Regular Board Meeting - April 19, 2017

GANADO FIRE DISTRICT NOTES TO THE REQUIRED SUPPLEMENTAL INFORMATION FISCAL YEAR ENDED JUNE 30, 2016

1. BUDGETARY BASIS OF PRESENTATION

The budget include d in these financial statements represents the original budget and amendments approved by the Board of Directors. The budgetary basis is the modified accrual basis of accounting with encumbrances included as actual. Accordingly, for the purpose of comparing budgeted expenditu res to actual amounts, prior and current year encumbrances have been integrated with the amounts shown on the Statement of Revenues, Expenditures, and Changes in Fund Balances.

Various reclassifications have been made to the actual amounts to conform to classifications included in the budget approved by the Board of Directors.

The legal level of budgetary control attributed to the Board of Directors is considered at the objective or natural classification level, presented as subtotals in the schedule of budget to actual (e.g., total revenue, total salaries and benefits, total services and supplies, etc.). DRAFT