b'Basis of BudgetingBudgetary Basis of AccountingBasis of accounting refers to revenues and expenditures or expenses recognized in the accounts and reported in the nancial statements. Basis ofaccounting relates to the timing of the measurements made, regardless of the measurement focus applied.The County uses the current nancial resources measurement focus and the modied accrual basis of accounting for nancial reporting for allgovernmental and agency funds. Under the modied accrual basis of accounting, revenues are recorded when they are both measurable andavailable. The term available is dened as collectible within the current period or soon enough after that to be used to pay liabilities of the currentperiod. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the current scal period.Expenditures generally are recorded when the liability is incurred, as under accrual accounting. However, debt service expenditures, as well asexpenditures related to compensated absences and claims and judgments, are recorded only when payment is due.All proprietary funds are reported using the economic resourcemeasurement focus and the accrual basis of accounting. Revenues are recognizedwhen earned, and expenses are recognized when incurred, regardless of the timing of related cash ows.Relationship between Budgetary and GAAP BasisBudget adoption is consistent with generally accepted accounting principles (GAAP) except for specic items adjusted on the Countys accountingsystem at scal year-end. During the year, the Countys accounting system is maintained on the same basis as the adopted budget. This enablesbudget units to monitor their budgets monthly through reports generated by the accounting system. Somedierences between the budgetary basisand GAAP are as follows: Certain expenditures, such as compensated absences, are not recognized for budgetary purposes but are accrued within the Proprietary Funds. Principal payments on long-term debt within the Proprietary Funds are applied to the outstanding liability on a GAAP basis, as opposed to beingexpended on a budget basis. Capital outlays within the Proprietary Funds are capitalized as assets on a GAAP basis; however, they are treated as expenditures on a budgetbasis. Bond and lease purchase proceeds in the Proprietary Funds are recognized as liabilities on a GAAP basis but are treated as revenues for budgetpurposes.Beaufort County, SC | Budget Book 2024 Page 20'