2022 Comprehensive Annual Financial Report for Sarasota Coun

Sarasota County, Florida Notes to Financial Statements September 30, 2022 The County has the following significant encumbrances as of September 30, 2022: P. ENDOWMENTS Two donor-restricted and eight designated endowments have been established for the benefit of the County’s library system. Such endowments are reported in the financial statements as a nonmajor governmental fund, or more specifically, a permanent fund type. Florida Statute 738.401 classifies net appreciation on endowments as income, rather than principal, and is hence legally available for spending; however, it is the policy of the County not to appropriate appreciation on investments. One hundred percent of other investment income is appropriated in a special revenue fund and expended for purposes as specified by donors. Q. NET POSITION / FUND BALANCES The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted net position, or unrestricted net position. Net Investment in Capital Assets - This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation, liabilities, and the outstanding balances of debt attributable to the acquisition, construction or improvement of these assets reduce the balance in this category. Restricted Net Position - This category presents external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. At year-end, governmental activities net position restricted for other purposes was composed of amounts related to contracts, contributions, gifts, and the permanent endowment fund. Business-type activities’ net position restricted for other purposes was composed of amounts related to debt service funds. Unrestricted Net Position - This category represents net position that does not meet the definition of “net investment in capital assets” or “restricted.” In the governmental fund financial statements, financial reserves are classified by components of fund balance. Fund Balances - This category represents the Contingency/Emergency/Disaster Relief Reserves that are to be used to ensure the maintenance of services to the public during non-routine and unforeseen disaster situations such as hurricanes and other weather-related events, as well as other environmental or natural disasters that Encumbrance Governmental Activities: General Fund 5,204,065 $ Federal, State & Local Grants 8,487,802 Emergency Services Special Revenue 854,989 Nonmajor Governmental Funds 27,542,739 Total Governmental Activities 42,089,595 $ Business-type Activities: Utility System 4,510,064 $ Solid Waste System 3,266,856 Stormwater Utility 1,801,031 Transportation Authority 1,023,179 Total Business-type Activities 10,601,130 $ 90

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