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Indian River County, Florida NOTES TO FIN N IAI. STA MENTS. enntinueji Year Ended September 30, 1995 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Measurement Focus - Continued The Expendable Trust Fund is accounted for in the same inanner as the Governmental Fund Types. The Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Account Grouns The General Fixed Assets Account Group and the General Long -Term Debt Account Group are concerned only with the measurement of financial position. They are not involved with the measurement of results of operations. Fixed assets, which are not used in Proprietary Fund operations, are accounted for in the General Fixed Assets Account Group. Depreciation is not charged on the general fixed assets. Long-term debts, which are not intended to be financed through the Proprietary Funds, are accounted for in the General Long -Term Debt Account Group. D. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All Governmental Funds are accounted for using the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized when they become measurable and available as net current assets. Primary revenues, including taxes, intergovernmental revenues, charges for services, rents and interest are treated as susceptible to accrual under the modified accrual basis. Other revenue sources are not considered measurable and available and are not treated as susceptible to accrual. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is that principal and interest on general long -teen debt is recognized when due. PrQ rie = Funds The Enterprise and Internal Service Funds and the discretely presented component unit are accounted for using the accrual basis of accounting. Under this method, revenues are recognized when they are earned and expenses are recognized when they are incurred. Unbilled utility receivables are recorded at year end. The County applies all GASB pronouncements as well as all FASB Statements and Interpretations, APB Opinions and Accounting Research Bulletins, issued on or before November 30, 1989, which do not conflict with or contradict GASB pronouncements. 21