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' Indian River County , Florida ' Notes To Financial Statements Year Ended September 30, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B . Measurement Focus And Basis Of Accounting - Continued 2 . Fund Financial Statements ' The underlying accounting system of the County is organized and operated on the basis of separate funds , each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities , fund equity, revenues and expenditures or expenses , as appropriate . Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. ' Fund financial statements for the primary government 's governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements . These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. The fiduciary statement includes financial information for the agency fund . The agency fund of the county primarily represents assets held by the county in a custodial capacity for other individuals or givemments. ' Governmental Funds Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting . Revenues are recognized as soon as they are both measurable and available . Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period . For this purpose , the County considers revenues to be available if they are collected within 40 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting . Franchise fees , licenses , sales taxes , gas ' taxes , operating and capital grants , and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period . All other revenue items are considered to be measurable only when cash is received by the County . Under the current financial resources measurement focus , only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of "available spendable resources " . Governmental funds operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets . Accordingly, they are said to ' present a summary of sources and uses of "available spendable resources" during a period . Non-current portions of long-teen receivables (special assessments) due to governmental funds are reported on their 1 balance sheets in spite of their spending measurement focus . Non-current portions of other long-term receivables are offset by fund balance reserve accounts . ' Because of theirspending measurement focus expenditure recognition for governmental fund types exclude amounts 1 represented by noncurrent liabilities . Since they do not affect net current assets , such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities . 41