FY 26 Approved Operating Budget

Fiduciary Funds (includes LOSAP, OPEB and PEHP) – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support Harford County Government’s own programs. The accounting used for fiduciary funds is similar to that used for proprietary funds. Pension Trust Funds are a type of Fiduciary fund. The Sheriff’s Office Pension Trust Fund was established to account for the pension of certain law enforcement and correctional employees of the Office of the Sheriff of Harford County. The Firemen’s Length of Service Awards Program (LOSAP) was established to account for the pension system for the volunteer fire personnel serving the various independent volunteer fire companies in the County. Private Purpose Trust Funds account for resources legally held in a trustee capacity. These would include Revolving Loan Funds (accounts that provide loans to credit worthy businesses unable to obtain financing through traditional sources due to limited equity, collateral, or marginal cash flow); BVL Cooperating Parties Group (private purpose trust funds used to account for revenues collected from potentially responsible parties for the purpose of undertaking the design and construction for the Bush Valley Landfill Site); and the Bar Library Trust Fund (established to account for all expenditures associated with the operations of the Bar Library of the Circuit Court of Harford County). Agency Funds are also categorized under Fiduciary funds. Agency funds include Pass Through Grants (accounts for financial assistance received from other governments and transferred to another government, individual, not-for-profit or other organization) in which Harford County Government serves as an agent with little or no discretion in determining how the assistance will be used; and the Harford County Public Entities Healthcare Consortium (accounts for a rate stabilization reserve fund created for Harford County Public Entities Consortium) in which Harford County Government serves as an agent with little or no discretion in determining how the funding will be directed. Basis of Accounting Government-wide, proprietary and fiduciary fund financial statements are reported using an economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of cash flow. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered available when they are collectible within the current period, or soon enough thereafter to pay liabilities of the current period. For this purpose the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, claims and judgments are recorded only when payments are due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources. Property taxes, income taxes, state shared tax revenues, and interest associated with the current fiscal period are all considered to be susceptible to accrual, and therefore have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable items are considered to be measurable and available only when cash is received by the government.

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