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COUNTY OF ADAMS, PENNSYLVANIA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2025
NOTE 1: NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness are reported as a reduction of the related liabilities, rather than an expense.
The County reports the following major proprietary fund:
The Adams County Industrial Development Authority is organized for the purpose of acquiring, holding, constructing, improving, maintaining, owning, financing and leasing either in the capacity of lessor or lessee, projects.
Additionally, the County reports the following fund types:
Internal Service Fund is used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the County, or to other governments, on a cost reimbursement basis. The Internal Service Fund accounts for the cost of health benefits provided to employees of the County.
- Fiduciary funds, consisting of the County’s custodial funds, are used to account for assets held by the County in a trustee capacity or as an agent for individuals, private organizations or other governments. Custodial funds account for cash collected by elected row officers (and other County offices) which is subsequently disbursed to the County, individuals, private organizations and other governments for whom it was collected. The fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting.
When both restricted and unrestricted resources are available for use, it is the County's policy to use restricted resources first, then unrestricted resources as they are needed for their intended purposes.