Page 27 - CityofKennedaleFY25AdoptedBudget

EDC FUNDS

EDC Fund

A component unit of the City of Kennedale, the Economic Development Corporation (EDC) is
primarily funded by a .50% sales tax levied on items sold in the City of Kennedale. Revenue also
comes in the form of rent paid by tenants of the TownCenter, the proportionate share of
investment income, and other fees related to operating the TownCenter.

EDC Bond Reserve Fund

Established as a separate fund to allow for securing bond funding, the exclusive source of
revenue is proportionate interest income from pooled investments. Consistent since inception,
there are no anticipated expenditures from this fund.

BASIS OF ACCOUNTING AND ACCOUNT STRUCTURE

The City's accounting records for general governmental operations are maintained on a
modified accrual basis, with revenues being recorded when available and measurable and
expenditures being recorded when goods or services are received and when liabilities are
incurred. Accounting records for the City's utilities (example, the Water Sewer Fund) are
instead maintained on an accrual basis. In developing and maintaining the City's accounting
system, consideration is given to the adequacy of the internal control structure. Internal
accounting controls are designed to provide reasonable - but not absolute - assurance
regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and
(2) the reliability of financial records for preparing financial statements and maintaining
accountability of assets. The concept of reasonable assurance recognizes that: (1) the cost of a
control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and
benefits requires estimates and judgments by management. All internal control evaluations
occur within the above framework.

Within this document, you will see charts similar to this one:

CITYOFKENNEDALE.COM/BUDGET 27