C150232 financial docs

• Contract/PO #: C150232
• Contractor Name: Lower Arkansas Valley WCD
• Contract Type: Grant
• Loan Projects - Doc Type: Report

09/12/2006 TUE 16:05 FA% 7192545150 LAVR'CD Fax ��� Peter Nichols �j018/029
LOW ER ARKANSAS VALLEY WATER CONSERVANCY DISTRICT
NOTES TO FtNANCIAL STATEMENTS
NOTE 1• SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Measurement Focus Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the ec�nomic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statemen�s. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
i imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
i: focus and the madified accrual basis of accounting. Revenues are recognized as soon as they are both
�,: measurable and availabEe. Revenues are considered to be availab[e when they are coilectible within the
current period or soon enough thereaiter to pay liabilities of the current period. For this purpose the
District considers revenues to be avaiiable if they are colfected within 60 days of the end of the current
?� fiscal period. Expenditures generaEly are recorded when a liability is incurred, as under accrual
� � accounting.
Property and specific ownership taxes, interest revenues, and charges for services are al[ considered to
be susceptible to accrua! and have been recognized as revenues of the current fiscal period. Grants and
entitlement awards are recorded as revenue when eamed. Expenditure driven grants are recognized as
revenue when the qualifying expenditures have been incurred and all other grant requirements have been
met. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to
accrual criteria are met. All other revenue items are considered to be measurable and available only
when cash is received.
The District has the following major #unds:
Governmental Fund - The genera! fund is the general operation fund of the District. It is used to acxount
� for all financial resources except ihose required to be accounted for in ano#her fund.
f. ;
Proprietary Fund - The enterprise fund operation is composed of water and water share saies and leasing
activities. It accounts for transactions that are financed and operated in a manner similar to a private
?, ; business enterprise where the intenf of the goveming body is that the costs and expenses of providing
` goods or services to the gene�al public on a continuing basis, be financed or recovered primarily through
;.
charges.
��:
I s' Caoital Assets
Capital assets, which include water rights, are utilized for general Disirict operations and are capitalized
at actual or estimated cost. Donations of such assets are recorded at estimated fair value at the time of
donation. Capital assets are reported in the applicable governmen#al or business-type activities columns
in the gove�nment-wide financial statements.
(�: The monefary threshold for capitalization of assets is $5,000. The District's capita! assets currently
consist of assets that are not depreciable.
;
t.:
i Propertv Tax Revenues Recoqnition
I.
Property taxes attach as an enforceable lien on property as oF January 1. Taxes are levied November 15
l and are due and payable in full by April 30 or in two equal installments due February 28 and June 15 of
I: the snsuing year to the County Treasurers.
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