ACFR FY 2022 FINAL BOOK - Flipbook - Page 73
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
Accounts Receivable
The operating revenues of the Water and Sewer Utility System Fund are generally recognized based
on monthly cycle billings� Revenues for services delivered during the last month of the fiscal year
that have not been read by September 30 are accrued based on meter readings for the applicable
consumption taken at the beginning of October and billed in October� The Water and Sewer Utility
System uses the allowance method of bad debt recognition� All receivables are shown net of an
allowance for accounts of $1,441,196 on September 30, 2022�
Listed below is the allowance for doubtful accounts:
FY 2022
Allowance for Doubtful Accounts
●
General Fund
$
Water & Sewer
Utility System
Fund
135,437 $
1,165,471 $
Stormwater
Fund
140,288 $
Total
1,441,196
Inventories
Inventories are valued at cost using the first-in, first-out method� Inventories of governmental funds
are recorded as expenditures when consumed rather than when purchased�
●
Prepaid
Certain payments to vendors that reflect costs applicable to future accounting periods are recorded
as prepaid items in government-wide and fund financial statements�
●
Restricted Assets
Specific provisions of debt resolutions and City policies restrict the uses of certain assets of the enterprise fund� These assets are restricted from paying the general obligations of the fund� Assigned
assets are identified as restricted assets on the Statement of Net position�
●
Capital Assets
Capital assets include property, plant, equipment, and infrastructure assets (e�g�, roads, bridges,
sidewalks, and similar items� They are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements� property, plant, and equipment with
initial, individual costs equal to or exceeding $5,000 and estimated useful lives of over one year are
recorded as capital assets� Roads, bridges, and sidewalks are capitalized when their initial costs
equal or exceed $25,000 and possess estimated useful lives of more than one year� purchased or
constructed, capital assets are recorded at historical or estimated historical costs� Donated capital
assets are recorded at the acquisition value at the date of donation� The City implemented GASb
89, and complies with the Statement requirements� The interest cost incurred before the end of a
capital construction period is recognized as an expense on a basis consistent with governmental
fund accounting principles and recognized in the period in which the cost is incurred�
Significant outlays for capital assets, and improvements are capitalized as projects are constructed�
Interest incurred during the construction phase of capital assets of major business-type activities is
included as part of the capitalized value of the assets constructed�
Annual Comprehensive Financial Report | September 30, 2022
73