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<br /> <br /> <br /> Paris Economic Development Corporation <br /> (A Component Unit of the City of Paris, Texas) <br /> Notes to Financial Statements <br /> September 30, 2009 <br /> <br /> Note 1: Organization <br /> The Paris Economic Development Corporation (PEDC) is a governmental non-profit corporation <br /> established July 19, 1993, funded by a quarter percent sales tax. PEDC was organized exclusively <br /> for the purpose of benefiting and accomplishing public purposes of the City of Paris, Texas, by <br /> promoting, assisting, and enhancing economic development activities as provided by the <br /> Development Corporation Act of 1979. PEDC is a component unit of the City of Paris, Texas, and <br /> the business and affairs are managed by a five-member board of directors appointed by the governing <br /> body of the City of Paris, Texas. <br /> Note 2: Summary of Significant Accounting Policies <br /> <br /> A. Measurement Focus, Basis of Accounting, and Basis of Presentation <br /> The accounting policies of PEDC conform to accounting principles generally accepted in the United <br /> States of America as applicable to governments. The following is a summary of the more significant <br /> accounting pol ties: <br /> <br /> Financial Statements - Combined Governmental Funds and Government-Wide Statements <br /> PEDC's financial statements include both government-wide (reporting the unit as a whole) and <br /> fund financial statements (reporting PEDC's major funds). <br /> <br /> In the Statement of Net Assets, the governmental activities column is reported on a full accrual, <br /> economic r source basis, which recognizes all long-term assets and receivables as well as long- <br /> term debt nd obligations, if any. Net assets are reported in two parts - restricted for debt <br /> expense an unrestricted net assets. <br /> The Statement of Activities reports both the gross and net cost of PEDC's function (economic <br /> development). Economic development is supported by general government revenues (sales tax, <br /> interest on investments, etc.). <br /> The financial transactions of PEDC are reported in two individual funds in the combined financial <br /> statements. These funds are accounted for by providing a separate set of self-balancing accounts <br /> that compr se their assets, liabilities, fund equity, revenues, and expenditures/expenses. The <br /> focus of t e governmental funds' measurement (in the fund statements column) is upon <br /> determinate n of financial position and changes in financial position (sources, uses, and balances <br /> of financia resources) rather than upon net income. PEDC considers all revenues available if <br /> they are co ected within 60 days after year end and expenditures are recognized when the related <br /> liability is ' incurred. The following is a description of the governmental funds of PEDC: <br /> General F d - The General Fund is the general operating fund and is used to account for all <br /> financial resources except those required to be accounted for in another fund. <br /> Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources <br /> for, and the payment of, general long-term debt. <br /> <br /> B. Assets, Liabilities, and Net Assets <br /> 1) Depose and Investments <br /> <br /> Cash arid cash equivalents are considered to be cash on hand, demand deposits, and short- <br /> term investments with original maturities of three months or less from the date of acquisition. <br /> Investments are stated at market value. <br /> 4 <br />