ACFR FY 2022 FINAL BOOK - Flipbook - Page 75
City of Eustis, Florida
FINANCIAL SECTION
NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
fiduciary net position� To measure the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pension plans, pension expense, information about the net
fiduciary position, and additions to/deductions from the net fiduciary position have been determined
on the same basis as the plans report them, for this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable by the benefit terms� Investments
are reported at fair value� The City allocated the net pension liability, deferred outflows for pensions,
deferred inflows for pensions, and pension expense to funds and functions/activities based on their
respective contributions made to the pension plans during the measurement year�
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Deferred Outflows and Inflows of Resources
In addition to assets, the statement of financial position reports a separate section for deferred
outflows of resources� This individual financial statement element, deferred outflows of resources,
represents a consumption of net assets that applies to a future period(s) and will not be recognized
as an outflow of resources (expense/expenditure) until then� The deferred outflows of resources
reported in the City’s statement of the net The position represents differences between expected
and actual economic experience, changes in actuarial assumptions, the net difference between
projected and actual earnings on investments, changes in the proportion and differences between
the City’s contributions and proportionate share of contributions, and the City’s contributions after
the measurement date, relating to the City’s defined benefit pension plans� The city also has deferred
outflows of resources due to the implementation of GASb 75 related to the OpEb plan� These amounts
will be recognized as expenses in future years�
In addition to liabilities, the statement of financial position reports a separate section for deferred
inflows of resources� This individual financial statement element, deferred inflows of resources,
represent an acquisition of net assets that applies to future period(s), and will not be recognized as
an inflow of resources (revenue) until that time the deferred inflows of resources reported in the
City’s statement of net position represent the difference between expected and actual economic
experience and changes in the proportion and differences between the City’s contributions and
proportionate share of contributions relating to the City’s defined benefit pension plans� The city
also has deferred inflows of resources due to the implementation of GASb 75 related to the OpEb
plan� These amounts will be recognized as reductions in expenses in future years�
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Fund Balances
The City adopted a policy that will set aside funds for maintaining sufficient working capital� This is
approximately equal to two to three months of operating expenses� The 25% balance set aside will
be calculated as a percentage of ordinary operating expenses not inclusive of debt service, capital
outlay, and other financing use� This amount is required to cover short-term cash flow variations,
economic downturns, and emergencies� The City Commission will also approve an amount set aside
for contingencies such as catastrophic events or unforeseen losses through insurance or litigation
as part of the annual budget process�
The City has classified governmental fund balances as follows:
Non-Spendable: This classification includes amounts that cannot be spent because they are either (a)
not in spendable form or (b) are legally or contractually required to be maintained intact, it includes
Annual Comprehensive Financial Report | September 30, 2022
75