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Governmental funds are funds through which most of the Village's governmental functions are financed. They are accounted
for on a spending or "financial flow" measurement focus which means only current assets and liabilities are generally
included in the balance sheet. The reported fund balances (net current assets) are considered a measure of "available
resources".
The budget is prepared on a modified accrual basis for governmental funds. Revenues are recognized when measurable and
available to finance operations. Expenditures, with the exception of interest on long-term debt are recorded when incurred.
The Comprehensive Annual Finance Report (CAFR) contains comparisons to the budgetary (modified accrual) basis.
Inter-fund crossover charges are used to account for services provided between funds. The crossover charge system uses
appropriations and payments from the fund receiving the service to provide revenue to the fund providing the service. Crossover
charges are estimated and computed with indirect cost factors applied to estimates of the direct labor for services provided.
The following are the Villages governmental fund types: General, Special Revenue, Capital Project, and Debt Service.
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