Comprehensive Annual Financial Report - St. Tammany Parish ...

ST. TAMMANY PARISH GOVERNMENT
Notes to the Financial Statements 2010
St. Tammany Parish reports the following two enterprise funds:
St Tammany Parish State Complex Fund (526) accounts for the repairs, maintenance and operations of the State
Complex Building. This fund is considered a non-major fund.
Utility Operations Fund (622, 623) accounts for receipts and disbursements relating to the operations of sewer and
water facilities that are operated by St. Tammany Parish. This fund is considered a major fund.
A description of all other non-major funds and internal service funds can be found at the beginning of each fund type’s
fund financial statements.
Additionally, the Parish reports the following fund types:
Special Revenue Funds are used to account for specific revenue sources that are restricted to expenditures for specific
purposes. Additionally, all federal and state grants receipts and disbursements are accounted for in these funds.
Debt Service Funds are used to account for the accumulation of resources and payment of general obligation and sales
tax bond principal and interest from governmental resources.
Capital Project Funds are utilized to account for the purchase, construction and renovation of the Parish’s road and
drainage systems, as well as the construction and renovation of buildings owned by the Parish. Their resources are
derived principally from proceeds of general obligation bonds, sales tax bonds, special assessment certificates of
indebtedness and transfers from Special Revenue Funds.
Enterprise Funds are used to report activities for which a fee is charged to external users for goods or services.
Internal Service Funds account for the financial and administrative services, such as purchasing and accounting, as
well as general services, such as public works services, building operations and insurance activities provided by one
department to other departments or governments on a cost-reimbursement basis.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in
both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with
or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following
subsequent private-sector guidance for the business-type activities and enterprise funds, subject to this same limitation.
The Parish has elected not to follow subsequent private-sector guidance.
As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. The
exceptions to this general rule are charges between the Parish’s enterprise operations. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include: (1) charges to customers or applicants for goods, services, or privileges
provided, (2) operating grants and contributions, and (3) capital grants and contributions. Internally dedicated resources
are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes except for
some specially assessed property taxes, which are classified as program revenues.
Property taxes assessed in the Lighting Districts are classified as program revenues because the residents of these Districts
directly benefit from the installation and maintenance of lighting in their District. Property taxes specially assessed for
Sub-Road District No. 2 of Road District No. 19, are classified as program revenues because they were assessed to
improve that District’s roads to Parish standards, allowing them to be accepted into the Parish Road Maintenance
Inventory System.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The operating revenue in the St. Tammany Parish State Complex enterprise fund is
comprised of rents. The operating revenue for the Utility Operations enterprise fund consists primarily of sewerage and
water usage fees, connection fees, and garbage collection fees. Operating expenses for enterprise funds and internal
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