2006 CAFR Part 2 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2006 • Formal budgetary integration is employed as a management control device during the year for the general fund,special revenue funds,and capital projects fund. Formal budgetary integration is not employed for debt service funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. • The accompanying statements of revenues,expenditures and changes in fund balances— budget and actual (budgetary basis)for the general fund and solid waste fund present a comparison of the legally adopted budget with actual data on a budgetary basis. Accounting principles applied for 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 solid waste fund from a GAAP basis to a budgetary basis at June 30,2006: Solid Waste General Fund Fund Ending fund balance—GAAP basis $34,965,207 $4,092,895 Encumbrance adjustments: Beginning encumbrances and unexpended alotments 5,378,176 309,494 Ending encumbrances and unexpended allotments (7,850,955) (2,787,687) Other adjustments !2.621.5531 - Ending fund balance—Non-GAAP budgetary basis $29.871875 $1.614.702 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. -55 -