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LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2019 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 . r Basis of Accounting The Authority uses the modified accrual basis of accounting for governmental ,ffindqypes. The modified accrual basis of accounting recognizes revenues when both "meas'and available." Measurable means the amount can be determined. Available medRs f cglle 11 able within the current period or soon enough thereafter to pay current liabilities.' TheAAuthority 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 o�f�actounting, expenditures are recorded when the related fund liability is incurred, except foj-principal and interest on long-term debt, which are recognized as expenditures when payme tfis� ue Capital Assets Capital assets are transferred to the City upon co leion. Bud eg ting In compliance with the governmental ac oa'nting principles, the Authority's board members should annually adopt an una prmpria ed budget for the General Fund. During the current fiscal year, the Authority did not a ei�d tl e'budget. �. Measurement Focus Measurement fW1W_ is a term used to describe which transactions are recognized within the various financial tatenents. In the government -wide Statement of Net Position and Statement of Activities,4 e,governmental activities are reported using the economic resources measurement focus. Thy°accounting objectives of this measurement focus are the determination of operating inco e, ,cha'nges in net position, financial position, and cash flows. All assets and liabilities as ociate�, with the activities are reported, regardless of the timing of related cash flows. Fund equip i0classified as net position. -14-