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The funds and account groups of the
Authority consist of Governmental Fund Types (General, Special, Revenue and Debt Service),
Proprietary Fund Types (Enterprise and Internal Service), and Account Groups (General,
Fixed, Assets and General Long-Term Debt). The majority of the Authority’s services
are devoted to financing, constructing, and operating independent enterprise operations.
These enterprise operations serve various cities and the general public within the Trinity
River Watershed. Since most of the enterprise funds that serve these customers are
economically and geographically independent from each other, the Authority presents
separate financial statements and footnotes for each enterprise fund.
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The Authority’s accounting records for general
governmental operations are maintained on modified accrual basis, with the revenues being
recorded when they become measurable and available as net current assets and expenditures
being recorded when the services or goods are received and the liabilities are incurred.
Accounting records for the Authority’s proprietary funds are maintained on the
accrual basis.
In developing and maintaining the Authority’s accounting system,
consideration is given to the adequacy of internal accounting controls. Budgetary control
over operating expenditures is achieved through the adoption of an Annual
Budget by the Board of Directors. All operating expenditures and expenses are governed by the
Annual Budget. This budget constitutes a maximum authorization to expend for
each project, function, and object therein. Once the Annual Budget is adopted,
any adjustments or revisions, which do not increase the total appropriations of any given
budget, are at the discretion of management.
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