government-w.ide financial statements. Proprietary funds* distinguish .operating revenues and expenses from. nonoperating items. :Operating revenues and expenses generally -*result from providing services and producing and delivering goods. in connection with a proprietary fund's. principal ongoing operations: The principal operating revenues -of the Citys enterprise funds are. charges to customers for sales and services. The operating expenses for the enterprise funds include the cost of sales and services, administrative expenses. and depreciation on capital assets... All revenue§.and expenses not meeting this'definition are reported.as nonoperating revenues and expenses. 5011