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fig h—? <br />e�w <br />LA PORTE REDEVELOPMENT AUTHORITY <br />NOTES TO THE FINANCIAL STATEMENTS <br />SEPTEMBER 30, 2013 <br />NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) <br />Governmental Funds <br />The Authority has one major governmental fund. <br />General Fund — To account for all resources not required to be accounted for in another fund. <br />Basis of Accounting <br />The Authority uses the modified accrual basis of accounting for governmental fund types. The <br />modified accrual basis of accounting recognizes revenues when both "measurable and available." <br />Measurable means the amount can be determined. Available means collectable within the <br />current period or soon enough thereafter to pay current liabilities. The Authority considers <br />revenues reported in the governmental funds to be available if they are collectable within sixty <br />(60) days after year-end. Also, under the modified accrual basis of accounting, expenditures are <br />recorded when the related fund liability is incurred, except for principal and interest on long-term <br />debt, which are recognized as expenditures when payment is due. <br />Ca ital Assets <br />Capital assets are transferred to the City upon completion. <br />Bud etina <br />In compliance with the governmental accounting principles, the Authority's board members <br />should annually adopt an unappropriated budget for the General Fund. During the current fiscal <br />year, the Authority did not amend the budget. <br />Measurement Focus <br />Measurement focus is a term used to describe which transactions are recognized within the <br />various financial statements. In the government --wide Statement of Net Position and Statement <br />of Activities, the governmental activities are reported using the economic resources measurement <br />focus. The accounting objectives of this measurement focus are the determination of operating <br />income, changes in net position, financial position, and cash flows. All assets and liabilities <br />associated with the activities are reported, regardless of the timing of related cash flows. Fund <br />equity is classified as net position. <br />-14- <br />