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Indian River County, Florida <br />Tax Collector <br />Notes To Financial Statements <br />Year Ended September 30, 2011 <br />NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued <br />C. Budgetary Requirements <br />State statutes require the Tax Collector to prepare an annual budget that clearly reflects the revenues <br />available to her office and the functions for which money is to be expended. The budgeted revenues and <br />expenditures are subject to the review and approval of the Department of Revenue. Management is <br />authorized to transfer budgeted amounts between objects and departments as long as management does <br />not exceed the total appropriations of a fund. Department of Revenue approval is only required when <br />unanticipated revenues are received that management wishes to have appropriated, thereby increasing <br />the total appropriations of a fund. The budget is prepared on a basis consistent with generally accepted <br />accounting principles. <br />D. Cash and Cash Equivalents <br />Cash and cash equivalents include deposits and all highly liquid investments with maturities of ninety <br />days or less when purchased. <br />E. Prepaid Expenses <br />This account represents prepayments for services that will be used in future periods. The Tax Collector's <br />policy is to record the expenditure for the services when they are used rather than when the cash is <br />disbursed. <br />F. Capital Assets <br />Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund <br />financial statements. Tangible personal property used by the Tax Collector in operations is reported in <br />the financial statements of the County. Refer to the County -wide note on capital assets for capitalization <br />threshold, depreciation methodology and useful lives. <br />G. Compensated Absences <br />The Tax Collector accrues a liability for employees' rights to receive compensation for future absences <br />when certain conditions are met. The Tax Collector does not, nor is she legally required to, accumulate <br />expendable available financial resources to liquidate this obligation. Accordingly, the liability for <br />compensated absences is not reported on the Tax Collector's financial statements. Additional <br />information on the liability is reflected in subsequent Note 7. <br />H. Transfer Out <br />In accordance with Florida Statutes, all revenues in excess of expenditures as of year-end are owed to <br />the Board of County Commissioners and other governments. These "excess fees" are reported as <br />transfers out and a liability and were $2,979,384 at year-end. <br />360 <br />