Page 59 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 1. Organization and Summary of Significant Accounting Policies (Continued)

The proprietary and private-purpose trust funds are reported using the economic resources
measurement focus and the accrual basis of accounting. The custodial funds also employ
the economic resources measurement focus and apply the accrual basis of accounting
when reporting assets and liabilities.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. 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 or soon enough thereafter
to pay liabilities of the current period. For this purpose, the government considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period,
while grant and sales tax revenues have an availability period of 120 days.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated
absences and claims and judgments, are recorded only when payment is due.

Property taxes, franchise taxes, licenses and interest associated with the current fiscal
period are all considered to be susceptible to accrual and as such have been recognized
as revenue in the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of
the current period. All other revenue items are considered to be measurable and available
only when cash is received by the government.

The City reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all
financial resources of the general government, except those required to be accounted
for in another fund.

The Development Impact Fees Special Revenue Fund accounts for the restricted
fees collected to provide funding for capital improvements related to the impact of
development on various City services. The City collects fees for the following: arterial
streets, traffic signals, fire facilities, police facilities, park improvements, recreation
facilities, library facilities, city hall facilities, corporate yard facilities, interchange
improvements, maintenance equipment, animal shelter facilities, workforce
development facilities, public art and administrative fees. The City has elected to report
this fund as a major fund.

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