C150120 Financials 2011 - Laserfiche WebLink

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MANCOS WATER CONSERVANCY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2011 ' (Note 2 continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the District's Water Activity Enterprise Fund are assessments to customers for water. Operating expenses for the enterprise fund includes cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The District applies Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, unless ' those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails. Cash and Cash Equivalents The District's cash and cash equivalents include amounts that are readily convertible to known amounts of cash, are not subject to significant risk from changes in interest rates, and have a maturity of three months or less from the date of acquisition. For cash and cash equivalents, the market value approximates the carrying value. Cash and cash equivalents for purposes of the cash flow statement for the Water Activity Enterprise Fund, include cash in operating accounts and money market funds. The District's investment policy, in accordance with Colorado law, authorizes investment in p Y, , obligations of the U. S. Treasury, State of Colorado, Colorado county and school districts, repurchase agreements, financial institutions and local government investment pools. State statutes prohibit investments with a stated maturity date greater than five years, unless allowed by District Charter. Deposits are stated at cost which approximates fair value. ' Restricted Assets Certain cash assets are classified as restricted on the balance sheet because their use is limited as follows: ' Assets restricted for debt service are accumulated for the purpose of holding one year's principal and interest. Restricted resources are used to first to fund appropriations for which both restricted and unrestricted net assets are available. Property, Plant and Equipment Capital assets, which include property, plant, and equipment, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. ' Assets capitalized belong to the District and are expected to last more than three years. Such assets are stated at cost, except for donated assets, which are stated at their fair market value at the time of donation. 10