b'City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2019 Like the government-wide statements, all proprietary and fiduciary funds are accounted for on a flow of economic resources measurement focus.All assets and deferred outflows of resources and all liabilities and deferred inflows of resources associated with the operation of these funds are included on the statement of fund net position.In fiduciary funds, a liability to the beneficiaries of fiduciary activity is recognized when an event has occurred that compels the government to disburse fiduciary resources. Fiduciary fund liabilities other than those to beneficiaries are recognized using the economic resources measurement focus. For proprietary funds, the statement of changes in fund net position presents increases (i.e., revenues) and decreases (i.e., expenses) in total net position.The statement of cash flows provides information about how the City finances and meets the cash flow needs of its proprietary activities.Fiduciaryfundspresentastatementofchangesinfiduciary netpositionwhichreportsadditionsto and deductions from investment trust, private-purpose trust funds, and custodial funds.Basis of AccountingBasis of accounting determines when transactions are recorded in the financial records and reported on the financial statements.Government-wide financial statements and the statements presented for proprietary and fiduciary funds are prepared using the accrual basis of accounting.Governmental funds use the modified accrual basis of accounting.Differences in the accrual and modified accrual basis of accounting arise in the recognition of revenue, the recording of deferred outflows/inflows of resources and in the presentation of expenses versus expenditures.RevenuesExchange and Nonexchange Transactions Revenue resulting from exchange transactions, in whicheachpartygivesandreceivesessentiallyequalvalue,isrecordedontheaccrualbasiswhenthe exchange takes place.On a modified accrual basis, the resources must also be available before they can be recorded as revenue.Available means that the resources will be collected within the current year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current year.For the City, available means expected to be received within thirty-one days of year-end.Nonexchange transactions, in which the City receives value without directly giving equal value in return, include income taxes, property taxes, grants, entitlements and donations.On an accrual basis, revenue from income taxes is recognized in the period in which the income is earned.Revenue from property taxes is recognized in the year for which the taxes are levied (See Note 7).Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied.Eligibility requirements include timing requirements, which specify the year when the resources are required to be used ortheyearwhenuseisfirstpermitted,matchingrequirements,inwhichtheCitymustprovidelocal resourcestobeusedforaspecifiedpurpose,andexpenditurerequirements,inwhichtheresourcesare provided to the City on a reimbursement basis.On the modified accrual basis, revenue from nonexchange transactions must also be available before it can be recognized.Under the modified accrual basis, the following revenue sources are considered to be both measurable and available at year-end:income tax, state-levied locally shared taxes (including gasoline tax and motor vehicle license fees), fines, interest, grants and rentals. Unearned RevenueUnearned revenue represents amounts under the accrual and modified accrual basis of accounting for which asset recognition criteria have been met, but for which revenue recognition criteria have not yet been met because the amounts have not yet been earned.The City recognizes unearned revenue for prepaid burial expenses.- 34 34 -'