ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 65
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities) report information on all the non-fiduciary activities of the primary
government and its component units. For the most part, the effect of interfund activity
has been removed from these statements. Governmental activities, which generally are
supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely significantly on fees and charges for support.
The Statement of Activities demonstrates the degree to which program revenues offset
the direct expenses costs of a given function or segment. Direct expenses are those that
are identifiable with a specific function or segment. Program revenues include 1) charges
to customers or applicants who purchase, use, or directly benefit from goods, services,
or privileges provided by a given function or segment and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a function or segment.
Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Internal service activity of the City has been eliminated from the government-wide
financial statements. Other interfund activity, namely overhead charges absorbed by the
General Fund and allocated amongst the City’s additional funds, is reported as revenue
in the fund providing the service or incurring the cost to be distributed and is reported as
an expense in the funds receiving the service or incurring the allocable share of the
overhead charge.
The City’s fiduciary funds are presented in the fund financial statements. Since, by
definition, these assets are being held for the benefit of a third party (pension plan
participants) and cannot be used to address activities or obligations of the government,
these funds are not incorporated into the government-wide statements.
Separate financial statements provide for governmental funds, enterprise funds, and the
pension trust fund. The pension trust fund is excluded from the government-wide financial
statements. Major individual governmental and enterprise funds are reported in separate
columns in the fund financial statements.
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