WAUKESHA COUNTY Waukesha, Wisconsin

WAUKESHA COUNTY, WISCONSINNOTES TO FINANCIAL STATEMENTSDecember 31, 2010NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)10. Equity ClassificationsGOVERNMENT–WIDE STATEMENTSEquity is classified as net assets and displayed in three components:a. Invested in capital assets, net of related debt – Consists of capital assets including restrictedcapital assets, net of accumulated depreciation and reduced by the outstanding balances(excluding unspent debt proceeds) of any bonds, mortgages, notes, or other borrowings thatare attributable to the acquisition, construction, or improvement of those assets.b. Restricted net assets – Consists of net assets with constraints placed on their use either by1) external groups such as creditors, grantors, contributors, or laws or regulations of othergovernments or, 2) law through constitutional provisions or enabling legislation.c. Unrestricted net assets – All other net assets that do not meet the definition of “restricted” or“invested in capital assets, net of related debt.”When both restricted and unrestricted resources are available for use, it is the County’s policy to userestricted resources first, and then unrestricted resources as they are needed.FUND STATEMENTSGovernmental fund equity is classified as fund balance. Fund balance is further classified as reservedand unreserved. Reserved fund balance is that portion of fund balance that is not available for thesubsequent year’s budget due to legal restrictions or resources which are not available for currentspending. Unreserved fund balance includes funds set aside by management for specific uses, which arelabeled “designated”. The balance of unreserved fund balance is labeled “undesignated”, which indicatesit is available for appropriation. Proprietary fund equity is classified the same as in the government-widestatements.11. Prior Period InformationPrior period information has not been presented in the statements since their inclusion would make thestatements unduly complex and difficult to read.52