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Indian River County, Florida <br /> Notes To Financial Statements <br /> Year Ended September 30, 2015 <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 special assessment <br /> receivables are offset by deferred inflows of resources. <br /> Because of their spending measurement focus, expenditure recognition for governmental fund types <br /> excludes amounts represented by non-current 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 /> deferred inflows of resources (whether current or non-current) associated with their activity are <br /> included on their balance sheets. Proprietary fund type operating statements present increases <br /> (revenues) and decreases (expenses) in total net position. <br /> Proprietary funds distinguish operating revenues and expenses from non-operating items. Proprietary <br /> fund operating revenues, such as charges for services and premiums charged to the County and <br /> employees under various insurance programs, result from exchange transactions associated with the <br /> principal activity of the fund. Exchange transactions are those in which each parry receives and gives <br /> up essentially equal values. Non-operating revenues, such as subsidies, taxes, and investment earnings <br /> result from nonexchange transactions or ancillary activities. Principal operating expenses include <br /> salary and benefits, cost of sales and services, claims, and insurance premiums. All revenues and <br /> expenses not meeting these definitions are reported as non-operating revenues and expenses. <br /> 53 <br />