(a) In evaluating how to define the Cowlitz tribal government, for financial purposes, all administrative bodies shall be considered for inclusion. The inclusion of an administrative body in the tribal financial statements shall be based on the criteria set forth in GAAP. The basic, but not the only, criterion for including an administrative body within the reporting entity is the tribal council’s ability to exercise oversight responsibility. Other considerations include the ability to exercise oversight responsibility including, but are not limited to, the selection of the governing authority, the designation of management, the ability to significantly influence operations, and accountability for fiscal matters. A second criterion used in evaluating administrative bodies is the scope of public service. Application of this criterion involves considering whether the activity benefits the Tribe and/or its members. A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the government is able to exercise oversight responsibilities.

(b) To be excluded from the reporting entity are certain agency funds where the assets of other funds, governments or entities are accounted for. These funds are custodial in nature and do not involve measurement of operations. The Tribe contributes to various boards and agencies but does not control or exhibit other manifestations of oversight responsibility over those entities. Accordingly, the operations of those entities shall be excluded from the Tribe’s financial statements.

(a) The accounting and financial reporting treatment applied to a fund shall be determined by its measurement focus. All governmental funds and expendable trust funds shall be accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally will be included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets.

(b) All proprietary funds, nonexpendable trust funds and pension trust funds are to be accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund-type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.

(c) The modified accrual basis of accounting shall be utilized for all governmental fund types, expendable trust funds and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (when they become both measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter, to be used to pay liabilities of the current period. Current interest and general accounts receivable and intergovernmental revenues are the significant revenue sources considered susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due.

(d) The accrual basis of accounting shall be utilized for proprietary fund types, pension trust funds and nonexpendable trust funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

(e) The Tribe shall report deferred revenue on its combined balance sheet. Deferred revenues arise when potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. Deferred revenues also arise, when resources are received by the government before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized.

(a) Budget basis revenues and expenditures shall be presented on the modified accrual basis for governmental funds.

(b) Budget Accounting.

(a) Fixed assets, which are acquired or constructed for general governmental purposes shall be reported as expenditures in the fund that finances the acquisition and are capitalized at cost, or estimated historical cost, in the General Fixed Assets Account Group. However, infrastructure assets (public domain fixed assets such as roads, bridges, streets, curbs, gutters, storm drainage systems, etc.) shall not be capitalized. Fixed assets acquired by proprietary funds are capitalized at cost within those funds.

(b) Depreciation shall not be reported within financial statements for general fixed assets, but records shall be maintained for the purpose of recovering the costs of depreciation in conjunction with use of tribal assets on the same basis as for proprietary funds. Depreciation of exhaustible fixed assets used by proprietary funds shall be charged as an expense against their operations, and shall be computed using the straight-line method with estimated useful lives as follows:

(c) The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives shall not be capitalized. Improvements shall be capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable.

(a) Quasi-external transactions are to be accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.

(b) All other inter-fund transactions, except quasi-external transactions and reimbursements, shall be reported as transfers. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity transfers. All other inter-fund and intra-fund transfers are to be reported as operating transfers.

(a) Revenue on governmental and non-expendable trust funds shall be accounted for on the modified accrual basis of accounting, provided that;

(a) All revenue of the Tribe shall be accounted for in the authorized tribal fund, for which such revenue is derived or the operation from which such revenue results. Fund policies adopted by the tribal council pursuant to this policy shall direct the accounting of revenues.

(b) All revenue of the Tribe that is not required to be accounted for within another fund, as provided by tribal laws, shall be accounted for within general funds as general revenues.

(c) Revenues collected by governmental operations, resulting from the administration of tribal laws, in the form of dues, user fees, fines, taxes, permit sales or other such collections shall be accounted for within general funds as general revenues.

(d) Proprietary Funds.