Page 269 - Honorable Mayor and Members of the City Council

BUDGETARY BASIS – MEASUREMENT FOCUS AND BASIS OF ACCOUNTING

MEASUREMENT FOCUS AND BASIS OF ACCOUNTING

The government-wide statements are reported using the economic resources measurement focus and the accrual
basis of accounting. The economic resources measurement focus means all assets and liabilities (whether current or
non-current) are included on the statement of net assets and the operating statements present increases (revenues)
and decreases (expenses) in net total assets. Under the accrual basis of accounting, revenues are recognized when
earned. Expenses are recognized at the time the liability is incurred. Governmental fund financial statements are
reported using the current financial resources measurement focus and are accounted for using the modified accrual
basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to
accrual; i.e., when they become both measurable and available. “Measurable” means the amount of the transaction
can be determined and “available” means collectible within the current period or soon enough thereafter to be used
to pay liabilities of the current period. The City of Benbrook considers receivables collected within sixty days after
year-end to be available and recognizes them as revenues of the current year. Expenditures are recorded when the
related fund liability is incurred. However, debt service expenditures are recorded when payment is due.

The revenues susceptible to accrual are property taxes, franchise fees, licenses, charges for service, interest income,
and intergovernmental revenues. Sales taxes collected and held by the State of Texas at year-end on behalf if the
government are also recognized as revenue. All other governmental fund revenues are recognized when received.

CITY OF BENBROOK 2018-19 ANNUAL BUDGET
268