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LA PORTE REDEVELOPMENT AUTHORITY <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />SEPTEMBER 30, 2012 <br />NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) <br />Governmental Funds <br />The Authority has one major governmental fund. <br />IS <br />General Fund — To account for all resources not required to be accounted for;i>anotlaer fund. <br />Basis of Accountin <br />Gam_ <br />F` a. <br />The Authority uses the modified accrual basis of accountingfor fgQvemznental fund types. The <br />modified accrual basis of accounting recognizes revenues wlen easurable and available." <br />Measurable means the amount can be determined. AvaiMble` - eans collectable within the <br />current period or soon enough thereafter to pay curreWt__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 acial basis of accounting, expenditures are <br />recorded when the related fund liability is incurre8;Except for principal and interest on long-term <br />debt, which are recognized as expenditures when payment is due. <br />Capital Assets <br />Capital assets are transferred to the>.Cty upon completion. Depreciation is not recorded on items <br />classified as construction in;progross' <br />Bugg <br />In compliance wi'ih. 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 Autliority„dd not amend the budget. <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 Assets and Statement of <br />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 assets, 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 assets. <br />-14- <br />