Laserfiche WebLink
I <br /> I MORGAN COUNTY QUALITY WATER DISTRICT <br /> Notes to Financial Statements <br /> I <br /> INote A- Summary of significant accounting policies (continued) <br /> A.9-Accrued liabilities and long-term obligations <br /> IAll payables, accrued liabilities and long-term obligations are reported in the financial <br /> statements. Costs related to the issuance of debt are deferred and amortized over the lives <br /> of the various debt issuances. <br /> IA.10 - Net assets <br /> I Net assets report the differences between assets and liabilities. Net assets invested in <br /> capital assets, net of related debt consist of capital assets, net of accumulated depreciation, <br /> reduced by the outstanding balances of any borrowings used for the acquisition, <br /> I construction or improvement of those assets. Net assets are reported as restricted when <br /> there are liabilities imposed on their use either through enabling legislation adopted by the <br /> District or through external restrictions imposed by creditors, grantors or laws or <br /> regulations of other governments. <br /> IThe District applies restricted resources when an expense is incurred for purposes for <br /> which both restricted and unrestricted net assets are available. <br /> A.11 - Operating revenues and expenses <br /> Operating revenues are those revenues that are generated directly from the prim ary activity <br /> I of the District. These revenues primarily consist of charges for services and water sales. <br /> Operating expenses are necessary costs incurred to provide the goods or services that are <br /> the primary activity of the District. All revenues and expenses not meeting this definition <br /> Iare reported as nonoperating revenues and expenses. <br /> A.12 -Extraordinary and special items <br /> IExtraordinary items are transactions or events that are both unusual in nature and <br /> infrequent in occurrence. Special items are transactions or events that are within control <br /> of the board of directors and that are either unusual in nature or infrequent in occurrence. <br /> INeither type of transaction occurred during the year <br /> A.13 - Budgets and budgetary accounting <br /> IAn annual budget is established for the District. The budget is adopted on a basis <br /> consistent with generally accepted accounting principles except for capital and principal <br /> retirement, which are budgeted as operating expenses. The legal level of control is <br /> II considered to be the entity as a whole and expenses may not exceed appropriations at this <br /> level. All budget revisions at this level are subject to final review and approval by the board <br /> of directors. <br /> I <br /> -17- <br /> I <br />