Laserfiche WebLink
The Southeastern Colorado Water Conservancy District (the District) was created in 1958 under Colorado <br />Statutes to manage water resources of the Arkansas River Basin and to function as the legal agency for the <br />administration of the Fryingpan- Arkansas Project and contracting agent with the federal government for <br />repayment of reimbursable costs of the Project. The more significant of the District's accounting policies are <br />described below. <br />A. The Financial Reporting Entity - For financial reporting purposes, the District includes, if applicable, <br />component units in its financial statements based upon financial accountability. No component units <br />have been included in the financial statements since no entity meets the criteria for inclusion. <br />B. Fund AccountingBasis of Accounting - The accounts of the District are organized on the basis of <br />funds and account groups, each of which is considered a separate accounting entity. The general <br />fund utilizes the modified accrual basis of accounting wherein revenues are recognized when <br />measurable and available, while expenditures are recognized when the liability is incurred. <br />C. Budget and Budgetary Accounting - The budget adopted by the District, which is prepared in <br />accordance with state statutes, uses the current financial resources measurement focus and the <br />modified accrual basis of accounting. <br />D. Investments - Investments represent U.S. Treasury and agency securities and are reported at fair value <br />or amortized cost. <br />The contract between the District and the U.S. government stipulates that the District is responsible for <br />repayment of a portion of the costs of the Fryingpan - Arkansas reclamation costs. The total estimated <br />repayment obligation of the District is approximately $126 million, which includes certain operating and <br />maintenance costs. The repayment period is for 40 years with an extension of 10 years if necessary. <br />The District has also contracted with the U.S. Government to repay approximately $63 million of costs <br />incurred by the U.S. Government in the construction of the Fountain Valley Conduit which is operated by the <br />Fountain Valley Authority (the Authority). A related contract with the Authority provides that the Authority <br />will pay an annual conveyance service charge to the District in an amount equal to the payment due to the <br />U.S. Government. Terms of the contract provide that the District is not responsible for payment in the event <br />of default by the Authority. <br />• 19 - <br />