2007 CAFR Part 3 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2007 Council approval. During the year,the budget may be amended by action of the County Council,except for appropriations required by law and appropriations for debt service, which may not be decreased or deleted. Supplemental appropriations were made during the 2006-2007 fiscal year to recognize revenue from sources not anticipated at the time of the original budget and to establish the authorization for such funds to be expended. Such supplemental appropriations totaled$20.4 million in the general fund and$8.9 million in the special revenue funds. Legally adopted budgets include the General Fund, Highway Fund, Sewer Fund, Solid Waste Fund,Cemetery Fund,Parking Meter Fund, Vehicle Disposal Fund,Bikeway Fund,Workforce Investment Act Fund,Golf Course Fund,Geothermal Relocation Revolving Fund,Beautification Fund,Housing Agency and Park Dedication Fund. • Appropriations for the operating budget lapse at the end of the fiscal year to the extent that they have not been expended or encumbered. Appropriations for capital expenditures that are not encumbered lapse at the end of two fiscal years following the fiscal year that the appropriation was made. • 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 statement of revenues,expenditures and changes in fund balances— budget and actual(budgetary basis)for the general fund presents 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. - 53 -