Notes to the Financial Statements

June 30, 2012

Note 2 Budgetary vs. GAAP Basis of Accounting

The following is a reconciliation of the net change in fund balances as reported in the budgetary and GAAP basis of accounting statements of revenues, expenditures, and changes in fund balances (amounts in thousands):

General Transportation
Fund Fund
Net change in fund balances (budgetary basis) $- $38,451
Increases (decreases) in revenue accruals:
Receivables and Other Assets (295,248) 3,793
(Increases) decreases in expenditure accruals:
Accounts Payable and Other Liabilities 590,230 (13,944)
Salaries and Fringe Benefits Payable 131,304 9,252
Increase (Decrease) in Continuing Appropriations (70,635) 1,061
Less:Realease of 2011 Surplus Reserve (143,517) -
Fund Reclassification-Bus Operations - (2,436)
Net change in fund balances (GAAP basis) $212,134 $36,177

The major differences between the budgetary (legal) and the GAAP (generally accepted accounting principles) basis of accounting as reconciled above are as follows:

  1. Revenues are recorded when received in cash except for certain year-end accruals (budgetary basis) as opposed to revenues being recorded when they are susceptible to accrual (GAAP basis).
  2. Expenditures are recorded when paid in cash (budgetary basis) as opposed to expenditures being recorded when the related fund liability is incurred (GAAP basis).
  3. For budgetary reporting purposes, continuing appropriations are reported with other financing sources and uses in the determination of the budgetary surplus or deficit to more fully demonstrate compliance with authorized spending for the year. For GAAP purposes, continuing appropriations are excluded from operations and reported as committed fund balance.