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MEASUREMENT FOCUS

On the government-wide statement of net assets and the statement of activities, both governmental and business type activities are presented using the economic resources measurement focus as defined in item K below. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate:

  • 1.

    AM governmental funds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.

  • 2.

    The proprietary fund utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery) , financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net assets.

BASIS OF ACCOUNTING

In the government-wide statement of net assets and statement of activities, both governmental and business type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the

liability is incurred or economic asset liabilities resulting from exchange and exchange takes place.

used. Revenues, expenses, exchange-like transactions

gains, losses, assets, are recognized when

and the

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 collectible within the current period or soon enough thereafter to pay liabilities of the current period, For this purpose, the government I considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures (including capital outlay) generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures and recorded only when payment is due.

The proprietary fund utilizes the accrual basis of accounting.

Under the accrual basis

accounting, revenues are recognized when earned and expenses are recorded incurred or economic asset used. The City applies all applicable FASB accounting and reporting for its Proprietary fund.

when the liability pronouncements

of is in

Budgets and Budgetary Accounting

The City annually adopts and implements an operating and capital budget in accordance with requirements of state law for the General Fund and all Special Revenue and Proprietary Funds. The Capital Projects Fund's budget is a project based capital budget. Policies and procedures with respect to budgetary control are as follows.

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