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<br />Note 1: <br /> <br />ft ~;"" <br />Iti'"iiiJ" ;' ~i'!l (,"',,' ~~ ,:~,.'," r'~ "'n' ' <br />, , r""~' ," ,"' <br />~~I"'" <br />. vita: <br /> <br />ffl, raft <br /> <br />THE BIJOU IRRIGATION COMPANY <br /> <br />NOTES TO FINANCIAL STATEMENTS <br /> <br />SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) <br /> <br />C. Basic Financial Statements (continued) <br /> <br />Fund financial statements report information at the individual fund level. Each fund is considered <br />to be a separate accounting entity. Funds are classified as governmental, proprietary, and <br />fiduciary. Major individual governmental funds and major individual enterprise funds are <br />reported as separate columns in the fund financial statements. Nonmajor funds are <br />consolidated into a single column in the financial section of the basic financial statements. <br /> <br />D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation <br /> <br />The government-wide financial statements are reported using the economic resources <br />measurement focus and the accrual basis of accounting. Revenues are recorded when earned <br />and expenses are recorded when a liability is incurred, regardless of the timing of the related <br />cash flows. Assessments are recognized as revenues in the year for which they are assessed. <br />Grants and similar items are recognized as soon as all eligibility requirements imposed by the <br />provider have been met. <br /> <br />Governmental fund financial statements are reported using the current financial resources <br />measurement focus and the modified accrual basis of accounting. Revenues are recognized as <br />soon as they are both measurable and available. Revenues are considered to be available <br />when they are collectible with the current period or soon enough thereafter to pay liabilities ofthe <br />current period. For this purpose, the Company considers revenues to be available if they are <br />collected within 60 days after year end. Expenditures are recorded when the related fund liability <br />is incurred. However, debt service expenditures, as well as expenditures related to <br />compensated absences and claims and judgments, are recorded only when payment is due. <br /> <br />The Company reports the following major governmental fund: <br /> <br />General Fund <br />This fund accounts for the financial resources of the Company, which are not accounted for <br />in any other fund. Principal sources of revenue are water assessments, water leases, and <br />interest. Primary expenditures are for general administration and conservation of natural <br />resources. <br /> <br />E. Budgets <br /> <br />The Company adopts an annual budget for the General Fund, prepared on the modified accrual <br />basis of accounting. The Company may authorize supplemental appropriations during the <br />budget year. All budgetary appropriations lapse at year-end. There were no supplemental <br />appropriations for 2005. The Company does not levy any taxes but assesses a per share <br />assessment to all stockholders of the Company. <br /> <br />Budqet Revenue <br /> <br />The Company derives significant revenues from its stockholders based on the number of shares <br />held. The Company's assessment per share was $25, with well augmentation assessment of $4 <br />and a minimum of $10 per well for 2005. <br /> <br />-8- <br />