ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 66
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
1. Government-wide Financial Statements
The government-wide financial statements report uses the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund
financial statements. Revenues are recorded when earned, and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows.
Revenues recognize property taxes in the year levied. Grants and similar items are
recognized as soon as all eligibility requirements imposed by the provider are met.
2. Fund Financial Statements
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 available when they are collectible within the current period
or shortly after the current period’s liabilities are paid.
For this purpose, the government considers revenues available if collected within 60
days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures and expenditures related to
compensated absences and claims and judgments are recorded only when payment
is due.
Property taxes, franchise fees, and interest associated with the current fiscal period
are susceptible to accrual and are recognized as revenues of the current fiscal period.
Only the portion of special assessments receivable due within the current fiscal period
is susceptible to accrual as revenue of the current period. All other revenue
considered measurable is cash once the City receives it.
The City reports the following major governmental funds:
■
The General Fund is the City’s primary operating fund. It accounts for the City’s financial
resources except those required to be accounted for in another fund.
■
The Street Improvement Fund is a special revenue fund to account for the City’s share
of motor fuel tax revenues legally restricted to street maintenance programs.
■
The Community Redevelopment Trust Fund is a special revenue fund to account for
the activity within the special revenue district established. The revenue on the
incremental property value is since the fund’s establishment in 1990.
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