PROJ01945 ‎(3)‎

• Contract/PO #: C150193
• Contractor Name: Dolores Water Conservancy District
• Contract Type: Loan
• Water District: 34
• County: Montezuma
• Loan Projects - Doc Type: Feasibility Study

I
,I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I

Dolores Water Conservancy District
Notes to Financial Statements
December 31, 2002

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Dolores Water Conservancy District (the District) is a
political subdivision of the State of Colorado and includes parts
of Montezuma and Dolores Counties. The District is governed by a
seven-member board of directors appointed by the District Court
of Montezuma and Dolores Counties.

The accounting and reporting policies of the District relating to
the funds and account groups included in the accompanying com-
bined financial statements conform to generally accepted account-
ing principles (GAAP) applicable to state and local governlnents.
GAAP for local governments include those principles prescribed by
the Governmental Accounting Standards Board (GASB), the American
Institute of Certified Public Accountants (AICPA) in the publica-
tion entitled Audits of State and Local Governmental Units and by
the Financial Accounting Standards Board (when applicable). As
allowed in Section P80 of GASB's Codification of Governmental
Accounting and Financial Reporting Standards, the District has
elected to not apply Financial Accounting Standards Board State-
ments and Interpretations, Accounting Principles Board Opinions,
and Accounting Research Bulletins of the Committee of Accounting
Procedure issued after November 30, 1989 to its proprietary
activities. The more significant accounting policies of the
District are described below.

A. DEFINITION OF THE REPORTING ENTITY

The District was formed in 1961 for the purpose of acquiring and
appropriating waters of the Dolores River, its tributaries and
other sources of supply, to divert, impound and store such water
and conduct such water in and to the District and use such water
for domestic, irrigation, power, manufacturing and other purpos-
es. In 1977, the District entered into a contract with the
Bureau of Reclamation (the Bureau) to manage the water and
maintain the facilities of the Dolores Project and make repayment
to the Bureau for the construction costs. The Dolores Project
includes the McPhee Dam and the tunnel and canals for distribu-
tion of water to various areas in the Montezuma and Dolores
Counties of Colorado.

The financial statements of the District include the accounts of
all District activity. The criteria for including organizations
as component units within the District's reporting entity in-
cludes whether the organization is financially accountable to the
District.

-12-