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LA PORTE REDEVELOPMENT AUTHORITY <br />NOTES TO THE FINANCIAL STATEMENTS <br />SEPTEMBER 30, 201.4 <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 'd; <br />.Basis of Accounting <br />The Authority uses the modified accrual basis of accounting for governmenta n types. The <br />modified accrual basis of accounting recognizes revenues when both "rr�}easVr ble and available." <br />Measurable means the amount can be determined. Available means toll tce able within the <br />current period or soon enough thereafter to pay current liabilities. T� Authority considers <br />revenues reported in the governmental funds to be available if tieyeollectable within sixty <br />(60) days after year-end. Also, under the modified accrual basiso;accounting, expenditures are <br />recorded when the related fund liability is incurred, except o , Jnoipal and interest on long-term <br />debt, which are recognized as expenditures when payment f due; <br />Capital Assets' <br />Capital assets are transferred to the City upo fcomplejtion. <br />Bud etin <br />In compliance with the govern, nn accounting principles, the Authority's board members <br />should annually adopt an unappropr�zated budget for the General Fund. During the current fiscal <br />year, the Authority did not,, inendUt e budget. <br />Measurement Focus <br />� •}i -T, <br />Measurement £acus is aAerm used to describe which transactions are recognized within the <br />,< <br />various financial"statements. In the government -wide Statement of Net Position and Statement <br />of Activities;igernmental activities are reported using the economic resources measurement <br />focus lie accounting objectives of this measurement focus are the determination of operating <br />incom 'N ilatrges in net position, financial position, and cash flows. All assets and liabilities <br />assgpiA, d ;with the activities are reported, regardless of the timing of related cash flows. Fund <br />equftkis''classifted as net position. <br />-14- <br />