2021 Annual Comprehensive Financial Report for Sarasota County

Sarasota County, Florida Notes to Financial Statements September 30, 2021 The Debt Proceeds Capital Projects Fund is used to account for capital improvement projects that are financed by the issuance of general obligation or revenue bonds and are restricted for this specific purpose. Nonmajor Governmental Funds are an aggregation of all nonmajor governmental funds. Proprietary Funds Proprietary Funds focus on the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. The proprietary fund category includes enterprise and internal service funds. Enterprise Fundsmay be used to account for any activity for which a fee is charged to external users for goods or services. Activities are required to be reported as enterprise funds if any one of the following criteria is met: (a) the activity is financed with debt that is secured solely by a pledge of the net revenues from fees and charges of the activity; (b) laws or regulations require that the activity’s costs of providing services, including capital costs be recovered with fees and charges, rather than with taxes or similar revenues; or (c) the pricing policies of the activity establish fees and charges designated to recover its costs, including capital costs. Proprietary funds distinguish operating revenues and expenses fromnon-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the County’s enterprise and internal service funds are charges to customers for sales and services. These operating revenues are pledged for debt service bond covenants. The County also recognizes as operating revenue the portion of capacity fees intended to recover the cost of connecting new customers to the system. Operating expenses for the County’s enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The County reports the following proprietary funds: The Utility System Fund (a major fund) is used to account for the operations of the County’s water, wastewater utility services, and all activities necessary to provide such services, including administration, operations, maintenance, financing, billing, and collection. The Solid Waste System Fund (a major fund) is used to account for the County’s solid waste disposal facilities and all activities necessary for the provision of this service. The Stormwater Utility Fund (a major fund) is used to account for the operations of the County’s Stormwater utility facilities and all activities necessary for the provision of this service. The Transportation Authority Fund (a non-major fund) is used to account for the operations of the public transportation activities and all revenues, including state and federal grants, and all expenses related to the operation of these services. Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. The County’s internal service funds are: Fleet services, information technology, risk management, medical benefits, worker’s compensation, public works, field and general services and Sheriff’s insurance. 82

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