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<br />SECWCD : ;.~/i'o <br /> <br />o <br />-:-> <br />.... <br />(0 <br />(0 <br />"'" <br /> <br />SOIJTHEASTEIL'I COLORADO WATER CO~SERVA~CY DISTRICT <br />SELECTED :"OTES TO F1l"A:"CIAL STA TEME:o.'TS <br />DECDIBER 31,1998 <br /> <br />~OTE 1 - SIG;o.lFICA~T ACCOV~T1:"G POLICIES <br /> <br />The Southeastern Colorado Water Conservancy District (the Disrnct) was cre~l[ed In 1958 under Colorado Statutes <br />to manage water resources of the Arkansas River basin and to function as the legal :1gency tor the admimstratlon of the <br />Frymgpan-Arkansas project and contracting agent with the federal government for rep3~ment of reimbursable costs of <br />the proJect. The mOfe slgnific:mt of me District's accounting policies are described below <br /> <br />A. The Financial Repornn~ Entity - For financial reponing purposes, the DIstrict mcludes, if applicable, <br />component units In Its fm.:lnclaJ statements based upon financial accoumabilit),. No component units have <br />been mcluded in the financial statements Since no cnoty meets the critena for mcluslon. <br /> <br />B. Fund AccQuntlnwBasls of Accountim! . The accounts of the District .:lfe organized on the basis of funds and <br />account groups, each of which is considered a separate accounting entity The general fund utilizes the <br />modified accrual basIS of accounting wherem revenues are recogmzed when measur.lble and 3vaJ!able, while <br />expenditures are rec:ogruzed when the li3biltty is incurred <br /> <br />C. Budszet md BudlZetar.... Accounting - The budget 3dopted by the District, which is prepared In acc:ordance with <br />state sutures, IS prepared using the modified accrual basiS of accounting. <br /> <br />o Investments -lm:estments represent V.S Treasury notes and 3I"e reported at f;:ur value. <br /> <br />NOTE z. CO~TR.,\CT OBLIGA T10~ <br /> <br />The prO\lSl0n of the contnc:t betv,:een the Dlsmct and the US government stipulate that the Distnct is responsible for <br />repa>ment of a portIon of the costs of the Ftylngpan-A.rkansas rec:lamatlon costs. The toul estitT1.1ted repayment <br />obligation of the DISInct is approxunately S I ~6 mtllion. whlc:h Inc:ludes cerum operatlng and m;:umenance costs The <br />repa>ment penod IS for -to years \\-lm an e:'\1ension of 10 years If necessary. <br /> <br />The Dlstnct has also contr.lcted "ith the US government to repay approximately 563 nulhon of COsts Ulcurred by the <br />U.S. govem...nenr In the construction of the Founum Valley conduit which IS operated by the Fountam Valley Authority <br />(the Authonty) A related contract \\lth the A.uthonty provides that the _-\uthoriry will pay an Jrulual conveyance senice <br />charge to the Clsmct In an amount equal to the pa:-ment due to the L' S. go\emment. Tenns of the cootract pro\ide that <br />the Dlstnct IS ~ot responsible for pa:-ment In the event of def.1ult by the .-\uthonty <br /> <br />14 <br />