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The budgetary basis of accounting shall be defined as follows:
A. The basis of accounting used for budget monitoring depends on the type of fund budgeted.
B. Governmental funds (such as the general fund) shall account for revenues on the budgetary basis when received in cash and charges to appropriations will be recorded when the encumbrance or commitment is created.
C. Proprietary funds (such as the KPWA and KREC) shall account for revenue when billed and charges to expenditure budgets will be recorded when the encumbrance or commitment is created. (Ord. 896, 11-8-2004)
D. Fiduciary funds are not budgeted because, by their nature, they do not represent city spendable resources. (Ord. 896, 11-8-2004; amd. 2013 Code)
E. In accordance with state law, encumbered appropriations may remain open to pay proper claims against said appropriations until September 30 of the following fiscal year. All unencumbered appropriations remaining at year end are considered lapsed, and no new encumbrances or obligations may be created subsequent to year end against these lapsed appropriations. (Ord. 896, 11-8-2004)