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Indian River County,Florida <br /> Notes To Financial Statements <br /> Year Ended September 30,2009 <br /> NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued <br /> B. Measurement Focus and Basis of Accounting-Continued <br /> 2. Fund Financial Statements <br /> The underlying accounting system of the County is organized and operated on the basis of separate <br /> funds, each of which is considered to be a separate accounting entity. The operations of each fund are <br /> accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund <br /> equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to <br /> and accounted for in individual funds based upon the purposes for which they are to be spent and the <br /> means by which spending activities are controlled. <br /> Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds <br /> are presented after the government-wide financial statements. These statements display information <br /> about major funds individually and nonmajor funds in the aggregate for governmental and enterprise <br /> funds. <br /> Governmental Funds <br /> Governmental fund financial statements are reported using the current financial resources measurement <br /> focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both <br /> measurable and available. Revenues are considered to be available when they are collected within the <br /> current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the <br /> County considers revenues to be available if they are collected within 45 days of the end of the current <br /> fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual <br /> accounting. Franchise fees, sales taxes, gas taxes, operating and capital grants, and interest associated <br /> with the current fiscal period are all considered to be susceptible to accrual and so have been recognized <br /> as revenues of the current fiscal period. All other revenue items are considered to be measurable only <br /> when the County receives cash. <br /> Under the current financial resources measurement focus, only current assets and current liabilities are <br /> generally included on the balance sheet. The reported fund balance is considered to be a measure of <br /> "available spendable resources". Governmental funds operating statements present increases (revenues <br /> and other financing sources) and decreases (expenditures and other financing uses) in net current assets. <br /> Accordingly, they are said to present a summary of sources and uses of"available spendable resources" <br /> during a period. <br /> Non-current portions of special assessments due to governmental funds are reported on their balance <br /> sheets in spite of their spending measurement focus. Non-current portions of notes receivable and <br /> advances to other funds are offset by fund balance reserve accounts. <br /> Because of their spending measurement focus, expenditure recognition for governmental fund types <br /> excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such <br /> long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. <br /> 45 <br />