Page 92 - Hudson City Schools CAFR 2017

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2017

NOTE 15 - SET-ASIDES - (Continued)

Capital
Improvements

Set-aside balance June 30, 2016 $ -
Current year set-aside requirement 780,276
Current year offsets (1,384,892)

Total $ (604,616)
Balance carried forward to fiscal year 2018 $ -

Set-aside balance June 30, 2017 $ -

NOTE 16 - BUDGETARY BASIS OF ACCOUNTING

While reporting financial position, results of operations, and changes in fund balance on the basis of
generally accepted accounting principles (GAAP), the budgetary basis as provided by law is based upon
accounting for certain transactions on a basis of cash receipts and disbursements.

The statement of revenue, expenditures and changes in fund balance - budget and actual (non-GAAP
budgetary basis) presented for the general fund is presented on the budgetary basis to provide a meaningful
comparison of actual results with the budget. The major differences between the budget basis and the
GAAP basis are that:

(a) Revenues and other financing sources are recorded when received in cash (budget basis) as opposed to
when susceptible to accrual (GAAP basis);

(b) Expenditures and other financing uses are recorded when paid in cash (budget basis) as opposed to
when the liability is incurred (GAAP basis);

(c) In order to determine compliance with Ohio law, and to reserve that portion of the applicable
appropriation, total outstanding encumbrances (budget basis) are recorded as the equivalent of an
expenditure, as opposed to assigned or committed fund balance for that portion of outstanding
encumbrances not already recognized as an account payable (GAAP basis); and,

(d) Some funds are included in the general fund (GAAP basis), but have separate legally adopted budgets
(budget basis).

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