ACFR FY 2022 FINAL BOOK - Flipbook - Page 70
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i�e�, the Statement of Net position and the Statement of
Activities) report information on all the non-fiduciary activities of the primary government and its
component units� For the most part, the effect of interfund activity has been removed from these
statements� Governmental activities, which generally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely significantly on fees and
charges for support�
The Statement of Activities demonstrates the degree to which program revenues offset the direct
expenses costs of a given function or segment� Direct expenses are those that are identifiable with
a specific function or segment� program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function
or segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a function or segment� Taxes and other items not properly included among program
revenues are reported instead as general revenues�
The City’s fiduciary funds are presented in the fund financial statements� Since, by definition, these
assets are being held for the benefit of a third party (pension plan participants) and cannot be used
to address activities or obligations of the government, these funds are not incorporated into the
government-wide statements�
Separate financial statements provide for governmental funds, enterprise funds, and the pension
trust fund� The pension trust fund is excluded from the government-wide financial statements� major
individual governmental and enterprise funds are reported in separate columns in the fund financial statements�
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
1. Government-wide Financial Statements
The government-wide financial statements report uses the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements�
Revenues are recorded when earned, and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows� Revenues recognize property taxes in the year
levied� Grants and similar items are recognized as soon as all eligibility requirements imposed
by the provider are met�
2. Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting� Revenues are recognized as
soon as they are both measurable and available� Revenues are considered available when they
are collectible within the current period or shortly after the current period’s liabilities are paid�
For this purpose, the government considers revenues available if collected within 60 days of the
end of the current fiscal period�
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Annual Comprehensive Financial Report | September 30, 2022