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FLORIDA DEVELOPMENT FINANCE CORPORATION <br />NOTES TO FINANCIAL STATEMENTS <br />YEAR ENDED JUNE 30, 2015 <br />Note 1— Summary of Significant Accounting Policies <br />A. Reporting Entity <br />Florida Development Finance Corporation ("FDFC") is an independent entity constituted as a public <br />instrumentality of local government, created to facilitate economic development in Florida by working in <br />partnership with the Florida financial services industry and local development organizations to create access to <br />competitive sources of finance for creditworthy borrowers and other firms contributing to job creation and the <br />economic base of Florida FDFC's bond programs can provide tax exempt and taxable financing to many types <br />of businesses under state and federal regulations This includes financing through private activity bonds for <br />small, creditworthy manufacturers and 501(c)(3) not-for-profit corporations <br />FDFC is specifically formed pursuant to Florida Statutes, Chapter 288. Part X and all acts supplemental thereto <br />and amendatory thereof <br />FDFC is governed by a five member board of directors, appointed by the Govemor subject to confirmation of the <br />Senate. Each board member serves a term of four years. <br />The accompanying basic financial statements comply with the provisions of Governmental Accounting <br />Standards Board ("GASB") Statement No 14, as amended, The Financial Reporting Entity. in that the financial <br />statements include all organizations, activities, and functions that comprise FDFC Component units are legally <br />separate entities for which FDFC (the primary entity) has financial accountability Financial accountability is <br />defined as the ability of the primary entity to appoint a voting majority of an organization's governing body and <br />either (1) impose its will over the organization or (2) there is a potential that the organization will provide a <br />specific financial benefit to, or impose a specific financial burden on the primary entity Financial accountability <br />may also arise if an organization is fiscally dependent on and has a fiscal benefit or burden relationship with the <br />primary government. Using these criteria FDFC has no component units <br />B Measurement Focus and Basis of Accounting <br />FDFC is accounted for as an enterprise fund The basic financial statements are reported using the economic <br />resources measurement focus and the accrual basis of accounting Revenues are recorded when eamed and <br />expenses are reported when the liability is incurred, regardless of the timing of the related cash flows <br />FDFC financial statements have been prepared in accordance with accounting principles generally accepted in <br />the United States of America, including application of all relevant GASB pronouncements. <br />C Administration <br />FDFC is managed by the staff of Enterprise Florida, Inc ("EFI"), a not-for-profit organization formed under <br />Florida Statutes. Chapter 288, as a public-private partnership responsible for leading Florida's economic <br />development. <br />10 <br />20 <br />