VLAWMO Annual Financial Report 2002

Home Search

L L VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION NOTES TO FINANCIAL STATEMENTS December 31, 2002 Major revenue sources susceptible to accrual include intergovernmental revenues, charges for services and investment income. No interest has been accrued on investments since the amount is deemed by management to be immaterial. Miscellaneous revenue sources not susceptible to accrual are recorded as revenue when received because they are not measurable until collected. D. BUDGETS AND BUDGETARY ACCOUNTING The Board of Commissioners adopts a budget for the general government operations of the Organization on an annual basis. During the budget year, supplemental appropriations and deletions are or may be authorized by the Board. The amounts shown in the fmancial statements as "Budgeted" represent the original budgeted amounts plus all revisions made during the year and/or for the year. The modified accrual basis of accounting is used by the Organization for budgeting data. All appropriations end with the fiscal year for which they were made. The Organization monitors budget performance and all amounts over budget have been approved by the Board through the disbursement approval process. The Organization prepares a revenue and expenditure budget for its General Fund. Encumbrance accounting, under which purchase orders, contracts, and other commitments of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the Organization. E. INVENTORIES The original cost of materials and supplies has been recorded as expenditures at the time of purchase. The Organization does not maintain significant amounts of inventories of materials and supplies. F. "MEMORANDUM ONLY" PRESENTATIONS Total cohimns on the General Purpose Financial Statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. G. USE OF ESTIMATES The preparation of fmancial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the fmancial statements during the reporting period. Actual results could differ from such estimates. 15