ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 57
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
The Statement of Activities demonstrates the degree to which the direct expenses costs
of a given function, or segment offset by program revenues. Direct expenses are those
that are clearly 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
particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Internal service activity of the City has been eliminated on the government-wide financial
statements. Other interfund activity, namely overhead charges absorbed by the General
Fund and allocated amongst the City’s other funds, is reported as revenue in the fund
providing the service or incurring the cost to be allocated and is reported as expense in
the funds receiving the service or incurring the allocable share of the overhead charge.
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 fund, 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 on 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
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 to be available when they are collectible within the current
period or soon enough thereafter to pay liabilities of the current period.
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