COM 0770.000 2020-2022 - Laserfiche WebLink

Home

COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2021 finance the deficits of,or provide financial support to,the organization; or(3)The primary government is obligated in some manner for the debt of the organization. As required by GAAP as set forth in GASB Statement No. 14,No. 39 and No. 61,these basic financial statements present the County of Hawaii(the primary government) and its component unit,the Department of Water Supply(the Department). This component unit is included in the County's reporting entity because of its financial relationship with the County. Discretely Presented Component Unit The component unit column in the basic financial statements includes the financial data of the Department, a legally independent agency of the County that is accounted for as an enterprise fund. It is reported in a separate column to emphasize that it is legally separate from the County. The members of the Water Board,the governing body of the Department, are appointed by the Mayor of the County and confirmed by the County Council_ The Department is granted corporate powers by state statute and the County Charter. Although the County does not have the authority to approve or modify the Department's operational and capital budgets,the County has issued bonds on the Department's behalf that are general obligations of the County. Because the County is obligated to repay these bonds in the event of default by the Department,the County is financially accountable for the debts of the Department. See Note 14 for component unit disclosures for the Department. Complete financial statements of the Department can be obtained from the Department of Water Supply, 345 Kekuana6`a Street, Suite 20,Hilo, Hawaii 96720. Basic Financial Statements The basic financial statements include both government-wide (based on the County as a whole) and fund financial statements. Both the government-wide and fund financial statements(within the basic financial statements)categorize primary activities as either governmental or business-type. In the government-wide statement of net position,both the governmental and business-type activities columns(a) are presented on a consolidated basis by column, (b)and are reflected,on a full accrual,economic resource basis,which incorporates long-term assets and receivables as well as long-term debt and obligations. The government-wide statement of activities reflects both the gross and net costs per functional category (general government,public safety,highways and streets,etc.)which are otherwise being supported by general government revenues (property taxes,certain intergovernmental revenues,etc.). The statement of activities reduces gross expenses (including depreciation)by related program revenues,operating and capital grants. The program revenues must be directly associated with the function (general government,public safety,highways and streets,etc.)or a business-type activity. The operating grants include operating-specific and discretionary(either operating or capital)grants while the capital grants column reflects capital-specific grants. The net cost(by function or business-type activity)is normally covered by general revenues. - 48 -