Laserfiche WebLink
VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2006 <br />while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not <br />withheld from the actual debt proceeds received, are reported as debt service expenditures. <br />I. FUND EQUITY <br />In the fund financial statements, governmental funds report reservations of fund balance for amounts <br />not appropriable for expenditure or legally segregated for a specific future use. Designated fund <br />balances represent tentative plans for future use of financial resources. <br />J. INTERFUND TRANSACTIONS <br />Interfund services provided and used are accounted for as revenues, expenditures or expenses. <br />Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it <br />that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing <br />fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund <br />transactions are reported as transfers. <br />K. USE OF ESTIMATES <br />The preparation of financial statements in accordance with generally accepted accounting principles <br />(GAAP) requires management to make estimates that affect amounts reported in the financial <br />statements during the reporting period. Actual results could differ from such estimates. <br />L. COMPENSATED ABSENCES <br />Vested or accumulated vacation leave and other benefit amounts that are expected to be liquidated <br />with expendable available financial resources are reported as an expenditure and a fund liability of the <br />governmental fund that will pay it. <br />19 <br />