SCMTD February 2004 Board of Directors Agendas - Santa Cruz ...

NOTE 1 - OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Basis of Accountinq and Presentation
The District is accounted for as a Business Type Activity, as defined by Governmental Accounting
Standards Board (GASB) Statement No. 34, Basic Financial Statements -Management’s Discussion
& Analysis - for State and Local Governments and its financial statements are presented on the
accrual basis of accounting. Under this method, revenues are recognized when they are earned, and
expenses are recognized when they are incurred.
The District adopted GASB Statement No. 34 as amended by GASB Statement No. 37, Basic
Financial Statements - and Management’s Discussion and Analysis - for State and Local
Governments: Omnibus, as of and for the year ended June 30,2003, and applied those standards on
a retroactive basis. GASB Statement No. 34 establishes standards for external financial reporting for
state and local governments and requires that resources be classified for accounting and reporting
purposes into three net asset categories; namely, those invested in capital assets, net of related debt,
restricted net assets and unrestricted net assets.
The District adopted GASB Statement No. 38, Certain Financial Statement Note Disclosures for the
year ended June 30, 2003, and applied the standard on a retroactive basis. GASB 38 modifies,
establishes, and rescinds certain financial statement disclosure requirements.
The following shows the reconciliation of the components of total equity for June 30, 2002, as
previously reported to net asset balances for the same period.
Fund Equity
Contributed Capital:
Federal Grants
State Grants
Local Grants
Other Grants
Total Contributed Capital
Retained Earnings
$ 8,098.484
7,125,462
984,995
6,836
16,215,777
21,032,983
$ 37,248.760
Fund Net Assets:
Invested in Capital Assets, Net of Related Debt
Unrestricted Net Assets
$ 20.636.417
16,612,343
Total Fund Net Assets $ 37,248,760