ACFR FY 2023 Final - Flipbook - Page 77
City of Eustis, Florida
FINANCIAL SECTION
NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of Funds and Summary of Signiocant 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 oscal 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 Octoberÿ The Water and Sewer Utility
System uses the allowance method of bad debt recognitionÿ All receivables are shown net of an
allowance for accounts of $1,507,417 on September 30, 2023ÿ
Listed below is the allowance for doubtful accounts:
FY 2023
Allowance for Doubtful Accounts
ï
General Fund
$
Water & Sewer
Utility System
Fund
140,885 $
1,219,445 $
Stormwater
Fund
147,087 $
Total
1,507,417
Inventories
Inventories are valued at cost using the orst-in, orst-out method. Inventories of governmental funds
are recorded as expenditures when consumed rather than when purchasedÿ
ï
Prepaid
Certain payments to vendors that reflect costs applicable to future accounting periods are recorded
as prepaid items in Government-Wide and fund Financial Statementsÿ
ï
Restricted Assets
Specioc provisions of debt resolutions and City policies restrict the uses of certain assets of the proprietary fundÿ These assets are restricted from paying the general obligations of the fundÿ Assigned
assets are identioed as restricted assets on the Statement of Net Position.
ï
Capital Assets
Capital assets include property, plant, equipment, and infrastructure assets (eÿgÿ, roads, bridges,
sidewalks, and similar items)ÿ They are reported in the applicable governmental or business-type
activities columns in the Government-Wide Financial Statementsÿ 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 assetsÿ Roads, bridges, and sidewalks are capitalized when their initial costs
equal or exceed $25,000 and they possess estimated useful lives of more than one yearÿ purchased
or constructed, capital assets are recorded at historical or estimated historical costsÿ Donated capital
assets are recorded at the acquisition value at the date of donationÿ The City implemented GASb
89, and complies with the statement requirementsÿ 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 incurredÿ
Signiocant 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 constructedÿ
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Annual Comprehensive Financial Report | September 30, 2023
77
