Common use of Governmental Fund Clause in Contracts

Governmental Fund. General Fund In the General Fund financial statements, Fund Balance is categorized as unassigned because the amount does not meet the definition of non-spendable, restricted, committed, or assigned fund balance. In the fund financial statements, the General Fund is presented using the modified- accrual basis of accounting. Revenues are recognized when they become measurable and available, provided they are received within 60 days from the end of the fiscal year. Revenue recognition is subject to the measurable and availability criteria for the General Fund in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (for example, the related goods or services are provided). In the General Fund financial statements, amounts are recorded using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of available spendable resources. Governmental fund operating statements present increases (revenues) and decreases (expenditures) in fund balance. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Notes to the Basic Financial Statements (Continued) Fiscal Years Ended June 30, 2019 and 2018 Note 1: Nature of Business and Significant Accounting Policies (Continued) Governmental Fund – General Fund (Continued) Noncurrent portions of long-term receivables are reported in the General Fund financial statements in spite of their spending measurement focus. However, the noncurrent portions of long-term receivables are not considered available spendable resources since they do not represent net current assets. Governmental fund revenues represented by noncurrent receivables are not recognized and are reported as deferred inflows of resources in the General Fund until they become current receivables. In addition to liabilities, the General Fund financial statements reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of fund balance that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The QSA JPA has unavailable mitigation contributions that qualifies for reporting in this category. Due to the spending measurement focus, expenditure recognition for the General Fund excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as expenditures or fund liabilities. Environmental Mitigation Contributions The principal portion of the QSA JPA’s revenues are environmental mitigation contributions received from the member agencies. The costs for environmental mitigation requirements up to and not to exceed a present value of $133,000,000 are required to be paid by the IID, CVWD, and SDCWA with the balance of the expenditures above the present value of $133,000,000 to be paid by the State of California. GASB Statement No. 33 requires the entire $133,000,000 to be recorded as a receivable when all eligibility requirements have been met (for example, funding is not dependent upon certain future events). In the fund financial statements, the unavailable revenue was originally recorded as the same amount because the revenue does not represent available spendable resources and this amount has been reduced as the members have made their contributions.

Governmental Fund. General Fund In the General Fund financial statements, Fund Balance is categorized as unassigned because the amount does not meet the definition of non-spendable, restricted, committed, or assigned fund balance. In the fund financial statements, the General Fund is presented using the modified- accrual basis of accounting. Revenues are recognized when they become measurable and available, provided they are received within 60 days from the end of the fiscal year. Revenue recognition is subject to the measurable and availability criteria for the General Fund in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (for example, the related goods or services are provided). In the General Fund financial statements, amounts are recorded using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of available spendable resources. Governmental fund operating statements present increases (revenues) and decreases (expenditures) in fund balance. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Notes to the Basic Financial Statements (Continued) Fiscal Years Ended June 30, 2019 2022 and 2018 2021 Note 1: Nature of Business and Significant Accounting Policies (Continued) Governmental Fund – General Fund (Continued) Noncurrent portions of long-term receivables are reported in the General Fund financial statements in spite of their spending measurement focus. However, the noncurrent portions of long-term receivables are not considered available spendable resources since they do not represent net current assets. Governmental fund revenues represented by noncurrent receivables are not recognized and are reported as deferred inflows of resources in the General Fund until they become current receivables. In addition to liabilities, the General Fund financial statements reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of fund balance that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The QSA JPA has unavailable mitigation contributions that qualifies for reporting in this category. Due to the spending measurement focus, expenditure recognition for the General Fund excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as expenditures or fund liabilities. Environmental Mitigation Contributions The principal portion of the QSA JPA’s revenues are environmental mitigation contributions received from the member agencies. The costs for environmental mitigation requirements up to and not to exceed a present value of $133,000,000 are required to be paid by the IID, CVWD, and SDCWA with the balance of the expenditures above the present value of $133,000,000 to be paid by the State of California. GASB Statement No. 33 requires the entire $133,000,000 to be recorded as a receivable when all eligibility requirements have been met (for example, funding is not dependent upon certain future events). In the fund financial statements, the unavailable revenue was originally recorded as the same amount because the revenue does not represent available spendable resources and this amount has been reduced as the members have made their contributions.

