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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 - Continued <br />B. Fund Financial Statements <br />The underlying accounting system of the Board is organized and operated on the basis of separate funds, <br />each of which is considered to be a separate accounting entity. The operations of each fund are <br />accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund <br />balances, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated <br />to and accounted for in individual funds based upon the purposes for which they are to be spent and the <br />means by which spending activities are controlled. <br />Fund financial statements for the Board's governmental, proprietary, and fiduciary funds are presented. <br />Governmental accounting standards set forth minimum criteria (percentage of the assets plus deferred <br />outflows of resources, liabilities plus deferred inflows of resources, revenues or expenditures/expenses <br />of either fund category and the governmental and enterprise combined) for the determination of major <br />funds. These statements display information about major funds individually and nonmajor funds in the <br />aggregate for governmental and enterprise funds. The Statement of Fiduciary Net Position presents <br />assets held by the Board in a custodial capacity for other individuals or organizations. <br />See Note 15 for more information on the spending hierarchy of fund balances in the fund financial <br />statements. <br />Governmental Funds <br />Governmental fund financial statements are reported using the current financial resources measurement <br />focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both <br />measurable and available. Revenues are considered to be available when they are collectable within the <br />current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the <br />Board considers revenues to be available if they are collected within 45 days after the end of the current <br />fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual <br />accounting. Franchise fees, sales taxes, gas taxes, operating and capital grants, and interest associated <br />with the current fiscal period are all considered to be susceptible to accrual and so have been recognized <br />as revenues of the current fiscal period. All other revenue items are considered to be measurable only <br />when cash is received by the Board. <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 fund operating statements present increases (revenues and other financing sources) and <br />decreases (expenditures and other financing uses) in fund balances. Accordingly, they are said to <br />present a summary of sources and uses of "available spendable resources" during a period. <br />Long-term receivables are reported on their balance sheets in spite of their spending measurement focus. <br />Advances and notes to other funds are offset as nonspendable fund balance. See Note 15 for more <br />information on the categories and descriptions of fund balances in the fund financial statements. <br />262 <br />