Page 28 - CityofKennedaleFY26AdoptedBudget

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 the 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. For budgeting purposes, the basis of each fund mirrors
the basis used for recording purposes. 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:

These charts provide a comparative view with the prior year actuals, current year estimates,
and current year budget. The columns are based on a Fiscal Year (FY) that runs from October 1
through September 30 of each year, rather than the calendar year. For example, references to
FY23 refer to activity between October 1, 2022 and September 30, 2023 and FY24 refer to the
time frame October 1, 2023 through September 30, 2024.

Additionally, the amount of fund balance at the beginning and end of each period is shown at
the bottom of all activity for each fund.

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