2011 Audit Report - the Burr Ridge Park District

Burr Ridge Park DistrictNotes To The Financial Statements (Continued)For the Year Ended April 30, 2011NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)B. Changes in Accounting Methods (Continued)Both new statements are prepared on the modified cash basis of accounting. Previously, thePark District used the cash basis of accounting, which did not include capital assets or longtermdebt. The cash basis of accounting is a comprehensive basis of accounting other thanGenerally Accepted Accounting Principles (GAAP).C. Basis of PresentationGOVERNMENT -WIDE FINANCIAL STATEMENTSThe Statement of Net Assets and the Statement of Activities display information about thereporting government as a whole. They include all funds of the reporting entity except forfiduciary funds. The statements distinguish between governmental and business type activities.Governmental activities generally are financed through taxes, intergovernmental revenues, andother non-exchange revenues. Business type activities are financed in whole or in part by feescharged to external parties for goods or services.The Statement of Activities demonstrate s the degree to which the direct expenses of a givenfunction or segment are offset by program revenues. Direct expenses are those that are clearlyidentifiable with a specific function. The Park District does not allocate indirect expenses tofunctions in the Statement of Activities. Program revenues include charges to residents whopurchase, use or directly benefit from goods, services, or privileges provided by a givenfunction, and grants and contributions that are restricted to meeting the operation al and capitalrequirements of a particular function. Taxes and other income items that are not specificallyrelated to a function are reported as general revenues.Separate financial statements are provided for governmental funds, proprietary funds, andfiduciary funds, even though the latter are excluded from the government -wide financialstatements. Major individual governmental funds and major individual enterprise funds arereported as separate columns in the fund financial statements.Interfund receivables and payables are eliminated in the Statement of Net Assets except for thenet residual amounts due between governmental and business-type activities. These arepresented as internal balances.Amounts reported as program revenues include charges to residents who purchase, use ordirectly benefit from goods, services, or privileges provided by a given function, and grants andcontributions that are restricted to meeting the operational and capital requirements of aparticular function. Likewise, general revenues include all taxes.- 15 -