AgdaPkt 2009-01-12 clsd and reg - Laserfiche WebLink

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.. .. .~NOTE.l-. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) .. Governmental furids are .reported using: .the. curre1lt financial resources measurement focus and the. : modified accrual basis of accounting. Under this method. revenues are recognized when measurable and: . . . aVf1:ilable. The CitY considers all revenues reported in. the. governmental funds to. be available if the revenues are.collectedwithit;' 60 days after year~end. . .:j. .. . . The City~s fiduciary funds are agency fu~ds which use the accrual basis of accounting. However, since they are custOdiaf in nature, ~ey do.no~ have a measurement focus. ,. . . During fiscal year 2004/05, theState ofCa1ifomia changed the.distribution method of the City's sales tax . anoc~tion under.l1 program called the "Triple Flip." Under the:' "Triple .Flip," :25.% of the City's share . of sales tax is now. distributed from. property tax receiptS~with remittance; of 'the sales tax to the City coinciding :with the semiannual: collection .of propertY.. tax receipts from. property owners in ;December and April. -: To re~ognize the sales tax revenue earned as of June 30, the City has: changed its . .availability period foi::sales tax revenue from 60 days after year-end :to seven months after year-end. The change in the availability period for sales ~.w~l1 enable the City to accurately reflect sales tax : earned in . . ; the reporting period: . :.. .. . .' . . I . . .. .. . . . . . .. .:' . . . . Expenditures are re-corded when the:related.fundhability is incurrc~:except for principal and Intere.st on .. . general Jong-tenn debt. claims and judgments, and compensated absences, which are recognized as . ex;penditures to the e~tentthey, have matured. ... . .' . . . General capital. asset. acq:uisItions are. rep.orted as. expenditures' in govemmenta~ funds. Proceeds of .generallong-terin debt and acquisiti~l1s :under capita~ leases are:reported as'otherlfil1anclng sources. Non-exchange transactions, in;~hich the City gives .~r receives: ~al~e without. directly re~eiving or. giving equal value iniexcharige, include property taxes, grants, entitlementS, and donations. On an aCcrual basis, :. . revenue from property taxes is recogn.ized in; the fiscal year.. for .which. the taxes are levied. Revenue from gtantS~ enti~lements. .and~donations is .recognized in .the fiscal y.ear ih which an eligibility requl.rements have been satisfied:, . . . . . . . ... . . . Other .revenues .susceptible to accrual include other. taxes, intergovernmental revenues, interest, and .. charges for services. .. ..... : Grant revenues are recognized in the fiscal year in which an eligibility. requirements are met. Under the . term.c; of grant agreements, the City may :fund' certain. programs with a.combination of cost-reimbursement . grants, categorical block grants, and general revenues., Thus, both restricted and unrestricted net assets. .; may be available to .finance program. expenditures. Th.e City':$ policy is to. fir~t .apply restricted :grant .resources to: s~ch:pi'ograms, .followed by genera.~"revenues ifnecesSary. . . . . . . . ..' . .: 'Certain . indirect costs. are i.i1cluded:in program expenses. rePorted for individual functions' and actiVities, . . . .' . . . .' .' . . ..... .. . . . . . . . . . . . ... . .. . . .. .. . . . .' . ..' . . .. . . . The City: follows Statements and Interpretations of the Firumc{al Accounting Stmdards Board and its . . .., :predecessors that . were. . issued 'on or before November 30, .1989 in accounting for its b~siness-type .activities unless the)/conflict )\lith Governmental Accounting.Standards Board::pronouncemcnts. . . .; ;32 .. :': l I I . i ; :