Page 79 - City of Westlake FY20 Budget

Section 2 Financial Analysis
Funds and Departments

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

67