C150180 Financials 2010/2011

• Contract/PO #: C150180
• Contractor Name: Pinewood Springs Water District
• Contract Type: Loan
• Loan Projects - Doc Type: Report

PINEWOOD SPRINGS WATER DISTRICT
NOTES TO FINANCIAL STATEMENTS
December 31, 2011 and 2010
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Estimates. The preparation of financial statements in confoiinity with generally accepted
accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Budgets. Colorado state law requires the adoption of a budget and appropriations. The
budgets and related appropriations are prepared on the legal budgetary basis, which differs
from a basis consistent with generally accepted accounting principles in that:
- capital revenues and capital expenditures are treated as operating items.
- principal retired is budgeted as non-operating expense.
- depreciation is not budgeted.
- contributions are budgeted as non-operating revenue
Therefore, comparison of actual operations on the accrual basis to the budgetary basis is not
appropriate. A statement comparing the budget to actual - budgetary basis is included in
Schedule 1. The adjustments necessary to convert the actual revenue and expenditures to the
budgetary basis for the year ending December 31, 2011 are presented in the following
schedule:
Budgetary GAAP
Basis Basis
GENERAL WATER REVENUE FUND:
Loss from operations $ - $ (95,010)
Revenue over expenditures (Schedule 1) 15,400 -
Add: Depreciation - 142,979
Interest income - 1,659
Property taxes - 278,182
Less: Interest and agent fees - (116,441)
Change in receivables and payables - (195,969)
Excess of revenues over expenditures $ 15,400 $ 15,400
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