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i <br /> ORANGE COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD <br /> (a component unit of Orange County Government) <br /> NOTES TO FINANCIAL STATEMENTS <br /> June 30,2023 and 2022 <br /> 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES[cont'd] <br /> C. Basis of Presentation <br /> All activities of the ABC Board are accounted for within a single proprietary (enterprise) fund. <br /> Proprietary funds are used to account for operations that are (a) financed and operated in a manner <br /> similar to private business enterprises where the intent of the governing body is that the cost of <br /> providing goods or services to the general public on a continuing basis be financed or recovered <br /> primarily through user charges or (b) where the governing body has decided that periodic <br /> determination of revenue earned, expenses incurred, and/or the change in net position is appropriate <br /> for capital maintenance,public policy,management control,accountability,or other purposes. <br /> D. Basis of Accounting <br /> The financial statements have been prepared on the accrual basis of accounting. All sales are made by <br /> cash, check, debit card, or credit card, and recorded at the time of sale. Other revenue is recorded <br /> when earned.Expenses are recognized when incurred. <br /> E. Use of Estimates <br /> The preparation of financial statements in conformity with U.S. generally accepted accounting <br /> principles, requires management to make certain estimates and assumptions that affect the reported <br /> amounts of assets and liabilities and disclosure of contingent assets and liabilities at the statement of <br /> net position date, and reported amounts of revenue and expenses during the reporting period. <br /> Estimates are used to determine depreciation expense,the allowance for doubtful accounts, and certain <br /> claims and judgment liabilities,among other accounts.Actual results may differ from those estimates. <br /> F. Pensions <br /> For purposes of measuring the net pension asset, net pension liability, deferred outflows of resources <br /> and deferred inflows of resources related to pensions and pension expense, information about the <br /> fiduciary net position of the Local Governmental Employees' Retirement System ("LGERS"), and <br /> additions to/deductions from LGERS' fiduciary net position have been determined on the same basis as <br /> they are reported by LGERS. For this purpose,plan member contributions are recognized in the period <br /> in which the contributions are due. The ABC Board's employer contributions are recognized when due <br /> and the ABC Board has a legal requirement to provide the contributions. Benefits and refunds are <br /> recognized when due,and payable in accordance with the terms of LGERS.Investments are reported at <br /> fair value. <br /> G. Assets,Liabilities,and Net Position <br /> Deposits <br /> All deposits of the ABC Board are made in board-designated official depositories and are collateralized <br /> as required by G.S. 159-31. Official depositories may be established with any bank or savings and loan <br /> association whose principal office is located in North Carolina. In addition, the ABC Board may <br /> establish time deposit accounts,money market accounts, and certificates of deposit. <br /> 16 <br />