Page 14 - Pantego FY22 Operating Budget

▪ Shamburger Fund - This fund was created by a bequeath of the Town from one of its
departed citizens. The Shamburger fund is used to account for the care, lodging and
feeding of stray animals found within the Town limits.

▪ Court Security Fund - This fund was created by State legislature to fund municipal
court security. It pays for the labor of supplying security for both the courtroom and court
offices. Resources are accumulated by collection of fees on every infraction that has
been adjudicated by the Town.

▪ Court Technology Fund – This fund was also created by State legislature to fund
improvements in technology in the municipal court system. Like the Court Security fund,
resources come from the collection on infractions issued by the Town.

o Debt Service Fund. This fund is used to record and control the accumulation of resources
for payment of the general long-term debt principal and interest. The Town issues debt to
acquire or construct capital assets. Resources include an applicable portion of the ad
valorem tax levy and related interest income usable from debt service. The Town has one
(1) debt service fund: the Interest and Sinking Fund to account for these activities.

o Capital Project/Equipment Replacement Fund. This fund is used to account for acquisitions
of equipment and other capital improvements of the general government not funded through
other funds. This fund is entirely dependent on cash inflows in the form of transfers in from
the General Fund.

o Coronavirus (CLFRF) Fund. This fund was established to keep track of the Coronavirus
State and Local Fiscal Recovery Funds issued to the Town by the Department of Treasury
under the federal American Rescue Plan Act of 2021.

BASIS OF BUDGETING AND ACCOUNTING

The budgetary and accounting policies in this document conform to generally accepted
accounting principles (GAAP). The General Fund, Debt Service, Special Revenue and Capital
Projects Funds along with discretely presented component unit budgets are prepared on the
modified accrual basis of accounting. Under this basis of accounting, revenues are recognized
when they become both “measurable” and “available” to finance expenditures of the current
period. Expenditures are recognized when the related fund liability is incurred. Governmental
funds recognize changes only at the point they affect near-term liquidity.

Proprietary funds, which include the Water and Sewer fund, are prepared using the full accrual
basis of accounting. In full accrual basis of accounting, revenues are recognized when earned,
regardless of when cash is received. Likewise, expenses are also recognized when incurred,
not considering the actual cash flow. The measurement is thus focused on the flow of economic
resources. Proprietary funds, like their private-sector business counterparts, report all assets,
liabilities, and net position related to a given activity, as well as transactions, events, or interfund
activity of the period that affect net position (economic resources measurement focus).

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