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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 /> D. Assets, Liabilities,Deferred Outflows/Inflows of Resources and Net Position or Fund <br /> Balances - Continued <br /> 3. Allowance for Doubtful Accounts <br /> The County provides an allowance for water and sewer and ambulance services accounts receivables <br /> that may become uncollectible. At September 30, 2015, the allowance for water and sewer services was <br /> $424,493 and the allowance for ambulance services was $1,116,986. No other allowances for doubtful <br /> accounts are maintained since other accounts receivable are considered collectible as reported at <br /> September 30, 2015. <br /> 4. Receivables and Payables <br /> Activities between funds that are representative of lending/borrowing arrangements outstanding at the <br /> end of the fiscal year are referred to as "due to/from other funds". Any residual balances outstanding <br /> between the governmental activities and business-type activities are reported in the government-wide <br /> financial statements as "internal balances". All receivables are shown net of allowance for doubtful <br /> accounts. Receivables in excess of 120 days comprise the trade accounts receivable allowance for <br /> doubtful accounts. <br /> 5. Inventories <br /> Inventories are valued at cost, which approximates market, using the "first-in, first-out" method of <br /> accounting, with the exception of the Golf Course and Fleet Internal Service Fund's inventories which <br /> are valued using the average cost method of accounting. Inventories of all funds are recorded as <br /> expenditures (expenses)when consumed rather than when purchased. <br /> 6. Prepaid Items <br /> Prepaid items in the governmental funds represent prepayments for services that will be used in future <br /> periods. The County's policy is to record the expenditure for the services when they are used rather <br /> than when the cash is disbursed. <br /> 7. Restricted Net Position <br /> Certain resources of the County are classified as restricted net position on the statement of net position <br /> because their use is limited either by law through constitutional provisions or enabling legislation; or by <br /> restrictions imposed externally by creditors, grantors, contributors, or laws or regulations of other <br /> governments. In a fund with both restricted and unrestricted net position, qualified expenses are <br /> considered to be paid first from restricted net position and then from unrestricted net position. Further <br /> information on the restrictions can be found in Note 20. <br /> 57 <br />