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I <br /> Indian River County,Florida <br /> Notes To Financial Statements <br /> Year Ended September 30, 2012 <br /> l NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued <br /> I <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 /> 4 resources, and 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 /> j 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 /> j 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 /> fdelivered. 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 /> 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 /> f decreases (expenses) in total net position. The County applies all GASB Pronouncements in the <br /> preparation of the financial statements of the enterprise funds as well as all FASB and AICPA <br /> Pronouncements. <br /> Proprietary fund operating revenues result from exchange transactions associated with the principal <br /> E 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. Operating expenses are costs incurred to provide services, whereas non-operating expenses <br /> are costs of debt financings, amortization of intangible assets and losses on the sale of assets. <br /> 47 <br />