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Indian River County, Florida <br />Board of County Commissioners <br />Notes To Financial Statements <br />Year Ended September 30, 2017 <br />NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES <br />The Board of County Commissioners (Board) is a County agency and a local governmental entity <br />pursuant to Article VIII, Section 1(e) of the Constitution of the State of Florida. For financial statement <br />and reporting purposes, the Board does not meet the definition of a legally separate organization and is <br />not considered to be a component unit. The Board is considered to be a part of the primary government <br />of Indian River County. The financial statements contained herein represent the financial transactions of <br />the Board only. <br />The following is a summary of the significant accounting principles and policies used in the preparation <br />of the accompanying financial statements. <br />A. Reporting Entity <br />The concept underlying the definition of the reporting entity is that elected officials are accountable to <br />their constituents for their actions. The reporting entity's financial statements should allow users to <br />distinguish between the primary government (the Board) and its component units. However, some <br />component units, because of the closeness of their relationship with the Board, should be blended as <br />though they are part of the Board. Otherwise, most component units should be discretely presented. As <br />required by generally accepted accounting principles, the financial reporting entity consists of. (1) the <br />primary government (the Board), (2) organizations for which the Board is financially accountable, and <br />(3) other organizations for which the nature and significance of their relationship with the Board are <br />such that exclusion would cause the reporting entity's financial statements to be misleading or <br />incomplete. The Board is financially accountable if it (a) serves as the governing body of the legally <br />separate organization and there is a financial burden/benefit relationship or management has operational <br />responsibility of the organization, (b) the organization provides almost exclusive service or benefit to the <br />primary government, or (c) total debt of the organization is repayable almost entirely from the resources <br />of the primary government. Based on these criteria, management determined that the Solid Waste <br />Disposal District and the Emergency Services District were the only organizations that should be <br />included in the Board's financial statements as blended component units. <br />Blended Component Units <br />Solid Waste Disposal District (SWDD) — Created pursuant to County Ordinance 87-67, the Board of <br />County Commissioners serves as the governing body for and has operational responsibility over the <br />SWDD. The Board also sets the non ad valorem assessment fees for the SWDD. Although legally <br />separate, the SWDD is appropriately blended as a proprietary fund type (enterprise) component unit into <br />the primary government. <br />Emergency Services District (EMS) — Created pursuant to County Ordinance 90-25, the Board of County <br />Commissioners serves as the governing body for and has operational responsibility over the EMS. The <br />Board also sets the millage rate for the EMS. Although legally separate, the EMS is appropriately <br />blended as a governmental fund type (special revenue) component unit into the primary government. <br />261 <br />