02-08-17 LPRDA/TIRZ - Laserfiche WebLink

Browse Search

LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental Funds The Authority has one major governmental fund. General Fund --- To account for all resources not required to be accounted for in another fund. Basis ofAccountin The Authority uses the modified accrual basis of accounting for governmental fund types. The modified accrual basis of accounting recognizes revenues when both "measurable and available." Measurable means the amount can be determined. Available means collectable within the current period or soon enough thereafter to pay current liabilities. The Authority considers revenues reported in the governmental funds to be available if they are collectable within sixty (60) days after year-end_ Also, under the modified accrual basis of accounting, expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, which are recognized as expenditures when payment is due. Capital Assets Capital assets are transferred to the City upon completion. Budgeting In compliance with the governmental accounting principles, the Authority's board members should annually adopt an unappropriated budget for the General Fund. During the current fiscal year, the Authority did not amend the budget. Measurement Focus Measurement focus is a term used to describe which transactions are recognized within the various financial statements. In the government -wide Statement of Net Position and Statement of Activities, the governmental activities are reported using the economic resources measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position, financial position, and cash flows. All assets and liabilities associated with the activities are reported, regardless of the timing of related cash flows. Fund equity is classified as net position. -14-