AIRPORT FUNDS CONSOLIDATED INCOME STATEMENT FOR THE THREE YEARS ENDED JUNE 30, 1975, 1974, AND 1973 CONSOLIDATED STATEMENT OF CHANGES IN RETAINED EARNINGS CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCE Fund Balance, Beginning Of Year, As Previously Reported Restatement Of Fund Balance For Change In Basis Of Accounting Change accounting principles Fund Balance, As Restated Additions: Contributed capital-Federal grants Net income Deductions-Reclassification of fund balance to contributed capital/retained earnings, June 30, 1973 See accompanying notes to financial statements. NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The accounting policies of the City of Charlotte, North Carolina, (City) conform to the accounting policies prescribed by the American Institute of Certified Public Accountants' Industry Audit Guide, Audits of State and Local Governmental Units (Audit Guide). The following is a summary of the City's significant accounting policies. Bases of Accounting The accounts of all City funds are maintained, and the accompanying financial statements for all funds, other than accrual basis funds (enterprise and, with certain exceptions, Capital Projects, Trust and Agency and Special Assessment funds), have been prepared, on the modified accrual basis of accounting. Under this basis: (a) Revenues are recorded as received in cash except for revenues susceptible to accrual (both measurable and available), principally grants or contributions from intergovernmental agencies in certain Special Revenue and Capital Projects funds. (b) Expenditures are recorded on the accrual basis except that: interest on long-term debt is recorded as an expenditure when paid; commitments (encumbrances), such as purchase orders and contracts, are recorded as expenditures when executed. (c) Depreciation on fixed assets is provided only on those assets in use by enterprise funds. Funds Included in Financial Statements See "Revenue Structure" in the Official Statement. Fixed Assets and Depreciation Plant and equipment in the Water and Sewer and Airport Funds are recorded at cost except prior to June 30, 1963 it is recorded at appraised values. Such plant and equipment (including the cost at June 30, 1975, 1974, and 1973 of $14,983,640, $12,190,457, and $12,553,551, respectively, of water and sewer facilities being acquired by the City from the County, and the capitalized present value of future lease obligations under a non-cancelable lease-purchase agreement for a water and sewer operations center -See Note 3) of the Water and Sewer and Airport Funds are depreciated on the straight-line basis over the estimated useful lives of the depreciable asset groups by application of composite rates. Estimated useful lives and current year's depreciation of such plant and equipment are summarized as follows: Pension Plans See "Pension Plans" in the Official Statement. Contributed Capital and Retained Earnings To conform to the classifications recommended by the Audit Guide, all grants or contributions in aid of construction received subsequent to June 30, 1973 have been reported in the enterprise funds as contributed capital, and cumulative net income earned subsequent to June 30, 1973 has been reported as retained earnings. It is not considered practicable to determine the contributed capital and retained earnings components of fund balance prior to July 1, 1973. Property Taxes The Mecklenburg County Tax Collector acts as agent for the City in listing and collecting property taxes levied by the City. Comparative Financial Statements Comparative financial statement data for the years ended June 30, 1974, and 1973 are included in the accompanying financial statements. Expenditures and encumbrances in the General Fund have been refined in 1975 for more detailed descriptions of functional categories, and certain 1974, and 1973 amounts, principally non-departmental charges, have been reclassified to conform to 1975 classifications. Certain other amounts have also been reclassified in other funds to conform with the current year's presentation. 2. FUND BALANCES: Appropriated fund balances at June 30, 1975 for non-enterprise funds consist of the following items: |