25LINKBUDGET(FULL) - Flipbook - Page 31
City of Plymouth 2024 / 2025 Budget
Capital Improvement Funds – Capital Improvement Funds are used to account for
financial resources to be used for the acquisition or major improvements of capital
facilities.
Enterprise Funds – Enterprise Funds are financed and operated in a manner similar
to a private enterprise. The intent is that costs of providing services to the general
public are recovered through user charges.
Internal Service Funds – Internal Service Funds are used to account for the financing
of goods or services provided by one department to other departments of the City on
a cost-reimbursement basis
Basis of Accounting and Budgeting
The budgets of General Governmental Funds are prepared on the modified accrual basis of
accounting. Modifications in such method from the accrual basis are as follows:
A) Property taxes and other revenue that are both measurable and available for use to
finance operations of the City are recorded as revenue when received.
B) Interest on bonded indebtedness and other long-term debt is not recorded as an
expenditure until its due date.
C) Payments for inventoriable types of supplies are recorded as expenditures at the
time of purchase.
D) Normally, expenditures are not divided between years by the recording of prepaid
expenses.
Enterprise, and non-expendable Trust and Pension Trust Funds are prepared on the full
accrual basis. Under this method, revenues are recognized when earned and expenses are
recognized when incurred.
25BINTRO-04B-ES.DOCX
TABLE OF CONTENTS
INT 26
