City of Raleigh
C. Measurement focus, basis of accounting, and financial statement presentation
The government‐wide financial statements are reported using the
economic resources measurement focus
accrual basis of accounting
, as are the proprietary fund and fiduciary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related
cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the
current financial resources measurement focus
modified accrual basis of accounting
. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be
when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the City considers all revenues to be available if
they are collected within 90 days after year‐end, except for property taxes. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to earned vacation pay and claims and judgments, are recorded only when payment is due.
Sales taxes collected and held by the State at year‐end on behalf of the City are recognized as revenue. Sales taxes
are considered a shared revenue for the City because the tax is levied by Wake County and then remitted to and
distributed by the State. Ad valorem taxes receivable are not accrued as a revenue because the amount is not
susceptible to accrual. All other revenue items are considered to be measurable and available only when cash is
received by the government.
At June 30, taxes receivable for property other than motor vehicles are materially past due and are not considered
to be an available resource to finance the operations of the current year. Also, as of September 1, 2013, State law
altered the procedures for the assessment and collection of property taxes on registered motor vehicles in North
Carolina. Effective with this change in the law, the State of North Carolina is responsible for billing and collecting
the property taxes on registered motor vehicles on behalf of all municipalities and special tax districts. Property
taxes are due when vehicles are registered. The billed taxes are applicable to the fiscal year in which they are
received. Uncollected taxes that were billed in periods prior to September 1, 2013 and for limited registration
plates are shown as a receivable in these financial statements and are offset by deferred inflows of resources.
The City reports the following major governmental funds:
– The general fund is the primary operating fund of the City. It is used to account for all financial
resources of the general government, except those required to be accounted for in other funds.
Park bond fund
– The park bond fund accounts for all bond proceeds and capital project costs related to the
construction of park improvements or park land acquisition.
The City reports the following major enterprise funds:
Water and sewer fund
– The water and sewer fund accounts for the user charges, fees, other resources and all costs
associated with the operation of the water and sewer systems of the City.
Convention center fund
– The convention center complex fund accounts for the user charges, fees, other resources
and all costs associated with the operation of the convention center and performing arts center facilities of the City.
Mass transit fund
– The mass transit fund accounts for the user charges, fees, federal contributions and all
operating costs associated with the operation of the transit system in the City.