FY2022 Adopted Operating and Capital Budget

FY2022 Adopted Budget Budget and Finance Policy Basis of Budgeting Governmental Funds

Budgets fo r governmental funds ar e prepare d usin g th e modified accrua l basis which combine s the cas h method an d full accrua l metho d of accounting. Th e modified accrua l basis is widel y use d b y governmen t agencies to focus o n current year obligations an d to confirm tha t curren t revenues ar e sufficien t t o cover th e obligations. However , this method is a t varianc e ZLWK *HQHUDOO\ $FFHSWHG $FFRXQWLQJ 3ULQFLSOHV *$$3 7KH &RXQW\¶ s budgetar y basis differs from GAAP as follows: x Encumbrances o Budgetar y Basis recorded as expenditures i n th e year th e funds ar e obligated an d ar e then backe d ou t fro m expenditures i n th e year th e fund s ar e paid o GAA P ± classifie d as a reservatio n of fund balance x Principa l payment s on deb t o Budgetar y Basis ± budgeted an d recorde d as expenditures o GAA P ± recorded a s a reductio n to liabilities x Inventories an d capita l assets o Budgetar y Basis ± budgeted an d recorde d as expenditure s at th e time of purchase o GAA P ± recorded a s an increas e to assets a t th e tim e of purchase x 7KH XVH RI SULRU \HDUV¶ IXQG EDODQFH o Budgetar y Basis budgeted as revenu e (other financin g source/budgete d us e o f fund balance) o GAA P ± LV QRW UHFRUGHG DQG LV XOWLPDWHO\ D FRPSRQHQW RI ³QHW FKDQJH LQ IXQG EDODQFHV´ x Depreciation Als o there i s on e differenc e between th e figure s presented in this document as actua l and the actua l ³EXGJHWDU\ EDVLV´ figure s reporte d in the Comprehensiv e Annua l Financia l Report. In WKH &RXQW\¶V financia l system, al l encumbrances at year en d ar e re appropriated an d expensed in th e followin g year, when the item/service is received . However, budgetar y basis has alread y recorde d thes e encumbrances i n th e prio r year. Therefore, thes e transaction s ar e backed ou t when reportin g the actua l expenditure s fo r budgetar y basis in th e budge t documents. Proprietary Funds Budgets fo r proprietar y fund s (enterpris e an d interna l service) ar e prepared in complianc e with GAAP, usin g the ful l accrual basis, excep t fo r capita l asse t purchases an d th e use of prior years ¶ IXQG EDODQFH . Whe n reportin g actuals, th e budge t document s wil l reflec t full accrua l basis wit h no exceptions . x Capital assets o Budgetar y Basis ± budgeted as expenditure s o GAA P ± recorded a s an increas e to assets a t th e tim e of purchase x Th e u VH RI SULRU \HDUV¶ IXQG EDODQFH o Budgetar y Basis no t appropriated o GAA P ± recorded a s an expens e fo r

o Budgetar y Basis budgeted as revenu e (other financin g source/budgete d us e o f fun d balance) o GAA P ± is not recorded an d LV XOWLPDWHO\ D FRPSRQHQW RI ³QHW FKDQJH LQ IXQG EDODQFHV´

Revenue Recognition Revenues are recognized a s soo n as the y are bot h measurable and available. Revenues ar e considere d to b e available when the y are collectible withi n th e current period or soo n enough thereafter t o pa y liabilities of th e current period. For this purpose, th e government considers revenues to be available if the y ar e collecte d withi n 31 days of the en d of th e curren t fiscal period.

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