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<br />SOUTHEASTERN COLORADO WATER CONSERVANCY DISTRICT
<br />SElECTED NOTES TO FINANCIAL STATEMENTS
<br />DECEMBER 31, 2000
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<br />NOTE 1 . SIGNIFICANT ACCOUNTING POLICIES
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<br />The Soufhl',lSIt'rIl Colorado VVatl'f Conservancy District (t11l' Dislrirll \\'.lS ut'dled in JlJ5B lJlldl'f
<br />Color.ldo Statutes to manage w.lll'f resources oj the Arkttnsas River b.lsin .me! 10 function .ts Ihe [l'gell
<br />agl'llCY for thl' administration of tilt' Fryingp.lIH\rk.lIlsas ProjeCl ,md conlra<.ling agt'llt with lhl' fpdl'r.ll
<br />government ior fl'payment of reimhursilble costs oi the ProjE'CI. The mOfl' signific.l/l1 of Ih(' Dislrict's
<br />.1((oul1fing policips are descriht'd below.
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<br />A. The Financial R_~porlin~ Entity. For iin.mci.ll reporting purposes, the Dislrit I indudes, if
<br />.lpplic,lhlc, compor1l'llt units in its iinancidl stJle/1wnts h<1sl'd upon fin,lncial ,l( (,oUIlI,lhilily. No
<br />component units have lJl't:'n included in the (in,tr1cial st,lterllenls sinn' no entity OWl'Is lilt' crill'ri.l
<br />for inclusion.
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<br />B. [pnd AceouQ!.!n,g/Bas,is of Accounting. - The ,lCCOlHlts of the Dbtrict ,Hl' org,mi/ed on the h,lSis of
<br />funds <1nd account groups, (><1(h of which is cOllsidered ,1 spp,Hate ,1lTOlJllling t'llllly. The general
<br />fUlld utilizes the modified .KGU,ll h,lSis of <.lCcounling whereill reVPIlUL'S <He rl'cognin'd wlwll
<br />nle<lsurahle <1nd <lv<lilahle, while eXIll'llditurl's ,HP recognized when 11ll' li,lhility is incurH'd.
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<br />C. ~t.lilget ,me! 13udgel<1rY Accounting - The budget ,le/opted hy the District, which is prt'IMrt'd in
<br />aceord.lIlce wilh st,lIe slatutes, uses the modiiil'd ,Kenhll h<lSis of .Klounting.
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<br />D. Illvestments . Invcslllll'llts rl'preSl'nt U.S. Tn'<1Sury spcurities and ,In' reported ,lt f<lir v.llu(' or
<br />.Hllortized cost.
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<br />NOTE 2 . CONTRACT OBLIGATION
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<br />The provision of the COlllr<1cllJl'twl'l'n 11ll' District <me! the U.S. goverrllllPnt stil'lIl,ltes th.ltllw
<br />Di!-olrirt is respollsible for rep,lyrncllt of a portioll of the costs oi Ihl' Fryingp.ln-Ark.1ns,ls Rerlalll.llion
<br />costs. The lot<ll estim<1ted rt'lJ.lynH'nt obligation of the District is .1Pproxirn.lIt'ly $126 million, which
<br />includl's cPr!,lill oper.lting <md rnaillll'n.lIlCl' co..,ts The rl'p,lyrnl'nl period is ior 40 Y('.HS with .m
<br />l'xtt'llsion oi 10 yp<lrs if Ill'Cl'SS<1ry.
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<br />TIll' District h.15 ,llso cOlltr.1Cted with the U.S. governllll'llt to rl'lhlY ,tpproximatt.'ly $(d million of
<br />costs incurred by Ihe U.S. govt'rnlllcllt in the construction of till' rount,lin V.1IIl'y olflduit which is
<br />opl'ratl'd by the FOllnf,lin Vallcy Authority (tIlt' AUlhority). A rel,lled (onlr.1('t with Ihe Authority providl's
<br />that tilt' Authority will'MY .10 .wllll,tl ("onveyalKl' servicc l.:hargt' 10 llll' [)i~tritl in .W .llllounl t'qu.ll to
<br />thl' p.lymt.'nl due to the US government. Tl'rllls of the contract provide that the District is /lot
<br />responsibll'ior IhlYIlll'nt in the event o( dcf,wlt by Ihe Authority.
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