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and Agency Funds and nine Enterprise Funds. A description of all these funds can be found later in this section. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a "current financial resources" measurement focus. Within this measurement focus, only current assets and current liabilities generally are 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. All proprietary funds and pension trust funds are accounted for on a "flow of economic resources" measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included in the balance sheet. Fund equity balances of proprietary funds (i.e., net total assets} reflect the present increases {revenues} and decreases (expenses) of the funds net total assets. Since 2002, the City's financials have implemented the new reporting model GASB 34. Under this model the City wide statements are full accrual and fund statements are still reported under the modified accrual basis. The modified accrual basis of accounting is used by all governmental fund types, expendable trust funds and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., 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 ar soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred. The accrual basis of accounting is utilized by proprietary fund types and pension trust funds. Under this method, revenues are recorded when earned and expenses are retarded at the time the liabilities art incurred. The City's budget is adopted on a cash basis which is not consistent with the above described generally accepted accounting principles. Annual appropriated budgets are adopted for the thirty-five funds as mentioned above. All annual appropriations lapse at the end of the fiscal year. The level of control at which expenditures may not exceed appropriations is by object classification within the fund, except for the General Fund which is by object classification within the department of the fund. The object classifications are as follows: personal services, supplies, other services, other uses, and capital expenditures. The City's management cannot transfer appropriations within a budget without approval of the Common Council. Any revisions that alter the total expenditures by any fund or any department of the General Fund must be approved by the Common Council and the State Board of Tax Commissioners. As a result of preparing tht City budgets on a cash basis (non-GAAP} as required by state law and also reporting financial results using either the modified accrual basis or the accrual basis (GAAP}, major differences exist when comparing budgets to the financial statements of the City. The main differences between the cash basis {budgetary non-GAAP basis) and the accrual basis {GAAP) fall within these three categories: B-2