13-60 Lower S. Platte WCD - Grant Request

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0 • Lower South Platte Water Conservancy District Notes to the Financial Statements Note A — Summary of significant accounting policies This summary of the Lower South Platte Water Conservancy District's significant accounting policies is presented to assist the reader in interpreting the financial statements and data in this report. The policies are considered essential and should be read in conjunction with the accompanying financial statements. The financial statements of the District have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to local government units. The Governmental Accounting Standards Board (GASB) is the accepted standard - setting body for establishing governmental accounting and financial principles. The District also applies Financial Accounting Standards Board (FASB) statements and interpretations issued on or before November 30, 1989, to its governmental activities provided they do not conflict with or contradict GASB pronouncements. The more significant of the District's accounting policies are described below. A.1 Reporting Entity • The Lower South Platte Water Conservancy District is a special district governed by a 15- member board. The financial reporting entity consists of (1) the primary government, (2) organizations for which the primary government is financially accountable, and (3) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The reporting entity's financial 0 statements should present the funds of the primary government (including it's blended component units, which are, in substance, part of the primary government) and provide an overview of the discretely presented component units. The District has examined other entities that could be included as defined in number 2 and 3 above. Based on these criteria, the District has no component units. 0 A.2 — Fund Accounting The District uses funds to report its financial position and results of operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self- balancing set of accounts. • Funds are classified into three categories: governmental, proprietary and fiduciary. Each category, in turn, is divided into separate "fund types." The District does not have any proprietary or fiduciary funds. Governmental funds are used to account for all or most of a government's general activities, including the collection and disbursement of earmarked funds (special revenue funds), and the servicing of general long - terrn debt (debt service fund). The following is the District's major governmental fund: U, -13- 0