URA Resolution No. 1078 - Laserfiche WebLink

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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (1) Summary of Significant Accounting Policies, continued (F) Receivables All receivables are shown net of an allowance for uncollectibles in the Statement of Net Position and the Governmental Funds Balance Sheet. (G) Capital Assets Capital assets are defined as tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. The capitalization threshold for capital assets is $5,000. Tangible assets include land, rights-of-way (included with land), improvements, and infrastructure. All Agency assets have been capitalized in the government-wide financial statements. In accordance with the current financial resources measurement focus, capital assets are not capitalized in the governmental fund financial statements. Agency assets are valued at historical cost which is measured by the cash or cash equivalent price of obtaining an asset, including ancillary charges necessary to place the asset into its intended location and condition for use. Upon disposal of an asset, cost and accumulated depreciation (if applicable) is removed from the accounts and, if appropriate, a gain or loss on the disposal is recognized. All assets are reported in the Statement of Net Position and any gain or loss upon disposal is recognized in the Statement of Activities in the urban renewal redevelopment function. (H) Deferred Inflows of Resources In addition to liabilities, the governmental fund balance sheet reports a separate section for deferred inflows of resources, if applicable. Deferred inflows of resources represent unavailable revenue that will be recognized in a future period(s). The Agency has two primary types of revenues that are reported in this section under the modified accrual basis of accounting. These revenues include: delinquent property taxes and notes receivable. These revenues are deferred and recognized as an inflow of resources in the period that the revenues become available. (I) Fund Balance In the fund financial statements, the fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balance is reported as nonspendable when the resources cannot be spent because they are either in a nonspendable form or legally or contractually required to be maintained intact. Resources in nonspendable form include inventories, prepaids and deposits, and assets held for resale. Fund balance is reported as restricted when the constraints placed on the use of resources are either: (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. continued 24