C153316 Financials 2009/2010

• Contract/PO #: C153316
• Contractor Name: Winter Park Water and Sanitation District
• Contract Type: Loan
• Loan Projects - Doc Type: Report

Winter Park Water and Sanitation District
' NOTES TO FINANCIAL STATEMENTS
December 31, 2010 and 2009
' Note 1 — Definition of reporting entity
' The District, a quasi-municipal corporation and political subdivision of the State of
Colorado, is governed pursuant to the provisions of the Colorado Special District Act
(Title 32, Article 1, Colorado Revised Statutes). The District's service area is located in
eastern Grand County, Colorado. The District was organized in 1966 to provide water
and sanitation services within the District's boundaries.
' The District follows the Governmental Accounting Standards Board (GASB)
accounting pronouncements which provide guidance for determining which
governmental activities, organizations and functions should be included within the
' financial reporting entity. GASB pronouncements set forth the financial accountability
of a governmental organization's elected governing body as the basic criterion for
including a possible component governmental organization in a primary government's
legal entity. Financial accountability includes, but is not limited to, appointment of a
' voting majority of the organization's governing body, ability to impose its will on the
organization, a potential for the organization to provide specific financial benefits or
burdens and fiscal dependency.
' The District is not financially accountable for any other organization, nor is the District
a component unit of any other primary governmental entity.
Note 2—Summary of significant accounting policies
' The more significant accounting policies of the District are described as follows:
The accounting policies of the District conform to generally accepted accounting
' principles as applicable to governmental units accounted for as a proprietary
enterprise fund. The enterprise fund is used since the District's powers are related to
those operated in a manner similar to a private utility system where net income and
capital maintenance are appropriate determinations of accountability.
The District has elected to follow Governmental Accounting Standards Board
pronouncements. Therefore, statements issued by the Financial Accounting
' Standards Board after November 30, 1989 are not applied.
When both restricted and unrestricted resources are available for use, it is the District's
policy to use restricted resources first, then unrestricted resources as they are needed.
Basis of Accounting
' The District's financial statements are reported using the accrual basis of accounting.
Revenue is recognized when earned and expenses are recognized when a liability is
incurred, regardless of the timing of related cash flows. Depreciation is computed and
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