C150255 Feasibility Study - Laserfiche WebLink

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Note 1: ,..... j:\j~ ~, ... ""__ "-'.i "~ '!P.. '~.' ~~". .'.'" .....::'.... I vJil~~~ n ft 1.11. .J;.;~~.:..} g. . "(i ,. ffi ~'liII THE BIJOU IRRIGATION COMPANY NOTES TO FINANCIAL STATEMENTS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of The Bijou Irrigation Company have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following summary of significant accounting policies is presented to assist the reader in evaluating the Company's financial statements. A. Reporting Entity As required by generally accepted accounting principles, these financial statements present the Bijou Irrigation Company and its component units. Component units are legally separate organizations for which the elected officials of the primary government are financially accountable, or other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the Company's financial statements to be misleading or incomplete. Based upon the application of these criteria, there are no component units included in the Company's reporting entity. However, the Bijou Irrigation Company is a component unit ofThe Bijou Irrigation District, a political subdivision of the State of Colorado. B. Nature of Operations The Company is a non-profit, Colorado corporation which owns and maintains water reservoir and distribution facilities. The controlling interest of the Company (68%) is owned by The Bijou Irrigation District. The District is a Colorado local governmental unit which owns and maintains the Empire Reservoir and ditch systems. The entities are homogeneous in operation of the total water supply and irrigation system and have several common directors as well as arrangements for sharing office space, personnel and expenses. C. Basic Financial Statements Basic financial statements are presented at both the government-wide and fund financialleve!. Both levels of statements categorize primary activities as either governmental or business-type. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Government-wide financial statements report information about the reporting government as a whole. These statements focus on the sustainability of the Company as an entity and the change in aggregate financial position resulting from the activities of the year. These aggregated statements consist of the Statement of Net Assets and the Statement of Activities. These statements do not include Fiduciary Funds or component units which are fiduciary in nature. The statement of activities demonstrates the degree to which the direct expenses of a given function or business-type activity are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. 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 business-type activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business type activity. Assessments and other items not included among program revenues are reported instead as general revenues. -7-