Montana Agricultural Loan Authority, Department of Agriculture : Report On Examination of Financial Statements, Fiscal Year Ended.. 1986
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Basis of Accounting The financial statements were prepared from the Statewide Budgeting and Accounting System (SBAS) with adjustments. The authority utilizes the accrual basis of accounting for the Enterprise Fund. Under this basis, revenues are recognized in the accounting period in which they are earned and become measurable. Expenses are recognized in the period incurred, if measurable, and attribut- able to the program. The Enterprise Fund is, by law, an appropriated fund. Fiscal years 1983...-84, 1984-85, and 1985-86 were appropriated assuming the program personnel would work 100 percent on au- thority projects. Funds were not appropriated for rent and indi- rect costs. The expenses recorded on the accounting records reflect those appropriated while the accompanying financial state- ments reflect the actual expenses incurred by the authority. B . Description of Fund The fund presented and its relationship to the State Treasury Fund structure is as follows: PROPRIETARY FUND TYPE Enterprise Fund - To account for operations: (a) that are financed and operated in a manner similar to private business enterprises, where the intent of the Legislature is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the Legislature has decided that periodic deter- mination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.
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