1989-042 - Laserfiche WebLink

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INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATENENTS - CONTINUED Year Ended September 30, 1988 1. Summary of Significant Accounting Policies - Continued: F. Investments - Investments consist of repurchase agreements, U.S. Treasury Securities, U.S. Government Agency Securities, Certificates of Deposit and savings accounts that are recorded at cost, which approximates market value. G. Allowance for Doubtful Accounts - The County provides an allowance for water and sewer accounts receivable that may become uncollectible. At September 30, 1988, this allowance was $4,000. The Housing Authority provides an allowance for rents receivable which may become uncollectible which amounted to $1,757 at September 30, 1988. No other allowances for uncollectible accounts are main- tained since other fund accounts receivable are considered collectible as reported at September 30, 1988. H. Inventories - All inventories are stated at the lower of cost or market on the basis of the "first -in, first out" method of accounting. The effect of this method is to assign a balance sheet cost which reflects current replacement values. Supply inventories in the General Fund are accounted for using the consumption method. This method requires that items be charged to inventory as purchased and to expenditures when consumed. Land inventory in the Housing Authority Enterprise Fund consists of developed land held for resale to low income citizens. All costs incurred to develop land are included in inventory and are removed from inventory when the land is sold based on the relative value of the lots within inventory. Inventories in other proprietary funds consist of materials and supplies held for consumption. Inventory of the Clerk of the Circuit Court, included in the combined Agency Funds, represents documentary stamps on consignment from the State of Florida. Stamps are carried at cost, which is their face value. Inventory in the Expendable Trust Fund (Inmate Welfare Trust) consists of supplies held for resale to inmates accounted for on the consumption method. This method requires that items be charged to inventory as purchased and to expenditures when consumed (sold). I. Property, Plant and Equipment (1) Property, plant and equipment purchased in the Governmental Fund Types are recorded as capital outlay expenditures at the time of purchase. Such assets are capitalized at cost in the General Fixed Assets Account Group, except for certain improvements other than buildings ("infrastructure") such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. Donated and confiscated assets are recorded in the general fixed assets at their fair market value at the time received. No depreciation has been provided on general fixed assets. 18.