Notes to SEFA
Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: Fund financial statements ‐ Fund financial statements report detailed information about the District.
The focus of governmental fund financial statements is on major funds rather than reporting funds by
type. Each major fund is presented in a separate column, and all non‐major funds are aggregated into
one column. The District has no non‐major funds.
The accounting and financial reporting treatment applied to a fund is determined by its measurement
focus. All governmental fund types are accounted for using a flow of current financial resources
measurement focus. The financial statements for governmental funds are a balance sheet, which
generally includes only current assets and current liabilities, and a statement of revenues, expenditures
and changes in fund balances, which reports on the sources (i.e., revenues and other financing sources)
and uses (i.e., expenditures and other financing uses) of current financial resources.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
District’s financial position and results of operatio
De Minimis Rate Used: N
Rate Explanation: See attached form
Government‐wide financial statements ‐ The Statement of Net Position and the Statement of Activities
display information about the District as a whole. These statements include the financial activities of
the District. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities generally are financed through taxes, intergovernmental revenues,
and other non‐exchange transactions.
The government‐wide statements are prepared using the economic resources management focus but
differs from the manner in which governmental fund financial statements are prepared. Governmental
fund financial statements therefore include a reconciliation with brief explanations to better identify
the relationship between the government‐wide statements and the statements for governmental
funds.
The government‐wide Statement of Activities presents a comparison between direct expenses and
program revenues for each function or program of the District’s governmental activities. Direct
expenses are those that are specifically associated with a service, program, or department and
therefore clearly identifiable to a particular function. Depreciation expense has been allocated to
individual functions in the governmental activities. Program revenues include charges paid by the
recipient of the goods or services offered by the program and grants and contributions that are
restricted to meeting the operational or capital requirements of a particular program. Revenues,
including taxes, which are not classified as program revenues, are presented as general revenues of the
District, with certain limited exceptions. The comparison of direct expenses with program revenues
identifies the extent to which each governmental function is self‐financing or draws from the general
revenues of the District.