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)G. Budgetary Data (Continued)Budgets for the General, Special Revenue, Debt Service and Capital Projects Funds are legallyadopted on a basis consistent with the modified cash basis of accounting. Expenditures maynot legally exceed appropriations at the fund level. Any expenditures in excess of the legallyadopted appropriation must be approved by the Park District Board through a supplementalappropriation . No supplemental appropriations were required during fiscal year 2011.After the first six months of any fiscal year, the Park District Board may, by a two-thirds vote,amend the initially approved appropriation ordinance. Unused appropriations lapse at the endof the fiscal year. Expenditures legally may not exceed the total of appropriations and beginningfund balance at the fund level.Management can make transfers between individual expenditure categories of a fund (i.e.,services, utilities, etc.) for up to 10% of the budgeted amount. However, Board ofCommissioners approval is required in order for management to make transfers betweendifferent funds.H. Budget Basis of AccountingBudgetary information for individual funds is prepared on the same basis as the basic financialstatements. The budget is prepared in accordance with the Illinois Park District Code and isderived from the combined annual budget and appropriation ordinance of the Park District.Working budgets are prepared for all governmental fund types. All budgets are prepared basedon the annual fiscal year of the Park District. Budgetary funds are controlled by an integratedbudgetary accounting system in accordance, where applicable, with various legal requirementswhich govern the Park District.I. Cash and Cash EquivalentsThe Park District considers all highly liquid investments, including investments in the IllinoisPark District Liquid Asset Plus Money Market Account, with an initial maturity date within threemonths of the date acquired by the Park District and investment pools to be cash equivalents.J. Capital AssetsThe accounting treatment over property, plant and equipment (capital assets) depends onwhether the assets are reported in the government -wide or fund financial statements. The ParkDistrict has adopted a capitalization threshold of $5,000.GOVERNMENT -WIDE FINANCIAL STATEMENTSIn the government -wide financial statements, fixed assets are accounted for as capital assets.All capital assets are valued at historical cost, or estimated historical cost if actual cost isunavailable. Donated capital assets are stated at their fair market value as of the date donated.- 19 -