ACFR FY 2023 Final - Flipbook - Page 74
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of Funds and Summary of Signiocant Accounting Policies (Continued)
B. Government-Wide and Fund Financial Statements
The Government-Wide Financial Statements (iÿeÿ, the Statement of Net position and the Statement
of Activities) report information on all the non-oduciary activities of the primary government and
its component unitsÿ For the most part, the effect of interfund activity has been removed from these
statementsÿ Governmental activities, which generally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely signiocantly on fees and
charges for servicesÿ
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 identioable with
a specioc function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly beneot 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 segmentÿ Taxes and other items not included among program revenues are reported instead as general revenuesÿ
The City9s oduciary funds are presented in the fund onancial statements. Since, by deonition, these
assets are being held for the beneot 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 Statementsÿ
Separate onancial statements are provided for governmental funds, proprietary funds, and the Pension
Trust Fundÿ The pension Trust Fund is excluded from the Government-Wide Financial Statementsÿ
major individual governmental and proprietary funds are reported in separate columns in the fund
onancial statements.
C. Economic Resources Measurement Focus, Basis of Accounting, and Financial
Statement Presentation
1. Government-Wide Financial Statements
The Government-Wide Financial Statements report indicates that oduciary funds use the economic
resources measurement focus and the accrual basis of accounting, as does the proprietary fund
onancial statements. Revenues are recorded when earned, and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flowsÿ Revenues recognize property taxes in the year leviedÿ Grants and similar items are recognized as soon as all eligibility
requirements imposed by the provider are metÿ
2. Fund Financial Statements
Governmental fund onancial statements are reported using the current onancial resources
measurement focus and the modioed accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and availableÿ Revenues are considered available when they
are collectible within the current period or shortly after the current period9s liabilities are paidÿ
For this purpose, the government considers revenues available if collected within 60 days of the
end of the current oscal period.
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Annual Comprehensive Financial Report | September 30, 2023
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