BEACH DOWNTOWN DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS

September 30, 2022

NOTE A – SIGNIFICANT ACCOUNTING POLICIES (Continued)

Government-wide Financial Statements (Continued) revenue and other items not meeting the definition of program revenue are reported as general revenues The DDA does not allocate indirect expenses.

Fund Financial Statements: The underlying accounting system of the DDA is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue and expenditures or expenses, as appropriate

Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The fund used by the DDA is classified into one category: governmental

Governmental Fund Financial Statements – Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenue, Expenditures and Changes in Fund Balance for the General Fund, the DDA’s only governmental fund An accompanying schedule is presented to reconcile and explain the differences in fund balance and changes in fund balance as presented in these statements, to the net position and changes in net position presented in the government-wide financial statements The DDA’s major governmental fund is as follows:

General Fund – This fund is used to account for all operations of the DDA. Revenue is derived primarily from property taxes and intergovernmental revenue received from the West Palm Beach Community Redevelopment Agency (the “CRA”).

Measurement Focus and Basis of Accounting: The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the fiduciary fund financial statements Revenuesarerecognizedwhenearnedandexpensesarerecognizedwhenincurred,regardlessofthetiming of related cashflows Propertytaxes are recognized as revenue in the yearforwhich they arelevied Grants andsimilar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting Under the modified accrual basis of accounting, revenues are recognized in the period in which they become both measurable and available. Revenues are considered to be available when collectible within the current period or soon enough thereafter to pay liabilities of the current period The DDA considers revenues to be available if collected within 60 days after the end of the fiscal year. Expenditures are generally recognized in the accounting period in which the fund liability is incurred Ad valorem property tax revenue, intergovernmental revenue, and investment income are all considered susceptible to accrual and have been recognized as revenues in the current fiscal year. All other revenue items are considered to be measurable and available only when received in cash by the DDA.

When both restricted and unrestricted resources are available for use, it is the DDA’s policy to use restricted resources first, then unrestricted resources as they are needed

Cash and Cash Equivalents: The DDA considers highly liquid investments maturing in three months or less when purchased to be cash equivalents, unless intended to be held as investments.