8G Consent 2008 0107 - Laserfiche WebLink

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REDEVELOPMENT AGENCY OF SAN LEANDRO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Accounting and Measurement Focus (Continued) Government -Wide Financial Statements The Agency's Government-Wide Financial Statements includes a Statement of Net Assets and a Statement of Activities. These statements summarize the Governmental Activities for the Agency. The Agency has no Business Type Activities. The basic financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the Agency's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as revenues for the Agency are general revenues such as property tax increment and interest revenues. Certain eliminations have been made as prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34 in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Assets have been eliminated. In the Statement of Activities, interfund transfers have been eliminated. The Agency applies all applicable GASB pronouncements (including all National Committee on Governmental Accounting (NCGA) Statements and Interpretations currently in effect) to the governmental activities. Governmental Fund Financial Statements Governmental Fund Financial Statements include Balance Sheets and a Statements of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds. An accompanying schedule is presented to reconcile and explain the difference in net assets as presented in these statements to the net assets presented in the Government-Wide fmancial statements. The Agency has presented all major funds as required. All governmental funds are accounted for on a spending or "current f nancial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing resources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are typically recognized in the accounting period when received. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the Agency, are properly tax increment and eanungs on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred. 18