Page 70 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 2 Financial Analysis
Budget 101 Overview

GOVERNMENTAL FUND TYPES

The fund types use a financial resources GOVERNMENTAL FUND TYPES
measurement focus and utilize the modified accrual ACCOUNTING/ BUDGETING BASIS;
basis of accounting and budgeting. MODIFIED ACCRUAL
Under the modified accrual basis of accounting, 1. General Fund
revenues are recorded when susceptible to accrual, 2. Lone Star Fund
meaning that it is measurable and available. 3. Visitor Association Fund
Available revenues are defined as those funds that 4. Economic Development Fund
are collectable within the current period, or 5. 4B Economic Development Fund
collectable within a timeframe to pay liabilities of the 6. Public Improvement District Fund
current period. 7. Debt Service Fund 300
Expenditures generally represent a decrease in net 8. Debt Service Fund 301
financial resources and are recorded when a
9. Capital Projects Fund
measurable fund liability is incurred. In some
10. Academy Expansion Fund
instances, such as the incurrence of long-term debt, 11. Westlake Academy
expenditures related to interest on the debt is
recorded in the period that it is due.

All “ Governmental Funds” are accounted for using a current financial resources measurement
focus. With this measurement focus, only current assets and current liabilities generally are
included on the combined balance sheet. Operating statements of these funds present
increases ( revenues and other financing sources) and decreases ( expenditures and other
financing uses) in net current assets.

The modified accrual basis of accounting is used by all Governmental Fund types.
Revenues are recognized when susceptible to accrual ( i.e., when they become both
measurable and available). “ Measurable” means collectible within the current period or
soon enough thereafter to be used to pay liabilities of the current period.
Major revenue sources which have been treated as susceptible to accrual under the
modified accrual basis of accounting include property taxes, charges for services,
intergovernmental revenues, and investment of idle funds.
Expenditures are generally recorded when the related fund liability is incurred. However,
principal of and interest on general long-term debt are recorded as fund liabilities when
due or when amounts have been accumulated in the debt service fund for payments to
be made early in the following year.

Governmental fund types are those through which most governmental functions of the Town are
financed. The acquisition, use, and balances of the Town’ s expendable financial resources and
the related liabilities ( except those accounted for in the Proprietary and Fiduciary Fund types)
are accounted for through Governmental Fund types.

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