village of wellington, florida

NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)Government-Wide and Fund Financial Statements (Continued)The statement of activities demonstrates the degree to which the direct expenses of a given function orsegment are offset by program revenues. Direct expenses are those that are clearly identifiable with aspecific function or segment. Indirect expenses for centralized services and administrative overhead areallocated among the programs, functions, and segments using a full cost allocation approach and arepresented separately to enhance comparability of direct expenses between governments that allocate directexpenses and those that do not. Program revenues include 1) charges to customers or applicants whopurchase, use, or directly benefit from goods, services, or privileges provided by a given function orsegment and 2) grants and contributions that are restricted to meeting the operational or capitalrequirements of a particular function or segment. Taxes and other items not properly included amongprogram revenues are reported instead as general revenues.Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,although the latter are excluded from the government-wide financial statements. Major individualgovernmental funds and major individual enterprise funds are reported as separate columns in the fundfinancial statements. All remaining nonmajor governmental funds are aggregated and reported as nonmajorfunds.Measurement Focus, Basis of Accounting and Financial Statement PresentationThe government-wide financial statements are reported using the economic resources measurement focusand the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of thetiming of related cash flows. Property taxes are recognized as revenues in the year for which they are levied.Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by theprovider have been met.Governmental fund financial statements are reported using the current financial resources measurementfocus and the modified accrual basis of accounting. Revenues are recognized as soon as they are bothmeasurable and available. Revenues are considered to be available when they are collectible within thecurrent period or soon enough thereafter to pay liabilities of the current period. For this purpose, theVillage considers revenues to be available if they are collected within 60 days of the end of the current fiscalperiod. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.However, debt service expenditures, as well as expenditures related to compensated absences and claimsand judgments, are recorded only when payment is due.Property taxes, franchise fees, licenses, and interest associated with the current fiscal period are allconsidered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period.All other revenue items reported in the governmental funds are considered to be measurable and availableonly when cash is received by the Village.The Village reports the following major governmental funds:General Fund – The general fund is the primary operating fund and is used to account for all financialresources applicable to the general operations of the Village, except those required to be accounted for inanother fund.Planning, Zoning and Building – This special revenue fund accounts for revenues and expendituresapplicable to the planning, zoning and building divisions of the Village. The purpose of the fund is tosegregate various permitting and inspection services pertaining to planning, zoning and building and toensure that the fee structure for such activities is accurate. Any shortfalls (revenues less than expenditures)are funded by the general fund through operating transfers.31