FY 2004 Third Quarter - Attachment 6 - FY 2003 Audit Adjustments (Fairfax County, Virginia)

FY 2003 AUDIT ADJUSTMENTSBased on the results of the FY 2003 Comprehensive Annual Audit, adjustments were made to receipts and expenditures based on the Generally Accepted Accounting Principles (GAAP) of modified accrual accounting. Fairfax Countyrecognizes revenues in the prior fiscal year when it is measurable and available within 45 days after the end of that fiscal year, while expenditures are recognized when the asset is received. Revenue adjustments result in an increase of $915,734 offset by expenditure adjustments for the General Fund of $1,002,084 for a net reduction to the FY 2003 General Fund ending balance of $86,350. Adjustments in FY 2003expenditures were made in Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service and Retirement funds. In addition, several revenue adjustments were made in the Special Revenue, Debt Service, Capital Projects,Enterprise and Retirement funds. Retirement fund adjustments are based on Governmental Accounting Standards Board (GASB) Statement 28 requirements regarding segregation of securities lending transactions into gross income and for financial reporting purposes. This audit attachment also outlines changes in the Fairfax County Public Schools, Fairfax County Park Authority and Fairfax County Redevelopment and Housing Authority funds based on thefinal year-end reconciliation of these accounts. Detailed audit adjustments were made which require an increase in the FY 2003 appropriation level for ...