Governmental Fund. General Fund In the General Fund financial statements, Fund Balance is categorized as unassigned because the amount does not meet the definition of non-spendable, restricted, committed, or assigned fund balance. In the fund financial statements, the General Fund is presented using the modified- accrual basis of accounting. Revenues are recognized when they become measurable and available, provided they are received within 60 days from the end of the fiscal year. Revenue recognition is subject to the measurable and availability criteria for the General Fund in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (for example, the related goods or services are provided). In the General Fund financial statements, amounts are recorded using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of available spendable resources. Governmental fund operating statements present increases (revenues) and decreases (expenditures) in fund balance. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Notes to the Basic Financial Statements (Continued) Fiscal Years Ended June 30, 2019 2021 and 2018 2020 Note 1: Nature of Business and Significant Accounting Policies (Continued) Governmental Fund – General Fund (Continued) Noncurrent portions of long-term receivables are reported in the General Fund financial statements in spite of their spending measurement focus. However, the noncurrent portions of long-term receivables are not considered available spendable resources since they do not represent net current assets. Governmental fund revenues represented by noncurrent receivables are not recognized and are reported as deferred inflows of resources in the General Fund until they become current receivables. In addition to liabilities, the General Fund financial statements reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of fund balance that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The QSA JPA has unavailable mitigation contributions that qualifies for reporting in this category. Due to the spending measurement focus, expenditure recognition for the General Fund excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as expenditures or fund liabilities. Environmental Mitigation Contributions The principal portion of the QSA JPA’s revenues are environmental mitigation contributions received from the member agencies. The costs for environmental mitigation requirements up to and not to exceed a present value of $133,000,000 are required to be paid by the IID, CVWD, and SDCWA with the balance of the expenditures above the present value of $133,000,000 to be paid by the State of California. GASB Statement No. 33 requires the entire $133,000,000 to be recorded as a receivable when all eligibility requirements have been met (for example, funding is not dependent upon certain future events). In the fund financial statements, the unavailable revenue was originally recorded as the same amount because the revenue does not represent available spendable resources and this amount has been reduced as the members have made their contributions.

Governmental Fund. General Fund In the General Fund financial statements, Fund Balance is categorized as unassigned because the amount does not meet the definition of non-spendable, restricted, committed, or assigned fund balance. In the fund financial statements, the General Fund is presented using the modified- accrual basis of accounting. Revenues are recognized when they become measurable and available, provided they are received within 60 days from the end of the fiscal year. Revenue recognition is subject to the measurable and availability criteria for the General Fund in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (for example, the related goods or services are provided). In the General Fund financial statements, amounts are recorded using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of available spendable resources. Governmental fund operating statements present increases (revenues) and decreases (expenditures) in fund balance. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Notes to the Basic Financial Statements (Continued) Fiscal Years Ended June 30, 2019 2023 and 2018 2022 Note 1: Nature of Business and Significant Accounting Policies (Continued) Governmental Fund – General Fund (Continued) Noncurrent portions of long-term receivables are reported in the General Fund financial statements in spite of their spending measurement focus. However, the noncurrent portions of long-term receivables are not considered available spendable resources since they do not represent net current assets. Governmental fund revenues represented by noncurrent receivables are not recognized and are reported as deferred inflows of resources in the General Fund until they become current receivables. In addition to liabilities, the General Fund financial statements reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of fund balance that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The QSA JPA has unavailable mitigation contributions that qualifies for reporting in this category. Due to the spending measurement focus, expenditure recognition for the General Fund excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as expenditures or fund liabilities. Environmental Mitigation Contributions The principal portion of the QSA JPA’s revenues are environmental mitigation contributions received from the member agencies. The costs for environmental mitigation requirements up to and not to exceed a present value of $133,000,000 are required to be paid by the IID, CVWD, and SDCWA with the balance of the expenditures above the present value of $133,000,000 to be paid by the State of California. GASB Statement No. 33 requires the entire $133,000,000 to be recorded as a receivable when all eligibility requirements have been met (for example, funding is not dependent upon certain future events). In the fund financial statements, the unavailable revenue was originally recorded as the same amount because the revenue does not represent available spendable resources and this amount has been reduced as the members have made their contributions.