Basis of Budgeting

Government fund financial statements are reported using the current financial resources measurement focus and the modified-accrual basis of budgeting. This basis of budgeting is the same as that used for accounting in the District; that is to say, the basis used is the same as that required under Generally Accepted Accounting Principles (GAAP) for governmental fund reporting. Under this method, revenues are recognized when measureable and "available". "Measureable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The District considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after the year end. Property taxes and interest are considered to be susceptible to accrual. All other revenue items are considered to be measureable and available only when the District receives cash. Expenditures generally are recorded when the related fund liability is incurred, except for principal and interest on general long-term liabilities, claims and judgments, early retirement and post-employment healthcare benefits, arbitrage rebates, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions are reported as other financing sources.

Under the terms of grant agreements, the District funds certain programs with a combination of specific cost reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the District's policy to first apply cost reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues.

BUDGET RELATED REFERENCES:

• Title 53A Public Education:

  • Chapter 2 School Districts

  • Chapter 3 Local School Boards

  • Chapter 17a Minimum School Program Act

  • Chapter 18 School District Indebtedness

  • Chapter 19 School District Budgets

• Utah State Office of Education R277 Guidance:

  • R277-425. Budgeting, Accounting, and Auditing for Utah Local Education Agencies (LEAs).

    • R277-113. LEA Fiscal Policies and Accountability.