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<br />City of Sunny Isles Beach |Request for Proposal No. 22-02-01 22 <br /> <br />Budgetary Basis of Accounting <br /> <br />All Governmental Funds are accounted for using the modified accrual basis of accounting. Their <br />revenues are recognized when susceptible to accrual, i.e., when they become measurable and <br />available to pay liabilities of the current period. Ad Valorem taxes, licenses, permits, charges for <br />services, fines and investment earnings are susceptible to accrual. Property taxes are considered <br />available when collected in the current year or within sixty (60) days subsequent to September <br />30, provided that amounts received pertain to billings through the fiscal year just ended. Where <br />grant revenue is dependent upon expenditures by the City, revenue is accrued as the related <br />obligation are incurred. Revenues collected in advance of the year to which they apply are <br />recorded as deferred revenues. A one-year availability period is used for revenue recognition for <br />all other governmental fund revenues. Expenditures under the modified accrual basis of <br />accounting are generally recognized when the related fund liability is incurred and expected to be <br />liquidated with available resources. An exception to this general rule is accrued interest on <br />general long-term debt which is recognized when due. <br /> <br />The Proprietary Fund is accounted for using the accrual basis of accounting. Revenues are <br />recorded when earned and expenses are recorded at the time liabilities are incurred. <br /> <br />Account Groups are used to establish accounting control and accountability for the City's general <br />fixed assets and the un-matured principal of its general long-term obligations. The two (2) <br />accounts are not funds. They do not reflect available financial revenues and related liabilities but <br />are accounting records of the general fixed assets and general long-term obligations. <br /> <br />Pension Plans <br /> <br /> <br />Component Units <br /> <br />The City of Sunny Isles Beach is the primary reporting entity and has no other component units <br />that fall within its governance. <br /> <br />