Laserfiche WebLink
1 <br />Indian River County, Florida <br />Notes To Financial Statements <br />Year Ended September 30, 2014 <br />NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued <br />B. Measurement Focus and Basis of Accounting - Continued <br />2. Fund Financial Statements - Continued <br />Governmental Funds - Continued <br />Under the current financial resources measurement focus, only current assets, deferred outflows of <br />resources, current liabilities and deferred inflows of resources are generally included on the balance <br />sheet. The reported fund balance is considered to be a measure of "available spendable resources". <br />Governmental funds operating statements present increases (revenues and other financing sources) and <br />decreases (expenditures and other financing uses) in net fund balance. Accordingly, they are said to <br />present a summary of sources and uses of "available spendable resources" 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 fund balances, such <br />long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. <br />Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were <br />expended, rather than as fund assets. The issuance of long-term debt is recorded as an other financing <br />source rather than as a fund liability. However, debt service expenditures, as well as expenditures <br />related to compensated absences and claims and judgments, are recorded only when payment is due. <br />Proprietary Funds <br />The County' s enterprise funds and internal service funds are proprietary funds. In the fund financial <br />statements, proprietary funds are presented using the accrual basis of accounting. Revenues are <br />recognized when they are earned and expenses are recognized when the related goods or services are <br />delivered. In the fund financial statements, proprietary funds are presented using the economic <br />resources measurement focus. This means that all assets, deferred outflows of resources, liabilities and <br />I deferred inflows of resources (whether current or noncurrent) associated with their activity are included <br />on their balance sheets. Proprietary fund type operating statements present increases (revenues) and <br />decreases (expenses) in total net position. <br />Proprietary fund operating revenues result from exchange transactions associated with the principal <br />activity of the fund. Exchange transactions are those in which each party receives and gives up <br />' essentially equal values. Non-operating revenues result from non-exchange transactions or ancillary <br />activities (for example, interest income). Operating expenses are costs incurred to provide services, <br />whereas non-operating expenses are costs of debt financings, amortization of intangible assets and <br />losses on the sale of assets. <br />1 <br />