CITY OF LAGUNA NIGUEL NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting, Measurement Focus, and Financial Statement Presentation (Continued) al Fund Financial Statements (Contin Government ued) Revenues are recognized as soon as they are both “measurable” and “available”. Revenues are considered to be available when they are collectible within the current period as soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, sales tax, intergovernmental revenues, and other taxes. Expenditures are recorded in the accounting period in which the related f und liability is incurred. cial The reconciliations of the Fund Financial Statements to the Government-Wide Finan Statements is provided to explain the differences. The City reports the following major governmental funds: General Fund The City’s primary operating fund that accounts for all financial resources of the general government except those required to be accounted for in another fund. Miscellaneous Grants Special Revenue Fund Accounts for revenues received and expenditures made for various City projects with ral and state grants. funding provided by fede City Capital Projects Fund Accounts for the expenditures relating to the City’s individual capital projects. Additionally, the City reports nonmajor governmental funds. These nonmajor governmental funds are special revenue funds which account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service and capital projects. Proprietary Fund Financial Statements Proprietary fund financial statements include a statement of net position, a statement of revenues, expenses, and changes in net position, and a statement of cash flows. An internal service fund is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the nts. The City’s Internal Service Fund includes one government-wide financial stateme individual fund which provides services directly to other City funds. (39)