Adopted Budget Book FY 23-24 Final with TOC links - Flipbook - Page 97
Budget-In-Brief → buDgeT oVerView
Communications Device
The Adopted Budget provides the reader with summary information to assist with understanding
revenue sources and planned fiscal spending that supports the established goals and objectives.
Included in the Adopted Budget document is a table of contents and a glossary to enable the
reader to locate information and to understand the terminology used throughout the document.
Charts, graphs, and tables are strategically used to provide a visual demonstration of the narrative
presented. The City Manager’s Budget Message provided at the beginning of the Adopted Budget
document provides the reader with a condensed analysis of the financial plans for the fiscal year
2023-24 for the City of Eustis.
Budget Process
Budgetary Basis
The budget for the governmental funds is adopted on a modified accrual basis consistent with
generally accepted accounting principles (GAAP). The budget for the enterprise funds is adopted
on a non-GAAP accrual basis to reflect the budget versus actual information related to “operations
and maintenance” as defined in bond covenants. This is identical to the basis of accounting used in
the Annual Comprehensive Financial Report (ACFR).
The foundation of the modified accrual basis of budgeting closely mirrors the basis of accounting,
establishing a parallel framework that guides financial management and reporting in the public
sector. The alignment between these two concepts is crucial for ensuring transparency, accuracy,
and consistency in budgeting and financial reporting practices. Underlying this alignment is the
emphasis on distinguishing between short-term operational activities and longer-term capital
investments. The modified accrual basis of budgeting, like the basis of accounting, seeks to strike a
balance between addressing immediate financial needs and capturing the broader financial impact
of capital projects and long-term obligations. By mirroring the basis of accounting, the modified
accrual basis of budgeting ensures that budgeting decisions are reflective of the financial reality
and can be compared to actual financial outcomes reported in financial statements.
The modified accrual basis of accounting is followed by all Governmental Fund Types and Agency
Funds. Under the modified accrual basis, expenditures other than un-matured interest on general
long-term debt are recognized at the time fund liabilities are incurred, if measurable. Revenues are
recognized in the accounting period when they become measurable and available. Revenues that
are susceptible to accrual are as follows:
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Federal and State Shared Revenues
Federal and State Grants
Interest Income
Rental of Assets and Charges for Services
Franchise Fees and Utility Taxes
Proprietary and Pension Trust Funds are maintained on an accrual basis with revenues being recognized when earned and expenses recognized when incurred.
Budget Decision-Making Process:
Municipal budget decisions play a pivotal role in shaping the trajectory of a City’s growth, development, and overall well-being. These decisions are integral to allocating financial resources efficiently and effectively, ensuring that the municipality can achieve its organizational and community
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City of Eustis, Florida
Adopted Budget
95
