An accounting policy addresses the accounting methods utilized in the different fund types for revenues, expenditures, assets, liabilities and fund equity.
An accounting policy also addresses the process through which revenues are collected and disbursements made.
Standards
Governmental Accounting Standards Board (GASB)
Generally Accepted Accounting Principles (GAAP)
Government Financial Officers Association (GFOA)
Financial Accounting Standards Board (FASB)
Auditor of Public Accounts of Commonwealth of Virginia (APA)
Code of Virginia
Commonwealth of Virginia's Library and Archives Public Records Management
Financial Statements
All activities for which the County exercises oversight responsibility are incorporated into the financial statements to form the reporting entity. Appropriate standards as stated above are followed.
The School Board and all of its funds (School, Cafeteria, Textbook, School Construction, School Activity and Scholarship) are classified as a discretely presented component unit of the financial reporting entity.
The Annual Comprehensive Fiscal Report (ACFR) will be presented by an independent public accounting firm that will also publicly issue an opinion thereon no later than December 31 of each year.
Fund Accounting
Accounts are organized on the basis of funds, each of which is considered to be a separate accounting entity.
Operations of each fund are accounted for with a separate set of self-balancing accounts which comprise its assets, liabilities, fund equities, revenues and expenditures, or expenses, as appropriate.
Modified accrual basis of accounting is followed by the governmental funds and agency funds with revenues recognized when measurable and available and expenditures recognized when the liability is incurred.
Accrual basis of accounting is followed by proprietary funds with revenue being recognized when earned and expenses are recorded when incurred without regard to receipt or payment of cash.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is also used.