Sarasota County Comprehensive Annual Financial Report 2019

Sarasota County, Florida Notes to Financial Statements September 30, 2019 For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan, the Health Insurance Subsidy (HIS) and the City of Sarasota firefighters pension plan and additions to/deductions from FRS’s, HIS’s and the firefighters pension plan fiduciary net position have been determined on the same basis as they are reported by each plan. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. V. IMPLEMENTATION OF GOVERNMENTAL ACCOUNTING STANDARDS STATEMENTS The County implemented the following GASB Statements during the fiscal year-ended September 30, 2019: 1) Statement No. 88, “Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placement”, improves the information disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. This statement was fully implemented for fiscal year 2019. 2) Statement No. 83, “Certain Asset Retirement Obligations”, establishes criteria for determining the timing and pattern of recognition of a liability and a corresponding deferred outflow of resources for asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with retirement of tangible capital assets. The Statement establishes the criteria for recognition and states that a government has legal obligations to perform future asset requirement activities related to its tangible capital assets and should recognize a liability based on the guidance in the Statement. This statement was fully implemented for fiscal year 2019. W. FUND BALANCE REPORTING AND GOVERNMENTAL FUND-TYPE DEFINITIONS Fund Balances are reported in the fund statements in the following classifications: Non-Spendable Fund Balance - Amounts that are (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted Fund Balance - Amounts that can be spent only for specific purposes stipulated by (a) external resource providers such as creditors (by debt covenants), grantors, contributors, or laws and regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance - Amounts that can be used only for the specific purposes determined by a formal action of the Commissioners, the County’s highest level of decision making authority, with formal action occurring prior to fiscal year-end. Commitments may be changed or lifted only by the Commissioners taking the same formal action (resolution) that imposed the constraint originally. Assigned Fund Balance - Includes spendable fund balance amounts, pursuant to the Financial Reserves Policy (Resolution 2018-130), established by the Chief Financial Management Officer or his designee that are intended to be used for specific purposes that are neither considered restricted or committed. Unassigned Fund Balance - This is the residual classification for the general fund that represents fund balance not assigned to other funds, it has not been restricted, committed, or assigned to specific purposes within the General Fund. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts non- spendable, restricted, committed, or assigned for those specific purposes. 89