Notes to the Financial Statements

June 30, 2014

Note 2 Budgetary vs. GAAP Basis of Accounting

The following is a reconciliation of the net change in fund balances as reported in the statutory budget 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)    $656,680    $4,385
Increases (decreases) in revenue accruals:  
Receivables and Other Assets    15,097 *    7,596
(Increases) decreases in expenditure accruals:
Accounts Payable and Other Liabilities    (110,188) *    1,660
Salaries and Fringe Benefits Payable    12,090    536
Increase (Decrease) in Continuing Appropriations    (26,483)    (14,968)
Fund Reclassification-Bus Operations    -    (959)
Net change in fund balances (GAAP basis)    $547,196    $(1,750)

Due to a statutory change Federal Medicaid spending has been transferred from the General Fund to the Restricted Grants and Accounts Fund.

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

1. Revenues are recorded when received in cash except for certain year-end accruals (statutory basis) as opposed to revenues being recorded when they are susceptible to accrual (GAAP basis).

2. Certain expenditures are not subject to accrual for budgeting purposes and are recorded when paid in cash (statutory 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.