2011 Audit Report - the Burr Ridge Park District

Burr Ridge Park DistrictNotes To The Financial StatementsFor the Year Ended April 30, 2011NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe Burr Ridge Park District (Park District) was incorporated under the laws of the State of Illinois in1977 and is located in Burr Ridge, Illinois. The Park District operates under a Board-Manager formof government, providing recreation and other services to the residents of Burr Ridge, which includerecreation programs, park management, capital development, and general administration.A. Reporting EntityThe Park District follows the provisions of Governmental Accounting Standards BoardStatement No. 39, “Determining Whether Certain Organizations Are Component Units – anamendment of GASB Statement 14”. As defined by generally accepted accounting principlesestablished by GASB, the financial reporting entity consists of the primary government, as wellas its component units, which are legally separate, tax-exempt entities and meet all of thefollowing criteria:1. The economic resources received or held by the separate organization are entirely or almostentirely for the direct benefit of the primary government, its component units, or itsconstituents.2. The primary government, or its component units, is entitled to, or has the ability to otherwiseaccess, a majority of the economic resources received or held by the separate organization.3. The economic resources received or held by an individual organization that the specificprimary government, or its component units, is entitled to, or has the ability to otherwiseaccess, are significant to that primary government.The Park District has concluded that no entities meet the criteria of Statement 39 for inclusionas a component unit. Likewise, the Park District is not required to be included as a componentunit of any other entity.B. Changes in Accounting MethodsIn June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34,Basic Financial Statements and Management’s Discussion and Analysis for State and LocalGovernments (GASB 34). The Burr Ridge Park District has implemented GASB 34 effectiveMay 1, 2004. As a result, an entirely new financial presentation format has been implemented.The implementation of GASB 34 adds two “Government -Wide” financial statements as basicfinancial statements required for all governmental units. They are the Statement of Net Assets,which presents the financial condition of the governmental and business activities of the ParkDistrict at fiscal year end, and the Statement of Activities, which presents a comparison betweendirect expenses and program revenues for each program or function of the Park District’sgovernmental and business activities.The reporting model for GASB 34 classifies funds as either governmental activities, businessactivities, or fiduciary funds. Further, all non-fiduciary funds are classified as major or non-majorfunds. In reporting financial condition and results of operations for governmental units, the newstandard concentrates on major funds versus non-major funds.- 14 -