2005 CAFR Part 2 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2005 purposes of developing data on a budgetary basis differ significantly from those used to present financial statements in conformity with GAAP. On the budgetary basis, intergovernmental revenues are recognized when awarded by the granting agency, encumbrances and unexpended allotments are treated as expenditures,accounts payable are not accrued,and all leases are treated as operating leases. In preparing the financial statements on a GAAP basis,accounts payable are accrued and treated as a reduction of encumbrances for balance sheet presentation. Budget to GAAP Reconciliation The following is a summary of the adjustments necessary to convert fund balances of the County's general fund and sewer fund from a GAAP basis to a budgetary basis at June 30, 2005: General Fund Sewer Fund Ending fund balance—GAAP basis $23,978,072 $7,583,340 Encumbrance adjustments: Beginning encumbrances and unexpended allotments 3,890,862 2,474,199 Ending encumbrances and unexpended allotments (5,378,176) (2,064,210) Other adjustments (819,925) 100) Ending fund balance—Non-GAAP budgetary basis 17_99322 3. CASH AND INVESTMENTS The Director of Finance is responsible for the safekeeping of all monies paid to the County. The Director of Finance invests any monies of the County which in the Director's judgment are in excess of the amounts necessary for meeting the day to day operating needs of the County. Legally authorized investments include obligations of or guaranteed by the U.S. government,obligations of the State,federally-insured savings and checking accounts,time certificates of deposit and repurchase agreements with federally-insured financial institutions. Cash The County maintains approximately 18 bank accounts for various purposes at locations throughout the state. Bank deposits are under the custody of the Director of Finance. For financial statement reporting purposes,cash and short-term investments consist of cash,time certificate of deposit,and money market accounts. Cash and short-term investments also include repurchase agreements and U.S.government securities with original maturities of three months or less. The carrying amount of the County's unrestricted and restricted deposits(cash,time certificates of deposit,and money market accounts)as of June 30,2005 was$151,398,086 - 55 -