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Appendices                                          Return  to  Table  of  Contents
                                                                                                   Return to Table of Contents




            FUND ACCOUNTING INFORMATION (CONTINUED)
            Modified accrual basis:  The modified accrual basis is used for all other funds.  Modifications in the accrual basis for these
            funds include the following:

               1.  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.  Primary revenue sources
                   treated as susceptible to accrual include property taxes collected within 60 days of year-end and sales taxes collected
                   and held by the state at year end of behalf of the City.  Revenue sources from licenses, fines and forfeitures, service
                   charges and other miscellaneous revenues are generally recognized as the cash is received.

               2.  Expenditures are recognized when the related fund liability is incurred, except for interest and principal on general
                   long-term debt which are recorded when due or otherwise payable.

               3.  Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of
                   monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of
                   formal budgetary integration.

            Basis of Budgeting
            The City Council adopts an annual legal budget which covers the General Fund, Debt Service Fund, Enterprise Funds, Internal
            Service Funds, and certain  Special  Revenue Funds (Park Performance, Street Maintenance,  and  Convention and Event
            Services).  All appropriations lapse at fiscal year-end.  The budgets for the General Fund, Debt Service Fund and Special
            Revenue Funds are  prepared  on the  modified  accrual  basis  except for encumbrances, which  are treated as  budgeted
            expenditures.  The budgets for the Enterprise Funds are prepared on the modified accrual basis and include encumbrances,
            debt principal retirements and capital outlays as expenditures.  Additionally, the Enterprise Funds do not include depreciation
            as a budgetary expense.  Budgetary level of control is exercised at the departmental level.  The City Manager, or his designee,
            is authorized to transfer budgeted amounts within and among departments; however, any revisions that alter total appropriations
            of the fund must be approved by the City Council.






































            FY 2022 Adopted Budget and Business Plan                                        351                                                                City of Arlington, Texas
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