WAUKESHA COUNTY Waukesha, Wisconsin

WAUKESHA COUNTY, WISCONSINNOTES TO FINANCIAL STATEMENTSDecember 31, 2010NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)7. Compensated AbsencesUnder terms of employment, employees are granted sick leave and vacations in varying amounts. Onlybenefits considered to be vested are disclosed in these statements.All vested vacation and sick leave pay is accrued when incurred in the government-wide and proprietaryfund financial statements. A liability for these amounts is reported in governmental funds only if they havematured, for example, as a result of employee resignations and retirements.Payments for vacation and sick leave will be made at rates in effect when the benefits are used.Accumulated vacation and sick leave liabilities at December 31, 2010 are determined on the basis ofcurrent salary rates and include salary related payments.Amounts accrued in the government-wide statement of net assets are considered due within one yearbecause the county considers the carryover balances to be used before new benefit allocations.8. Long-Term Obligations/Conduit DebtAll long-term obligations to be repaid from governmental and business-type resources are reported asliabilities in the government-wide statements. The long-term obligations consist primarily of notes andbonds payable and accrued compensated absences.Long-term obligations for governmental funds are not reported as a liability in the fund financialstatements. The debt proceeds are reported as other financing sources and payments of principal andinterest are reported as expenditures. The accounting in proprietary funds is the same as it is in thegovernment-wide statements.The County does not engage in conduit debt transactions.9. Claims and JudgmentsClaims and judgments are recorded as liabilities if all the conditions of Governmental AccountingStandards Board pronouncements are met. The liability and expenditure for claims and judgments is onlyreported in governmental funds if it has matured. Claims and judgments are recorded in the governmentwidestatements and proprietary funds as expenses when the related liabilities are incurred. There wereno significant claims or judgments at year-end.51